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© Pittsburgh Regional Health Initiative 2011 1
Moving the Big Needle:
Fundamentals of Health System Reform
Karen Wolk Feinstein,PhDPresident & Chief Executive Officer
July 21, 2011
Pittsburgh, PASpreading Quality, Containing Costs.
© Pittsburgh Regional Health Initiative 2011 2
History of the Jewish Healthcare Foundation (JHF)
The Foundation was established following the sale of Montefiore Hospital to Presbyterian Hospital (the forerunner to UPMC Health System)
JHF maintains two seats on the UPMC Health System Board
Functions as a Public Charity (formerly a Private Foundation)
© Pittsburgh Regional Health Initiative 2011 3
Staff and Functions
ThinkResearchersData analystsCommunications, media, writersPolicy analystsEvaluators
GiveProgram officersGrant managersFiscal agents for HIV/AIDS fundsAccounting
DoProgram directorsEvent plannersTrainers Grant writersWeb designersPublic relations
TrainCurriculum developersCoaches and trainers
40+ Staff
© Pittsburgh Regional Health Initiative 2011 4
Jewish Healthcare Foundation
Had a VISION in 1997 for a High-Performing Healthcare System that was safer, more reliable, efficient and compassionate
© Pittsburgh Regional Health Initiative 2011 5
What and Why: PRHI
Pittsburgh Regional Health Initiative (PRHI) A not-for-profit, regional, multi-stakeholder coalition formed in 1997 An initiative of a business group, the Allegheny Conference on Community Development
PRHI’s messageDramatic quality improvement (approaching zero deficiencies) is the best cost-containment strategy for health care
© Pittsburgh Regional Health Initiative 2011 6
Formed in 1997
Before IOM Reports:To Err is Human: Building a Safer Health SystemCrossing Quality Chasm: A New Health System for the 21stCenturyMichael Porter’s Defining Competition in Markets: Why and How?
By Pittsburgh’s leading corporate CEO entity:The Allegheny Conference on Community Development
To create in the Pittsburgh region the highest value delivery system
© Pittsburgh Regional Health Initiative 2011 7
PRHI’s Prescription for Transformation
Services That Add Value All Services Add Value
Preventable Complications
Unnecessary Treatments
Inefficiencies
Errors
100% Value
60% Value
40% Waste
NOW FUTURE
© Pittsburgh Regional Health Initiative 2011 8
The Problem Was Worse Than We Thought
How Does the U.S. Measure Up Globally?
Source: Commonwealth Fund Commission on a High Performance Health
Australia Canada Germany NetherlandsNew
ZealandUnited Kingdom
United States
OVERALL RANKING (2010)
Quality Care
Effective Care
Safe Care
Coordinated Care
Patient‐Centered Care
Access
Cost‐Related Problem
Timeliness of Care
Efficiency
Equity
Long, Healthy, Productive Lives
Health Expenditures/ Capita, 2007 $3,357 $3,895 $3,588 $3,837* $2,454 $2,992 $7,290
Country Rankings Excellent Fair Poor
© Pittsburgh Regional Health Initiative 2011 10
Additional Grim Statistics
Source: Elizabeth A. McGlynn and Robert H. Brook, Rand, June 2003
55%45%
Percent of Americans receiving recommended care for preventive, chronic and acute conditions
Receive recommended careDo not receive recommended care
Just over 50% of Americans receive recommended care. Why?
What gets in the way of recommended care being provided 100% of the time?
© Pittsburgh Regional Health Initiative 2011 11
The Persistence of Medical Errors in U.S.
Adapted from Milliman: The Economic Measurement of Medical Errors, June 2010
Error Type% of
Injuries that are Errors
Count of Errors (2008)
Total Cost per
Error
Total Cost of Error
(millions)
Pressure Ulcer (Medicare Never Event) >90% 374,964 $10,288 $3,858
Postoperative Infection >90% 252,695 $14,548 $3,676
Infection due to Central Venous Catheter >90% 7,062 $83,365 $589
Catheter - Associated Urinary Tract Infection (Medicare Never Event) >90% 12,839 $26,793 $344
Object Left in Body (Medicare Never Event) >90% 11,690 $8,031 $94
Blood-Type Incompatibility (Medicare Never Event) >90% 6,350 $11,738 $75
Total Cost of all errors = $19.5 Billion per year
© Pittsburgh Regional Health Initiative 2011 12
Consequences of sub‐optimal care:Diabetes: missed opportunity to identify and intervene with serious consequences of poor blood sugar control at an early stageHypertension: 68,000 preventable deaths annuallyPreventative care:
10,000 preventable deaths from pneumonia9,600 preventable deaths from colorectal cancer
McGlynn et al, 2003
The System is Not Working Well For Patients
© Pittsburgh Regional Health Initiative 2011 13
Reforming Health Care
Five phases of reform to achieve transformation:Phase 1 – Defining a Vision and Strategy to Deliver Value
Vision: perfect care = efficient + safe + best practiceStrategy: focus on the frontline, aim for ambitious targets, leadership support of continuous improvement
Phase 2 – The MethodDeveloped Perfecting Patient CareSM (PPC) and enlisted Champions of Reform
Phase 3 – Demonstrating the Value of PPC PPC tested in various settings
© Pittsburgh Regional Health Initiative 2011 14
Reforming Health Care (contd.)
Five phases of reform to achieve transformation (contd.):Phase 4 – Aligning Incentives
Create climate and infrastructure for change, and reward teamworkChange policy and regulations, and reform payment systemsUse good data to allow for credible transparency
Phase 5 – Spread and Stabilization Knowledge networks spread quality and contain costQuality management tools support quality Champions
© Pittsburgh Regional Health Initiative 2011 15
The Original Vision
© Pittsburgh Regional Health Initiative 2011 16
Where Value Derives
THE PATIENT
• Outcomes of Care• Efficiency of Care• Zero Defects
Value begins at the front linewhere patients receive care
© Pittsburgh Regional Health Initiative 2011 17
Toyota Lean Production Thinking: The Basics
Problems identified and solvedRapid root cause analysisOrganized work areasConcise communicationActive involvement of managers
“Go and see”On the floor
Intense respect for the employee:Every employee has what they need, when they need it to succeedCareer development
Team problem solving to meet customer need
© Pittsburgh Regional Health Initiative 2011 18
What We Observe in Health Care
W. Edwards Deming, PhD: “Where Art Thou?”
ChaosUncertaintyRandom BehaviorsWork‐AroundsConfusionDisorderErrorsHigh TurnoverSecrecy
© Pittsburgh Regional Health Initiative 2011 19
QI Inhibitors:The Cycle of Despair
+
No Education about High Performance
Low Aspirations
No QI Structure
Powerless Customers / Patients
Powerful Interests Resisting Change
Perverse Payment
Low Aspirations
© Pittsburgh Regional Health Initiative 2011 20
Our Method: Perfecting Patient CareSM
PRHI’s Unique Brand of Quality Improvement
Adapted from LeanPatient-focused systems redesignCan be applied in the course of everyday workThe ultimate goal is perfection
© Pittsburgh Regional Health Initiative 2011 21
Our Method:What is Unique About Perfecting Patient CareSM (PPC)?
One universal improvement method
Meeting patient need is the focus of all work
Frontline clinical teams apply daily problem‐solving methods and work process improvement techniques
Research occurs and is performed at the frontline
Focus is clinical care improvement
© Pittsburgh Regional Health Initiative 2011 22
It’s Not Working Well for Providers, Either
2009 study in Annals of Internal Medicine reveals:• 53.1% of surveyed physicians reported time pressures during office visits
• 48.1% said their work pace is chaotic• 78.4% report low control over their work
• Strong association between “unfavorable organizational culture”and low physician satisfaction, high stress, burnout, and intent to leave
• Linzer et al, 2009
© Pittsburgh Regional Health Initiative 2011 23
The Champion Role in Transformation
PPC empowers frontline staff…and more
Nurse Navigators
Nurse Managers
Team LeadersSalk Fellows
Patient Safety Fellows
Physician Champions
Clinical Pharmacists
Long‐term Care Workers
Librarians
Hospital Trustees
Emergency Medical Technicians
Caregivers
© Pittsburgh Regional Health Initiative 2011 24
Retention ‐ Nurse Turnover
Problem: nurse turnover on liver transplant unit goes from 5% to 12% in one year“Peeling the onion” for nurses:Gives nurses a voiceLevels work loadEncourages nurses to ask for, and render, help
Nurse Navigator Christopher Saunders, MSN, RN
© Pittsburgh Regional Health Initiative 2011 25
Nurse Turnover
© Pittsburgh Regional Health Initiative 2011 26
Nurse Turnover
© Pittsburgh Regional Health Initiative 2011 27
Nurse Turnover
© Pittsburgh Regional Health Initiative 2011 28
Results
RN turnover rates on abdominal transplant unitYear RN Resignations
2003 3
2004 12 (12%)
2005 (Jan-Sept) 10
Jan 2006 (PPC innovations begun) to Dec 2006
0
© Pittsburgh Regional Health Initiative 2011 29
68% Dropin CLABs in 34 regional hospitals
50% FewerReadmissionsw/ COPD focus
86% Reductionin medication errors
180 to Zero!Lost patient hours per
month due to ambulance diversions
Efficiency Increased 100%
in pathology lab
17% Dropin pediatric clinic
wait times
100% Reductionin nurse turnover
50% Reductionin pap smear
sampling defects
>20% DeclineNosocomialC. difficileinfections
35 to Zero!defective charts
100% Compliancew/guidelines & aspirinuse in a diabetes clinic
PRHI Stories of Success in Acute Care
© Pittsburgh Regional Health Initiative 2011 30
Our Methods and Successes Have Attracted Attention
© Pittsburgh Regional Health Initiative 2011 31
Key Media Placements
Health Affairs: Partnering Private Primary Care Practices with Federally Qualified Health Centers in the Care of Complex PatientsModern Healthcare: Reform CatalystsHealth Affairs Grant Watch Blog: Health Reform at the Retail Level: Community by Community, State by StateJournal of the American Medical Association: Health Care‐Associated Invasive MRSA Infections, 2005‐2008Hearst Newspapers: Dead by Mistake Follow‐upWashington Post: End‐of‐LifeHospital News of Western Pennsylvania: Monthly FeatureThe Role of Regional Health Improvement Collaboratives in HealthPolicy, USA; by Feinstein and Elster
© Pittsburgh Regional Health Initiative 2011 32
“Bringing state‐of‐the‐art care to all will require a fundamental, sweeping redesign of the entire health system … merely making incremental improvements in current systems of care will not suffice.”
‐ The Institute of MedicineMarch 2001
The Bottom Line: Transformation of Organizations and Systems
© Pittsburgh Regional Health Initiative 2011 33
PPC for Systems Transformation
PPC for Organizational Transformation
PPC for Repairs
An Early Vision for Perfecting Care
A Method for Perfecting Patient CareSM (PPC)
PPC in New Technologies and New Models
Moving Beyond Repair to Transformation
© Pittsburgh Regional Health Initiative 2011 34
Global Vision
Culture of Quality and Safety
Quality Improvement Strategy
Targets and Measurement
Designated Champions and Teams
Training, Education and Coaching
Interdisciplinary/Transitional Collaborations
Research/Experimentation/Registries
Consumer and Purchaser Engagement
Information Technology
Public Reporting
Incentives for High Performance
Transforming Healthcare Organizations: Hit all the notes on the xylophone or no music
© Pittsburgh Regional Health Initiative 2011 35
The Executive Role in Transformation
Paul O’Neill ‐ Alcoa Chairman, 1987‐1999
Corporate commitment to reduce workplace injury rate to zero
Imported Toyota Production System, manager accountability, real‐time data reporting to Alcoa; reduced workplace injuries by 90% over 12 years
Alcoa became the safest company in the world
© Pittsburgh Regional Health Initiative 2011 36
Research Based Publications
The Complex Patient
HIV/AIDS End of Life
Skilled Nursing
Chronic Disease(COPD)
Behavioral Health and Substance Abuse
Multiple Conditions
© Pittsburgh Regional Health Initiative 2011 37
Testing our Model:Reducing Preventable Hospitalizations — COPD
Our data mining identified chronic obstructive pulmonary disease (COPD) as a prominent cause of hospital admissions (4th highest) and readmissions (3rd highest)
Readmissions in Western PA, 2005-06
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
CHF Pneumonia Depression COPD KidneyFailure
AbnormalHeartbeat
Diabetes Asthma
Diagnosis at Initial Admission
# R
eadm
itted
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
% R
eadm
itted
# ReadmitsReadmit Rate
© Pittsburgh Regional Health Initiative 2011 38
COPD Readmissions Reduction Results
By focusing on the transitions between care settings:30 readmissions prevented$160,000+ savedNet savings of $80,000+ after
cost of Care Manager44%
Reduction
© Pittsburgh Regional Health Initiative 2011 39
The Second Systems Vision: Transforming the Care of Complex Patients
Care Mgt
Clinical Pharmacy
Patient Engagement
Health IT
QI Training
Payment Incentives
Collaboration and
Integration
Medication Reconciliation
Informed Activated Discerning Consumers
Data to Treat,
Measure, Evaluate
Perfect Patient Care
Rewardsfor
Collaboration
Hospice/Palliative
Long Term Care
Rehab
Hospital
Emergency Services
Specialty Care
Primary Care
Screening and Tx
Behavioral Health
© Pittsburgh Regional Health Initiative 2011 40
Disruptive Innovations
© Pittsburgh Regional Health Initiative 2011 41
“The challenge we face is not unique to health care. The transformational force that has brought value to other industries is disruptive innovation. The healthcare industry screams for disruption.”
‐ Clayton M. ChristensenThe Innovator’s Prescription: A Disruptive Solution for Health Care
Disruptive Innovations: System Transformations
© Pittsburgh Regional Health Initiative 2011 42
Disruptive Innovations
1. Simple, less expensive, “upstream” innovations
2. Serve more with fewer features
Do not overshoot customer need
Show better understanding of customer need
© Pittsburgh Regional Health Initiative 2011 43
“Training dosage had most important effect on measures of success. A combination of PPC training, additional training, and coaching were associated with improved outcomes. Social networking or on‐line technology can foster a virtual PPC community.”
‐ Donna O. Farley, PhDRAND: Results from the Retrospective Evaluation Effects of PPC University Training
The Technology Innovation
© Pittsburgh Regional Health Initiative 2011 44
Why Tomorrow’s HealthCare™?
Spread best practices and lessons learned
Sustain quality improvement projects and staff learning
Improve team efficiency and communication
Achieve Pay-for-Performance objectives, reduce events that can lead to penalties
Train new employees quickly and reduce off-site training
A frontline learning and doing web-based tool that leverages the strengths of face-to face coaching
© Pittsburgh Regional Health Initiative 2011 45
The Web‐based Solution: Tomorrow’s HealthCare™
© Pittsburgh Regional Health Initiative 2011 46
How to Spread & Sustain TransformationTomorrow’s HealthCare™
© Pittsburgh Regional Health Initiative 2011 47
Tomorrows HealthCare™: As a Management Tool
C‐Suite Dashboard – track progress of moving a full organization toward quality targets and transformation
Communications – establish groups of learners to foster open collaboration, share best practices and access coaching and networking tools
Lean Improvement A3 Tool – enables teams to:Review the steps of process improvementCreate a business caseDraw a current and target condition diagramsProduce an action plan detailing next steps in the improvement Automatically collect data and analyze outcome measures
© Pittsburgh Regional Health Initiative 2011 48
The Current Agenda
For the Patient, it is care that is kind, competent, customized, comprehensive, safe and efficient; addressing the needs of vulnerable populations, including:
Seniors (Caregiver Champions) and Long Term Care ChampionsThe poor (Safety Net Medical Home Initiative)The chronically ill (Accountable Care Network)Those who are approaching End-of-Life (Closure)Persons living with behavioral health problems (AHRQ grant), and
persons living with HIV/AIDS (Readmissions Reductionproject)
© Pittsburgh Regional Health Initiative 2011 49
The Current Agenda (cont’d)
For the Healthcare Worker, it means that care is:
Informed and supported (Regional Extension & Assistance Center for HIT)
Incentivized (Robert Wood Johnson Foundation payment reform grant and the Fine Awards)
Prepared by training and coaching (Perfecting Patient CareSM, Tomorrow’s HealthCareTM, PPC University, Fellowships and Champions Programs)
© Pittsburgh Regional Health Initiative 2011 50
For Organizations and Systems, this focus includes:Training, coaching and leadership development (Perfecting Patient CareSM)
Comprehensive improvement and education tools (Tomorrow’s HealthCareTM)
Transformations and new models of care (Patient Centered MedicalHomes, Accountable Care Networks, Primary Care Resource Centers, Partners in Integrated Care)
Payment Reform (Robert Wood Johnson Foundation payment reform grant and the website The Center for Healthcare Quality and Payment Reform— www.chqpr.org)
The Current Agenda (cont’d)
© Pittsburgh Regional Health Initiative 2011 51
Health Reform: An Historic Effort to Transform Health Care
© Pittsburgh Regional Health Initiative 2011 52
Reforming Health Care
Five phases of reform to achieve transformation:Phase 1 – Defining a Vision and Strategy to Deliver Value
Vision: perfect care = efficient + safe + best practiceStrategy: focus on the frontline, aim for ambitious targets, leadership support of continuous improvement
Phase 2 – The MethodDeveloped Perfecting Patient CareSM (PPC) and enlisted Champions of Reform
Phase 3 – Demonstrating the Value of PPC PPC tested in various settings
© Pittsburgh Regional Health Initiative 2011 53
Reforming Health Care (contd.)
Five phases of reform to achieve transformation (contd.):Phase 4 – Aligning Incentives
Create climate and infrastructure for change, and reward teamworkChange policy and regulations, and reform payment systemsUse good data to allow for credible transparency
Phase 5 – Spread and Stabilization Knowledge networks spread quality and contain costQuality management tools support quality Champions