OHI Speaks at Health Financial Management Association Mid-Atlantic Conference

On September 26th, OHI and our client, Jerry Henderson, LifeBridge Health’s VP of Perioperative Services at Sinai Hospital in Baltimore, gave a presentation at the Health Financial Management Association (HFMA) Mid-Atlantic Region Annual Conference in Virginia Beach. Over 260 healthcare executives were in attendance from Virginia, West Virginia, the District of Columbia, Maryland, and several neighboring states to learn more about the future of healthcare under the Affordable Care Act and how to operate more efficiently in order to get out from under the weight of rising healthcare costs.

Workflow Technology Drives $2MM-$3MM Bottom Line Improvement

The focus of OHI’s presentation centered on lowering costs and generating revenue in the perioperative setting using LEAN methodology and the application of workflow technology to improve resource utilization and patient flow. The case study examined performance in the clinical unit responsible for clearing patients for surgery and in which the OPTIMI$ER workflow technology was recently installed. Annualized results after one month of operation total $2MM to $3MM bottom line improvement. This includes:

  • 60% increase in staff satisfaction with regard to the patient clearance process.
  • 1-2 additional surgical cases/day due to a reduction of errors and omissions leading to surgical delays and cancellations. The estimated incremental revenue is $750k-$1.5 million.
  • A technology overlay that will facilitate the unit’s ability to bill for services currently offered free of charge – the estimated incremental revenue is $1.2 – $1.5 million.
  • 1 FTE reallocated to another service area due to a reduction manual process steps, documentation, and information transfer. An additional FTE reallocation is anticipated by year end. The estimated cost savings are $150k.
  • $20k savings in paper, ink cartridges, and fax maintenance.

The attendees, largely hospital CEO’s, CFO’s, COO’s, and revenue cycle managers were very receptive to the issues outlined and the solution offered. In particular, they acknowledged that EHR’s are not providing the workflow efficiency they had hoped for. And that an overlay solution like OPTIMI$ER that can interface with the EHR as well as other clinical and financial IT systems is a promising path to explore.

If you would like a copy of the Sinai Hospital case study or would like to speak with OHI about OPTIMI$ER, please email: heather@waohi.azurewebsites.net.

Clinical Process Improvement: Inspiration from Unlikely Places

A few months ago, Optimium Health formed a strategic partnership with MS2, a health consulting firm specializing in hospital patient flow efficiency. OHI and MS2 share a firm belief that clinical process improvement is a key contributor to improving both the patient experience and the care organization’s operational performance, including lowering costs and increasing revenues.

We also share a belief that healthcare can learn from other industries to solve some of its problems.For example: it can learn from restaurants like the Cheesecake Factory, which delivers quality and consistency across more than 200 menu items in 164 locations (reference my June 7, 2013 post), and manufacturers like Toyota, which use LEAN thinking to ensure the journey of how something gets done is as important as the outcome of what gets done (reference my April 1, 2013 post). And, we also believe healthcare can learn from an item most of us keep in our kitchen drawer.

What Can We Learn From Funnels?

A few years ago, Dr. Emilio Belaval, the founder of MS2 wrote an article about Emergency Department (ED) capacity and used the analogy of how a funnel works to illustrate his points:

When a hospital doubles ED physical capacity, it never doubles inpatient capacity nor doubles the number of radiologists, consultants, lab techs, analyzers, transporters, etc. As such, even a modest increase in ED volumes puts significant strain on all the ancillary departments we need to help us service demand and the inpatient units we need to unload admitted ED patients to. This markedly increases variability in system interfaces and increases the time patients actually spend idle in ED beds.

To illustrate this, close your eyes and imagine we are pouring sand into a three-dimensional funnel. As we pour sand on the top of the funnel some sand makes it to the bottom opening and exits the funnel but, if we pour sand more briskly, the funnel will eventually fill up as sand is being poured in faster than it can exit. The sand that spills over the top (because it does no longer fits in the funnel), represents patients accumulating in the ED waiting room and hallways.

Read the full article here.

Affordable, Sustainable & Tailored Solutions

We love the funnel analogy since it combines the laws of science with what we know as “common sense” because we experience it in our everyday lives. Importantly, it helps us visualize the complexity of a clinical process issue in a simple way. Dr. Belaval goes on to write about how we can use lessons from the funnel to make sure we consider the big picture when tackling patient flow and process inefficiency. For example, fixing one thing in isolation may lead to bottlenecks upstream or downstream once the whole process is set into motion.

If you have issues with ED efficiency or clinical process issues in perioperative, chemotherapy, radiology, and other critical areas of care delivery please contact us for a free consultation. Optimum Health, in partnership with MS2 where appropriate, will do our best to find a solution that is affordable, sustainable, and tailored to your organization’s needs. Email heather@waohi.azurewebsites.net.

LEAN Healthcare: What Can We Learn From Cheesecake?

The Need for Productivity Transformation

Medicine has long resisted the productivity revolutions that transformed other industries. But the explosive growth of provider systems like Medstar, Stewart, and Kaiser Permente aim to change this mindset. An article by Dr. Atul Gawande, a surgeon at Brigham & Women’s and professor at the Harvard School of Public Health, recently published in The New Yorker magazine offers some inspiration for change from an unlikely source: The Cheesecake Factory.

Below is an excerpt from the article:

The place (the Cheesecake Factory) is huge, but it’s invariably packed, and you can see why. The typical entrée is under fifteen dollars. The décor is fancy, in an accessible, Disney-cruise-ship sort of way….The waiters are efficient and friendly….They try to make you feel as if it were a special night out. As for the food….it was delicious.

The chain serves more than eighty million people per year. I pictured semi-frozen bags of beet salad shipped from Mexico, buckets of precooked pasta and production-line hummus, fish from a box. And yet nothing smacked of mass production. My beets were crisp and fresh, the hummus creamy, the salmon like butter in my mouth…The whole table was happy.

I wondered how they pulled it off. I asked one of the Cheesecake Factory line cooks how much of the food was premade. He told me that everything’s pretty much made from scratch—except the cheesecake, which actually is from a cheesecake factory, in Calabasas, California.
I’d come from the hospital that day. In medicine, too, we are trying to deliver a range of services to millions of people at a reasonable cost and with a consistent level of quality. Unlike the Cheesecake Factory, we haven’t figured out how. Our costs are soaring, the service is typically mediocre, and the quality is unreliable. Every clinician has his or her own way of doing things, and the rates of failure and complication (not to mention the costs) for a given service routinely vary by a factor of two or three, even within the same hospital.

Healthcare Must Learn From Other Industries

Gawande goes on to draw insightful observations of how The Cheesecake Factory operates with great efficiency, consistency, and quality of service and how hospitals can learn from this casual dining chain of 160 restaurants. His message is clear, healthcare needs to learn from the good work being done in other industries to lower costs, improve service, and increase customer (or patient in the case of hospitals) satisfaction in the face of increased competition.

Toyota achieved these advantages over its competition in large part thanks to LEAN manufacturing – An operational ethos which is now being embraced more openly in healthcare. Southwest Airlines has done the same through standardization of planes to improve on-time departures and arrivals, a critical component of customer satisfaction as well as the airlines cost profile and profitability.

Clinical Workflow Optimization Should Be Part of the Solution

Optimium Health could not agree more with Dr. Gawande’s message. That is why we have tailored business process management (BPM), or more simply put, workflow technology to the clinical setting. BPM has been widely used in banking, manufacturing, and many other service industries for decades. Yet, until now, in healthcare use of BPM is relatively uncharted territory.

If you would like to learn more about how Optimium Health’s HIPAA compliant solutions can complement your on-going Lean Healthcare initiatives and help to make your healthcare organization more productive with lower costs and higher measures of patient and staff satisfaction, please contact Heather Guild at: heather@waohi.azurewebsites.net.

Are Handoffs Your Nemesis?

Are handoffs your nemesis – an ongoing problem:

The ongoing Joint Commission Center for Transforming Healthcare’s Hand-off Communication project found that more than 37% of hand-offs were defective, and 21% of those initiating the hand-off felt a sense of dissatisfaction regarding the quality of the hand-off (JCCTH, 2010). A breakdown in communication was a leading cause of problems during hand-offs. The full report can be read by clicking this link.

Solutions can work in conjunction with your EHR:

Albeit the EHR has helped some with this issue, they have not proven to be the panacea that was expected. They do a good job of documenting patient information, one patient at a time, but are not so effective when dealing with multiple people and workflows. By setting up a fail-safe process for sending and receiving hand-offs, using proven tools, much of the problems that cause hand-off failures could be eliminated.

Healthcare can learn from other industries:

Although the delivery of healthcare is somewhat unique with a complex set of problems and issues involving multiple people, departments and technologies, it is not so exclusive that it cannot learn and borrow from other industries. Other industries introduced Lean, which is a proven methodology that healthcare organizations are beginning to embrace. Why not take that one step further and consider the use of “workflow tools” used in other industries to assist in “hand-offs” between systems, departments and people? Simply put, orchestrating hand-offs with the use of a technology overlay could greatly improve patient safety as well as increasing financial benefit.

To learn more about the clinical workflow solutions Optimium Health offers please contact: vicki@waohi.azurewebsites.net.

Optimium Health and MS2 Form Strategic Alliance

Thursday, May 1st, 2013 – Annapolis, MD; USA

Optimium Health is pleased to announce our strategic partnership with Medical Strategies & Management Systems (MS2), a leader in patient flow logistics whose aim is to improve operational efficiency. Optimium Health’s workflow technology overlay, OPTIMI$ER (TM), will complement MS2’s existing arsenal of tools for client engagements that require a technology solution in order to achieve optimum patient flow efficiency.

Founded in 2004 by clinicians, MS2 is a team of Hospital patient flow logistics experts focused on hospital process redesign, capacity management and operational efficiency. They help hospitals identify and solve the operational constraints that limit institutional patient flow and decrease patient satisfaction with hospital services. MS2’s mission is to help develop operationally efficient and adeptly managed provider health organizations without the need for capacity expansion, staffing increases or technology investments.

MS2 currently serves Hospitals, Healthcare Systems, Physician Groups and Healthcare Consulting Firms that need to identify, design and implement fundamental system-wide changes to address complex patient flow deficiencies. Our clients are able to increase market share, improve staff retention, obtain recognition as a service leader, increase revenue margins, and avoid costly physical capacity expansions. Some of the issues we help solve include:

Emergency Department Problems:

  • ED Overcrowding
  • Lengthy Waiting Times
  • Declining ED Revenues
  • Patients Leaving Unseen
  • Ambulance/EMS Diversions
  • Patient and Staff Dissatisfaction
  • Poor Ancillary Department Interfaces
  • High Emergency Department Boarding Hours

Hospital Operational Issues:

  • High Hospital Readmission Rates
  • Low Number of Predicted Discharges
  • Low Number of Discharges Before Noon
  • High Number of PACU Boarding Hours
  • Declining or Stagnant HCAHPS Scores
  • Lengthy Admissions/Discharge Processes
  • Poor Utilization of OR, PACU, ICU and IP Units
  • Unaddressed State Reportable Core Measures

Learn more at: https://www.ms2group.com.

Advisory Board Formation

Wednesday, April 24th, 2013 – Annapolis, MD; USA

Optimium Health, Inc. is pleased to announce that Todd Lazenby and Hank Steinbrecher have joined its Advisory Board. Todd brings considerable experience from the world of private equity and investment banking and has a passion for helping young companies achieve commercial and financial success. Hank has a proven track record taking an underdeveloped organization and fueling its growth to a level of international recognition by forming strategic partnerships, gaining grassroots support and participation, and developing a long-term vision for success and growth.

R. Todd Lazenby – Finance

Todd is the founding partner of Victory Partners, LLC and Royal Ascot Partners, LLC. He brings 22 years of private equity, investment banking, and corporate finance experience to the firm, having held increasing senior level positions in start-ups, mid-sized and Fortune 500 companies. He has built an investment firm that has made control investments in companies comprising over $300 million in enterprise value and has arranged and overseen in excess of $2.5 billion in capital markets and mergers & acquisitions transactions. Prior to founding VP and RAP, Todd was the Managing Partner of Summit Capital Partners, LLC in Los Angeles, then the managing partner of WP Capital Partners, L.P. in Dallas, both merchant banking firms representing middle market companies on a national basis.

Todd holds a JD from UC Berkeley Boalt Hall School of Law, an MS from Stanford University Graduate School of Business, and an MBA and a BS in Communications from Florida State University.

Hank Steinbrecher – Business Development

National Soccer Hall of Famer Hank Steinbrecher has had a life-long relationship with sport and possesses the strategic thinking skills that have made U.S. Soccer an international force. As Secretary General of the United States Soccer Federation and CEO of US Soccer throughout the 1990’s, Hank took a lead role in securing sponsors to fund its grassroots outreach and financial growth. By the end of the decade, the U.S. Men had appeared in three World Cups, won a Gold Cup, and established a national fan base. For the U.S. Women, success meant two Women’s World Cup crowns and their first of four Olympic Gold Medals. Hank was also at the forefront of the Soccer Summit, bringing together leaders from across the American soccer landscape to chart the course of the sport into the next millennium. That course would eventually result in the U.S. hosting the 1994 World Cup and the birth of Major League Soccer, the highest level of professional club soccer ever seen in the United States.

After 10 years at the helm of US Soccer, Hank is now President of Touchline Consultants Inc. Touchline specializes in strategic planning for sports organizations, management of large international sporting events, and developing sales, marketing and distribution strategies for major product companies.

Why Your Hospital Should LEAN Forward

Mark Graban, the author of Lean Hospitals, asserts that, “waste is any problem that pops up during the day that delays care.” And Christopher Kim, MD, MBA, of the Departments of Internal Medicine and Pediatrics at the University of Michigan asserts, “up to 40% of time spent in hospitals is waste.” The article from which these quotations came is nearly 5 years old but the situations it describes are no less true in 2013 than they were in 2008.

Bad Processes Lead to Waste

We whole heartedly support the hospital LEAN movement and why your hospital should LEAN forward. Bad processes lead to waste. Waste leads to higher costs, lower employee satisfaction, and compromised patient outcomes. No one wants to blindly perpetuate that destructive cycle. Equally important, in today’s environment of increasing demand for services and decreasing amounts of reimbursements, hospitals must address HOW work gets done (the process) and not simply WHAT work gets done (the task) if they are to survive the profit squeeze.

The strength of LEAN initiatives is the critical examination of clinical processes, breaking them down into parts, and eliminating waste through a series of deliberate steps. The weakness of LEAN initiatives is poor sustainability, in large part because workflow technology is not part of the LEAN strategy and people revert to old behaviors that compromise the LEAN initiative.

Technology Offers Repeatable, Measurable, Sustainable Results

Thus, whether you use our clinical workflow technology, OPTIMI$ER, or build your own process solution, we strongly advise you make workflow technology part of your LEAN strategy. Keep in mind, defining a technology solution should follow the hard work of understanding how people currently do their work, mapping the current state process, and then determining the desired future state process. There is no value in automating a bad process! Process case studies across multiple clinical settings demonstrate how technology can help orchestrate clinical workflow in a repeatable, measurable, and sustainable way leading to:

  • a reduction of errors, omissions, duplications and delays
  • an increase in financial performance, employee productivity and satisfaction, and patient safety and satisfaction
  • a return on investment that can be achieved in 3-6 months

Please contact us if you would like to discuss opportunities for you to further your efforts to LEAN forward. Email vicki@waohi.azurewebsites.net.

Health IT Is Needed To Drive Operating Room Efficiency

Hospital Executives agree, Health Information Technology is a critical component for operating room staff to better manage increasing surgical case volume, to lower the cost per patient served, and to drive successful outcomes. This declaration comes from a survey conducted by independent research organization Penn Shoen Berland among 142 hospital executives including CEOs, COOs, CFOs, CIOs, and CNOs.

Aging populations with increasing needs for surgical procedures, as well as a general population with more access to healthcare are the primary reasons case volume across US operating rooms has steadily increased over the past several years. Assessing the state of operating room (OR) volume today and in the future:

  • 49% of respondents report that OR case volume has increased in the past year
  • 73% expect OR case volume to increase over the next 3 years
  • 39% seeing an increase for inpatient cases and 91% anticipating an increase in outpatient cases

In order to meet increasing demand with the resources they have today, more than 79% of decision-makers agree that Health IT solutions tailored to the way ORs work will drive success inside the OR. The executives go further to say that the top 4 strategies to help reduce escalating OR costs are:

  • Increasing OR efficiency and patient throughput (73%)
  • More closely managing overall workflow (57%)
  • Cutting spending on supplies (52%)
  • Reducing overtime (35%)

The top 3 perioperative IT capabilities executives want for OR management are:

  • Scheduling (20%)
  • Seamless integration between departments and systems (16%)
  • Information capabilities such as data storage/audit trail; real-time data; EHR (12%)

Finally, 76% of executives say that “scheduling the OR is inherently different from scheduling other services in the hospital. And, therefore requires a uniquely tailored process and IT solution.”

Clearly, these executives see perioperative IT solutions as having tremendous potential to help control costs while delivering efficiencies that can help hospitals meet the demands of rising surgical volumes. Prior to the introduction of the OPTIMI$ER Surgical Workflow Technology Suite, there have been no orchestration overlay solutions that streamline and guide care givers through the 100-200 steps necessary to get each patient to surgery. Because OPTIMI$ER increases the efficiency of handoffs, and increases the communication between people and systems, it can greatly enhance the functionality of legacy IT and processes that are currently in place. OPTIMI$ER is the game-changer:

  • OPTIMI$ER interfaces with most legacy systems and will provide mechanisms that enable the automated “pull” and “push” of data with those systems in such a way that workflows are enhanced.
  • OPTIMI$ER will guide caregivers through all the tasks and information exchanges necessary to get a surgical patient from first appointment to first incision, seamlessly and safely.
  • OPTIMI$ER was designed with the perioperative care giver in mind – it is not an off the shelf process management system.

If your hospital or surgical group practice sees a similar demand for ORs on the horizon and you question whether or not your current IT configuration will drive operating room efficiency necessary to meet increasing demand, please contact Vicki Harrison at vicki@waohi.azurewebsites.net.

OHI Will Partner With LifeBridge Health

As a follow up to our April communication that Optimium Health was named a finalist in the LifeBridge Health Entrepreneur Challenge. OHI will partner with LifeBridge Heath, specifically Sinai Hospital, to streamline the process of perioperative coordination with a leading-edge health IT solution.

Our mutual objectives are to 1) improve operating room throughput, 2) lower the cost per patient served, and 3) increase patient and staff satisfaction. Our overarching goal is to make the patient journey from first appointment to first incision as seamless and satisfying as possible.

To achieve this, OHI will tailor our clinical process orchestration engine, OPTIMI$ER, to the workflow needs of the Sinai perioperative team. This is likely to include task and summary dashboards, task alert and prioritization mechanisms, real-time posting and audit trail, and legacy system interface in order to eliminate data entry duplication. Pre- and post-implementation financial and satisfaction measures will validate the throughput, cost, and satisfaction objectives. We expect the OPTIMI$ER Perioperative Workflow Solution to provide a standardized framework for repeatable, measureable, and sustainable results while allowing for customization to meet the needs of individual hospitals.

LifeBridge Health consists of Sinai Hospital of Baltimore, Northwest Hospital, Samuelson Children’s Hospital, Levindale Hebrew Geriatric Center and Hospital, Courtland Gardens Nursing & Rehabilitation Center and their subsidiaries and affiliated units, including LifeBridge Health & Fitness and the LifeBridge Medical Care Centers in Eldersburg, Mays Chapel and Reisterstown. Both Sinai and Northwest remain acute-care general hospitals with complementary clinical centers of excellence.

To find out more about how Optimium Health can help your hospital or surgical group practice enhance the way you coordinate care for your patients from first appointment to first incision, please contact: vicki@waohi.azurewebsites.net.

LifeBridge Takes On Role In Business Mentoring – OHI is a Finalist

Sarah Gantz/Staff Writer, The Baltimore Business Journal April 27, 2012

One of Baltimore’s biggest health systems is taking on the role of mentor to businesses trying to gain their footing in the industry. LifeBridge Health took three small businesses under its wing as part of a competition for early-stage businesses run by women and minorities. The three finalists – CervoCheck, Optimium Health, and My Hopeful Journey – all got a seat at the able with one of the area’s largest health systems to talk about business pitches, marketing strategies, and other ways to win business with hospitals.

To top it off, the winner, CervoCheck, which is developing a labor monitoring device that can detect preterm birth, walked away with $15,000. Another $5,000 went to the runner-up, My Hopeful Journey, a web-based infertility calendar.

The challenge is more than a one-time giveaway for deserving businesses – it is an example of the role of leadership to smaller businesses LifeBridge tethers to its mission. LifeBridge CEO Warren Green said he believes it and anchor businesses in every sector have a responsibility to foster growth and competition by fostering new businesses. “I think there is a moral imperative,” Green said. As part of LifeBridge’s Entrepreneur Challenge businesses selected as finalists met with LifeBridge management and medical experts in the company’s area of expertise.

CervoCheck, a company created by a group of Johns Hopkins graduates, met with an obstetrician to talk about the business plan for their labor monitoring device. The feedback on their plan from a hospital chain that could someday be a client was invaluable, said Karen Hwong, Chief Executive Officer of CervoCheck. The company is still in its clinical testing phase, but when it is ready to sell to clients, it hopes to branch out from its teaching hospital roots and appeal to community hospitals. “Whenever you start off with a business, you want to know your device is targeting the need of the market. To have that validated by a leading obstetrician in the field is wonderful,” Hwong said. “So many businesses may go off track and be misdirected, especially in the early stages.”

Leaders of Optimium Health, a workflow solutions company, hope the attention from LifeBridge will give the business – which is less than a year old – more credibility. “Other client’s we’re talking to take notice,” said Heather Guild, the company’s Chief of Marketing. “If LifeBridge is taking a further look at you, then maybe we should too”. Their meetings with LifeBridge throughout the challenge have served as a test run for their upcoming work of making deals with clients, she said. “We have been able to further refine our plan and how we speak with clients and investors,” Guild said.

And at its very base, the Entrepreneur Challenge has given growing businesses what they can’t get enough of – free publicity and networking. LifeBridge announced the competition’s winner April 25 at its third annual Business Summit, a daylong event at which all three finalists had the opportunity to present their business model to some of the area’s top health care providers and business leaders.