Hospital Reform Implimentation and Evaluation

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    Hospital Reform

    Implementation and Evaluation

    Dr Hong FUNG28 January 2010

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    Health System Goals

    Health status

    Financial risk protection

    Public/ patient satisfaction

    (WHO, 2000)

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    Institute of Medicine, 2001

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    Institutions

    OrganizationsProviders

    National policy

    Regulation

    Financing

    Hospitals

    Clinics

    Doctors

    Nurses

    Modern Health Systems

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    Five Control Knobs

    Macro-organization

    Financing/ resource mobilization and pooling

    Provider payment

    Regulations Social values/ persuasion

    (After Hsiao)

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    State Authority in Health Sector

    Command

    & Control

    Steer &

    Channel

    Entities with full state ownership

    Entities with full state ownership but managerial

    independence

    Private not-for-profit entities with statutory responsibilities

    Private not-for-profit entities without statutory

    responsibilities

    Private for-profit provides under tax-funded or statutory

    social insurance systems

    Private for-profit companies

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    Marketizing Reforms

    Separation of payer and provider

    Continued funding, contracting or purchasing by

    government

    Quasi-markets/ internal market/ regulatedcompetition

    Autonomization/ corporatization/ privatization

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    Critical Factors for Organization Reform

    Direct Budget Allocation

    Vertical Hierarchy

    Public Purse

    Direct Hierarchical Control

    Management Autonomy

    Non Budgetary Revenues

    Private Owner

    Rules, Regulations and

    Specified, Funded and

    Unspecified & Unfunded Mandate

    Decision

    Rights

    Market

    Exposure

    Residual

    Claimant

    Accoun-

    tability

    Social

    Functions

    Budgetary

    Unit

    B

    Autonomized

    Unit

    A

    Corporatized

    Unit

    C

    Privatized

    Unit

    P

    Regulated

    Contracts

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    Incorporating Modern Management

    Introducing entrepreneurship

    Management decentralization

    Self-governing hospital structures

    Performance related payment

    Quality and outcome culture

    Market competition

    Increased technical efficiency

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    Summary of Recent Health Reforms

    From Preker AS and Langenbrunner JC, 2005

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    Three Key Strategies

    1. Enhancing government stewardship

    2. Strengthening hospital governance

    3. Developing a system ofperformance management

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    Government Stewardship

    The ultimate responsibility for the overall performance

    of a countrys health system must always lie with

    government.

    (WHO, 2000)

    Stewardship is the careful and responsible management

    of the well-being of the population.

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    The Role of Government

    3 core tasks ofStewardship (WHO, 2000)

    Formulating health policy

    Regulating the health sector

    Collection and using intelligence

    Strategies for collecting revenues and pooling of

    funds

    Effective resource allocation and/ or purchasing

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    The Evolution of Governments

    Row less, steer more

    Steering = making strategic policy decisions and

    establishing the vision

    Rowing = operational service delivery andimplementing the vision

    Regulation &Strategic Purchasing

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    Regulations

    Regulation as a process to ensure compliance withstated policy objectives within a definedframework of action.

    Regulations on Quality and effectiveness

    Patient access

    Provider behavior

    Payers Pharmaceuticals

    Physicians

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    Examples in HK

    Centre for Health Protection

    Centre for Food Safety

    Registration of Chinese Medicine practitioners and herbal

    medicines Pharmaceuticals

    ..

    ..

    Accreditation of hospitals Health insurance products

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    Strategic Purchasing

    The proactive or strategic allocation of resources in

    the light of health gain, responsiveness and

    efficiency goals.

    involves a continuous search for the best ways

    to maximize health system performance by

    deciding which interventions should be

    purchased, how, and from whom.

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    What is involved?

    Splitting purchaser from provider

    Separating of governance of funding agency

    Active process of contracting, purchasing and

    commissioning

    Focusing on outputs and outcomes

    Capacity building in regulation and coordination of

    non-governmental providers

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    Examples in HK

    Using Hospital Authority as a platform

    Setting pricing benchmarks

    Purchasing of care from private sector

    Cataract surgery Primary care in deprived areas

    Shared care in chronic disease management

    Diagnostic radiology

    Pay-for-performance mechanisms

    Using Electronic Health Records as a vehicle

    Shared electronic patient records (ePR)

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    Hospital as Reform Targets!

    Local boards play a key role

    in health sector reforms

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    Hospital Governance

    2 levels of governance

    Corporate governance

    Clinical governance

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    Corporate Governance

    The processes, and the related organizational

    structures, by which organizations are

    directed, controlled and held to account.

    (HKSA, 2004)

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    3 Basic Principles

    Openness

    Disclosure of information and communication

    Decision making processes and actions

    Integrity Straightforward dealing and completeness

    Honesty and objectivity

    Accountability

    Stewardship of public funds

    Performance

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    4 Dimensions

    Standards of behavior

    Organizational structures and processes

    Risk management and control

    Accountability, reporting and disclosure

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    7 Principles of Great Governance

    Understanding of and commitment to the mission

    Articulate and embrace the core values

    Clear on fiduciary role and basic responsibilities

    Strict adherence to conflict-of-interest policies

    Recruitment, education, self-assessment of members and

    accord priority to goal setting processes

    Create a respectful and collegial governance environment

    Respect the distinction between the roles of governance

    and management

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    Clinical Governance

    Clinical Governance is the system by which the

    governing body, managers and clinicians share

    responsibility and are held accountable for patient

    care, minimizing risks to consumers and forcontinuously monitoring and improving the quality

    of clinical care.

    Australian Council on Healthcare StandardsACHS News 2004; 12:1-2

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    Copyright 1998 BMJ Publishing Group Ltd.

    Integratingapproachesof clinicalgovernance

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    Clinical Governance Framework in NTEC

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    Hospital Chief Executive

    Clinical Governance CoordinatorDept Q&RM Coordinator

    Chief of Service

    Accountability Structure in NTEC Hospitals

    Hosp Q&RMCoordinator

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    Chair of Clinical GovernanceDept Q&RM Coordinator

    ClinicalQuality

    System& Risks

    Information& Performance

    Key Responsibilitiesin Clinical Departments in NTEC

    - Clinical protocols- Clinical standards- Clinical audits

    - Manpower- Equipment- Workload- Workflow/ processes- Incidents

    - Performance reporting- Disease coding- Data quality- Web communication

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    A System ofPerformance Management

    The proactive measurement of performance for

    securing health system improvement and

    accountability

    It involves monitoring, evaluating andcommunicating the extent to which various aspects of

    the health system meet their key objectives

    A built-in system of evaluation against health system

    goals

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    The Balanced Scorecard

    From: Kaplan & Norton,

    The Balanced Scorecard, 1992

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    Frameworks ofPerformance Measurement

    The first requirement of any performancemeasurement system is to formulate a robust

    conceptual framework within which performancemeasures can be developed.

    Smith, 2008

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    Framework of PerformanceMeasurement in Australia

    1st Tier: Health outcomes

    How healthy are we as a nation?

    2nd Tier: Determinants of healthAre we trending towards or away from health?

    3rd Tier: Health system performanceAre our acute, primary care & population health

    interventions of the highest quality at the least cost?

    4th Tier: Health system infrastructure and

    community capacityIs our system infrastructure sustainable in to the future?

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    Dimensions of Health System Performance(Australia)

    Effectiveness Appropriateness Safety Capability

    Service,

    intervention

    achieves desired

    results

    Service provided is

    relevant to patient needs

    & based on established

    standards

    Potential risks of an

    intervention or the

    environment are

    avoided or minimized

    Individual

    knowledge/skills

    appropriate to

    care/serviceprovided

    Continuity Accessibility &Equity

    Acceptability Efficiency

    Ability to provide

    uninterrupted,

    coordinated service

    across

    organizations &

    over time

    Ability of patients to

    obtain service at the right

    place & time, based on

    needs and is equitable

    Service provided

    meets expectations of

    patients, community,

    providers & paying

    organization

    Achieving desired

    results with most

    cost effective use

    of resources

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    HAs Service Performance KPIs

    Access Quality Efficiency

    1. Waiting Times

    A&E WT

    New case bookingfor SOP services

    1. Appropriateness

    Admission rate for AED pts

    2. Safety

    Infection rate

    Unplanned readmission rate forGeneral IP

    3. Service Coverage

    CGAT & VMO scheme

    4. Disease Specific Indicators

    Stroke

    Fracture Hip

    Cancer

    Diabetes Mellitus (DM)

    1. Drug consumption

    Ca-channel blocker/ ACEI/Inhaler for asthma/ Biggun/overall antibiotics

    2. Day surgery plus same

    day surgery

    3. GOP services

    % of GOP attendances forchronic diseases

    4. Bed Management

    Ratio of excess beds to1000 in-use beds

    IP occupancy rate (MN)

    General IP ALOS

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    Incentives for Quality Improvement in HA

    12 key performance indicators

    Accessibility (waiting time)

    Appropriateness of care

    Patient safety Clinical outcome

    Achievements against international or local

    benchmarks

    Improvements towards targets

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    Thank you!