Using Business Analytics to Improve Hospital...

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www.eidebailly.com Sandi Piatz, MBA Sr. Manager 701.476.8876 | [email protected] Using Business Analytics to Improve Hospital Performance

Transcript of Using Business Analytics to Improve Hospital...

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Sandi Piatz, MBASr. Manager

701.476.8876 | [email protected]

Using Business Analytics to Improve Hospital Performance

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Technology Evolution Third Platform

Mainframe

Client / server and internet technology

Cloud computing, mobile, big data, social

IDC Predictions 2014: Battles for Dominance – and Survival – on the 3rd Platform

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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.

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Big Data

Volume• The sheer amount of data gathered, analyzed and

managed to make decisions based on complete data analysis

Velocity• How fast data is being produced and changed• The speed at which the data must be received,

understood and processed

Variety • Structured and unstructured data generated by a wide range of sources

Veracity • The quality of the data

Com

ple

xity

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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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Health Care Analytics Adoption Model

• Personalized Medicine & Prescriptive AnalyticsLevel 8

• Clinical Risk Intervention & Predictive AnalyticsLevel 7

• Population Health Management & Suggestive AnalyticsLevel 6

• Waste & Care Variability ReductionLevel 5

• Automated External reportingLevel 4

• Automated Internal ReportingLevel 3

• Standardized Vocabulary & Patient RegistriesLevel 2

• Enterprise Data WarehouseLevel 1

• Fragmented Point SolutionsLevel 0

Dat

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Why Leverage Business Analytics?

Develop a value framework that is a holistic, patient-centered approach to value

Address business and operations goals

Monitor and respond to results of Meaningful Use reporting

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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.”

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Address Business and Operation Goals

• 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

• Reduce costs and increase efficiency• Optimize catchment area and network management• Improve pay for performance and accountability• Increase operating speed and adaptability

• Increase revenue and ROI• Improve utilization• Optimize supply chain• Improve risk management and regulatory compliance• Reduce fraud and abuse

Improve clinical effectiveness and member/patient satisfaction

Improve operational effectiveness

Improve financial and administrative performance

Business Goals Specific objectives that can be addressed by analytics

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Develop the “Right” Value Framework

The big-data revolution in US health care: Accelerating value and innovation. McKinsey & Company

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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

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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

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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

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Example KPIsType 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 Postoperative death rate, Post-procedural death rate

Patient satisfaction Courtesy score for staff, Quality of meals, Quality of physician care, etc.

OPERATIONAL Medication error Wrong medication, Wrong patient, Wrong dosage

Patient wait time Admission, Discharge, Triage, Ambulance, Diagnosis (lab, radiology)

Average Length of Stay Admission (Last day/month to date/year to date)

Asset utilization rate Bed utilization rate, Equipment utilization time, Equipment maintenance time, Equipment idle time

FINANACIAL Payer performance % Claims paidReimbursements amountVolume

Physician performance Revenue per physicianReimbursement per physician

Hospital performance Revenue profit marginClinical cost reimbursementAR aging days

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Monitor

Receive Alert

Determine Context

Understand Why

Change

Step 4:

Monitor and Adjust

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Demo

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Business Analytics Tools

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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

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Questions & Answers

Feel free to contact me:

Sandi Piatz, MBASr. Manager701.476.8876 | [email protected]