Using Business Analytics to Improve Hospital Performance. Sandi Piatz, MBA Sr. Manager
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1 Using Business Analytics to Improve Hospital Performance Sandi Piatz, MBA Sr. Manager
2 Technology Evolution Third Platform Cloud computing, mobile, big data, social Client / server and internet technology Mainframe IDC Predictions 2014: Battles for Dominance and Survival on the 3 rd Platform
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4 Disclaimer These seminar materials are intended to provide the seminar participants with guidance in technology planning matters. The materials do not constitute, and should not be treated as professional advice regarding the use of any particular technology planning technique. Every effort has been made to assure the accuracy of these materials. Eide Bailly LLP and the author do not assume responsibility for any individual's reliance upon the written or oral information provided during the seminar. Seminar participants should independently verify all statements made before applying them to a particular fact situation, and should independently determine the technology and business consequences of any particular technology planning technique before recommending the technique to a client or implementing it on the client's behalf.
5 Big Data Volume The sheer amount of data gathered, analyzed and managed to make decisions based on complete data analysis Complexity Velocity Variety How fast data is being produced and changed The speed at which the data must be received, understood and processed Structured and unstructured data generated by a wide range of sources Veracity The quality of the data
6 Business Analytics Business Analytics for Health Care: The analysis of big data to make better, faster, real time health care decisions including descriptive, predictive, and prescriptive decisions for health care
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8 Health Care Analytics Adoption Model Data Collection Data Sharing Data Analytics Level 8 Personalized Medicine & Prescriptive Analytics Level 7 Clinical Risk Intervention & Predictive Analytics Level 6 Population Health Management & Suggestive Analytics Level 5 Waste & Care Variability Reduction Level 4 Automated External reporting Level 3 Automated Internal Reporting Level 2 Standardized Vocabulary & Patient Registries Level 1 Enterprise Data Warehouse Level 0 Fragmented Point Solutions
9 Why Leverage Business Analytics? Develop a value framework that is a holistic, patientcentered approach to value Address business and operations goals Monitor and respond to results of Meaningful Use reporting
10 Monitor and Respond - Meaningful Use Measurements Clinical Quality Measure (CQMs) Measures and tracks the quality of health care services provided by eligible professionals, eligible hospitals and CASs CQMs of patient care include: Health outcomes Clinical processes Patient safety Efficient use of health care resources Care coordination Patient engagements Population and public health Adherence to clinical guidelines In 2014, all providers, regardless of whether they are in Stage 1 or Stage 2 of meaningful use, will be required to report on the 2014 clinical quality measures (CQMs) for eligible professionals and 2014 clinical quality measures (CQMs) for eligible hospitals finalized in the Stage 2 rule.
11 Address Business and Operation Goals Business Goals Specific objectives that can be addressed by analytics Improve clinical effectiveness and member/patient satisfaction Improve clinical quality of care with quality improvement programs Improve patient safety and reduce medical errors Improve wellness, prevention and disease management Understand physician profiles and clinical performance Improve patient satisfaction, acquisition & retention Improve operational effectiveness Reduce costs and increase efficiency Optimize catchment area and network management Improve pay for performance and accountability Increase operating speed and adaptability Improve financial and administrative performance Increase revenue and ROI Improve utilization Optimize supply chain Improve risk management and regulatory compliance Reduce fraud and abuse
12 Develop the Right Value Framework The big-data revolution in US health care: Accelerating value and innovation. McKinsey & Company
13 Step 1: Define Objectives and Method Objectives: Hospital s Business Objectives Quality of Care Financial Improvement objectives defined via operational assessments Meaningful Use reporting measurements Method (framework): Method used should be based on the type of project Lean Eliminate non-value-added activities and waste (save time and money) Six Sigma Increase patient satisfaction and reduce errors by improving your processes Kaizen A mindset focused on continuous improvement Fishbone Outline cause & effect of processes to achieve desired outcomes
14 Step 2: Define and Document Plan Plan Components: Purpose, vision, and alignment Organizational structure Roles and responsibilities Staffing and administrative support Budget and resource allocation Scope Evaluation and approval Method (framework) Objectives (goals), strategies, tactics, and timelines Measurement and reporting
15 Step 3: Determine Key Performance Indicators Key Performance Indicators (KPIs): A quantifiable measurement that is tied to a specific goal or measurable target. It reflects critical success factors and progress towards or away from a goal. Considerations: Purpose Users Accessibility and frequency of metrics Process and accountability
16 Example KPIs Type Key KPI Drill Down KPI CLINICAL Hospital incidents # of patients acquiring infections, Transfusion reactions, Bed sores, Postoperative respiratory failure, Postoperative pulmonary embolism or deep vein thrombosis, etc. Death rate Patient satisfaction Postoperative death rate, Post-procedural death rate Courtesy score for staff, Quality of meals, Quality of physician care, etc. OPERATIONAL Medication error Wrong medication, Wrong patient, Wrong dosage Patient wait time Average Length of Stay Asset utilization rate Admission, Discharge, Triage, Ambulance, Diagnosis (lab, radiology) Admission (Last day/month to date/year to date) Bed utilization rate, Equipment utilization time, Equipment maintenance time, Equipment idle time FINANACIAL Payer performance % Claims paid Reimbursements amount Volume Physician performance Revenue per physician Reimbursement per physician Hospital performance Revenue profit margin Clinical cost reimbursement AR aging days
17 Step 4: Monitor and Adjust Monitor Change Receive Alert Understand Why Determine Context
18 Demo
19 Business Analytics Tools
20 Consider Key Success Factors Executive buy-in Maintain patient centric focus Ease of use especially for the providers Include IT in understanding the process Continue with other process improvement initiatives Communicate and educate Embed real-time monitoring and dashboards Put the data and information in the hands of the users Ensure transparency Incorporate staff feedback
21 Questions & Answers Feel free to contact me: Sandi Piatz, MBA Sr. Manager
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