The University of St. Thomas

Posts Tagged ‘healthcare’

The Challenge and Opportunity with Big Data in Health Care

Published on: Wednesday, October 24th, 2012

By: Daniel McLaughlin, M.H.A.

The expansion of Electronic Health Records is presenting an unprecedented opportunity to make significant improvements in the American health care system. However, for this opportunity to be realized, new methods of data management and analysis that are uncommon in health care will need to be deployed.

Organizations that have mature electronic health records have conquered the challenge of moving data from operating systems into data warehouses and are using them for substantial improvements. For example, a question that had challenged researchers for many years was whether traditional low-priced blood pressure control was as effective as newer, more expensive drugs. To answer this question, NIH conducted an extensive trial that took eight years and cost $120 million. The results indicated that: the oldest and cheapest of the drugs, known as thiazide-type diuretics, were more effective at reducing hypertension than the newer, more expensive ones.

However, some patients did not respond to these drugs and needed to use the newer drugs – but which ones? Unfortunately, NIH did not have the funds to conduct a follow up study. By the time the NIH study was complete, however, Kaiser Permanente had an extensive electronic health record and data warehouse. By using real patient data in their warehouse and traditional statistical methods, the researchers had the answer in 18 months for $200,000.

Although traditional scientific methods and statistical tools work well for some health care questions, they cannot be easily applied to many interesting questions such as:

 

  • Which doctors have the most cost effective risk adjusted care patterns based on actual cost of care – not charges?
  • What are the characteristics of patients that can predict the level of non-compliance with discharge orders and the probability of re-admissions?

The challenge of answering these questions is best illustrated by the complexity of the data bases. A standard electronic health record for a patient will have over 2,700 fields. A charge master for a hospital can easily contain 20,000 separate services and prices. Traditional statistical methods flounder in this environment.

Fortunately, data mining professionals (particularly in retail) have developed new tools such as market basket analysis, classification algorithms, association rules, cluster analysis and neural networks to understand these massive data bases. Hopefully, these techniques will soon migrate to health care to support substantial improvements in care delivery.

To learn more about how the new tools of data mining and other technologies are changing the business of health care, attend the UST Executive Conference on the Future of Health Care on Friday, November 9, 2012 at the University of St. Thomas Minneapolis campus.

Healthy Minnesota Showcases Community-Driven Initiatives

Published on: Wednesday, October 3rd, 2012

By Stephanie Hegland

 

What started as a health care policy class last spring for Health Care UST MBA students Laura Templin-Howk and Tina Morey, culminated September 28, 2012, in the Healthy Minnesota: Communities in Action Poster Session and Forum, featuring closing remarks by U.S. Surgeon General Dr. Regina Benjamin. Inspired while being in Washington D.C. during the arguments before the Supreme Court on the legality of the Affordable Care Act (ACA), and encouraged by the legislation’s financial support for proactive, preventive measures (Title IV, Subsection D, “Creating Healthier Communities”), Templin-Howk and Morey sought to showcase Minnesota’s trailblazing community-driven initiatives. And showcase they did, by pulling together 40 examples of why Minnesota continues to lead the nation in healthcare innovation.

Community-led projects throughout the state highlighted the work already being done to improve the health of our communities. Each poster presenter spoke to their projects’ individual mission, success and lessons learned. A PDF of the program which contains descriptions and contact information for each project can be found on the event page: http://www.stthomas.edu/business/degrees/ustmba/healthcaremba/events/2012-09-28_Healthy_MN.html. These projects frequently showcased partnerships between communities, healthcare providers and systems, ancillary providers, community agencies and school districts. Let’s face it; it’s not a secret that greater physical activity, eating more fruits and vegetables, regular health screenings, and increased collaboration between providers leads to improved health outcomes for the state’s population. But how to accomplish these improvements? Therein lies the challenge. And further, how will policies, systems and environmental changes be modified to sustain these improvements?

In addition to the posters, a panel of presenters, moderated by Minnesota Commissioner of Health Dr. Edward Ehlinger, discussed what was learned while implementing the community-led initiatives of Allina’s Healthy Communities Partnership, Blue Cross Blue Shield’s do.town, Hennepin County’s Hennepin Health and New Ulm’s Hearts Beat Back. Dr. Ehlinger kicked off the discussion by calling for a need to balance healthcare investment between treatment and prevention, and to create healthier communities that make it easy for individuals to (make the healthy choice the easy choice. According to Dr. Ehlinger, 40% of behavior that impacts health occurs where we live, work, play, learn and pray. It is these types of initiatives, occurring in the community, which set the stage to change the policies that will lead to improved health outcomes for all citizens.

Some key discussion points addressed by the panel:

  • Push for continued public investment, as provided through the Minnesota Department of Health Statewide Health Improvement Program (SHIP) grants. Government funding allowed projects to experiment with new ideas, share resources/materials developed with interested parties, expand initiatives to worksites and drive community engagement.
  • Encourage collaboration among health care providers that were once perceived as competitors. When providers join together, patients experience comprehensive health care, less duplication of efforts, and improved outcomes at less cost.
  • Move prevention upstream (from a financial perspective). Frequently, the current health care model funds crisis – people enter the health care system through an acute care setting, often when they are ill. Rather, the health care model needs to evolve to greater investment in prevention and community engagement prior to illness. Additionally, the model needs to reward providers for keeping patients healthy, rather than treating the sick.
  • Engage community members – allow them to drive change, rather than be passive recipients. Success was nearly guaranteed when project teams asked community members what changes they wanted to see, what changes they needed in their neighborhoods, and how to achieve sustainable improvements (both financial and tactical).
  • Change social norms around what constitutes healthy behavior – encouraging communities to be accountable for themselves and each other.
  • Recognize roadblocks – time, a health care system that’s based on payment for sick people, prioritizing multiple expensive interventions, and “changing behavior in mid-air while needing to still fly the plane.”

Senator Dave Durenberger concluded the discussion by saying “these projects bring out the ‘we’ instead of me”, and introduced Dr. Regina Benjamin. She complimented the panel and poster presenters for representing many of the strategies outlined by the National Prevention Council. And she congratulated Templin-Howk and Morey for demonstrating the leadership needed to engage all communities toward improved health.

Capital Investment Decisions in Health Care – Five Questions for Prof. Southard

Published on: Thursday, May 24th, 2012

Peter Southard

We recently talked with Peter Southard, Ph.D., an assistant professor of operations and supply chain management, about his research on capital investment decisions in health care.

Q: Why did you decide to examine capital investment decisions in health care?

A: Increasing competition and artificially-imposed price controls in health care are forcing caregivers to rethink how they manage their delivery systems. Health care delivery systems must be able to provide extremely high-quality care at reasonable costs. Any variation in the systems and the processes needed to deliver the health care “product” serves to increase the costs and reduce the quality of that health care. The variation does so, partly, by increasing the time needed to deliver the service. One of the primary goals of health care must be, then, to identify and reduce the root causes of variation in its processes and systems.

This need is also true in all decision making processes in which variation, or lack of a consistent framework by which to make decisions, can lead to not only inefficiencies but also costly errors that reduce the hospital’s competiveness and its ability to deliver cost-effective care. One of the decisions impacting a health care system’s cost is the make/buy decision: when to outsource a process and when to maintain the process in-house. If the decision is to “make,” then the next decision is a capital investment one. Our research looks at adapting a framework from another area of business to this decision situation. We apply a Six Sigma quality tool, the Technology Function Deployment (TFD), to develop a practical framework that hospital managers can use to make consistent and effective decisions regarding capital investments versus outsourcing.

Q: Why is this topic of interest to you?

A: Professor Sameer Kumar and I have been doing quite a bit of research in this area of process improvement in health care. While researching our last paper, we noted the lack of uniformity in the laboratory equipment purchasing decisions of our subject hospital and decided to try and apply this approach to standardizing that process.  (more…)

Leadership at the Marshfield Clinic

Published on: Monday, December 19th, 2011

Dr. Laura Nelson, Chief Medical Officer, Marshfield Clinic

Dr. Laura Nelson, Chief Medical Officer, Marshfield Clinic

On December 2, 2011, the University of St. Thomas held its graduation ceremony for its 17th cohort of the Health Care UST MBA. The commencement speaker was Dr. Laura Nelson who is the Chief Medical Officer of the Marshfield Clinic and a 2001 graduate of the Health Care UST MBA program.  

She spoke about the challenges of leadership in today’s chaotic environment and presented a list of key “leadership survival” insights that she has learned thus far. The Marshfield Clinic is one of the best delivery systems in the country and much of their success is due to leaders such as Dr. Nelson.

She shared with the graduating class some of her observations on what it takes to be a successful leader:  (more…)

Generating good ideas

Published on: Wednesday, July 20th, 2011

Health care is reinventing itself as the playing field begins to stabilize. Although there still seems to be occasional political statements about “repeal and replace,” the practical fact is that much of the Affordable Care Act is now being implemented. Even if some aspects of the insurance expansions are changed (e.g. mandate to purchase health insurance), the system reform components appear to be “baked in.”

This new system stability has energized creative health care organizations into stretching their strategic plans and trying to inject a spirit of creativity and innovation into their organizations.  For example, a number of progressive health care organizations have set up “Design and Innovation” departments. The Mayo Clinic has one of the leading examples in its Center for Innovation.   

But what really is innovation? Does it come as flash during the drive to work or is it the result of a complex set of interactions of talented individuals?

Professor Tom Ressler, one of my colleagues at St. Thomas, is a student of the innovation process and teaches his students how to use Mind Maps to connect unlikely ideas into innovative concepts. Tom has directed us to a wonderful overview of this process, provided by Steve Johnson. Steve is the author of Where Good Ideas Come From: The Natural History of Innovation and gave a summary of his work at a TED conference. This 17-minute video is well worth your time.

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Most health care organizations are increasing their emphasis on teamwork – particularly in primary care. These teams can also be fertile soil for new ideas and innovations that can significantly improve the delivery of care. Where do you see innovation in health care?

The Future of the Hospital Safety Net

Published on: Thursday, June 30th, 2011

Hennepin County Medical Center is Minnesota’s largest safety net hospital. Photo Credit: Minnesota Public Radio

Hennepin County Medical Center is Minnesota’s largest safety net hospital. Photo Credit: Minnesota Public Radio

Last week, the National Association of Public Hospitals and Health Systems (NAPH) celebrated its 30th anniversary and its annual meeting focused on the public hospitals’ role in a reformed health care system. Although the advent of Medicare and Medicaid in the 1960s challenged the need for these systems, today the Affordable Care Act (ACA) reinforces the historical and future role of the hospital safety net. 

NAPH invited a number of national health care leaders to provide their perspective on the future. Some of their observations include:

The Public and Health Care Reform

 Celinda Lake (Lake Research Partners) is one of the Democratic Party’s leading strategists and pollsters. She reviewed a number of polls regarding the ACA and provided some very interesting insights. For example:

  • The country is still split on the idea of health care reform as a whole, but when individual pieces are presented, they almost all have high favorability ratings – with the exception of the individual mandate.
  • Although most individuals understand some of the insurance aspects of the ACA, they clearly do not understand the system reform elements. For example, when asked if they would like to receive their care in a medical home, most individuals recoiled at the thought. “Why would I want to be put away like that?”
  • Finally, 30 percent of Americans think health care reform has already been repealed.  This will be an interesting challenge when the Health Insurance Exchanges begin to operate in 2014.

The States and Health Care Reform

Alan Weil, the executive director of the National Academy for State Health Policy, provided an overview of the implementation of the ACA in the states: (more…)

How to name your ACO

Published on: Monday, June 20th, 2011

Many organizations are now in the process of either evaluating the creation of an Accountable Care Organization (ACO) or implementing it. The concept of the ACO has broadened beyond the Medicare Shared Savings Program in the Affordable Care Act (ACA) to a new integrated delivery system that can be used to effectively care for a variety of patients. In fact, it is not too far a stretch of an organization’s strategic plan to see ACOs as part of the market offerings in the Health Insurance Exchanges in 2014.

One apparently small detail seems to have escaped the avalanche of meetings, webinars and consultant advice on setting up your ACO: What are you going to call your ACO? 

The art of naming new products is a critical element in bringing a new product to market and the selection of poor names have led to numerous failures in many non-health care industries.

In a recent Harvard Business Review article, Bertini, Gourville and Ofek suggest a strategy for naming “follow on” products. These are products that are new, but are part of a historic brand.  For example, the golf driver “Big Bertha” was replaced with a new version called the “Biggest Big Bertha.” Cadillac kept its Coupe de Ville brand alive for 45 years by simply adding a number for each new version.

Three questions should be considered when selecting a name: (more…)

Hope for health care cost control

Published on: Thursday, June 9th, 2011

19085039A recent report from the Minnesota Department of Health (MDH) reported that health care spending in Minnesota grew by 3.8 percent in 2009, the slowest growth rate since 1997. The report found that Minnesota continued to spend less on health care per person in 2009 than the nation as a whole ($6,913 vs. $7,590). Also, according to the report, health care spending in Minnesota accounted for 14.1 percent of the overall economy. Nationally, that figure is 16.5 percent. This meant that Minnesota could spend over $5 billion of its wealth on private sector job creation and other growth strategies – instead of health care – which will give Minnesota companies a completive advantage over other firms in the United States.

Another interesting result of these findings is the potential impact on Paul Ryan’s (R-WI) plan for Medicare. Rep. Ryan proposes that each Medicare beneficiary would receive a “premium support” amount which beneficiaries would use to go to the market and buy insurance. If this amount is the same nationally, Minnesota seniors will be able to buy excellent plans with broad benefits while seniors in states like Texas or Florida will need to buy plans with minimal benefits and high deductibles.

For the past 5 to 10 years, Minnesota providers and government have made investments in many of the key cost control features of the Affordable Care Act (ACA), including: integrated provider systems, substantial investments in HIT, and the broad use of comparative effective research through the Institute for Clinical Systems Improvement

This new data from the MDH provides hope that as the ACA becomes more fully implemented, the rate of health care inflation will subside – not only in Minnesota, but nationally as well.

Health Care UST MBA student, Dr. Gary Collins, welcomes HHS Secretary Kathleen Sebelius to Regions Hospital

Published on: Monday, June 6th, 2011

Photo Credit: Richard Tsong-Taatarii, Star Tribune

Photo Credit: Richard Tsong-Taatarii, Star Tribune

We’ve all heard horror stories of medical errors – an operation on the wrong knee, operating equipment left behind in a patient. Medical errors like these are described as “never events” and hospitals across the country have focused on how to improve patient safety and reduce preventable errors like these. Minnesota is recognized as a nationwide leader in the effort to reduce never events.

On June 2, U.S. Health and Human Services Secretary Kathleen Sebelius visited Regions Hospital as part of a national tour to highlight a new initiative to improve patient safety while reducing health care costs.

One of the partners of this initiative, Regions Hospital is recognized as a leader in reducing “never events.” During her visit, Secretary Sebelius toured an operating room and was given a first-hand glimpse of the safety procedures in place. Surgeon Gary Collins, MD, member of the Health Care UST MBA program, walked the secretary through the Regions safety checklist and showed her a unique—and low-tech—strategy to reducing medical errors: a towel.

(more…)

The Frontier of Health Informatics

Published on: Thursday, May 5th, 2011

healthcare-itLast week I traveled to Moorhead, MN, to attend Sharp 2.0, a unique symposium that focused on the intersection of operations management and health informatics. The symposium was a collaboration of Minnesota State University Moorhead, Oklahoma State University and the Mayo Clinic.

The symposium highlighted many exciting new technological advances in health care, including new methods of pharmacy inventory management, the continuing challenges of physician use of electronic medical records, and examples of how country-wide electronic health records can be used. 

(more…)