The Digital Transformation Of Healthcare Warner Thomas, President & CEO Ochsner Health System
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
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
Statewide Ochsner Health Network Members Shreveport CHRISTUS Alexandria CHRISTUS Lake Charles CHRISTUS * Financially Integrated Affiliated *LOI Signed
The World Is Changing
The World s Most Popular Media Owner Creates No Content
The World s Largest Accommodation Provider Owns No Real Estate
2005
2013
Talking Points
6B Hours Of Video Watched Last Month That Is 3 Hours Per Person On The Internet
The Information Revolution Enabling Exponential Growth Internet-Connected Devices 10 Years Ago 500 Million Today 8 Billion 2020 50 Billion 2030 1 Trillion So Much More Is Knowable Today
Mobile Phone Industry Projected Growth 2002 2004 2006 2008 Predicted Growth Actual Growth 16% 100% 14% 100% 12% 100% 10% 100%
Payment Cuts New Payment Models Physicians & Hospitals Healthcare Is Changing
Self Care Higher Out of Pocket Cost Technology Insurance Exchanges What is Changing for New Delivery Transparency Options Our Patients?
Higher Out of Pocket Cost Insurance Exchanges
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
Higher Out of Pocket Cost Insurance Exchanges New Delivery Options
Patients Options Are Increasing
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 $17.6 26.9 62% 15.0 604% Growth 16.6 14.5 21.5 48% 10.0 2.1 5.4 157% 5.0 2015 2020 0.0 $2.5 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 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: http://www.modernhealthcare.com/article/20160220/magazine/302209980; Global Telemedicine Market Growth, Trends and Forecasts (2015-2020), Mordor Intelligence, http://www.mordorintelligence.com/industry-reports/global-telemedicine-market-industry, December 2015; Japsen, Bruce, Doctors Virtual Consults with Patients to Double by 2020, Forbes, http://www.forbes.com/sites/brucejapsen/2015/08/09/as-telehealthbooms-doctor-video-consults-to-double-by-2020/#2d4da3675d66, August 2015; Market Innovation Center research and analysis.
Telemedicine Not Only For Urgent Care
Higher Out of Pocket Cost Insurance Exchanges Transparency New Delivery Options
100B Searches Last Month 5B For Healthcare
Connecting With Consumers Online
The Way We Think About Experience Needs To Change
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
Our Reputation & Brand Live in a Virtual Marketplace
Self Care Higher Out of Pocket Cost Technology Insurance Exchanges Transparency New Delivery Options
Add something here 40
What Consumers What From Wearables
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
The Evolving Role Of The Patient
Patient Experience Consumer Experience Provider Provider
Payment Cuts New Payment Models Transparency Declining Discharges What is Changing for Independent MD Hospitals & Systems Technology Increased Competition Pr O viders?
Payment Cuts New Payment Models Declining Utilization Independent MD Hospitals & Systems
The Era Of Payment Declines Is Here Governmental Payments Will Continue to Decrease
Growing Medicare Volumes 48 Projected Number of Medicare Beneficiaries Millions of Beneficiaries Average Inpatient Case Mix By Volume n = 785 Hospitals 2014 2016 2018 2020 2022 Self-Pay Medicaid Commercial Medicare
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
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The Impact of High Deductible Plans 75,000 Patients 52,500 Patients $157,500,000 $3,000 150,000 Unique Patients 50% Commercial Payor Mix 70% $3,000-$6,000 Deductible
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Payment Cuts New Payment Models Technology Declining Utilization Independent MD Transparency Hospitals & Systems Increased Competition
Accelerating Pace Of Disruption First Human Genome Sequenced in 2000 for $2.7 Billion $10M in 2007 $100,000 in 2011 Today
Diminishing Costs For Startups 2000 >$10M 2015 <$100K
Improving Health Through Digital Innovation http://www.apple.com/business/ochsner/index.html?cid=mkts-biz-ochsner-inpatient-url#video1
Improving Health Through Innovation: Optimal Hospital Nursing Efficiency Patient Experience Hospital Noise Alarm Fatigue Clinical Decision Support
The Pace Of Change Continues To Accelerate 59
Your Message Here
How Leaders Need to Lead Differently Purpose & Optimism Patient / Consumer Focus Awareness Master Communicators Access To New Information
It Doesn t Get Easier You Just Get Better
My CEO Transition Story
Physician Led Until 2012 64
Culture Our Purpose Why We Exist 65
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
Our Purpose
Translating Operations to Purpose Medicare Break-Even Cost Reduction Make Care Affordable Access Growth Serve More Patients
Our Plan to Win Patients At The Center 69
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
Driving Change Total #Same Day Appointments 300,000 290,000 280,000 +27% 286,971 270,000 260,000 268,181 250,000 240,000 247,608 230,000 220,000 233,892 210,000 200,000 2013 2014 2015 2016P
Culture Beats Strategy Every Time
Employee Disengagement Costs More Than $500 Billion Per Year To The U.S. Economy
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
A New Way of Communicating
Flat Engagement Results 76
Time For Something Different
Alignment is Key. It Takes a Team to Accomplish Our Goal
Power of ONE Employee Experience Power Center The Playbook Ochsner This Week Power of ONE CEO Messages Core Values Power of ONE Ochsner Live!
Power Centers in Every Department
Must Be Masters of Communication
What s Changing For Patients & Providers
Employees Who Say Their Organizational Values Are Known And Understood Are 51X More Likely To Be Fully Engaged
Building Momentum
Continued Improvement In Engagement % Employees Actively Engaged 93 rd Percentile 42% Best In Class: 38% 31% 30% 32% 34% Healthcare Norm: 29.8% 2011 2012 2013 2014 2015
Physician Engagement & Alignment Engagement Percentile Rank Alignment Percentile Rank 80 100 70 90 60 50 53 59 68 54 80 90 89 78 40 70 70 71 30 34 34 60 59 20 Ochsner Clinic Community 2013 2014 2015 50 Ochsner Clinic Community 2013 2014 2015
Caring For More Patients 650,000 OHS Unique Patients 2005-2016 623,108 653,640 600,000 577,458 550,000 500,000 460,785 480,243 497,313 517,167 521,082 450,000 400,000 412,912 432,267 350,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Proj
Ochsner Clinic Physician Growth 1,200 Employed Physicians 2006-2016 1,100 1,000 900 800 700 600 585 627 709 756 814 821 860 886 961 1,019 1,079 500 400 300 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016P
Continued Focus On Experience 100 90 System HCAHPS Results 80 70 60 50 40 30 20 10 0 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
Continued Focus On Experience 80 70 System CG CAHPS Results 60 50 40 30 20 10 0 Overall Doctor Rating 0-10 Access to Care Office Staff Quality Physician Comm Quality Care Coordination Q3 '15 Q4 '15 Q1 '16 Q2 '16
Millions Increasing Financial Strength $80 Operating Income $60 $40 $20 30M 41M 67M $0 -$20 2012 2013 2014 2015 (34M) -$40
ur Purpose