©2007 ViTAL Economy, Inc. 1 Southern Illinois Broadband Initiative Healthcare COI Milestone Meeting...

©2007 ViTAL Economy, Inc.

— 1 —

Southern Illinois Broadband Initiative

Healthcare COI Milestone Meeting #3

May 23, 2007Rend Lake College

CONNECT SI

Frank Knott, President

ViTAL Economy, Inc.

[email protected]


— 2 —

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


— 3 —

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


— 4 —

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


— 5 —

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


— 6 —

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


— 7 —

Goal Setting Action Team Reports

Profitability

Critical Skills

Outcomes

Connectivity


— 8 —

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


— 9 —

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


— 10 —

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


— 11 —

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


— 12 —


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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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


— 14 —

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


— 15 —

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


— 16 —

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


— 17 —

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


— 18 —

Profitability Goal Setting Team

Comments…


— 19 —

Critical Skills Shortage Goal Setting Team


— 20 —

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


— 21 —

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


— 22 —

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


— 23 —

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%


— 24 —



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%


— 25 —




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%


— 26 —




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


— 27 —

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


— 28 —

Critical Skill Shortages Goal Setting Team

Comments…


— 29 —

Improved Health Outcomes Goal Setting Team


— 30 —

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


— 31 —

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


— 32 —

Outcomes Goal Setting Team

Comments…


— 33 —

Improved Connectivity Goal Setting Team


— 34 —

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


— 35 —

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


— 36 —

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


— 37 —

Connectivity Goal Setting Team

Comments…


— 38 —

Estimating The Potential Impact and Inter-Relationship

of

Economic Development and Healthcare COI Strategies


— 39 —

Where we are -------- Where we are going

Insured population 10% Medicaid 26% Medicare 18% UninsuredUninsured 32% 32%


Wages


>$5,000/Yr



1,600+ Firms


Coverage



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


— 40 —

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


— 41 —

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


— 42 —

Proposed Goals:Relationship to Connect SI


Wages


>$5,000/Yr



1,600+ Firms


Coverage




>$250 millionNew Annual

Wages


How theHealth

COISupports Connect SI


Coverage

Lift 10,000Citizens Outof Poverty

Jobs, Wages,Insurance, New

Enterprises

How Connect SISupportsHealth

Interests

Con

nect

SI

Goa

ls

=WinWinWin


— 43 —

Connect SI Physician Meetings

March 1& April 19

Summary Meeting Notes


— 44 —

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


— 45 —

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


— 46 —

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


— 47 —

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.


— 48 —

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.


— 49 —

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


— 50 —

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


— 51 —

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


— 52 —

Connecting the Dots


— 53 —

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


— 54 —

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


— 55 —

Mapping The Healthcare Value Chain

Quantifying Value Propositions That Drive Action


— 56 —

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


— 57 —

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


— 58 —

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?


— 59 —

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


— 60 —

Goal Setting Teams Breakout Session Observations

Your thoughts…


— 61 —

Establishing Milestone #5 Work Plan


— 62 —

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 -


— 63 —

Southern Illinois Broadband Initiative

Healthcare COI Milestone Meeting #3BACKUP SLIDES

May 23, 2007Rend Lake College

CONNECT SI

Frank Knott, President

ViTAL Economy, Inc.

[email protected]


— 64 —

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


— 65 —

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


— 66 —

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


— 67 —

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)

©2007 ViTAL Economy, Inc. 1 Southern Illinois Broadband Initiative Healthcare COI Milestone Meeting...

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Transcript of ©2007 ViTAL Economy, Inc. 1 Southern Illinois Broadband Initiative Healthcare COI Milestone Meeting...