©2007 ViTAL Economy, Inc.
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Southern Illinois Broadband Initiative
Healthcare COI Milestone Meeting #3
May 23, 2007Rend Lake College
CONNECT SI
Frank Knott, President
ViTAL Economy, Inc.
©2007 ViTAL Economy, Inc.
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Current Healthcare COI Vision Statement
Supporting the collaboration and interconnection among healthcare providers and patients to improve:
Healthcare access
Health outcomes
Provider profitability
Through a qualified healthcare workforce in Southern
Illinois
©2007 ViTAL Economy, Inc.
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Healthcare COI Phase 1 Planning Cycle
1 - Organize COI, Issue ID, Priorities & Goal Setting Jul - Sep 2006• Milestone 1b Leadership Mtg September 21, 2006• Milestone #1b COI Meeting October 24, 2006
2 - Establish Goal Setting Teams and Set Team Work Plans Dec 2006-Feb 2007 Review Health Economic Model, Gap Analysis
• Action Team Meetings Jan 2006-Mar 2007 • Milestone #2b COI Meeting Mar 2007
3 - Begin Value Chain Mapping, ID & Quantify Mar - Apr ‘07 Connectivity Implications for Healthcare Providers and Patients May 23, 2007
4 - Prioritize & Define COI Connectivity Requirements May - June ‘07
Tele-Health Applications & Value Propositions (Completed by Connectivity Goal Team)
5- Develop & Quantify COI Economic & Jobs Strategy July-Sept ‘07 Connect COI Strategy to Connect SI Regional Strategy
Health COI Milestone #5 COI strategy will be integrated with other COI strategies by Oct 2007
©2007 ViTAL Economy, Inc.
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Agenda – Healthcare COI Meeting #3
8:30 AM - Welcome, Introductions, Meeting Objectives, COI Leaders Update
8:45 AM - Goal Setting & Physician Team Reports, Value Linkage Group Review
9:45 AM - Connecting the Dots Discussion- Strategies to Leverage Multiple Goals
10:15 AM - Learn Value Chain Maps, Quantify Value-Proposition for Each Goal
10:30 AM - Goal Setting Team Breakouts-Value Chain Maps + Value proposition
11:10 AM - Goal Setting Team Work Plan Schedule Prior to Milestone #5 - 7/16-20
11:30 AM - Adjourn
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Objectives of Healthcare COI #2b Meeting
Finalize and Quantify Goal Setting Recommendations for the COI
Look for common short-term win strategies that can leverage multiple goals
Value Chain Mapping and Value Proposition Definition by Goal Setting Teams
Learn what constitutes a value chain and how to map a value chain for each goal
Learn and develop value propositions for each action plan collaborator
Learn the value linkage process
Insure connection of goals, value linkage and action plans
Establish work plan for COI goal setting teams prior to July COI Milestone #5 Meeting
©2007 ViTAL Economy, Inc.
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Connect SI 20-County Phase 1 June 06-December 07“Led By Connect SI Leadership Advisory Board”
Greater Egypt COI Strategy
Southeastern COI Strategy
Southern Five COI Strategy
Greater Wabash COI Strategy
Phase 1 Outcomes
GIS Asset Maps
Broadband Strategy
GDP & HealthcareEconomic Models
Regional Economic Strategy
Healthcare Strategy
Regional EconomicFramework
Five-Year Measurable Goals
Implementation &Funding Plan
GIS Mapping Team Supports COI’s
HealthcareProviders
COI Strategy
Network Providers
COI Strategy
Connect SIRegional CED COIStrategy
>$2 BillionNew Annual
Wages
41,461 Existing Jobs
>$5,000/Yr
27,298 NewHi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
+4500 Families with Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
©2007 ViTAL Economy, Inc.
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Goal Setting Action Team Reports
Profitability
Critical Skills
Outcomes
Connectivity
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Benchmarks for Development, Performance Goals and Related Concerns
‘Profitability’ Working Group In Attendance at the April 26, 2007 Meeting
Damon Brown, Community Health Systems
Frank Caruso, Franklin Hospital
Hervey Davis, Franklin Hospital
Phil Schaefer, Southern Illinois Hospital Services
Woody Thorne, Southern Illinois Hospital Services
Joe Visker, Graduate Assistant, Connect SI
Robert Wesley, SIU School of Medicine
Rob Beynon, Consulting Economist, InterVistas
Connect SI Healthcare Community of InterestIncrease Provider Profitability Group
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1. Connect SI seeks economic development within a 20-county southern Illinois region.
2. The 20-county region includes 20 large and smaller hospitals.
3. Southern Illinois hospital administrators and project consultants examined principaldiagnoses for patients discharged from the 20 hospitals during the most recentcalendar year.
4. The group sought diagnostic related groups (DRGs) for which significant potentialprofit gains could be realized without altering the profile of skills and capabilitiesalready in place.
5. The Group selected 3 DRGs and an additional summary measure as benchmarks forconsideration by the Healthcare Community of Interest.
6. Large proportions of patients from Connect SI counties go outside the region fortreatment routinely available from hospitals located within the 20-county region forthese DRGs.
Working Group Parameters
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The Group identified the following as
reasonable benchmarks for development.
1. Diagnostic Related Groups in Cardiology
2. Diagnostic Related Groups in Oncology
3. Diagnostic Related Groups in Orthopedics
4. Proportion of Private Insurance in Payor Mix
Benchmarks for Development
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Current Performance, Performance Goals and Projected Impact
Aspect Number ProportionCardiology DRG discharges for Connect SI 20-county region 11,641 100.0%Connect SI hospitalsÕ cardiology DRG discharges 7,955 68.3%Reduction in patient migration from Connect SI hospitals 582 5.0%Projected Connect SI hospitalsÕ market share 8,537 73.3%Approx. Cardiology DRG current value for 20-county region $284,000,000 100.0%Approx. Connect SI hospitalsÕ share of cardiology DRG value $153,000,000 54.1%Approx. mean charge/discharge for cardiology DRG total market $24,000 N/AApprox. mean charge/discharge for Connect SI hospitals $19,000 N/AApprox. increased charges for Connect SI hospitals Š high mean $14,000,000 N/AApprox. increased charges for Connect SI hospitals Š low mean $11,000,000 N/AProjected Connect SI market share Š high mean charges $167,000,000 59.0%Projected Connect SI market share Š low mean charges $164,000,000 58.0%
Cardiology DRGs
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Current Performance, Performance Goals and Projected Impact
Aspect Number ProportionOncology DRG discharges for Connect SI 20-county region 1,180 100.0%Connect SI hospitalsÕ oncology DRG discharges 591 50.1%Reduction in patient migration from Connect SI hospitals 59 5.0%Projected Connect SI hospitalsÕ market share 650 55.1%Approx. Oncology DRG current value for 20-county region $18,000,000 100.0%Approx. Connect SI hospitalsÕ share of oncology DRG value $8,000,000 43.7%Approx. mean charge/discharge for oncology DRG total market $16,000 N/AApprox. mean charge/discharge for Connect SI hospitals $14,000 N/AApprox. increased charges for Connect SI hospitals Š highmean
$944,000 N/A
Approx. increased charges for Connect SI hospitals Š low mean $826,000 N/AProjected Connect SI market share Š high average charges $9,200,000 48.6%Projected Connect SI market share Š low average charges $9,100,000 48.0%
Oncology DRGs
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Current Performance, Performance Goals and Projected Impact
Aspect Number ProportionOrthopedics DRG discharges for Connect SI 20-county region 4,899 100.0%Connect SI hospitalsÕ orthopedics DRG discharges 2,767 56.5%Reduction in patient migration from Connect SI hospitals 245 5.0%Projected Connect SI hospitalsÕ market share 3,012 61.5%Orthopedics DRG current value for 20-county region $133,000,000 100.0%Connect SI regional hospitalsÕ share of orthopedics DRG value $72,000,000 54.3%Approx. mean charge/discharge orthopedics DRG total market $27,000 N/AApprox. mean charge/discharge for Connect SI hospitals $26,000 N/AAdditional revenues to Connect SI hospitals Š hi average charges $7,000,000 N/AAdditional revenues to Connect SI hospitals Š lo average charges $6,600,000 N/AProjected Connect SI market share Š high average charges $79,000,000 59.3%Projected Connect SI market share Š low average charges $78,600,000 59.1%
Orthopedics DRGs
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Changing the Private Insurance Proportion in Payor Mix
HOSPITAL
VISITS
% of VISITS GOAL
Commercial 10,674 16.2% + 5% to 21.2%
Medicaid 11,856 18.0% - 5% to 13.0%
Medicare 32,639 49.6% 49.6%
Other 8,232 12.5% 12.5%
Self Pay 2,409 3.7% 3.7%
TOTALS 65,810 100.0% 100.0%
Source: CompData
Proposed5%
Swap:
Increasecommercial
clients 5%,
ReduceMedicaid
clients5%,
througheconomic
growth
Proposed5%
Swap:
Increasecommercial
clients 5%,
ReduceMedicaid
clients5%,
througheconomic
growth
2004 Actuals Proposed Goals
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1. Misconceptions about the type and quality of services offered within the region.
2. Informal marketing by patients: word of mouth endorsements of hospitals outside region.
3. Regional identity: people choose hospitals coincident with working and shopping habits.
4. A perception that bigger hospitals provide better service.
5. Certain medical specialists are not available in the area.
6. Recommendations/referrals by area physicians to hospitals outside the region.
7. Successful marketing strategies used by hospitals outside the region.
8. Online hospital assessments are becoming a source of patient information.
9. Misinformation/lack of communication among regional hospitals about patient referrals.
Reasons for Patient Out-Migration From the Connect SI Regional Hospitals
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1. Bad debt and uninsured patients Š bills for service that cannot be collected.
2. High level of publicly insured patients.
3. Level of publicly insured patients likely to rise due to ŌIllinois CoveredÕ.
4. Rising costs and declining reimbursement.
5. Cannot control physician professional assessments when referring.
Factor Affecting Profitability Beyond the Control of Regional Hospitals
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Profitability Measures
CARDIOLOGY* Connect SI Missouri Indiana Kentucky St. Johns Memorial All
Admissions 8,268 1,504 880 777 166 46 11,641
% Admissions 71.0% 12.9% 7.6% 6.7% 1.4% 0.4% 100.0%
Days 27,131 6,760 4,079 3,316 757 183 42,226
% Days 64.3% 16.0% 9.7% 7.9% 1.8% 0.4% 100.0%
ONCOLOGY** Connect SI Missouri Indiana Kentucky St. Johns Memorial All
Admissions 645 348 74 101 8 4 1,180
% Admissions 54.7% 29.5% 6.3% 8.6% 0.7% 0.3% 100.0%
Days 2,967 1,987 394 784 62 12 6,206
% Days 47.8% 32.0% 6.3% 12.6% 1.0% 0.2% 100.0%
ORTHOPEDICS^ Connect SI Missouri Indiana Kentucky St. Johns Memorial All
Admissions 2,979 1,083 426 344 42 25 4,899
% Admissions 60.8% 22.1% 8.7% 7.0% 0.9% 0.5% 100.0%
Days 13,038 4,293 2,026 1,545 143 68 21,113
% Days 61.8% 20.3% 9.6% 7.3% 0.7% 0.3% 100.0%
Source: COMPdata, SIH, SMGS Inc using specialized database form Herveywerks
Three Measures of Patient Migration: Cardiology, Oncology, and OrthopedicsBased on 2005 DRGs
Note: This is a minimum as Tennessee and other states are not included
©2007 ViTAL Economy, Inc.
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Profitability Goal Setting Team
Comments…
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Critical Skills Shortage Goal Setting Team
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Critical Skills Shortage Group
Auna Searcey SIC
Betty Musgrave T-Prep
Brad Futrell Hamilton Memorial Hospital
Carol Belt Shawnee Community College
Cary Minnis, Chair MANTRACON
Dawn Wickman Illinois Hospital Association
Debbie Murphy HRMC
Doris Martin Shawnee Develop Council
J.D. Murphy
Kim Sanders SIU Center for Rural Health
Lianbin Cui MANTRACON
Marilyn Falaster John A Logan College
Jackie Clements SIUE School of Nursing
Mary Ellen Abell John A. Logan College
Nancy Buttry Illinois Eastern C.C.
Pamela Appleton SICCM
Roger Boma Mid-5
Sandra Goldman Wabash Development
Sharon Baisley
Tony Petersen MANTRACON
Tonya Floyd VAMC
Kim Watson SIU Workforce Development
©2007 ViTAL Economy, Inc.
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It is difficult to find accurate, up to date, employment information
There are numerous health occupations facing shortages
Our group can facilitate lasting change to increase the quality and quantity of the healthcare workforce
Challenges and Opportunities
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Our group has identified baseline employment levels and established goals for 26 occupations
An educational survey detailing numbers of applicants, students accepted, graduated, etc. has been completed
We are currently identifying root causes and solutions for the nursing occupations.
Short Term Win Actions Underway
©2007 ViTAL Economy, Inc.
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Critical Skill Shortages Goal Setting Team-1
Areas of Critical Skill Shortages
2004 Employee
Levels
8-Year Change
Based on COI
2012 Goal % Change
Registered Nurses 3249 1776 5025 55%
Nursing Aides, Orderlies … 2210 672 2882 30%
Licensed Practical Nurses 794 272 1066 34%
Medical Assistants 336 240 576 71%
Pharmacists 274 192 466 70%
Med & Clinical Lab Technologists
278 160 438 57%
Advanced Practice Nurses 147 104 251 71%
©2007 ViTAL Economy, Inc.
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Critical Skill Shortages Goal Setting Team-2
Areas of Critical Skill Shortages
2004 Employee Levels
8-Year Change Based on COI
2012 Goal % Change
Pharmacy Technicians 260 160 438 62%
Medical & Clinical Lab Technicians
217 128 345 55%
Physician Assistants 159 112 271 70%
Medical Record and Health Information Technicians
283 112 395 36%
Respiratory Therapists 137 112 249 82%
Physical Therapists 231 80 311 35%
Radiologic Technologists 211 80 291 38%
©2007 ViTAL Economy, Inc.
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Critical Skill Shortages Goal Setting Team-3
Areas of Critical Skill Shortages
2004 Employee Levels
8-Year Change Based on COI
2012 Goal % Change
Occupational Therapists 152 80 232 53%
Nursing Instructors/Faculty 135 80 215 59%
Physicians, Surgeons, Non-Invasive, All Other
166 48 214 29%
Family and GPs 143 48 191 36%
Surgical Technologists 122 48 170 39%
Pharmacy Aides 99 48 147 48%
General Dentists 140 32 172 23%
©2007 ViTAL Economy, Inc.
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Critical Skill Shortages Goal Setting Team-4
Areas of Critical Skill Shortages
2004 Employee Levels
8-Year Change Based
on COI
2012 Goal
% Change
Surgeons, Invasive 110 32 142 29%
Diagnostic Medical Sonographers
52 32 84 62%
Occupational Therapist Assistants
34 16 50 47%
Psychiatrists 12 6 18 50%
Child Psychiatrists 1 6 7 600%
Total Jobs in 26 Categories 9,976 4,676 14,676 47%
Insufficient information for Nuclear Medicine, Geriatrics, Neurology, Psychiatric Nursing, Masters Level, Behavioral Health Professionals and Allied Health Instructors
©2007 ViTAL Economy, Inc.
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We hope to create a sustainable, robust educational pipeline that will provide the
highest quality workforce to meet the needs of the healthcare providers in the region while
providing meaningful jobs to our local residents
Vision of the Future
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Critical Skill Shortages Goal Setting Team
Comments…
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Improved Health Outcomes Goal Setting Team
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Outcomes Goal Setting Team
Our group considered, over several months, the following listed areas:
Cancer, Cardiovascular Disease, Strokes
Flu and Pneumonia, Chronic Respiratory
Substance Abuse, Depression, Severe Mental Illness,
Alzheimers, Accidents
Also considered were issues of access with regard to
Oral, OB/GYN, Behavioral and other Specialists
Increased training of providers around retention
Increased education of patients around retention
©2007 ViTAL Economy, Inc.
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Final Healthy Outcome Goals
The group decided to focus all of its resources on one overarching goal that
would potentially impact a number of other downstream health outcomes.
Therefore our goal is:
Reduce cardiovascular disease mortality from 215 ->166 deaths per 100,000
by 2012 (Healthy People 2010). Four strategies will guide achievement of
this goal.
Increase physical activity levels (exercise) of population
Improve eating habits
Decrease tobacco use
Increase diabetes management
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Outcomes Goal Setting Team
Comments…
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Improved Connectivity Goal Setting Team
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Healthcare COI Goals
Connectivity & Collaboration Workgroup
Prioritize Health Resource Gaps for short-term and long-term action
Identify Telehealth/Telemedicine and Health Information Technology applications to address priority areas synergistically
Increase connectivity to health care providers to effectively and affordably improve health outcomes in priority areas
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March 30 Goal Setting Team Objectives
Identify 4-5 regional health care initiatives High-speed telecommunications connectivity Involve multiple health care entities
Improve
Health care access Improve health outcomes Improve provider profitability
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March 30, 2007 Goal Setting Meeting Results
Fifty different individuals representing 30 different healthcare
organizations within the Connect SI region reviewed 14 different
connectivity applications identified in prior meetings. From this process
five priority e-health applications were identified:
Electronic Master Patient Index
Linking Hospitals and Physicians with Electronic Health Records
Mental Health Primary Consulting
Workforce Education and Training
Tracking System for Drug Seekers
Action plan teams were assigned to work on the five priorities
©2007 ViTAL Economy, Inc.
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Connectivity Goal Setting Team
Comments…
©2007 ViTAL Economy, Inc.
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Estimating The Potential Impact and Inter-Relationship
of
Economic Development and Healthcare COI Strategies
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Where we are -------- Where we are going
Insured population 10% Medicaid 26% Medicare 18% UninsuredUninsured 32% 32%
>$2 BillionNew Annual
Wages
41,461 Existing Jobs
>$5,000/Yr
27,298 NewHi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
+4500 Families with Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
0
10
20
30
40
50
60
Es
tim
ate
d P
erc
en
tag
e
Note: 60% of the US population hademployment based insurance in 2004
Current State2004
Desired Future State2012
A Far BetterPayor Mix than
Today
A Far BetterPayor Mix than
Today
Insu
red
Med
icai
dM
edic
are
Uni
nsur
ed
Source: Estimates based on IPLAN, and Census Bureau data
©2007 ViTAL Economy, Inc.
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0
50
100
150
200
# Jo
bs
Proposed Profitability Goal Potential Impacts:Recaptured DRGs, Increased Insured Patients
Recaptured DRGs Generate jobs:
• Recapture $22 million in health revenue
• Generate 236 direct SI jobs
Increased Commercial clients(insurance) increases revenues:
• Commercial clients increase revenues• 5% shift could lead to
• $8m increased revenue• 85 direct new health jobs
Potential direct jobs from recaptured services, select DRGs
Source: Calculated using BEA RIMS II multipliersO
nco
logy
Or t
hopedic
s
Car d
i olo
gy
©2007 ViTAL Economy, Inc.
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Potential Critical Skills Goal Impacts:New Health Positions
Jobs Earnings GDP Output
Direct SI impacts 4,676 $214,688,145 $260,284,263 $469,835,750
Indirect and induced 2,408 $75,371,406 $156,289,685 $253,371,221
TOTAL 7,084 $282,265,193 $424,506,066 $688,193,978
Total potential impacts of Critical Skills Goals
Indirect Employment: Employment in down-stream industries that result from the presence of a particular business, activity or industry. Indirect employment is generally generated in industries that supply or provide services the direct business, activity or industry.
Induced Employment: Employment generated because of expenditures made by individuals employed directly or indirectly by the particular business, activity or industry.
Source: Calculated using BEA RIMS II multipliers
©2007 ViTAL Economy, Inc.
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Proposed Goals:Relationship to Connect SI
>$2 BillionNew Annual
Wages
41,461 Existing Jobs
>$5,000/Yr
27,298 NewHi-Wage Jobs
$642 MillionNew KBE Activity
1,600+ Firms
+4500 Families with Healthcare
Coverage
Lift 10,000 Citizens Out Of Poverty
$200 Million Information Technology Investment
7,571 NewHi-Wage Jobs
>$250 millionNew Annual
Wages
$20 Million Information Technology Investment
How theHealth
COISupports Connect SI
+4500 Families with Healthcare
Coverage
Lift 10,000Citizens Outof Poverty
Jobs, Wages,Insurance, New
Enterprises
How Connect SISupportsHealth
Interests
Con
nect
SI
Goa
ls
=WinWinWin
©2007 ViTAL Economy, Inc.
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Connect SI Physician Meetings
March 1& April 19
Summary Meeting Notes
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Physicians View of What is Different About Connect SI
Solutions are more tangible
Connect SI presents a bigger opportunity for success
Connect SI presents a common ground for a fragmented constituency
Linking healthcare to economic development is an intriguing idea
Collaboration between competing systems is an impressive start
©2007 ViTAL Economy, Inc.
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What We Want Our Focus To Be
Produce tangible solutions to technology upgrades required by law
Remain broad-based as we search for these solutions
Remain a diverse group of physicians and non-physicians working together to affect
change in the health care field
Continue to meet to share information and experiences on neutral ground (not the
doctors lounge)
Shift our focus from that of competitor to that of professionals willing to cooperate and
collaborate
Focus on improved patient outcomes, while looking for win/win in all decisions
Grow the healthcare economy
©2007 ViTAL Economy, Inc.
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What Will Make Participation in Connect SI A Valuable Experience for the Medical Profession
Make my life easier
Make my patients safer
Make me more efficient/productive
Benefit the practitioner by doing good for the patient
©2007 ViTAL Economy, Inc.
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What Will Make My Life Easier?
Get doctors to think as a group - establish an identity as we are southern Illinois, not a suburb of
any other region
Share our expertise within the region.
Market within our region and to each other (cross referrals) Changing referral patterns.
Make paperwork easier and more common sense - logical. Create a solution that is beyond the
“individual hospital” mentality.
Change competition perception to collaboration model. Receiving hospital compliments the
referring physician. This relationship builds confidence in patient opinion and within the
healthcare system. Compliment rather than tear down
Immediate and accurate access to health information
Enable new physicians in setting up their practices. Almost a business incubator or “welcome
wagon”. An outside entity is necessary to work within the Stark laws.
©2007 ViTAL Economy, Inc.
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What Will Make My Patients Safer?
Communal/shared information. Master index. Electronic and tied to a data base that
includes pharm. Interactions. Technology can assist physicians care for their
patients. Include pharmacists in this conversation. Collaboration will allow for better
patient outcomes.
Translate/convert VA EMR program to allow small providers to access this
tremendous resource.
©2007 ViTAL Economy, Inc.
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What Will Make Me More Efficient?
Communal knowledge - “smart card”. Short of that what could we do? Accessible regional medical records relative to HIPPA(change the laws).
Improve Medicaid reimbursement by state agencies for region both in
timeliness and rates - this is strictly politics.
Address malpractice premiums - a critical issue in the region
©2007 ViTAL Economy, Inc.
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What Will Benefit Practitioner By Doing What is Good for the Patient?
Improved access to medical records
Spend more time with the patient by reducing paperwork
Real-time, continuous loop of patient health information - Integrating best practice for the patient
with best practice for preventative health in general population.
Help practitioner to do his/her job by providing them information about the cases so better care
decisions can be made.
Reduce medical errors
Reduce missed preventative opportunities
Reducing unnecessary costs, thereby expediting diagnosis and treatment
Work within pay for performance initiative
©2007 ViTAL Economy, Inc.
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Physicians Response to Health COI Preliminary Goals
1. Connectivity across all health enterprises will greatly improve access to care
2. Less duplication of clinical tests was cited as an important outcome of the goals
3. Ability to track and catch drug seekers was cited as a very positive feature
4. Region wide broadband connectivity of health system will be good for patients
5. Current turf battles are largely a result of a lack of a universal communication system
6. CSI perceived as a solution for bringing together the very fragmented physician community
7. CSI could enable physicians to begin acting as a cohesive unit with a regional identity
8. Suggestions for a welcome wagon incubator approach to attract/retain new physicians
9. Communal information will make patients safer
10. Desire to bring physicians and healthcare administrators together through Connect SI
11. Linkage of healthcare to economic strategy could be a major lift to healthcare priorities
©2007 ViTAL Economy, Inc.
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Connecting the Dots
©2007 ViTAL Economy, Inc.
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What Common Strategies Might Be Implemented To Leverage Accomplishment of More than One Goal Area
Linking healthcare assets by connectivity in a variety of ways incl. physician support, at-home linkage,
patient registry and navigation, work with Network Provider COI
Central powerhouse to get things done – linked efforts improve efficiency of individuals thru focused
group work
Turf battles result from lack of communications – information developed has more power in a group
setting. Use process to create a permanent mechanism for information gathering/repository
Regional healthcare marketing strategy and common view of healthcare in southern Illinois – Improve
consumer level awareness of both the quantity and quality of services in the region.
Does lack of regional availability of supporting services (labs) increase likelihood of outmigration? –
research gaps in supportive services areas
©2007 ViTAL Economy, Inc.
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What Common Strategies Might Be Implemented To Leverage Accomplishment of More than One Goal Area pg 2
Develop web-based personal testimonials of healthcare services received locally – Amazon.com-style rating
system. – Print as well as web.
Link Outcomes team with Agriculture – Field-to-table approach with nutrition strategies for getting fresh
food to those in poverty – public health programs for young children – Johns Hopkins School of Public
Health program for youth nutrition. – Provide information to about program to Mary Ellen Abell @ JALC
©2007 ViTAL Economy, Inc.
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Mapping The Healthcare Value Chain
Quantifying Value Propositions That Drive Action
©2007 ViTAL Economy, Inc.
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Healthcare Value Chain
Payers Fiscal Intermediaries Providers Purchasers Producers
Government
Employers
Individuals
Employer Coalitions
Public Health Districts
Insurers
HMOs
Pharmacy Benefit Managers
Medicaid
Medicare
NGOs
Hospitals
Physicians
Pharmacies
IDNs*
Pharmacies
Alternate Site Facilities
Community Health Sites
Wholesalers
Mail Order Distributors
Group Purchasing Organizations
Drug Mftrs
Device Mftrs
Medical Surgical Manufacturers
Health Information System Firms
Source: Wharton School Study of Healthcare Value Chain - Commissioned by The Center for Healthcare Management Research
* IDN= Integrated Delivery Networks
©2007 ViTAL Economy, Inc.
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Move Up the Value Chain, Capture Greater Share of Value Chain
Margins, Increase Economic Prosperity
Why Value Chain Linkage Matters
Friction is the Cost of Getting From P to CP C
P C
P=Producer & C=Customer
©2007 ViTAL Economy, Inc.
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Business Cases are Built Using The Value Linkage Process
Reap Rewards andAddress More Issues
What will bring people together to address these issues?
Issues
How will the participants
benefit?
What are the benefits of
collaborating?
What is the business
case?
What solutions
and services
are needed to address
these issues?
How will the solutions and
services be implemented?
How will results be measured?
©2007 ViTAL Economy, Inc.
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Value Linkage TemplateHCOI Goal Setting Team: Address Critical Skills Shortages by 2012
Strategy to Address Goal: Increase registered nurses by 55% or 1,776 by 2012
Action Plan #1:_Put Nursing Awareness program in High Schools_
Collaborators required to implement action
Quantitative Benefits defined by collaborator in column #1
Qualitative benefits defined by collaborator in column #1
Key Business Case driver that calls them to collaborate now
SIU E Nursing Increased Enrollment $$ Increased Applicants and an improved applicant pool
mcKendree Ditto Ditto
SI Community Colleges
CC weed out pool before advanced, retention and succcess rates improved
High Schools
Career Counselors not school basedd-4h
Hospitals
©2007 ViTAL Economy, Inc.
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Goal Setting Teams Breakout Session Observations
Your thoughts…
©2007 ViTAL Economy, Inc.
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Establishing Milestone #5 Work Plan
©2007 ViTAL Economy, Inc.
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Milestone #5 Meeting Work Plan
Agree on Milestone Meeting Date: July 18, 2007
Location for July meeting: Heartland Regional Medical Center
Final Phase 1 Strategy Alignment Meeting: Wed., September 19,2007
Pre-Milestone #5 strategy meetings for each Goal Setting Group
Connectivity -
Outcomes -
Profitability -
Critical Skills -
©2007 ViTAL Economy, Inc.
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Southern Illinois Broadband Initiative
Healthcare COI Milestone Meeting #3BACKUP SLIDES
May 23, 2007Rend Lake College
CONNECT SI
Frank Knott, President
ViTAL Economy, Inc.
©2007 ViTAL Economy, Inc.
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COI Goal Setting Challenges & Solutions
Challenges
• Setting goals to achieve results, over which we may not have control
• Owning goals we cannot control, but we have to invest real resources
• KBE transformation of SI economy requires transforming COI goals
Solutions
• Effective CED COI strategies require measurable Health COI goals
• All strategies that enable goals are not only owned by Health COI
• Regional COI strategies can impact Health COI Goals
• Goals are owned by the region not just a specific institution
©2007 ViTAL Economy, Inc.
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Our Goal… Our Compelling Objective
The What = Compelling, Measurable Objective
The Hill We are Going To Take… Our Goal
Improved Profitability & Critical Skill Shortages - Top Down
Improved Healthcare Access & Outcomes- Bottom Up
10,000 persons out of poverty - 4,500+ families with health insurance
and tangible reductions in chronic diseases - Lift All Boats
SI becomes rural healthcare model for U.S. - Climate of Opportunity
Increase revenues, profitability, jobs across Connect SI Economy
©2007 ViTAL Economy, Inc.
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Healthcare COI Work Plan Prior To October 2006-1Assign Task Completion to Leaders or Action Teams
1. Establish a leadership team to manage the work of the healthcare COI (Leaders)
2. Develop a champion and investor recruitment plan to sustain Connect SI (Team)
3. Identify healthcare industry research reports for Connect SI team
4. Clarify how Connect SI could help accelerate/benefit existing initiatives (Leaders)
5. Define what will enable and sustain regional collaboration versus competition• Establish Marketing Committee to address 5 and 7
6. Clarify how the sub-regional input & involvement can be maximized by COI • Sub-Region Engagement team complete this task
©2007 ViTAL Economy, Inc.
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Healthcare COI Work Plan Prior To October 2006-2
7. Establish strategies that will address challenges to regional collaboration (Marketing)
8. Complete, and prioritize issues of challenge and opportunity (Team)
9. Prioritize definition of measurable goals for COI (Team)
10. Select the issue that creates the greatest sense of urgency for the COI (Leaders)
11. Focus on collaborations that can result in short term wins linked to process (Leaders)
12. Define what makes your investment of time, talent and treasure worthwhile (Leaders)