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GE Healthcare and Jefferson Health Launch Multi-Year Risk-Sharing Relationship

Posted by Matthew Smith on Jul 17, 2017 11:23:24 AM

PHILADELPHIA (July 17, 2017) — GE Healthcare and Jefferson Health have announced an eight-year, shared-risk relationship that will help Jefferson strategically transform healthcare delivery in the Philadelphia region for the benefit of patients and their families. The goal of this collaboration is to create a forward-looking, robust health system by removing redundancies and maximizing sourcing efficiencies. One of only five such long-term relationships in the U.S. and its largest, GE Healthcare and Jefferson have the potential to generate $500 million to $1 billion in efficiencies with Jefferson that can be directed toward services that best meet patient needs over the term of this relationship.

“We have a unique opportunity to become the region’s leader in delivering even greater value to our patients — offering them high-quality care at a lower cost, wrapped around an exceptional patient care experience — every time,” said Stephen K. Klasko, MD, MBA, President and CEO of Thomas Jefferson University and Jefferson Health. “With the industry knowledge and global expertise of GE Healthcare, we will gain significant efficiencies that will enable us to reinvest in initiatives that improve the lives of those we care for.”

During the course of the relationship, Jefferson Health and GE staff will work side-by-side in areas throughout Abington, Aria, and Jefferson to acquire a deep understanding of operations and processes. The teams will focus on strategic growth, operations, integration, and performance improvement opportunities, while leveraging technology to deliver best-in class, seamless care that is convenient and affordable for the patient.

“With the healthcare industry facing unprecedented levels of patient demand and increasing cost pressures, it’s great to see health systems like Jefferson seek new and innovative ways to improve better outcomes for patients,” said John Flannery, incoming CEO and Chairman elect of GE. “This collaboration, which is financially tied to our shared success, demonstrates the confidence we have to jointly deliver world-class health care for the community.”

Through a shared-risk model that aligns the economic interests of Jefferson Health with GE Healthcare, both organizations have agreed to critical milestones that must be achieved throughout the eight-year relationship. A portion of GE Healthcare’s fees are contingent upon the level of success both organizations have in reaching certain integration goals.

“To prepare for the launch of this multi-year relationship, some of GE Healthcare’s senior- most leaders have been onsite, working closely with us to ensure we’re doing all we can up front to position all of us for long-term success,” said Kathleen Kinslow, Jefferson Health’s Chief Integration Officer and leader for this comprehensive initiative. “They have become valued members of our extended team and their level of engagement has been exceptional.”

Nationwide, academic medical centers are facing a growing gap between the cost of their clinical missions and the available funding that threatens the future of those missions. New approaches to optimize health system performance, including improving the patient experience and the health of populations at a lower cost, are essential to ensure sustainability. The unique relationship with GE Healthcare presents an opportunity to proactively address today’s healthcare challenges.

“Together, Jefferson and GE Healthcare are charting a new course by taking the necessary steps today that will help shift the healthcare paradigm,” said Klasko. “My message is simple. We need to transform our industry, continue to be optimistic about our future, and embrace disruption, such as consumerism, to effectively change the way we deliver health care in this country.”

Topics: Healthcare Transformation, Jefferson Health

Healthcare Transformation Complexities Broaden Leadership Development

Posted by Matthew Smith on Jun 12, 2017 11:24:44 AM

By Darryl Greene, MS, Vice President, and Alexander M. Pinto, Ed.D., FACHE, Manager, GE Healthcare Camden Group

Complexity and change are not new terms or realities to manage, yet in healthcare it is the pace and extent of change that is often the topic of conversation, as we all seek solutions to address this new normal. 

This is an environment in which the complexity of day-to-day care delivery and operations now places tremendous demands on leaders and their staff, often causing them to overextend while trying to keep up. This tsunami-like type of change in healthcare can often be characterized by leaders as a sought-after future state without a clear destination and without a pathway for organizations to adapt, thereby compelling them to pursue significant numbers of internal transformations, often simultaneously.

Consider New Roles and Responsibilities

The external drivers, such as new policies, new regulatory requirements, new consumer expectations, and new business models, are driving internal actions like new operating models, new strategic initiatives, new information management needs, new technology, and new processes. The necessary internal changes do not end here; a significant human component exists that also requires consideration of new roles and responsibilities, new skills, new behaviors, and new ways of working together. This degree of change even impacts organizations’ cultures to the point where leaders and their staffs are attempting to develop strategies to refuel the passion and joy they once experienced in practicing medicine.

GE Healthcare Camden Group believes this wave of change can and has flooded the functional capacity of most healthcare organizations, their teams, and their individuals. Adding resources is rarely an available or right option--thus a pause with purpose is needed. A new way of leading must be contemplated while asking fundamental questions such as:

  1. How do we impact the human side of change and create capacity for our leaders and our teams, improving their ability to deal with the complexity and volatility of their current reality? 
  2. How do we design systems of care that embrace a culture of problem-solving and collaboration, in the face of evolving change, growing ambiguity, and our patients’ quest for best-in-class outcomes?
  3. How do we cultivate a new leadership mindset instilling cognitive, behavioral changes in our leaders that advance our relationship building skills, our culture of collaboration, and embraces a new healthcare landscape comprised of interdependent care delivery and systems-based, patient centered care?

Synergistic Leadership Development

We believe the answers begin with individual leadership development, supporting leaders to become more self-aware, while also broadening their perspective-taking skills, and teaching them to engage their teams in methods to co-create solutions relative to existing issues. Additionally, focus is needed on the healthcare leadership team emphasizing unambiguous roles and responsibilities fostered by a collaborative yet interdependent nature of sharing work and accountability amongst clinical (physician, nursing, and allied health), operational, financial, and strategic leaders. Because your leaders’ performances and impact on the organization doesn’t happen in a vacuum, there must also be support for them by advancing and implementing systems and structures in the organization for effective and sustained delivery towards balanced measures and goals. The emphasis on leadership development across three areas we refer to as synergistic leadership development (Figure 1).


Figure1_Greene.png


At the core of our leadership development, a systems and structures framework is needed that supports leaders and teams in strategy to activation efforts. The Culture Driven Performance Management model (Figure 2) provides such a framework. Through implementation of this framework model, the organization’s leaders benefit from the development of individual and team competencies and skills, while working collaboratively in setting the direction for their organization, aligning the organization’s strategic goals, and executing to achieve targets. This empowers active involvement of leaders in a customized curriculum to expand their competencies while immediately integrating those skills in their work. Integrating an experiential learning approach both advances the value proposition to leaders and advances the culture of performance to achieve organizational goals (Figure 3).


Figure2_Greene.png


Figure3_Greene.png


New Leadership for the New Normal

This new norm of transformational change in healthcare requires a new leadership development approach for institutions to thrive--an approach like synergistic leadership development, that is focused on advancing the capacity of individuals and teams, while fostering interdependent functions, maximizing their impact as they leverage supporting management systems. The task ahead of us is:

  1. Assess the current state of organizations relative to a framework with this filter.
  2. Create a tailored roadmap of leadership development (individual, team, and management systems/structures) to capitalize on the greatest leverage or impact areas.
  3. Support our teams and organization through cultural advancement while empowering cognitive, behavioral change at an individual level.
  4. Collaborate to advance these organizations amidst complexity and change to provide even better care delivery to patients.

d.Greene-1.jpgMr. Greene is a vice president for the strategy and leadership practice at GE Healthcare Camden Group. He has more than 18 years of strategy to execution consulting experience, including 11 years in healthcare. He has significant expertise in strategic planning, business management systems implementation, talent management, performance improvement, leadership, and leading and executing transformational and culture change. He may be reached at [email protected]. 

 

Pinto.pngMr. Pinto is a manager with GE Healthcare Camden Group, with more than 15 years of healthcare industry experience spanning allied health provider, health system, and healthcare consulting roles. His experience includes system leadership, performance improvement, and advisory/design roles. Additionally, he has a strong and diverse academic background in adult learning, organizational design, and the development of leadership and engagement programs. He may be reached at [email protected]. 

 

 

Topics: Healthcare Transformation, Darryl Greene, Leadership Development, Synergistic Leadership Development, Alexander Pinto

2017 Brings Continued Transformation to Healthcare, Driving Innovative Approaches, Solutions, and Experiences

Posted by Matthew Smith on Jan 17, 2017 12:51:21 PM

In an industry now characterized by constant change, 2017 will bring continued transformation to the nation’s healthcare system. Our annual outlook for the coming year forecasts the trends related to the likely changes to the Affordable Care Act ("ACA"), adoption of value-based payer models, and emerging consumerism will drive a greater need for cost reduction and innovation. Here’s a look at the trends and factors that will impact the system during the coming year:

Macro Trends

A number of significant macro trends are at play, driving the need for change. These include:

  • U.S. healthcare costs are rising faster than inflation.
  • U.S. healthcare expenses per capita have been historically low compared to the previous few decades; however, those costs are expected to rise over the next few years.
  • There have been cumulative increases in health insurance premiums and workers’ contributions to premiums compared to the rate of inflation and the rise in workers’ earnings.
  • Between 2014 and 2060, the size of the population age 65 and older will have more than doubled to 98 million.

Consolidation in Many Forms

  • Mergers and acquisitions among providers will continue and expand on an even grander scale as regional players, as well as large, multi-state systems, such as Dignity/CHI, explore the benefits of consolidation. The need to serve larger populations to succeed in risk-based payment models has prompted many systems to join forces. Expect statewide or multi-state population health collaboratives or joint-ventured population health service organizations. "In addition, traditional healthcare providers will seek endeavors with experts in urgent care, retail medicine, outpatient surgery, post-acute care, occupational health and digital health to take advantage of ‘best in class’ care and business expertise. Some systems will discover they have over-extended, or need to pause and integrate what they have acquired, formed, or merged into," said Laura Jacobs, MPH, president, GE Healthcare Camden Group.
  • Similar dynamics will impact the payer landscape. Regardless of whether the Federal Trade Commission approves mergers between Anthem/Cigna and Aetna/Humana, many markets may have more limited insurance options. With the uncertainty in the future of Health Insurance Marketplace or insurance exchanges, given expected changes to the ACA, payers will carefully weigh the benefits of offering select products market by market. In addition, as Medicaid shifts to managed care in many markets, experienced payers, such as Molina Healthcare, are increasing their national footprint. Medicare Advantage payers rated less than four stars will experience increasing difficulty to compete, resulting in growing membership in the higher-rated plans.
  • Finally, the lines between payers and providers will continue to blur. In some markets, regional health systems have moved into the payer marketplace -- often as a Medicare Advantage plan or a plan to cover the health system’s own employees -- to create competition and affordable options for their consumer base. Some payers will be increasingly open to partnerships with providers in launching new health plan products or delivery models.

Payment Models: Focus on Value

  • Regardless of the specific changes that may come with changes to the ACA, payers (Medicare, Medicaid, employers, and commercial insurance carriers) will seek ways to lower costs and improve the experience (quality and satisfaction) for patients.
  • With Medicare setting the trend, payment models have shifted to include performance measures, based on factors such as hospital-acquired conditions, readmissions, patient experience and quality scores. Bundled payments are still being pursued by commercial carriers, and, for now, Centers for Medicare & Medicaid Services ("CMS").
  • The Medicare Access & CHIP Reauthorization Act of 2015 ("MACRA") will have a significant impact on physicians, while CMS allows different paces of entry. These changes mean that physician payment will depend more on quality, patient experience, use of electronic medical records and resource utilization. Even in markets where risk-based models (downside risk, capitation or percentage of premium) are not yet practiced, private commercial carriers have adopted CMS approaches, including models such as accountable care organizations, pay-for-performance, and bundled payments. As a result, this will require smaller physician practices to seek assistance to report required metrics – or join larger practices or systems that have the required infrastructure.
  • Overall, one of the most difficult challenges for healthcare organizations today and for 2017 will be harmonizing population health strategies with the market’s movement to value-based payment; moving too fast or too slowly will affect financial performance.

Cost Drivers: Pharmacy and Behavioral Health Under Scrutiny

  • While inpatient and physician care account for the majority of healthcare costs, pharmacy costs have been increasing at a faster pace, a trend that is likely to continue into 2017.
  • The new year also will bring a greater focus on behavioral health. Because individuals with mental health disorders often have higher medical costs and tend to use emergency departments more frequently, behavioral health also will engender greater scrutiny. This is a particular concern with the Medicaid and dual Medicaid/Medicare population, when behavioral health is often untreated, or other socio-economic conditions, such as lack of housing and poor nutrition exacerbate health risks. Social determinants of health will be raised more frequently as factors to consider in population health programs, requiring health systems to connect with community service organizations to drive better outcomes and better health for at-risk individuals.

 Cost Reduction: The Pressure Is On

  • Many hospitals have experienced relatively stable financial performance over the last couple of years -- some, even better than expected due to a rise in volume, particularly in outpatient services. Yet other issues will come into play moving forward. Higher employment rates and expanded coverage for individuals through the ACA have increased demand at the same time the nation is experiencing primary care shortages. High emergency department volume will place increased pressure on inpatient capacity, operating room schedules and care management resources.
  • Lower rate increases also amp up the need to reduce costs. Facilities must manage patient throughput even more efficiently and reduce variation through defined work flows and clinical protocols. Precious resources, like hospital beds and ORs, must be optimally utilized to avoid potentially unnecessary capital outlays for new bed towers or surgery centers. Some leading hospitals are exploring capacity command centers commonly used in complex industries such as aviation and power. These initiatives combine systems engineering principles with predictive analytics to manage and optimize patient flow, safety, and experience.
  • The physician enterprise, which in most cases operates at a loss, must be managed to optimize physician time and align compensation models with goals and population health strategies.

Innovation: Delivering New Experiences and Approaches

  • Consumers will exercise more leverage, forcing providers to focus on the “consumer” experience – not simply the “patient” experience. This concept encompasses physical space, logistics, communication, and an organization’s approach to care. As systems expand, this means providing a consistent consumer experience across the continuum and locations. Rising deductibles will contribute to increasing selectivity, as will new disrupters in the digital and care delivery space. Issues to focus on include price transparency; access -- where, when, and how the patient desires; quality reporting; social media strategies; and digital outreach to create consumer awareness and loyalty.
  • Care models will continue to evolve in 2017 thanks to the explosion of mobile technology, applications for home and self-monitoring, and expansion of urgent care facilities and retail care centers. New digital tools and approaches to primary and complex care will emerge, backed by private equity and employers. One component of this trend, telemedicine, will expand beyond rural areas into the mainstream for the convenience of consumers who prefer not to leave their home or office. Home and self-monitoring will provide more responsive care to the elderly and other patients with complex conditions. These dynamics expand the geography of competition, which could arise from anyplace accessible by cell phone. To remain competitive, health systems will have to partner with entities providing these options, adopt them, or devise their own solutions.
  • After making significant investments in electronic medical records and a plethora of other information technology ("IT") tools -- financial systems, data warehousing, care management, predictive analytics, disease management, and scheduling among them – there’s a new dynamic at play. During 2017, healthcare systems will focus on getting these systems to work together to optimize decision-making and forward-looking actions. It will be essential to have a clear data governance structure and system architecture focused on required operational and clinical outcomes.
  • Looking ahead, artificial intelligence (for example, IBM’s “Watson”) and the “internet of things” (the way digital equipment “talks” to each other) will change the roles and responsibilities of healthcare providers and team members, as well as care pathways.
  • Expect additional traction on noteworthy clinical advances:
  • Precision medicine based on the genetic profile of an individual will be more accessible, particularly for cancer care, but not yet mainstream. But watch this trend; it could accelerate rapidly.
  • 3D printers will enhance the ability to replace organs and tissues, but for now remains largely in the province of research labs.
  • Robotics will continue to be used in operating rooms and will begin moving to the bedside, lifting, moving, or even interacting with patients.
  • Academic medical centers may discover expanded opportunities to partner with community providers to research and deploy new clinical treatment options.
  • In an industry where labor costs still comprise the lion’s share of operating expenses, workforce management has always been essential. Today, the responsibilities of clinicians and non-clinicians are also changing as health systems transform in response to population health and value-based care models. Generational differences and job burnout from constant change and rising expectations will require new approaches to recruitment, talent development and training, workforce management, and engagement.

Topics: Payment Models, Care Model Redesign, Healthcare Transformation, M&A, Healthcare Innovation

NASA-like Command Centers are Coming to Hospitals

Posted by Matthew Smith on Jun 20, 2016 2:40:16 PM

By John Flannery, President and CEO at GE Healthcare

I often ask those who work in other fields how they view healthcare. Do they see an industry rife with cost challenges and complexity? Do they wonder why we want to be a part of it?

They wouldn’t be wrong, but I wouldn’t choose any other job.

Yes, the volume of patients needing care is rapidly increasing, but so is the data available to make decisions about that care. Resistant diseases are smarter, but advanced technology and medicines are outsmarting those diseases. Managing a hospital is more complex today, but building a digital and analytics infrastructure to manage these logistics is more possible than yesterday.

I saw this in action at The Johns Hopkins Hospital (JHH) this month. In the center of their campus in Baltimore, Maryland is a room with walls made of 22 high resolution screens. Numbers, charts and live video flash across them. The hospital staff flows in and out, scanning the screens and making quick decisions based on what they see. It’s what I imagine the inside of NASA might look like before a rocket launch – in fact, JHH calls it their Capacity Command Center. From here – the first predictive patient-experience control center – the staff is running their hospital with the help of a new source: predictive analytics.

One app on these screens uses a digital-twin of the hospital to predict patient activity for the next 48 hours. Another algorithm tells the staff which room turn or patient discharge would reduce wait time. Yet another senses when pressure on a unit is nearing a dangerous situation for patient care, a rare but critical measure.

When JHH, one of the leading health institutions, told the GE Healthcare Partners team that high demand was challenging their capacity to see more patients, we worked alongside the hospital staff to find a holistic solution. In this case, it was the Capacity Command Center, including GE custom-built software that could transform how they manage operations.

Back to my earlier questions: such transformations let a business like us seize the opportunity to be more than a technology provider. Because of our scale and reach, we work with healthcare providers of all shapes and sizes across the world, from Baltimore to Bangalore, to solve similar challenges. We have an obligation to use that vantage point to find and share solutions that work. To be a leading ideas provider.

For a 124-year old startup like GE, it’s an exciting time when we can adapt to what the world needs.

For patients, it promises to be a welcome improvement of less wait time and improved care. For clinicians, it can mean more time freed up to focus on those patients.

And if you ever want to meet people in healthcare who would never change what they do, speak with these clinicians, the care teams who work tirelessly, NASA-like Command Center or not, to help others get better.

Who wouldn’t want to be a part of that? That’s reason #2.


bio_Flannery.jpgJohn Flannery is the President and CEO of GE Healthcare, an $18 billion business unit of General Electric that provides transformational medical technologies and solutions to the global healthcare industry. GE Healthcare supports customers in over 100 countries with a broad range of services and systems, from diagnostic imaging and healthcare IT through to molecular diagnostics and life-sciences. John was appointed to his current role in October 2014.

 

Topics: Hospitals, Command Center, Hospital Command Center, Healthcare Transformation, John Flannery, Capacity Command Center

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