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Steve Nitenson

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Exciting Times in Healthcare – But what’s the Excitement About?

by on March 28th, 2012

These days as you launch your browser, turn on the TV, or pick up a newspaper you are drawn to the national discussion of healthcare in America.  In fact, this week the Supreme Court of the United States will hear arguments on whether the Healthcare Reform Act passed by Congress in 2010 is legally binding.  Two cases will be argued next week. One case is regarding individual healthcare coverage.

The other case has to do with how allocated healthcare federal funds will be distributed in the state.  Both the above explanations are simplifications of a very complex set of arguments. For a very good (and more detailed) explanation, please refer to A Guide to the Supreme Court’s Review of the 2010 Health Care Reform Law,” Focus on Healthcare, January 2012, Kaiser Family Foundation.

We have all heard about the alarming rate of Healthcare costs in the United States.  For example, from 2000 to 2008, the U.S. economy grew by $4.4 trillion; of that growth, roughly one out of every four dollars was spent on health care (that’s $1.1 trillion dollars).  These debates are a central focus of efforts around Accountable Care, for example.  Household expenditures on health care already exceed those on housing. And healthcare’s share is growing.  We know this is taking dollars that could be used for other national benefits (schools, roads, law enforcement, etc.) but this is “healthcare” and we all want better health, right?

Both sides of the healthcare reform debate have very compelling arguments.  We are going to watch history being made, just as those who watched L.B. Johnson sign the laws about Medicare/Medicaid that were then argued in the Supreme Court.  We all will watch with keen interest as these stories unfold.

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“The Tipping Point” – What one CNO shared with me at HIMSS

by on February 23rd, 2012

Looking back at the last two days of meetings, panels, vendor meetings and sharing I met up with a very close colleague of mine who is one of the brightest CNO’s I have ever met.  Mary Jo and I decided to grab a bite to eat and digest what we saw and learned these past two days at HIMSS.

Mary Jo had a ton of stuff to get off her chest, so I ordered a bottle of German Riesling wine (our favorite) and asked her, “So what is on your mind?” Mary Jo took a look at me and said, “Are you sure you want me to share? I’ve got a lot on my mind and after these last two days I am now truly concerned about what we do when we both get back to work…”  I poured the wine and got comfortable – and boy was she right, she had a lot on her mind.  She started with:

“As we approach revolutionary changes for healthcare policy in the U.S., the industry itself is undergoing complex and confusing changes, many of which involve information systems. The use of IT in medicine has grown in the same way it is growing within the larger cultural landscape: technology is everywhere and though we are not sure what tools may come next, we do know that it is a mainstay. My problem, Steve, is that my nurses and doctors are not prepared to navigate all this change AND take care of their patients!

Information systems in health care practices have not just penetrated the exotic sciences of biotechnology and nanotechnology. The use of database management systems, network-based infrastructures and the significant growth of web-based systems- all paired with recent government legislation- is part of an industry-wide boom that will forever change the landscape of health care practices and administration. We are headed for the Perfect Storm.” (more…)

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ICD-10 on the Floor of the Conference: What’s the Buzz all about?

by on February 22nd, 2012

What a Day!  I have come to view HIMSS as the source for what’s happening in healthcare.  Today was not different – the floor of the conference was abuzz with folks asking (in almost a whisper):

“Will ICD-10 really be enforced by CMS come October 1st, 2013?” 

“Will we really need to have all of our systems switched over to accommodate ICD-10?”

And my favorite: “CMS will grant extensions to Providers – right?”

As I wandered through the maze we call HIMSS 2012, booths that featured anything to do with ICD-10 Assessment, or Remediation, were packed (ok, it is HIMSS) with people needing the answers to these questions.  As I listened to the questions and responses I began to realize that the folks asking the questions were looking for answers that relieved their fears and anxiety – too bad, they will not get the ’right’ answers they were looking for.

I say this not because I have a crystal ball and looked into it, or that I am in the know I know the answers because I heard these same questions last week in a Town Hall conference call with Congresswoman Jackie Speier.  In this Town Hall meeting, there were a number of healthcare executives asking the above questions expecting Ms. Speier to save the day and share what CMS was really going to do and when.

One could hear a pin drop (and on the phone that is quite difficult) waiting with bated breath for the answers.  What we heard was not what was expected…

To the question: Will ICD-10 really be enforced by CMS come October 1st, 2013? – the answer was a soft-spoken, but clearly pensive response: Yes, the CMS mandate will be carried out as stated by CMS at this point in time. This could be taken in any number of ways, which was, from my perspective, what she wanted (or needed) to say. After all, she does not have a crystal ball either.

To the question: Will we really need to have all of our systems switched over to accommodate ICD-10?  This was a question Jackie could not answer, but she did her best by handing it off to her go-to guy at her district office.

He addressed the question by backing into it – he began by clarifying that if CMS is going to need all claims submitted in ICD-10, it would appear “common sense” that a hospital would need to make sure they were prepared to file any claim in ICD-10 format.

At the completion of his response, it was as if the phone line was cut – the person asking the question thanked “Mr. Go-To Guy” and I guess was either out of questions or stunned by the response…

To the question: CMS will grant extensions to Providers’ – right?  This was an easy question for the Congresswoman to answer., Her response was the same I have given when asked a question dealing with the future: “It depends” was Ms. Speier’s retort. Then she gave some pithy examples, however as the caller continued to want a definitive answer, the Congresswoman continued to hold the line: “it really does depend on many factors that we to take into account.”

Oh well, so much for getting answers from the horse’s mouth.  Perhaps tomorrow as I roam the HIMSS Conference floor, some in the know vendor will have the right answers – I guess “it depends” on who I ask…

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HIMSS 12: Healthcare Analytics & BI “Follow the Money”

by on February 21st, 2012

On the floor of HIMSS, day one – late afternoon and not even half way through the booths.  Thus far I have felt much like Alice in Wonderland, LOST and wondering which way to go!

As I made my way through the crowd, I stumbled into a booth where the banner “Follow the Money” was displayed; it intrigued me (which, I guess, is why they had the banner) like a moth to a flame. So I walked around a bit and then I realized what this was all about – this was a vendor focused on Business Intelligence (BI) Analytics.

Standing before me was a tall, well dressed executive banker looking gentlemen explaining to a couple of Hospital CFO’s why BI Analytics was so important to them.  I became a fly on the wall and caught one of the most compelling explanations one could want to share with the likes of a Hospital CFO.

The story focused on what the current healthcare financial leaders should be collecting information on for the foreseeable future – initiatives that will help them increase their organization’s margins in 2012 and beyond, such as:

  • Payment policing and standardization of contract requirements
  • Contract performance modeling
  • Shift in volume and cost risk to hospitals
  • Consumer-directed health plans, price transparency and pay for performance
  • Health plan consolidation
  • Value-driven health care

As the discussion continued it was brought out by the vendor that the healthcare industry is at a crossroads. Healthcare spending is growing three times faster than wages and is expected to double from current levels to exceed $4 trillion by 2016, according to a Health Affairs article. As he went on, he pointed out that there is tremendous pressure on key industry stakeholders (here is where the two CFO’s started to become fidgety) to mitigate this cost growth.

This cost pressure means that hospitals need to extract additional efficiencies out of their operations and spend more time on revenue strategies.  Hospitals will need to work with their respective leadership teams toward achieving more controlled growth in medical spending. Stakeholders, including government, employers, payers and providers are forging ahead with several models to contain the growth of healthcare costs and ensure quality of care. Price transparency, consumer-directed health plans (CDHPs), pay-for-performance (P4P) programs, health savings accounts and the payment incentives of the Centers for Medicare and Medicaid Services (CMS) are all moving healthcare in that direction. Regardless of which model reigns, in the future a greater emphasis will be placed on the value of healthcare services with the demand for transparency of service price.

These cost-saving and cost-shifting initiatives require hospital financial and clinical leaders to spend more time analyzing the data, but how is this to be done with the tools currently being used by the overwhelming majority of hospital financial systems? I was holding my breath waiting for the answer, when the vendor emphasized – YOU CAN’T!  Now he had everyone’s attention…

Then, like a bolt of lightning, the vendor uttered the word, no different than that memorable scene in ‘The Graduate’ when, (I am sure it was this vendors dad who said this in the film) at a party, the vendor told Dustin “in a word Plastics.”  So when the current vendor uttered the word ANALYTICS – we got it.  To make all this happen he said, “you have to follow the money.” And how do you do that? You do it with Healthcare BI Analytics.

The moral of this story for me was get back out on the floor and search out those consultant firms that specialize in Healthcare Analytics because one thing is for sure: we need to better enable our healthcare financial leaders to FOLLOW THE MONEY better! And the way to do that is with BI Analytics.

Signing off from the floor of HIMSS 2012. Now go find that firm who will help you Follow the Money!

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Will Financial Dashboards Really Assist Hospital CFO’s?

by on February 2nd, 2012

In a word: YES!

A hospital’s enterprise performance management program should offer proof that comparisons of actual performance against strategic objectives enable the healthcare organization to achieve rapid and effective organizational change. There are four initiatives that may go a long way to operationalize such a program initiative:

  • Align performance metrics with strategic initiatives
  • Structure dashboards for the CEO
  • Link performance to annual reviews
  • Customize dashboard views to the specific end user

Many healthcare organizations possess a wealth of untapped strategic information in their transaction systems (EMR, HIM, etc.). If this information could be summarized in a meaningful and intuitive manner and updated on a routine basis (daily if possible), senior leadership for these organizations (CFO, CNO, CMIO, CIO, CEO, CMO) would have real-time views of actual performance against strategic objectives, and could use the data to facilitate the allocation of scarce resources and accelerate change in a structured manner.

In the past ten years, there has been a “movement” afoot to begin tracking key performance indicators (KPIs) that impact financial performance of the provider enterprise. Those CFO’s who are able to muster the organizational resources to develop these KPIs can better monitor and manage performance across the organization’s multiple facilities. Provider organizations that have accomplished this process of data analytic dashboards have seen a dramatic reduction in operational costs in nursing, LIS, and personnel.

(more…)

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8 Step Plan for Designing Meaningful Healthcare Analytics Dashboards

by on January 5th, 2012

Provider Institutions (hospitals, medical centers and other health systems) are currently at a crossroads when considering how to best represent clinical and business information in a meaningful way that can be understood by all levels of the organization. We find increasing awareness and use of “digital dashboard technology” to provide relevant information to clinicians and hospital administrative staff in a visually rich, easy to understand format to improve the quality of patient care, as well as develop strategies to reduce cost in the delivery of improved patient care.

Designing and using clinical dashboards requires substantial clinical (physician and nursing) involvement and a well-defined process. The criteria for developing a model for a Data Store, a data warehouse and series of individual dashboards, may be of use to you and your organization as you move forward in the world of healthcare analytics dashboards. After all, Information Technology (IT) is not useful if it is not meaningful to the user. Here are the 8 steps that can ease your transition into healthcare analytical dashboards:

  1. Meet with users to determine data needs
  2. Design the appearance or presentation layer
  3. Design the semantic layer
  4. Design the physical layer
  5. Develop and test all 3 layers
  6. Perform QA
  7. Conduct a Pilot
  8. Begin general rollout

(more…)

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Five Strategies for Implementing Provider Healthcare Data Analytics

by on October 18th, 2011

As we approach 2012, it is critically important to consider the implementation of Healthcare Analytics.  This point could not have been made more clear to me than it was during a final “orals presentation” prep to a recent prospective healthcare system client.

“Technology has finally been embraced (begrudged by some in Healthcare) by the Healthcare industry, just as Providers are facing the quandary of how to assemble useful information from the enormous amount of healthcare desperate data available through EMR’s, CPOE systems, HIM claims processing systems and other departmentDatabase systems we all know exist within a Provider”.

While we were making ready for the team preparation, I started asking myself “what are the reason(s) we [in healthcare] are racing to deploy Healthcare Analytics, and continue to miss the target?”  Then it came to me, we are healthcare people – focused on delivery of healthcare, not PhD statisticians with a research team focused on the problem.  However, the leadership teams charged with improving the healthcare “bottom line” still need to be more focused on how to turn data into strategic and meaningful information – I have noted five strategies that may just do the trick, read on!  That said, first, know the “end game”, namely your goals and challenges.

Goals and challenges:  We all need to bare in mind that that “Healthcare analytics is the Holy Grail with respect to the enhanced delivery of healthcare,” The conversion of lab data, CPOE stats, consults, and the myriad of other related data into meaningful trends holds the promise of increased coordination of patient care, patient safety, increased quality of care and cost-efficiency for not only individual patients, but also for provider system, is one of the strategic goals of accountable care.  However, turning patient data into usable information is challenging; furthermore, once healthcare providers can access the information, determining how to act upon it poses even more problems.

Finally, one must differentiate between healthcare data – the facts entered into the EMR – and information – the interpretation of the facts in a meaningful context. Just because you have a lot of data doesn’t mean you can do anything with them. It becomes mission critical, especially today with all changes occurring in healthcare, to get as much data converted into information that is usable.  What is needed are strategies to get the ball rolling!

Five Strategies to Consider:

1. Establish a Governance body (not just an org chart). Hospitals should set up a governance structure to manage implementation of data analytics capabilities. The CEO, CMO, CNO and CIO should all be involved.  The CMO and CNO need to communicate the kind of information they want to the CIO, who has the IT knowledge to conduct the actual implementation. “You need to have a governance structure [in which] the CIO takes the lead but has the [CMO and CNO] to always ensure that whatever he or she is doing is going to meet their needs,” he says.

Hospitals should also consider partnering with a professional organization experienced in Healthcare data analytics.  Reason being, the learning curve would be much steeper and the time to implementation longer if the providers try to create an analytical tool on their own. “It’s a major undertaking that takes time and a good deal of effort. [If providers do it on their own] it usually ends up on the back burner and never gets done.”

2. Determine the desired information Wanted. Due to the large amount of data available to providers, from the plethora of data sources, hospital leaders need to define what information they want. “You have to be able to filter what’s really important to you based on the hospital and specialty service you’re interested in.  Hospital Leadership should also determine when they want the data, how they want it presented and who they will share it with.

3. Format the GUI, and package the information appropriately. One of the keys to analyzing data is presenting it in an appropriate format. For example, if the hospital wants to understand the lab data for someone whose blood is drawn twice a week for five weeks, simply looking at the 10 data points would not yield any useful information. “It’s meaningless if there’s no reference point,” Instead, the hospital would need to trend the data and benchmark it against regional demographic norms and national averages.

4. Maintain the Level of Data Security. Once the provider has meaningful information, they need to decide who to grant access to and establish security protocols to ensure access is available only to those individuals who need it and have a need to know.  Access to information does not have to be all or nothing, however.  This is where HIPAA, healthcare ethics, and Governance come into play – decisions of this nature may be addressed with an established review by using the HIPAA standards developed, and the Governance/ethics teams convened by the hospital.

5. Insure Timely and Proper Sharing of the Information Effectively and Efficiently. Even if healthcare data has been converted to information and the information has been secured, analytics cannot produce benefits of improved quality and reduced costs if the information is not shared effectively.  Therefore, it is a strategic choice to use a “push” rather than a “pull” technique for sharing information with those within the healthcare system that may need it.

Present it to them in their daily work.  Don’t [make] them try to find it.  The difference between “push” and “pull” is similar to opt-out and opt-in systems. In a “push” environment, the individual would be automatically presented with data that they would have to consciously ignore or dismiss – or opt out of receiving it.  In contrast, a “pull” environment would require individuals to find the information themselves, or opt in. The former method increases the probability the individual will be aware of the information they can use to improve patient care.

Following these five strategies may not be all that you need to do, but it WILL get you started down the path of getting what you want – meaningful and actionable information that will be strategic in reducing cost and most importantly, improving the delivery of patient care…