The Digital Transformation Of Healthcare. Warner Thomas, President & CEO Ochsner Health System
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1 The Digital Transformation Of Healthcare Warner Thomas, President & CEO Ochsner Health System
2 Ochsner Health System Our Mission is to Serve, Heal, Lead, Educate, and Innovate Largest Health System In Gulf South 11 Hospitals (Owned & Managed) 17 OHN Affiliated Hospitals 60 Health Centers 2015 Patient Activity 623,000 Unique Patients From all 50 States and 80 Countries 1.6M Clinic Visits More than 8,700 Regional Referrals 17,500 Telemed Consults Over 1,200 affiliated physicians, including 1,020 employed, in over 90 specialties & subspecialties 600 Clinical Trials, 7,000 Patients 417 Medical Students Ochsner Clinical School, University of Queensland 375 Residents in 27 Programs Largest Private Employer in Louisiana
3 Top 1% Nationally In Quality National Rankings: #2 for Organ Transplant #1 for Liver Transplant #9 for Heart Transplant 7 other Specialties in the top 25 Overall State Rankings: OMC BR #2 Overall Medical Care OMC BR #2 Overall Hospital Care OMC New Orleans #9 Overall Hospital Care 17 Different Specialties: #1 or #2 in State #1 Hospital in Louisiana Nationally Ranked in 6 Specialties: #24 in Ear, Nose and Throat #31 in Gastroenterology & GI Surgery #40 in Nephrology #23 in Neurology & Neurosurgery #45 in Orthopedics #40 in Pulmonology
4 Statewide Ochsner Health Network Members Shreveport CHRISTUS Alexandria CHRISTUS Lake Charles CHRISTUS * Financially Integrated Affiliated *LOI Signed
5 The World Is Changing
6 The World s Most Popular Media Owner Creates No Content
7 The World s Largest Accommodation Provider Owns No Real Estate
8
9 2005
10 2013
11 Talking Points
12 6B Hours Of Video Watched Last Month That Is 3 Hours Per Person On The Internet
13
14 The Information Revolution Enabling Exponential Growth Internet-Connected Devices 10 Years Ago 500 Million Today 8 Billion Billion Trillion So Much More Is Knowable Today
15 Mobile Phone Industry Projected Growth Predicted Growth Actual Growth 16% 100% 14% 100% 12% 100% 10% 100%
16 Payment Cuts New Payment Models Physicians & Hospitals Healthcare Is Changing
17 Self Care Higher Out of Pocket Cost Technology Insurance Exchanges What is Changing for New Delivery Transparency Options Our Patients?
18 Higher Out of Pocket Cost Insurance Exchanges
19 Commercial Payers Private Health Insurance Exchange Selections 19 Annual Deductibles of Individual Plans Selected October 2013 March 2014 $3,000-$5,999 $6,000+ $2,000-$2,999 $1,000-$1,999 69% Selected Plans with Deductibles $3,000 $500-$999 < $500
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22 Higher Out of Pocket Cost Insurance Exchanges New Delivery Options
23 Patients Options Are Increasing
24 The Time Is Ripe for Virtual Care Projections Agree on Growth, But How Aggressive? Year-Over-Year Medicare Reimbursement for Telehealth Services 1 In millions of dollars Estimated U.S. Growth in Virtual Consults 2 Millions of Visits 5-YR Growth 20.0 $ % % Growth % % $ Total PCP Visits Specialty Consults 1) CMS data. 2) 2015 HIS Analytics report. Sources: Herman B, Virtual reality: More insurers are embracing telehealth, Modern Healthcare, February 2016, available at: Global Telemedicine Market Growth, Trends and Forecasts ( ), Mordor Intelligence, December 2015; Japsen, Bruce, Doctors Virtual Consults with Patients to Double by 2020, Forbes, August 2015; Market Innovation Center research and analysis.
25 Telemedicine Not Only For Urgent Care
26 Higher Out of Pocket Cost Insurance Exchanges Transparency New Delivery Options
27 100B Searches Last Month 5B For Healthcare
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30 Connecting With Consumers Online
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33 The Way We Think About Experience Needs To Change
34 Satisfaction Scores Miss Most Interactions Average Health System Interactions 17,000+ Interactions Per Year Inpatient Visits 350,000+ Interactions Per Year Ambulatory Care 2,500,000+ Interactions Per Year Provider Searches, Scheduling, Billing Inpatient Stay Ambulatory Visit Other Healthcare Transactions
35 Our Reputation & Brand Live in a Virtual Marketplace
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38 Self Care Higher Out of Pocket Cost Technology Insurance Exchanges Transparency New Delivery Options
39
40 Add something here 40
41 What Consumers What From Wearables
42 The Rise of Digital Health Health Apps: More than 100,000 currently available 2X the number of available in 2012 Over the past year, use of Health and fitness apps grew 87% faster than the overall app industry By June 2014, venture capitalist had invested $2 Billion in digital health start ups
43 The Evolving Role Of The Patient
44 Patient Experience Consumer Experience Provider Provider
45 Payment Cuts New Payment Models Transparency Declining Discharges What is Changing for Independent MD Hospitals & Systems Technology Increased Competition Pr O viders?
46 Payment Cuts New Payment Models Declining Utilization Independent MD Hospitals & Systems
47 The Era Of Payment Declines Is Here Governmental Payments Will Continue to Decrease
48 Growing Medicare Volumes 48 Projected Number of Medicare Beneficiaries Millions of Beneficiaries Average Inpatient Case Mix By Volume n = 785 Hospitals Self-Pay Medicaid Commercial Medicare
49 The Impact Of Our Aging Population MRI Total Joint Replacement 11,000 People Become Medicare Eligible Every Day Commercial Revenue: $1,170 Medicare Revenue: $400 Commercial Revenue: $23,750 Medicare Revenue: $13,250 66% Less 44% Less
50 50
51 The Impact of High Deductible Plans 75,000 Patients 52,500 Patients $157,500,000 $3, ,000 Unique Patients 50% Commercial Payor Mix 70% $3,000-$6,000 Deductible
52 52
53 Payment Cuts New Payment Models Technology Declining Utilization Independent MD Transparency Hospitals & Systems Increased Competition
54 Accelerating Pace Of Disruption First Human Genome Sequenced in 2000 for $2.7 Billion $10M in 2007 $100,000 in 2011 Today
55 Diminishing Costs For Startups 2000 >$10M 2015 <$100K
56
57 Improving Health Through Digital Innovation
58 Improving Health Through Innovation: Optimal Hospital Nursing Efficiency Patient Experience Hospital Noise Alarm Fatigue Clinical Decision Support
59 The Pace Of Change Continues To Accelerate 59
60 Your Message Here
61 How Leaders Need to Lead Differently Purpose & Optimism Patient / Consumer Focus Awareness Master Communicators Access To New Information
62 It Doesn t Get Easier You Just Get Better
63 My CEO Transition Story
64 Physician Led Until
65 Culture Our Purpose Why We Exist 65
66 Lessons Learned The Power of Why Inspiration & Optimism Are Better Ways to Lead People Listen, Feel Better and Follow I Feel Better Together We Accomplish More Purpose Can Inspire
67 Our Purpose
68 Translating Operations to Purpose Medicare Break-Even Cost Reduction Make Care Affordable Access Growth Serve More Patients
69 Our Plan to Win Patients At The Center 69
70 A Different Approach to Communication THEN Our Operations NOW Our Purpose Same Day Access About the Schedule Focused on Visit Volume and MD Productivity Measure: 3 rd Available Appointment Do You Feel You Need to Be Seen Today? About the Patient Focus on Patients Needs Measure: % of Time Patient Responded They Wanted to Be Seen Today and Were
71 Driving Change Total #Same Day Appointments 300, , , % 286, , , , , , , , , , , , P
72 Culture Beats Strategy Every Time
73 Employee Disengagement Costs More Than $500 Billion Per Year To The U.S. Economy
74 Employers With Engagement Results In The Top Quartile Outperform Those With Results In The Bottom Quartile Productivity Safety Incidents (+21%) (-48%) Profitability Patient Safety (+22%) Incidents (-41%) Customer Quality Defects Satisfaction (-41%) Ratings (+10%) Turnover (-25% in high-turnover org, -65% in low turnover org) Absenteeism (-37%) Gallup: State of the American Workplace
75 A New Way of Communicating
76 Flat Engagement Results 76
77 Time For Something Different
78 Alignment is Key. It Takes a Team to Accomplish Our Goal
79 Power of ONE Employee Experience Power Center The Playbook Ochsner This Week Power of ONE CEO Messages Core Values Power of ONE Ochsner Live!
80 Power Centers in Every Department
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82 Must Be Masters of Communication
83 What s Changing For Patients & Providers
84 Employees Who Say Their Organizational Values Are Known And Understood Are 51X More Likely To Be Fully Engaged
85
86
87 Building Momentum
88 Continued Improvement In Engagement % Employees Actively Engaged 93 rd Percentile 42% Best In Class: 38% 31% 30% 32% 34% Healthcare Norm: 29.8%
89 Physician Engagement & Alignment Engagement Percentile Rank Alignment Percentile Rank Ochsner Clinic Community Ochsner Clinic Community
90 Caring For More Patients 650,000 OHS Unique Patients , , , , , , , , , , , , , , , , Proj
91 Ochsner Clinic Physician Growth 1,200 Employed Physicians ,100 1, ,019 1, P
92 Continued Focus On Experience System HCAHPS Results Rate hospital 0-10 COMM W/ NURSES RESPONSE OF HOSP STAFF COMM W/ DOCTORS HOSPITAL ENVIRONMENT COMM ABOUT MEDICINES PAIN MANAGEMENT DISCHARGE INFORMATION CARE TRANSITIONS Q3 '15 Q4 '15 Q1 '16 Q2 '16
93 Continued Focus On Experience System CG CAHPS Results Overall Doctor Rating 0-10 Access to Care Office Staff Quality Physician Comm Quality Care Coordination Q3 '15 Q4 '15 Q1 '16 Q2 '16
94 Millions Increasing Financial Strength $80 Operating Income $60 $40 $20 30M 41M 67M $0 -$ (34M) -$40
95 ur Purpose
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