Symposium on Innovation in Healthcare Technology and Delivery
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- Emery Palmer
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1 Symposium on Innovation in Healthcare Technology and Delivery 1:30-3:15 New Models for Drug Development and Personalized Therapy Keynote: Richard Schlegel, MD, PhD. Professor and Chairman of the Department of Pathology, Director of the Center for Cellular Reprogramming, Lombardi Comprehensive Cancer Center, Georgetown University Medical Center Woo Lee, PhD, George Meade Bond Professor, Stevens Institute of Technology Jenny Zilberberg, PhD, Researcher, Hackensack University Medical Center Alvin Stern, PhD, Visiting Professor, Stevens Institute of Technology Carrie Perlman PhD, Assistant Professor, Stevens Institute of Technology Panel discussion/q&a 3:15-3:30 Break 3:30-5:15 Healthcare Delivery in the Era of the Affordable Care Act Keynote: William Rouse, PhD, Alexander Crombie Humphreys Professor and Director of the Center for Complex Systems & Enterprises, Stevens Institute of Technology Mark Spektor, DO, President and CEO, Bayonne Medical Center, CarePoint Health Yingying Chen, PhD, Associate Professor, Stevens Institute of Technology Samantha Kleinberg, PhD, Assistant Professor, Stevens Institute of Technology Donald Lombardi, PhD, Industry Associate Professor, Stevens Institute of Technology Panel discussion/q&a 5:15-6:00 Networking Reception (Babbio Atrium)
2 Healthcare Delivery in the Era of the Affordable Care Act William B. Rouse March 10, 2014
3 Overview Healthcare Delivery Follow the Money Healthcare Delivery Who Affects What Enterprise of Healthcare Delivery Responses to Affordable Care Act Strategy Elements New York Study Resulting Healthcare System of 2025
4 Healthcare Delivery
5
6 Healthcare Ecosystem (Society) Economic Model & Incentive Structure Human Productivity & Healthcare Costs System Structure (Organizations) Competitive Positions & Economic Investments Economic Returns & Performance Information Delivery Operations (Processes) Care Capabilities & Health Information Patient Care & Health Outcomes Clinical Practices (People) Source: Rouse, W.B., & Cortese, D.A. (Eds.).(2010). Engineering the System of Healthcare Delivery. Amsterdam: IOS Press.
7 Responses to Affordable Care Act
8 Strategy Elements Invest in improved efficiency and integration of delivery processes to both lower costs and increase quality Invest in population health offerings, e.g., ACOs, where providers are paid PMPM fees per patient plus bonuses on savings due to reduced ED visits and IP admissions Invest in highly profitable Diagnosis-Related Groups (DRGs), while also moving away from marginally profitable DRGs or money losers in general Invest in acquisition of other providers and physician groups to gain access to greater market share, achieve economies of scale, gain capabilities to address more profitable DRGs, etc. Invest in developing health plans to become both provider and payer
9 New York Study
10 7.7% 5.6% 9.4% 5%
11 Attributes of Providers Name and Address Total Patient Revenue Total Operating Expense Net Income (from Service to Patients) Fund Balance (Adjusted) Inpatient/Outpatient Cost Inpatient/Outpatient Charges Other Costs (e.g., General and Administrative Cost, Emergency Room Cost) Hospital (Total/Medicare) Discharges Calculated Hospital Bed Utilization Estimated Medicare Spending per Hospital Patient Estimated Rate of Reimbursement for Medicare Inpatient/Outpatient Diagnosis Related Group Names and Number of Inpatients Patient Recommendation data from Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS) Operation Quality data Agency for Healthcare Research and Quality (AHRQ)
12
13 MONTEFIORE MEDICAL CENTER BETH ISRAEL MEDICAL CENTER PSYCHOSES Hospital s DRG Market Share Heatmap (Based on Total Charges) MAJOR JOINT REPLACEMENT OR REATTACHMENT OF LOWER EXTREMITY NEW YORK-PRESBYTERIAN HOSPITAL HOSPITAL FOR SPECIAL SURGERY
14 MOUNT SINAI HOSPITAL MONTEFIORE MEDICAL CENTER STATEN ISLAND UNIVERSITY HOSPITAL NORTH CENTRAL BRONX HOSPITAL Hospital s DRG Overlapping Heatmap HOSPITAL FOR SPECIAL SURGERY NEW YORK- PRESBYTERIAN HOSPITAL LENOX HILL HOSPITAL HOSPITAL FOR SPECIAL SURGERY
15 Predicted Outcomes Over years, 36 providers will consolidate to 3-5 providers Repeated runs of the model will lead to different equilibria no single equilibrium Varying early decisions will precipitate different equilibria, e.g., who acts first Decisions will be significantly affected by government payment policies
16 Craft Industry Fragmented Retail Stores ( ) Fragmented Specialty Practices ( ) Integrated Enterprise Integrated Retail Systems e.g., Wal-Mart, Target, Home Depot, et al. ( ) Networked Enterprises Integrated Health Systems e.g., Geisinger Health System, Scott & White Healthcare, et al. ( ) Consumer-Directed Retail e.g., Amazon.Com, Edmunds.com, et al. (2000- ) Consumer-Directed Health e.g., yourwellness.com, healthadvisor.com, et al. (2025- )
17 Summary Healthcare Delivery Follow the Money Healthcare Delivery Who Affects What Enterprise of Healthcare Delivery Responses to Affordable Care Act Strategy Elements New York Study Resulting Healthcare System of 2025
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