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William “Buddy” Gillespie Director Healthcare Solutions Distributed Systems Services (DSS) Edith Dees VP & CIO Holy Spirit Hospital Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

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Page 1: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

William “Buddy” GillespieDirector Healthcare Solutions

Distributed Systems Services (DSS)

Edith DeesVP & CIO

Holy Spirit Hospital

Meaningful Use Forecast:

Cloud Computing and Disaster

Preparedness

Page 2: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Presentation Content

–Dispelling the Myths around the Cloud: Catching the Virtualization Wave

• Cloud and security: Is my data really safe?

• Cloud-based solutions:

–Examining functionality, cost and system consolidation

• Impact on EHR projects, from meaningful use to ICD-10 transition

Page 3: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Presentation Content

Lay of the DR landscape: What you need to know

about HIT and disaster preparedness

Linking DR and cloud storage:

–Steps to take and assessments to make

Industry best practices:

–What are the pros and cons of cloud-based disaster

recovery for health care providers?

–Cloud and security: Is my data really safe?

–Data availability – the real cost of downtime in a 24/7 hospital environment

Page 4: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Case Study: Holy Spirit Hospital

On shared drive

• Our story of DR and preparedness: From top down

and bottom up, what you need to know

• Perspectives from a HIT CIO:

• How IT leaders can safeguard and mitigate risk

through data storage and cloud strategies

• Dispelling the Myths around the Cloud: Catching the Virtualization Wave Holy Spirit Hospital

Presentation Content

Page 5: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

US Healthcare Spending

Page 6: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Legislative Background

Health Information Technology for Economic and Clinical Health Act (HITECH) H.R.1

– $2 billion for ONC

– $18 billion for CMS

NPRM January, 2010

Final Rule July, 2010

Implementation begins

• Hospitals - October, 2010

• Medicaid - January, 2011

• Physicians – April, 2011

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Page 7: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Defining Meaningful Use

Three components of Meaningful Use

MU Objectives and Measures

– Core and Menu set

Clinical Quality Measures

–Core, Alternate Core, and Additional CQMs

Stages

–Stage 1 – 2011

–Stage 2 – 2013*

–Stage 3 – 2015*

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Page 8: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Timeline – Meaningful Use

It’s a journey – 3 Stages over 5 Years

Page 9: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Meaningful Use & IT

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• IT is Getting Closer to Patient Care

– PACS, CPOE, EHR, Med Administration

• Increased Demands for Higher Availability

– Technology Integrated into Clinical Workflow

• Increased Regulations?

– PA Act 13

– FDA

Page 10: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

EMR Adoption ModelHospitals continue to move up the HIMSS Analytics EMR Adoption Model

Page 11: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Healthcare increasingly will use analytics to driveclinical and operational improvements to meet business challenges

Page 12: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

HIMSS Survey-Priorities

Page 13: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

What is a Cloud?

Dictionary Definitions

– 1 : a visible mass of particles of condensed vapor (as

water or ice) suspended in the atmosphere of a planet

(as the earth) or moon

– 2 : something that has a dark, lowering, or threatening

aspect

– 3 : something that obscures or blemishes

Source: http://www.merriam-webster.com/dictionary/cloud

Page 14: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

What is a Cloud?

National Institute of Standards and Technology (NIST)

• Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources… that can be rapidly provisioned and released with minimal management effort or service provider interaction.

• Essential characteristics: On-demand self-service, broad network access, resource pooling, rapid elasticity, measured service.

• Service models: Cloud Software as a Service (SaaS), Cloud Platform as a Service (PaaS), Cloud Infrastructure as a Service (IaaS)

• Deployment models: Private cloud, Community Cloud, Public Cloud, Hybrid Cloud

Source: The NIST Definition of Cloud Computing (Draft). NIST

Special Publication 800-145 (draft)

Page 15: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

What is a Cloud?

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• Infrastructure Delivery Mechanism – Platform– Computing (Windows/Linux), Storage, Network

– Capacity on Demand; Rapid Deployment; Metering

• Commonly Confused With ASP, SaaS, RCO, etc.– Isolated from infrastructure

– May be delivered via cloud infrastructure; may not be

• It’s Marketing

Page 16: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Leveraging Cloud for MU

EMR as a service

Departmental solutions as a service (e.g. lab)

Health Information Exchanges

Non-core application services

– Contract Management

– Office applications

– Mail and Calendar

Page 17: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Why Cloud Computing Now? Reduce Cost

– 30 percent less cost on the average

Faster time to Value

– MU achievement on-time

Preserve Capital

– Subscription model vs. capital expense

Availability of Skills

– Outsourcing critical technology skills

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Page 18: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Evolution of Data Centers

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1970’s 1980’s 1990’s 2000’s 2010’s 2020’s

Mainframe Data Centers

Server Data Centers

Co-location

Managed Services

Cloud Computing

Page 19: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

HIMSS Survey-Infrastructure

Page 20: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

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EMR & digital medical imaging systems will drive data growthand storage demand

Page 21: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

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Cloud Services

Page 22: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Private Cloud vs. Public Cloud

• PRIVATE CLOUD

-Dedicated infrastructure to a specific client

• PUBLIC CLOUD

-Shared infrastructure across multiple

clients

Page 23: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

The Public Cloud

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Benefits

• No Capital Expenditure

• No DC Required

• Less Support Required

• Capacity on Demand

• Pay for What You Use

• Highly Mobile

• Inexpensive High

Availability

Drawbacks

• Immature Platform

• Connectivity Limitations

• OS Limitations

• Standards/Regulations

Still Evolving

• Ownership/Control of

Data

Page 24: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Concerns for HIT in the Cloud

(Security) HIPAA. Is a BAA needed from your cloud provider?

– International Standards Organization (ISO)

requirements for an Information Security Management

System, ISO 27001

– SAS 70 Type 1 (Design) and Type 2 (Effectiveness)

Audits of Controls

– Cloud Security Alliance (CSA) Security Guidance for

Critical Areas is Cloud Computing

– Each health care entity must decide what is sufficient

Page 25: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Concerns for HIT in the Cloud

(Connectivity)

The “skinny straw”

The critical path for system performance is bandwidth and

latency to the cloud service provider.

Evaluate bandwidth and latency requirements for any

candidate application or service.

Dedicated connection or “meet me on the internet”

Ensure sufficient network connectivity is included in any

cost/benefit analysis.

Is a fully redundant network connection required?

Page 26: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Concerns for HIT in the Cloud

(Availability)

• General Business / Financial Applications

• Business hours focused

• Scheduled downtime is okay

• Clinical Systems

• Specific uptime guarantees in the contract

• Financial penalties for not meeting service level

agreements (SLA)

• Ability to terminate contract if SLA is not met

• Alignment with your scheduled maintenance windows

Page 27: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Supporting Business Agility

– Add new capabilities and capacity

– Quicker response to business needs

– Economies of scale

– Experiment-innovate without investment

Reducing Capital Outlay

– Prorated expense via operational dollars

– Lease vs. buy technology

– Reduce internal cost by average of 30 per-cent

Business Drivers

Page 28: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Scale & Elasticity

– Scale and flex to the customer needs

Ability for Rapid Provisioning

– Customer needs are automatically addressed

– On-demand services and infrastructure

Internet Access

– Link from cloud to internal applications

Billing via Metering Services

Monitor and Measure quality of service

– Service Level Agreement

– Dashboard

Security

Attributes of Cloud Services

Page 29: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Infrastructure as a Service (IaaS)

– Cloud delivery of computing technology as a service

Platform as a Service (PaaS)

– Cloud delivery of software development and testing as a service

Software as a Service (SaaS)

– Cloud delivery of the ability to run applications via cloud hosting

– Most common

– Cloud provides end to end services

– Per-use fee structure

Desktop as a Service (DaaS)

Types of Cloud Services

Page 30: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

How Flexible is Your Existing Technology Infrastructure?

What is the Architecture of Your Existing Data Center?

What are the Current Costs with your Existing

Environment?

What are the Security Issues?

What is the flux of your Current Healthcare Business?

How do you build the Business Plan and Migrate to the

Cloud?

Questions to Consider:Cloud Decision?

Page 31: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

We design, install, manage and maintain our client’s’ IT infrastructures – from the Desktop to the Data Center

Incorporated in 1995

Headquartered in Reading, PA

Growing at double-digit rate

Employ over 110 professionals

Deep expertise, industry certifications, low turnover

• IBM Premier Business Partner – Systems, Software, Services

− Over 60 technical certifications

• Cisco Premier Partner

• APC Silver Partner

• VMWare Enterprise Partner

DSS Overview

Page 32: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

DSS Healthcare Cloud Computing Experiences

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Hospital A

DSS is High Availability Site

Real time replication of transactions

Hospital B

DSS is Disaster Recovery site with dedicated Infrastructure.

Databases are transferred daily

Plan is to migrate to High Availability

Physicians Practices

Production environment

Dedicated Infrastructure

Databases backed up off site

Page 33: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

DSS Healthcare Cloud Computing Experiences

Broad portfolio of solutions, deep expertise

The DSS data center is a single-story Tier III, SAS70 Type II certified data center with 14,780 square feet of 24” raised floor for client hosting and co-location services.

Best practices approach, ITIL-based processes

Sound PMI-based project management and commitment to continuous improvement

Team of 120 people in the local geography

Commitment to understanding the healthcare industry and providing solutions that work

Proven track record, long-term relationships with clients

Page 34: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

References

What are the Barriers to Companies Moving to the Cloud?

www.ceo2ceos.com/?p=65 An excellent article suitable for non-

technical audiences.

The Skinny Straw: Cloud Computing's Bottleneck and How to

Address It.

http://www.cio.com/article/499137/The_Skinny_Straw_Cloud_Co

mputing_s_Bottleneck_and_How_to_Address_It

Building Return on Investment from Cloud Computing.

http://www.opengroup.org/cloud/whitepapers/ccroi/index.htm

Page 35: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Introduction

We are a community Catholic health system sponsored by the Sisters of

Christian Charity. Holy Spirit Health System provides high quality, cost-

effective health services to develop healthy communities in the greater

Harrisburg area and South Central Pennsylvania. We have a 316-bed

hospital, with a 30 bed cardiac hospital within a hospital committed to

providing the best in care, technology and staff.

Edith Dees, VP/CIO, has been with the health system for the past six years.

Page 36: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

On shared drive

Case study of experience: Holy Spirit Hospital

• Our story of DR and preparedness:• From top down and bottom up

• Perspectives from a HIT CIO:• How IT leaders can safeguard and mitigate risk

through data storage and cloud strategies

• Dispelling the Myths around the Cloud• Catching the Virtualization Wave

Page 37: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

CURRENT STATE

Original phone demarc /data center established forty years ago during new construction

Like many data centers of the era, best location to allow growth found in basement, out of the way of core clinical services.

On shared drive

Page 38: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

CURRENT STATE

Systems housed in conditioned space were primarily batch processors where system interruptions are more acceptable than with real-time applications.

Auxiliary data center established ten years in repurposed medical arts building suite with 8’ ceilings. Original data center surrounded by immovable operations.

– 60% Virtualized

– Maxed out power

– Cooling challenge with only 8’ clearance. Six CRAC units in place.

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Page 39: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

PROCESS REVIEW

Determined growth in basement ill-advised

–Water seeks lowest level

– Limited power and cooling

• Proximity to power plant and HVAC

– Displace other departments who need proximity to core hospital

– Investment and risks would be sizeable with limited expansion

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Page 40: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

PROCESS REVIEW

Medical Arts Building data center expansion limitations

– Structural reinforcement required to bear equipment weight load in office building

– Room elevation does not support heat displacement

– Power and HVAC limitations

– Pedestrian-sized elevators

– Exterior windows

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Page 41: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

DATA CENTER IN A BOX

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Page 42: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

PROCESS REVIEW

Requires parking lot space near power plant which would displace physicians and/or patients from Medical Arts Building

Total costs much higher than anticipated

Campus aesthetics

On shared drive

Page 43: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

HSHS IT has been in the “Cloud” for decades

Core revenue cycle applications, private network

Core clinical applications, private network

Joint Commission® portal, public network

Outsourced transcription, private network

Virtualized servers for past 5 years, private network

On shared drive

Page 44: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Healthcare applications are generally “Fat”

On-site servers are still required for communications, printing, faxing, etc.

– For example, we have 24 servers on-site to support the clinical applications hosted in NJ.

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Page 45: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Best applications for outsourced cloud:

Business Continuity automated fail-over

– DR is not discussed. Do what you need to do to keep us operational.

• Clinical

• Door Access

• Office Automation

Disk-to-disk DR minutes rather than hours versus recovery from tape backups stored off-site

• As more applications store images, tape backups become a speed to recovery issue.

On shared drive

Page 46: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Best application for outsourced cloud

Single vendor per “Cloud” for “Thin” applications

– Bundled support costs

– Better vendor management

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Page 47: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Cost Estimate for Tier 3DATA CENTER:Repurpose existing campus structure

Campus connectivity $ .5M

Demolition/Begin Exterior $ .9M

Design/Permits $ .5M

Pre-Purchase Power and HVAC $1 M

$2.9M

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Page 48: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Cost Estimate for Tier 3DATA CENTER:Repurpose existing campus structure

$12M -$23M depending on technology and size

Professional Fees

Design Fees

Construction Cost

Fit outs

Furniture

Equipment

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Page 49: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Cost Estimate for Tier 3DATA CENTER: Time

Time Factor – Years rather than Months– Perform feasibility study and identify location

– Identify HVAC and power technology/requirements

– Site visits and reference checks for multiple alternatives

– Provide financials including cash flow for CFO review

– Make case for expansion to Executives

– Obtain Board approval, not usually received in one presentation

– Find the money, reprioritize expenditures

– Negotiate the construction contracts

– Begin construction

– Staff and equipment relocation

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Page 50: Meaningful Use Forecast: Cloud Computing and Disaster Preparedness

Thank you

Questions?