Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

Qi Li, MD, MBA

Director, Product Innovation

InterSystems

consolidation: greasing the skids with interoperability

© 2014 InterSystems Corporation. All Rights Reserved.

goal


agenda

•  background •  current state of interoperability •  how can interoperability help?


what’s going on?

from 2007 to June 2013: 607 hospitals involved in M&A activity (American Hospital Association)


who? •  large

•  Ascension Health ($15 B) •  Trinity Health ($12 B) •  Tenet ($11 B)

•  small (avg. acquisition 1.7 hospitals) •  inpatient and ambulatory •  for-profit and not-for-profit (roughly 50/50) •  acute and sub-acute (Kindred-Gentiva-Centerre)


an interes)ng trend

provider payor


why?

•  capitalization •  economies of scale •  increase market power •  optimize service lines •  defensive


how can we succeed?

complementary offerings

interoperability

cultural fit


interoperability is a big deal

Royal Philips, “The New Healthcare Enterprise”


where do we fall short?


is it any surprise?

within two years of consolidation: •  roughly 1 in 5 hospitals start to lose

money •  59% fail to outperform market peers


how can interoperability help?

• op,mize current opera,ons • reduce onboarding/transi,on ,me • keep pa,ents and providers engaged



• op,mize current opera,ons • reduce onboarding/transi,on ,me • keep pa,ents and providers engaged stronger

quicker happier


stronger


• 178 beds • $225 million annual revenue • problem: lab tests performed out of network

stronger


stronger


quicker


happier



• op,mize current opera,ons • reduce onboarding/transi,on ,me • keep pa,ents and providers engaged stronger

quicker happier


wrap-up

•  background •  current state of interoperability •  how can interoperability help?


Qi Li, MD, MBA [email protected] @drqili

questions

Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

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