Health Care, Education and Research

May 5, 2014

Your Hospital’s Path to the Second Curve: Integration and Transformation

Scott A. Duke

Vice President Regional Services

Billings Clinic

Journey to Affiliation

Glendive Medical Center

• Located in Glendive, MT• Critical Access Hospital (CAH) 25-bed• Skilled nursing facility 71-bed• Veteran skilled nursing facility 80-bed• Assisted living facility 13-unit• Gabert Clinic—21 Medical Staff• Employees—350+ FTE

The Journey to Affiliation—Why?

• Stable Medical Staff• Strong community

support• Good quality and

safety outcomes• Growth and positive

financial performance• Completed a major

construction project

• AHA Report—Hospitals and Health Systems of the Future

• PPACA• Volume-to-Value• Must do strategies• Core organization

competencies

Focus Areas

• Medical provider and clinical integration• Focus on quality outcomes• Working in care teams• Population Health• Retention and recruitment of staff• Electronic Health Record (EHR)• Shared administration and governance• Increased purchasing power

Anticipated Benefits

• Improved emphasis on quality and safety• Patient Centered Care—Medical Homes• Accountable Care Organizations (ACO)• Participation in insurance networks• Improved patient access • Create consistent/efficient processes• Shared resources for recruitment/retention

Process Attributes

• Strategic planning process• Board Committee• Scope of work and timeline• Various stakeholders; Board, Community,

Medical Staff, Leadership, Employees • Focused on “what” vs. “who” to partner • Research--gather information and data• Defined “Affiliation”

Definition of Affiliation

Does NOT Include....• Requirement of referrals• Loss of jobs and benefits• Relinquishing local

governance and decision making

• Sale or transfer of facility ownership

• Changing foundation and auxiliary ownership

Includes....• Medical provider

integration, including recruitment assistance

• Clinical integration• Shared governance and

strategic planning• Management agreement

including CEO• Operational efficiencies• Information technology• Group purchasing

Process Attributes (cont.)

• Developed attributes and benefits• Invited/site visit regional organizations • Ongoing review and analysis • Created a “Summary of Findings”• Developed/wrote a “White Paper”• Identified/selected potential partner• Held community and employee forums • Agreement Negotiations –Legal Review

Lessons Learned

• Mission, Vision, Values Driven • Focus on the care model• Strategic Process—Structure• Involve diverse group of stakeholders• Share regular updates• Conduct research and site visits• Rigorous “Due Diligence” process• Plan for future considerations

Future Considerations

• Name change and branding• Medical provider employment, CMO• Merger

Regional Services Summary

Overview • Billings Clinic is a not-for-profit organization structured as a medical

foundation that serves Montana, northern Wyoming and the western Dakotas

• 285-licensed bed acute care hospital located in Billings, Montana

• A multi-specialty physician group practice based in Billings with branch clinics in Miles City and Bozeman, Montana, and Cody, Wyoming

• A long-term care facility and a research center

• Manage 11 Critical Access Hospitals and Clinics in Montana and Wyoming

• A physician-led, integrated health care organization, the Clinic has 3,750 employees, including 260 physicians and 90 advanced practitioners offering more than 50 specialties

• 100 specialty care clinics per month at 23 regional locations for residents of rural Montana, Wyoming, and North Dakota

Partnership Philosophy in the Region

• Our intent is to create an integrated rural health care system that leverages resources and expertise

• Value exceptional patient-centered care and financial strength while demonstrating our commitment to community-based health care

• Advocate partnerships that are based on trust, shared vision, values and goals

• Transfer health care knowledge and expertise to partnering organizations thus fostering sound decision-making

• Utilize progressive management methods to achieve optimal operational, financial and clinical outcomes

Regional Strategic Pillars

Management and Affiliation Relationships

• Pioneer Medical Center* (Big Timber) 1997• Colstrip Medical Center (Colstrip) 1998• North Big Horn Hospital (Lovell WY) 1999• Daniels Memorial Health Care (Scobey) 2001• Beartooth Billings Clinic* (Red Lodge) 2002• Stillwater Billings Clinic* (Columbus) 2002• Livingston HealthCare* (Livingston) 2002• Roundup Memorial Healthcare (Roundup) 2010• Sheridan Memorial HealthCare (Plentywood) 2012• Glendive Medical Center* (Glendive) 2013• Wheatland Memorial Hospital (Harlowton) 2014

*Affiliation

Regional Attributes

• Management Agreement—11 Facilities • Core Services—15 Areas• Affiliation Agreement • Shared Governance• Regional Advisory Board (RAB)• System Development

Health Care, Education and Research

Questions?

Thank you!