Commercialization and Scale At Kaiser Permanente Karen Schartman, CFO and VP Strategy, Kaiser Permanente Washington.
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1 Commercialization and Scale At Kaiser Permanente Karen Schartman, CFO and VP Strategy, Kaiser Permanente Washington November 15, 2017
2 Kaiser Permanente: An Integrated Healthcare System Mission: To provide high-quality, affordable health care services and to improve the health of our members and the communities we serve Vision: We are trusted partners in total health, collaborating with people to help them thrive, creating communities that are among the healthiest in the nation, and inspiring greater health for America and the world Strategy: To be a leader in providing high-quality, affordable health care through our integrated care delivery system, focused on advanced technology and Total Health 1 CONFIDENTIAL
3 Yesterday: Commercialization and Scale 2 CONFIDENTIAL
4 Today: Integrated Model: Coordinated, Comprehensive Care and Coverage Shared Board of Directors Health Services Payments Large Scale Operations KFHP Kaiser Foundation Health Plan Nonprofit 501(c)3 Operating Revenue Hospital Service Agreements Medical Service Agreements Nonprofit 501(c)3 KFH Kaiser Foundation Hospitals Provide & Arrange Hospital & Facility Services KP MEMBERS PMG Permanente Medical Groups For Profit Provide & Arrange for Medical Services Creating Economic Value 3 CONFIDENTIAL 3
5 Our Health System $65 B revenues M* members 200 K employees 21 K physicians 38 hospitals 660+ medical offices 4+ K research studies * Membership as of 2/28/2017, other data from 12/31/ CONFIDENTIAL 4
6 Touching the Lives of Millions of People 458,000 hospital admissions 138,000 inpatient surgeries 2 M colorectal cancer screenings 100 M primary care visits 52% virtually 1 M mammograms 78 M prescriptions filled 101,000 births 2015 DATA 5 CONFIDENTIAL 5
7 US Healthcare Context 6 CONFIDENTIAL
8 Kaiser Permanente Scale Capabilities drive care outcomes: right care, right place, right time Integration of the health care value chain Administrative economies 7 CONFIDENTIAL
9 Capabilities: Taking Best Practices to Scale Reducing variation and improving inpatient utilization across care sites 8 CONFIDENTIAL
10 Locations Capabilities: Performance Measurement Across Care Sites Enables Outcomes at Scale 9 CONFIDENTIAL
11 Capabilities: Learning Health System Examples: Now Spreading Effect on Members Effect on Affordability Outcome FEED $$$$ Ensure patients on enteral feeding receive mls ordered Fentanyl Patch $$$$ Prevent opioid naïve patients from receiving fentanyl patches Healthy Stones $$$$ Reduce recurring kidney stones through improved self care Hyperglycemia Reduction in Diabetic Patients Total Joint Replacement & Recovery Vaginal Cleansing Prior to C-Section $$$$ Titrate insulin when diabetics receive steroids, to reduce ED visits and hospitalization $$$$ Shift care from hospital to home and enhance recovery $$$$ Reduce endometritis via a 30-second wash prior to c- section 10 CONFIDENTIAL
![process Outpatient 81.5 Million 1 Total Sold Prescriptions [$5.4B] Local Central Fill Mail Order 46.](/docs-images/80/81733157/images/12-1.jpg "2 Million 14 Million 21.3 Million Inpatient 44 Million 2 Doses administered [$0.")
![5B] Clinic Administered Medications 10.6 Million 2 Doses administered [$1.](/docs-images/80/81733157/images/12-2.jpg "6B] Our Member Reach 550 395 38 90 KP Pharmacy Patient Sites 4 Outpatient and Inpatient Pharmacies + Clinic")
12 Integration of Healthcare Value Chain Pharmacy Kaiser Permanente Pharmacy Fast Facts Our pharmacists and staff are often the last interaction and serve as a primary point of contact for members throughout the care delivery process Outpatient 81.5 Million 1 Total Sold Prescriptions [$5.4B] Local Central Fill Mail Order 46.2 Million 14 Million 21.3 Million Inpatient 44 Million 2 Doses administered [$0.5B] Clinic Administered Medications 10.6 Million 2 Doses administered [$1.6B] Our Member Reach KP Pharmacy Patient Sites 4 Outpatient and Inpatient Pharmacies + Clinic Administered Sites Oncology, Outpatient Infusion, & Specialty + 27 Call Center and Central Fill Operations Employing 15,500 KP Pharmacy Staff Members 5 ~170,000 + Daily Member Interactions 6 One of the highest volume and most frequent member touch points across our Kaiser Permanente network 11 CONFIDENTIAL
13 Integration of Healthcare Value Chain Research Federal (and other) research grants give us the ability to: Develop new data capabilities & analytic methods that become models for national public health initiatives FDA s sentinel initiative Accelerate & scale up initiatives that benefit our members Behavioral Health Integration (BHI) Identify areas of concern & take quick action system-wide Opioid safety initiative Leverage comprehensive patient data in large-scale living laboratories Adult Changes in Thought (ACT) study 12 CONFIDENTIAL
14 KP Administrative Economies Spread fixed costs over large base Gain efficiency through shared services 14.0% 13 CONFIDENTIAL
15 In summary 14 CONFIDENTIAL
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