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Healthcare Transformation:
A Guide to Success in the Journey to High-Value Healthcare
John L. Haughom, MD
October 2013

1

© 2012 Health Catalyst | www.healthcatalyst.com
Some Important Points
• Most American hospitals and caregivers provide
safe and effective care for the vast majority of
patients, the vast majority of the time
• The vast majority of caregivers are well trained
and conscientious
• Western  medicine’s  ability  to  save  and  extend  
life, and to improve the quality of life for the ill
and injured is nothing short of miraculous

© 2012 Health Catalyst | www.healthcatalyst.com
…but  that  does  not  change  a  harsh  reality…
…care is far too unsafe…  
…quality is too inconsistent…
…and costs are too high…

© 2012 Health Catalyst | www.healthcatalyst.com
American healthcare
"gets it right”

54.9%
of the time.

McGlynn EA, Asch SM, Adams J, et al. The quality of healthcare delivered to
adults in the United States. N Engl J Med; 2003;2635-2645
© 2012 Health Catalyst | www.healthcatalyst.com
$60
$45.6 trillion
Medicare ~$30 trillion
U.S. Net worth ~$48 trillion

U.S. Comptroller General David Walker, 2006
© 2012 Health Catalyst | www.healthcatalyst.com
30% to 50% waste

(Anderson C, 1991, and James B, et al 2006)
© 2012 Health Catalyst | www.healthcatalyst.com
Feeling vulnerable?

© 2012 Health Catalyst | www.healthcatalyst.com
Deming  101…
Quality improvement
is the

science of process management
(healthcare delivery is a system made up of
thousands of interlinked processes)

© 2012 Health Catalyst | www.healthcatalyst.com
Deming  101…
If  you  cannot  measure  it…
…you  cannot  improve  it…

© 2012 Health Catalyst | www.healthcatalyst.com
Deming  101…

“In  God  we  trust…  
…all  others  must  bring  data.”
W. Edward Deming

© 2012 Health Catalyst | www.healthcatalyst.com
Brent  James,  MD,  101…
“Managed  care” means
“managing  processes  of  care”  ...

…not managing physicians and nurses.
(clinicians are the ones who manage the process of care)

© 2012 Health Catalyst | www.healthcatalyst.com
Deming  101…
…the right data
…in  the  right  format

…at  the  right  time

(and place)

…in  the  right  hands

(the clinicians who operate the process)

© 2012 Health Catalyst | www.healthcatalyst.com

12
Deming  101…

…engaging  the  “smart  cogs”  
of healthcare…  

© 2012 Health Catalyst | www.healthcatalyst.com
“…historically encumbered and
demoralized…”  

© 2012 Health Catalyst | www.healthcatalyst.com
Are Physicians Willing to Change?
Yes…  
Physician Willingness to Change
16%
Unwilling
84%
Willing

Source: McKinsey Physician Survey, 2011
© 2012 Health Catalyst | www.healthcatalyst.com
“…historically encumbered and
demoralized…”
...inform, engage and inspire…

…ENLIGHTENMENT…
© 2012 Health Catalyst | www.healthcatalyst.com
Innovation

Roger’s Diffusion of Innovation Model
Tipping point at 1520% adoption

Innovations do
not spread
equally over

2º

different society
segments (social
groups) but

Many studies have looked at how these groups differ:

through 5 stages

• Innovators are highly cosmopolite and open to new things.

with particular

• Early adopters tend to be opinion leaders.

profile of

• Early majority provide “legitimization” of the innovation.

reaction

• Late majority are skeptical.

• Laggards put trust in the status quo.
© 2012 Health Catalyst | www.healthcatalyst.com
You can buy the piano (EHR, EDW), but you will
have to learn to use it effectively to produce great
music (greater safety, improved outcomes, lower
costs,  etc.)…  

Who is responsible for
producing great music
in healthcare?

18

© 2012 Health Catalyst | www.healthcatalyst.com
Unlock

Your data will be integrated, cataloged, and secured in
the Catalyst platform
Metadata: EDW Atlas Security and Auditing

Common, Linkable
Vocabulary

Financial Sources
(e.g., EPSi,
Peoplesoft, Lawson)
Financial
Source Marts

Departmental
Sources
(e.g., Apollo)
Departmental
Source Marts

Cardiovascular
Valves
Administrative
Sources
(e.g., API Time
Tracking)

Administrative
Source Marts

Surgery

Patient
Source Marts

KPA
Cohort Finder

EMR
Source Marts

HR
Source Mart

EMR Source

Human Resources
(e.g., PeopleSoft)

(e.g., Epic, Cerner)

More Transformation

Patient Satisfaction
Sources
(e.g., NRC Picker,
Press Ganey)

Less Transformation

Source:  Catalyst’s  Adaptive  Model
Proprietary and Confidential

© 2013 Health Catalyst
www.healthcatalyst.com
What will success look like?

© 2012 Health Catalyst | www.healthcatalyst.com
North Memorial

Women’s  and  Newborn:  Elective  Inductions
“We  wouldn’t  have  had  a  chance  to  do  some  of  the  things  we’ve  done  in  last  18  months  to  enhance  
care,  reduce  waste  and  lower  costs  without  Catalyst.  It’s  amazing  how  differently  and  effectively  we  
can  gather  and  use  data  now.”    
-Jon  Nielsen,  MD,  Medical  Director  Women  and  Children’s  Services  at  North  Memorial  Health  Care
Objective
• Define existing workflows
and identify improvement
opportunities
• Establish baseline
measures
• Define evidence based
standards for elective
inductions
• Reduce rates of pre-39
week deliveries from 1.2%
to 0.6% to qualify for a
payer partner bonus

Health Catalyst Solution

Results to date

• Late-bindingTM Data
Warehouse Platform

• Standardized workflows to
improve data reliability

• Cohort Finder
• Key Process Analysis
Application

• Established elective
delivery baseline
measurements to track
quality improvement gains

• Population Advanced
Application Module, Early
Induction Application

• Reduced early-term
deliveries from 1.2% to
0.3%

• Installation Services

• Payer partner bonus
payment

• Clinical Improvement
Services

Proprietary and Confidential

21

© 2013 Health Catalyst
www.healthcatalyst.com
HF Readmissions
Large Medical Center
Objective
• Define Congestive Heart
Failure (CHF) baseline
measures for 30 and 90day readmissions rates
• Implement evidencebased practice
interventions to drive CHF
readmission rate
reductions

• Establish balance metrics
including ED visits,
observation days and
patient satisfaction
• Develop sustaining
processes for evaluating
readmission rates to
ensure continuous process
improvement

Health Catalyst Solution
• Late-bindingTM data
warehouse that enables
faster time-to-value
• Integration of clinical,
patient satisfaction and
financial data to establish
baseline, ongoing and
balance measures

• Discovery, Foundational
and Advanced HF
applications including
cohort finder, registry and
evidence- based clinical
content
• Healthcare analytic
visualization including
gauges and trend lines for
at-a-glance view

Proprietary and Confidential

Results to date
• Seasonally adjusted rate
reduction of 21% in 30-day
and 14% in 90-day CHF
readmissions
• 2X increase in the
number of phone calls
made to patients within 48
hours of discharge
• Average of 63 % increase
in physician medication
reconciliation within 48
hours of discharge
• Follow-up appointment
intervention baseline and
balance measures
established

22

© 2013 Health Catalyst
www.healthcatalyst.com
Winner CHIME-AHA Transformational Leadership Award!

Improving Outcomes and Reducing Waste in Asthma
Healthcare: The Impact of Data
“It’s  one  thing  to  establish  an  order  set  and  another to actually drive its adoption.
Seeing how well this process works—how well and how quickly our clinical
improvement teams and evidence-based care experts are able to encourage
clinicians across our organization to standardize processes—is  very  gratifying..”  
- Dr. Charles Macias, TCH Attending Physician and Director,
Evidence Based Outcome Center.

Objective
• Improve clinical outcome
for asthma patients across
the care continue
• Better manage populations
in a new Valued Based
Purchasing environment

• Measure and ensure
sustained clinical quality
improvements

Health Catalyst Solution

Results to date

• Late-Binding™  Data  
Warehouse

• Decreased average LOS
by 11 hours

• Key Process Analysis
(KPA) Application

• Achieved and sustained a
49% decrease in
unnecessary Chest X-rays
over 16 months

• Population Analytics
Advanced ApplicationAsthma Module
• Installation Services

• 80% order set utilization
…67%  sustained  increase  
over 8 months

• Clinical Improvement
Services

• 90% usage of asthma
action plan by providers

Proprietary and Confidential

© 2013 Health Catalyst
www.healthcatalyst.com
Adversity
…is  hard…
…and  an  opportunity…

…lean into it!

© 2012 Health Catalyst | www.healthcatalyst.com
“It  is not the critic who counts; not the man who points out
how the strong man stumbles, or where the doer of deeds
could have done them better. The credit belongs to the
man who is actually in the arena, whose face is marred by
dust and sweat and blood; who strives valiantly; who errs,
who comes short again and again, because there is no
effort without error and shortcoming; but who does actually
strive to do the deeds; who knows great enthusiasms, the
great devotions; who spends himself in a worthy cause;
who at the best knows in the end the triumph of high
achievement, and who at the worst, if he fails, at least fails
while daring greatly, so that his place shall never be with
those cold and timid souls who neither know victory nor
defeat.”
Theodore Roosevelt, 1910
© 2012 Health Catalyst | www.healthcatalyst.com
“To have lived through a revolution, to have
seen a new birth of science, a new
dispensation of health, reorganized medical
schools, remodeled hospitals, a new outlook
for humanity, is an opportunity not given to
every  generation.”
Sir William Osler (1849-1919)

© 2012 Health Catalyst | www.healthcatalyst.com
Healthcare Transformation

An Opportunity Not Often Given
Participating in the Creation of a New Era in
Healthcare
By John L. Haughom, MD
2013

FREE Book!
Available online
January, 2014

© 2012 Health Catalyst | www.healthcatalyst.com
Questions,
discussion,
comments…  
Placeholder, enter your
own text here

For Information Contact:
John.Haughom@healthcatalyst.com

© 2012 Health Catalyst | www.healthcatalyst.com

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Healthcare Transformation: The Journey of High-Value Healthcare

  • 1. Healthcare Transformation: A Guide to Success in the Journey to High-Value Healthcare John L. Haughom, MD October 2013 1 © 2012 Health Catalyst | www.healthcatalyst.com
  • 2. Some Important Points • Most American hospitals and caregivers provide safe and effective care for the vast majority of patients, the vast majority of the time • The vast majority of caregivers are well trained and conscientious • Western  medicine’s  ability  to  save  and  extend   life, and to improve the quality of life for the ill and injured is nothing short of miraculous © 2012 Health Catalyst | www.healthcatalyst.com
  • 3. …but  that  does  not  change  a  harsh  reality… …care is far too unsafe…   …quality is too inconsistent… …and costs are too high… © 2012 Health Catalyst | www.healthcatalyst.com
  • 4. American healthcare "gets it right” 54.9% of the time. McGlynn EA, Asch SM, Adams J, et al. The quality of healthcare delivered to adults in the United States. N Engl J Med; 2003;2635-2645 © 2012 Health Catalyst | www.healthcatalyst.com
  • 5. $60 $45.6 trillion Medicare ~$30 trillion U.S. Net worth ~$48 trillion U.S. Comptroller General David Walker, 2006 © 2012 Health Catalyst | www.healthcatalyst.com
  • 6. 30% to 50% waste (Anderson C, 1991, and James B, et al 2006) © 2012 Health Catalyst | www.healthcatalyst.com
  • 7. Feeling vulnerable? © 2012 Health Catalyst | www.healthcatalyst.com
  • 8. Deming  101… Quality improvement is the science of process management (healthcare delivery is a system made up of thousands of interlinked processes) © 2012 Health Catalyst | www.healthcatalyst.com
  • 9. Deming  101… If  you  cannot  measure  it… …you  cannot  improve  it… © 2012 Health Catalyst | www.healthcatalyst.com
  • 10. Deming  101… “In  God  we  trust…   …all  others  must  bring  data.” W. Edward Deming © 2012 Health Catalyst | www.healthcatalyst.com
  • 11. Brent  James,  MD,  101… “Managed  care” means “managing  processes  of  care”  ... …not managing physicians and nurses. (clinicians are the ones who manage the process of care) © 2012 Health Catalyst | www.healthcatalyst.com
  • 12. Deming  101… …the right data …in  the  right  format …at  the  right  time (and place) …in  the  right  hands (the clinicians who operate the process) © 2012 Health Catalyst | www.healthcatalyst.com 12
  • 13. Deming  101… …engaging  the  “smart  cogs”   of healthcare…   © 2012 Health Catalyst | www.healthcatalyst.com
  • 14. “…historically encumbered and demoralized…”   © 2012 Health Catalyst | www.healthcatalyst.com
  • 15. Are Physicians Willing to Change? Yes…   Physician Willingness to Change 16% Unwilling 84% Willing Source: McKinsey Physician Survey, 2011 © 2012 Health Catalyst | www.healthcatalyst.com
  • 16. “…historically encumbered and demoralized…” ...inform, engage and inspire… …ENLIGHTENMENT… © 2012 Health Catalyst | www.healthcatalyst.com
  • 17. Innovation Roger’s Diffusion of Innovation Model Tipping point at 1520% adoption Innovations do not spread equally over 2º different society segments (social groups) but Many studies have looked at how these groups differ: through 5 stages • Innovators are highly cosmopolite and open to new things. with particular • Early adopters tend to be opinion leaders. profile of • Early majority provide “legitimization” of the innovation. reaction • Late majority are skeptical. • Laggards put trust in the status quo. © 2012 Health Catalyst | www.healthcatalyst.com
  • 18. You can buy the piano (EHR, EDW), but you will have to learn to use it effectively to produce great music (greater safety, improved outcomes, lower costs,  etc.)…   Who is responsible for producing great music in healthcare? 18 © 2012 Health Catalyst | www.healthcatalyst.com
  • 19. Unlock Your data will be integrated, cataloged, and secured in the Catalyst platform Metadata: EDW Atlas Security and Auditing Common, Linkable Vocabulary Financial Sources (e.g., EPSi, Peoplesoft, Lawson) Financial Source Marts Departmental Sources (e.g., Apollo) Departmental Source Marts Cardiovascular Valves Administrative Sources (e.g., API Time Tracking) Administrative Source Marts Surgery Patient Source Marts KPA Cohort Finder EMR Source Marts HR Source Mart EMR Source Human Resources (e.g., PeopleSoft) (e.g., Epic, Cerner) More Transformation Patient Satisfaction Sources (e.g., NRC Picker, Press Ganey) Less Transformation Source:  Catalyst’s  Adaptive  Model Proprietary and Confidential © 2013 Health Catalyst www.healthcatalyst.com
  • 20. What will success look like? © 2012 Health Catalyst | www.healthcatalyst.com
  • 21. North Memorial Women’s  and  Newborn:  Elective  Inductions “We  wouldn’t  have  had  a  chance  to  do  some  of  the  things  we’ve  done  in  last  18  months  to  enhance   care,  reduce  waste  and  lower  costs  without  Catalyst.  It’s  amazing  how  differently  and  effectively  we   can  gather  and  use  data  now.”     -Jon  Nielsen,  MD,  Medical  Director  Women  and  Children’s  Services  at  North  Memorial  Health  Care Objective • Define existing workflows and identify improvement opportunities • Establish baseline measures • Define evidence based standards for elective inductions • Reduce rates of pre-39 week deliveries from 1.2% to 0.6% to qualify for a payer partner bonus Health Catalyst Solution Results to date • Late-bindingTM Data Warehouse Platform • Standardized workflows to improve data reliability • Cohort Finder • Key Process Analysis Application • Established elective delivery baseline measurements to track quality improvement gains • Population Advanced Application Module, Early Induction Application • Reduced early-term deliveries from 1.2% to 0.3% • Installation Services • Payer partner bonus payment • Clinical Improvement Services Proprietary and Confidential 21 © 2013 Health Catalyst www.healthcatalyst.com
  • 22. HF Readmissions Large Medical Center Objective • Define Congestive Heart Failure (CHF) baseline measures for 30 and 90day readmissions rates • Implement evidencebased practice interventions to drive CHF readmission rate reductions • Establish balance metrics including ED visits, observation days and patient satisfaction • Develop sustaining processes for evaluating readmission rates to ensure continuous process improvement Health Catalyst Solution • Late-bindingTM data warehouse that enables faster time-to-value • Integration of clinical, patient satisfaction and financial data to establish baseline, ongoing and balance measures • Discovery, Foundational and Advanced HF applications including cohort finder, registry and evidence- based clinical content • Healthcare analytic visualization including gauges and trend lines for at-a-glance view Proprietary and Confidential Results to date • Seasonally adjusted rate reduction of 21% in 30-day and 14% in 90-day CHF readmissions • 2X increase in the number of phone calls made to patients within 48 hours of discharge • Average of 63 % increase in physician medication reconciliation within 48 hours of discharge • Follow-up appointment intervention baseline and balance measures established 22 © 2013 Health Catalyst www.healthcatalyst.com
  • 23. Winner CHIME-AHA Transformational Leadership Award! Improving Outcomes and Reducing Waste in Asthma Healthcare: The Impact of Data “It’s  one  thing  to  establish  an  order  set  and  another to actually drive its adoption. Seeing how well this process works—how well and how quickly our clinical improvement teams and evidence-based care experts are able to encourage clinicians across our organization to standardize processes—is  very  gratifying..”   - Dr. Charles Macias, TCH Attending Physician and Director, Evidence Based Outcome Center. Objective • Improve clinical outcome for asthma patients across the care continue • Better manage populations in a new Valued Based Purchasing environment • Measure and ensure sustained clinical quality improvements Health Catalyst Solution Results to date • Late-Binding™  Data   Warehouse • Decreased average LOS by 11 hours • Key Process Analysis (KPA) Application • Achieved and sustained a 49% decrease in unnecessary Chest X-rays over 16 months • Population Analytics Advanced ApplicationAsthma Module • Installation Services • 80% order set utilization …67%  sustained  increase   over 8 months • Clinical Improvement Services • 90% usage of asthma action plan by providers Proprietary and Confidential © 2013 Health Catalyst www.healthcatalyst.com
  • 24. Adversity …is  hard… …and  an  opportunity… …lean into it! © 2012 Health Catalyst | www.healthcatalyst.com
  • 25. “It  is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.” Theodore Roosevelt, 1910 © 2012 Health Catalyst | www.healthcatalyst.com
  • 26. “To have lived through a revolution, to have seen a new birth of science, a new dispensation of health, reorganized medical schools, remodeled hospitals, a new outlook for humanity, is an opportunity not given to every  generation.” Sir William Osler (1849-1919) © 2012 Health Catalyst | www.healthcatalyst.com
  • 27. Healthcare Transformation An Opportunity Not Often Given Participating in the Creation of a New Era in Healthcare By John L. Haughom, MD 2013 FREE Book! Available online January, 2014 © 2012 Health Catalyst | www.healthcatalyst.com
  • 28. Questions, discussion, comments…   Placeholder, enter your own text here For Information Contact: John.Haughom@healthcatalyst.com © 2012 Health Catalyst | www.healthcatalyst.com