PowerHealth OnDemand Webinar with Franklin Memorial Hospital CFO

PowerHealth Solutions Proprietary. All Rights Reserved © PowerHealth Solutions 2010

Wayne BennettChief Financial Officer

September, 2012

OnDemand Customer Spotlight:

What We Will Cover

➾ HFMA’s Value Project➾“Defining and Delivering Value” HFMA’s Value Project : Phase 2 <www.hfma.org/valueproject/>

➾ HFMA’s Recommended Capabilities to Prepare for the New Payment Environment

➾ The Business Performance Management Imperatives

➾ Franklin Memorial Hospital’s Journey

➾ About PowerHealth OnDemandTM

➾ Q&A

The sole hospital network serving Franklin County, Maine

• Located in foothills of the west central Maine region

• Population 40,000 with average of just 17 persons per square mile

65 bed Franklin Memorial Hospital

Franklin Health

• 50 employed primary and specialty care physicians

Evergreen Behavioral Health Services

NorthStar Emergency Medical Services

Healthy Community Coalition

Designated as one of “Healthcare’s Most Wired” Hospitals

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HFMA Value Project at Franklin Memorial Hospital

HFMA Value Project

“Of all the transformations reshaping American health care, none is more profound than the shift

toward payment for value.”

Source: Defining and Delivering Value HFMA’s Value Project : Phase 2

Key Takeaways: 1) Transition to Value-Based Economics is the future (high risk to those not prepared)

2) Major Trend in managing complex data Integration (“Big Data”)

3) 50% of Hospitals don’t have proper Business Intelligence platform

HFMA Value ProjectRisk Integration Use of BI

Key Takeaways: 1) > 50% of Hospitals require integration of Cost and Quality (growing concern)

2) Knowing Cost and deploying suitable methodology is imperative

3) Must have BOTH to be successful

HFMA Value ProjectData Integration Understand Your Business

4 Capabilities

1. People and Culture

2. Business Intelligence

3. Performance Improvement

4. Contract and Risk Management

Major Take Away: Don’t Wait!

Source: Defining and Delivering Value HFMA’s Value Project : Phase 2

People & Culture

“The ability to collaborate, effectively manage change, communicate a value message, and create accountability to value-driven goals”

Keys to enabling Value within People and Culture:

• Become a strategy focused organization

• Manage change through increased communications (CEO & Board, etc.)

• Create an environment where people can collaborate to advance the organization’s strategies

• Must have trusted information to share – empower users to answer their own questions

Business IntelligenceThe ability to collect, analyze, and connect quality and financial data to

support organizational decision-making

• Identify internal trends of cost growth and facilitate comparisons to evidence-based standards of care

Keys to Creating a Sound Performance Management Program

• Accurate Cost Accounting Principles• Agile & cost effective

• Trusted and routinely available

• Bridging Hospital Data with Physician Encounter Information• View entire Cost and Profitability Continuum of Care (Must Have!)

• Create “A Single Version of the Truth”

Performance Improvement

Ability to eliminate clinical variation, unsafe practices, and waste• Work on standardization with visibility and goal-setting

Keys of Value to Performance Improvement

• Eliminate clinical variation

• Communications to refine efforts and enforce best practices

• Enable end user access to answer their own questions in real time

What You Must Have:

• Ready access to trusted information

• No overhead or lag-time to support your decisions

Performance Improvement

Key Takeaway: > 40% have no experience for managing population health programs

Contract & Risk Management

The ability to assess the potential risks and benefits of acquiring other providers or engaging with them contractually to build a value-focused network.

• Predict and manage different forms of patient-related risk under different payment methodologies.

Keys to Value for Contract & Risk Management

• Understand population-specific drivers of utilization and cost

• Identify actionable leverage points for influencing these drivers

What You Must Have

• Greater precision in costing

• Reliable, on demand reporting to support your decisions

Contract & Risk ManagementGetting Ready for Outcomes-Based Payment

Key Takeaway: Finance organizations don’t appear to be ready for looming change

PollSurvey Question #1

What is holding back your organization from gaining access to Trusted data and

information?

Survey Question #2

If you had access to a complete view of your Hospital business and

Physician encounters data, would this benefit managing your organization?

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Our Approach

Gap analysis

• Small gap in People & Culture

• Significant gap in BI, No Cost Accounting, and Contract & Risk Management

• Acquisition of physician practices

- Lack of integration between Hospital (Meditech) and Physician Encounters (eCW) to view complete picture

• No cost accounting system

- Unable to easily access, integrate and analyze data

- Cost, ongoing maintenance and overhead of running and processing was real issue

- No ability to link multiple sources for 1 version of truth

• Identified Gap in Performance Improvement (in process/future state)

• Identified Gap in Contract and Risk Management

Conclusions:

1) Now…..must develop HFMA Value Project’s 4 Capabilities

2) Looking forward…..embrace strategic agility & explore strategic partnerships

Franklin’s Journey

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PowerHealth OnDemand

Cloud-Ready Access

Franklin’s Platform (today) What’s possible (tomorrow)

GeneralLedger

Patient Accounting

Market Share Data

Operating Room

Emergency Dept

Quality Outcomes

Scheduling

OnDemand IntegrationTM

• Access• Logic• Best Practices

PowerHealth OnDemand Platform

Materials Mgmt

Labs PharmacyICD CodingAdmits Discharges

Physician Mgmt

Radiology

Service Line PerformanceUnderstand Your Business

Emergency DepartmentLean Performance Improvement for Operations

Financial PerformanceKnow Your Detailed Cost, Budget, and Profitability

Patient AnalysisSpot Your Cost & Reimbursement Risks

Physician PerformanceReimbursement, Cost, Utilization,

Volume etc.

Text

R.A. Daley, MD

Text

Costs by Physician

Daley

Quality PerformanceVisualize Your Quality Outcomes

Length of Stay PerformancePerformance Improvement for Operations

Text

Readmissions PerformanceFocus on Quality Outcomes

Questions?

Shift from Volume to Value• 4 Capabilities

• Focus strategy on value

• Subscribe to trusted systems to support decision making

• Understand total cost of care per patient across the continuum

• Eliminate clinical variation

• Identify population-specific drivers of utilization and cost

• What’s important: Don’t Wait!

Q&A Session

PowerHealth Solutions Proprietary. All Rights Reserved © PowerHealth Solutions 2010

Thank you!Contact Us:

Phone: (303) 330-3967

Email: [email protected]

Web: www.powerhealthondemand.com