network development what does the data … development what does the data mean? an executive's...
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NETWORK DEVELOPMENT
What Does the Data Mean?
An Executive's Guide to
Crimson Market Advantage
Dustin Schwambach
Director
©2015 The Advisory Board Company • advisory.com
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Your Scarcest Resource
Time is the scarcest resource in
most organizations, especially for
senior executives who spend, on
average, more than two full days
a week in meetings.
Knowing what data is quickly
available through CMA and how
to use it, will improve productivity
for you and your team.
Mankins, Michael C., Chris Brahm, and Gregory Caimi. "Your Scarcest Resource." Harvard Business
Review (2014): Harvard Business Publishing Web. <https://hbr.org/2014/05/your-scarcest-resource>.
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Executives Using CMA See More ROI
$3.3M
Average for members without
ROI is 5 logins
Executives log-in 14 times
per month on average
Utilization Trends for Members Achieving ROI in the Last Twelve Months
Average ROI per
member in 2015
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
What Does Executive Engagement Look Like?
Leveraging On-Demand Information to Support Your Most Pressing Strategic Questions
Referral
Growth
Physician
Recruitment
Outreach
Management
New Service
Offerings
Footprint
Growth
Market
Shifts
Acquisition
and Affiliation
ACO
Formation
Network
Integrity
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Road Map
©2015 The Advisory Board Company • advisory.com
Evaluate Market Shifts
Monitor Network Integrity
Track Growth from Outreach Efforts
Operationalize Data and Take Action
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Coming Soon: Market Snapshots
Introducing Snapshots in Market Reports
0%
100%
Measure Alignment Changes
Are physicians in my primary market
more aligned after a year of targeted
physician marketing?
75% PCP Revenue Share
July 2015 – June 2016
45% PCP Revenue Share
July 2014 – June 2015
Compare Competitive Position
How is the landscape changing for
outpatient cardiac? We’ve seen an increase,
but is there still opportunity to grow?
Revenue for OP
Cardiac Services
Performed
July 2014 – June 2015
$12M
Revenue for OP
Cardiac Services
Performed
July 2015 – June 2016
$13.5M 12.5% Increase
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
New Reports to Monitor Changes Over Time
Utilizing Snapshot Analysis
What is the Snapshots CMA Report?
Your Crimson Market Reports application will have saved templates that will store all new data sets
with each monthly data update. Each data set includes 12-months of data.
• Compare total market
revenue for service lines
across time periods to identify
significant change and new
opportunity
• View market activity for
attending physicians or the
downstream business from
PCPs
• Start with the first available
period, July 2014 – June 2015
©2015 The Advisory Board Company • advisory.com
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Gleaning Insights from Market Snapshots
Source: Crimson Market Advantage.
Translating Intel to Priorities
Two Things to Know about
CMA Data Updates
• CMA’s market leakage and
network data is refreshed
monthly
• Not all data sources update
each month, so changes
may be small from month to
month, or you may see a
larger jump the next month
Analyze over several months
A change between just two
consecutive periods may be a result
of updates to underlying data
Focus on the significant
growth or decline
CMA’s data is modeled and
provides guidance for where there
is the most opportunity
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Road Map
©2015 The Advisory Board Company • advisory.com
Evaluate Market Shifts
Monitor Network Integrity
Track Growth from Outreach Efforts
Operationalize Data and Take Action
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Managing Your Network to Its Full Potential
Key Questions to Analyze Network Integrity
Are there geographic
patterns of leakage?
Which competitor facilities
are capturing patients from
employed physicians?
What is the value of business
leaking from our network? 59% of CMA Initiatives
involve employed or
network providers
Which service lines have the
most opportunity for keepage?
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Answers Already in Your CMA Application
Identify Employed Leakage and Retain Referrals with the Employed PCP Roster Report1
• View employed PCPs with their downstream revenue to both your organization and competitors
• Use this report to learn about PCPs splitting between you and your competitors and how much that
downstream business is worth
PCP alignment
> 70%
PCP Alignment
30 – 70%
PCP Alignment
< 30%
Understanding PCP Alignment
1) Employed PCP Roster Report is a standard CMA report in the Planner Playbook folder
of your Market Reports Application
Key Metrics
• PCP Leakage: estimate of
referral opportunity from
PCPs in selected service
areas
• Member Revenue:
estimate of downstream
business coming to your
organization
• Revenue Share: estimate
of the referral share your
system is capturing
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Driving Data to Action
Three Member-Proven Strategies to Strengthen Network Integrity
$1.2M Adjusted new revenue
after 24 months
Identify the Root Cause
of Leakage
Geographic Patterns
Patterns of leakage pinpointed
one clinic with significantly less
alignment
Improving Market Presence
• Hospital and physician group
leadership held a week-long
workshop to identify the root
cause of the leakage
• Established direct scheduling
to improve access issues
$1.1M Increase referral
revenue after 5 months
Build Physician-to-
Physician Relationships
Identifying Relationship Issues
Analysis of data at service line level
indicated procedural splitting with
lower alignment in key services
Creating Name Recognition
• Operations team shared data
with employed physician
leaders, leading to discovery
that PCPs do not know about
network specialists
• Project team put together list of
non-competitor specialists for
PCPs to use as a reference
$9.5M Adjusted new revenue
after 12 months
Conduct Targeted
Conversations
Splitting Behaviors
Leakage details on employed
PCPs showed splitting behavior
across the board
Execution Using Scorecards
• Team put together 1-page
documents on each PCP to
facilitate targeted
conversations
• Conversations unearthed
behavioral and operational
issues that had previously
been obscured
Data
Insight
Member
Action
Impact
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2
3
4
1
Road Map
©2015 The Advisory Board Company • advisory.com
Evaluate Market Shifts
Monitor Network Integrity
Track Growth from Outreach Efforts
Operationalize Data and Take Action
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Emphasizing Accountability to Keep Goals on Track
Initiatives: Setting Growth Goals and Tracking Progress
2014
December 203 – August 2014
With which physicians
are we trying to build
relationships?
Find Your Answers
in Initiatives
What type of business
are they sending to
your system?
How does the business
from these physicians
compare to last year?
1
2
3
2014
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Understanding the ANR Methodology
Key Benefits of Using ANR
Quantifies value of outreach in
terms of revenue in services
(not patient volumes) to
properly weight revenue more
significant to your bottom line
Captures
Financial Impact
Using the Growth Adjustor
separates impact of outreach from
unrelated drivers of growth, such as
aging population, natural market
growth, nearby facility closure, etc.
Isolates Impact
From Market Factors
Accounts for seasonality of
patient visits and other types
of fluctuations to avoid
comparing peak against off-
peak months
Compares Like
Points in Time
New revenue generated by a physician when comparing one
month with the same month in the previous year, adjusted using
a growth projection to account for anticipated market changes
Adjusted New
Revenue (ANR)
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Before You Look at ANR
Analyses of leakage,
alignment and physician
connections help
outreach teams narrow
call lists to an actionable
list based on your growth
priorities
Conversations with
physicians or making
operational changes to
address leakage are
essential to see
behavioral shift and
new business
Use the growth
projection feature to take
into account expected
changes in the market
Identify Physicians Engage Physicians Set Growth Projection
Key Elements for a Successful Initiative
Case in Brief: Northcross Hospital1
• 6-hospital system in the Northeast
• At the formation of each initiative, team agrees on growth projection based on recent service line
performance
• The 2014 advanced imaging initiative included a 10% growth projection and the outreach team was able
to increase revenue from that expectation, resulting in $4M above and beyond expected growth
1) Pseudonym
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2
3
4
1
Road Map
©2015 The Advisory Board Company • advisory.com
Evaluate Market Shifts
Monitor Network Integrity
Track Growth from Outreach Efforts
Operationalize Data and Take Action
©2015 The Advisory Board Company • advisory.com
18
Source: Crimson Market Advantage.
Information You Need at Your Fingertips
Identifying the Big Picture and Diving into the Details
1 Establish expectations for reviewing market data
in planning meetings and to support ad hoc
projects and decisions
Analyze patterns and trends
2 Review data prior to executive interaction with
physicians to understand contribution, alignment,
and opportunity to grow the relationship
Review physician-level detail
©2015 The Advisory Board Company • advisory.com
19 1. Analyze patterns and trends
Source: Crimson Market Advantage.
Executives Leverage Custom Reports
Use pre-built reports and
easy templates to create
reports with key metrics
1
Subscribe to reports to
receive a log-in link via
email on a regular basis
3 2
View shared reports built by
your super users around key
priorities and initiatives
Evaluate Market Activity Using Crimson Market Reports
Building or Requesting a Report? Consider How You Want to View the Data.
Employed Status
Include employed and non-employed
physicians to compare alignment and
identify new opportunity
Service Lines
Analyze performance and opportunity
for just key services, or include all to
identify gaps and set priorities
Service Area
Narrow the report by physician location to
focus on specific growth areas
Metrics
• Understand market opportunity and
alignment by using leakage and revenue
share for either attending physician or PCPs
• Understand physician relationships with the
count of shared patients
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Subscribe to Receive Regular Information
Ruby Valley Hospital System Urban campus of 4-hospitals in the West
Ruby’s planning analyst built
out custom reports for each
hospital’s executive team and
subscribed them, so they
receive the updates on the
schedule below
Report Subscriptions
• Member financial trends
• Employed provider leakage
Quarterly
• PCP market share for
targeted providers
• Ad hoc network reports
Monthly
• Service line share by market
• Competitor analysis for full
market
Annually
Sample Suite of Reports for Executives
1. Analyze patterns and trends
Creating a Data-Driven Hospital Executive Team
Executive team wanted to drive strategic data utilization by
developing a consistent set of CMA reports at the corporate
level and for each facility to monitor hospital performance
and arm leadership with data for strategic decision making
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Access Transparency into Physician Market Activity
Login and Search to Access CMA’s Physician Profile
View your share of physician alignment
and the value of the leakage to your
competitors and affiliates
Identify the competitor capturing the
most business from the physician
Drill into revenue and share
details by sub-service line
Physician Activity Metrics
$ Leaked Revenue
Expected reimbursement of
business done at competitor
facility if it were captured in
Member facility
# Market View
Attending is business that the
physician performed and PCP is
business attributed to a referring
provider bases on shared patients
% Member Revenue Share
The percent of attending
revenue performed at the
Member facility
2. Review physician-level detail
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
A Strategic Approach to Physician-Led Growth
Protect and Capitalize
Existing Business
LOYAL PHYSICIAN
Maintain the relationship
and ensure the
physicians are happy
with current services
Over 70% member
revenue share
Convert Splitting
Physicians
PRODUCT SPLITTER
Focus on improving the
relationship, understand
reasons for leakage, and
educate on service offerings
Splits on a particular sub-
service line or refers sub-set
of patients to competitor
Create New
Referral Base
COMPETITOR ALIGNED
Work to establish and grow
a new relationship to
understand the physician’s
needs and explain your
organization’s offerings
Less than 30% member
revenue share
Determining the Conversation Based on Data-Driven Referral Characteristics
Relationship
Status
Strategic
Approach
2. Review physician-level detail
©2015 The Advisory Board Company • advisory.com
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Source: Crimson Market Advantage.
Plan Your Next Step Now
Your ROI Challenge: $500M
Getting There with Executive Engagement
Take advantage of convenient
physician profiles to prepare
for conversations
Check-in with your team on
current projects and Integrate
CMA data into current priorities
Monitor progress of initiatives
and trends in the market
Work with your team and advisor
to subscribe to reports you need