the cost of quality - aamc...the cost of quality susan moffatt-bruce md phd facs chief quality and...
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The Cost of QualitySusan Moffatt-Bruce MD PhD FACS
Chief Quality and Patient Safety OfficerAssociate Professor of Surgery
Associate Dean of Clinical Affairs, Quality and Patient Safety
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Volume-driven to Value-driven Payment Transition
Value-driven Healthcare
Volume-driven Healthcare
Quality
Cost
Source: Center for Healthcare Quality and Payment Reform
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Value = Dollar expended
Patient outcomes achieved
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Value = Cost of PersonnelCost of EquipmentCost of SpaceCost of DrugsCost of Supplies
Mortality Patient Safety Indicators Patient Satisfaction Readmissions Length of Stay
OUTCOMES
COST
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Clear goals and timeline for shifting volume to value
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“Whether you are a patient, a provider, a business, a health plan, or a taxpayer, it is in our common interest to build a health care system that delivers better care, spends health care dollars more wisely and results in healthier people.”
–Sylvia M. Burwell, Health and Human Services Secretary
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Let’s revisit what we know…
The rules in health care are changing: Consumer-driven market (consumerism) Performance-based model (quality and value) Reimbursement will decrease (revenues)
The U.S. has the highest healthcare costs in the world and lower quality outcomes than many countries.
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Changes in Value-Based Healthcare Delivery Systems
1.Organizational change-integrated practice units
2. Measurement of outcomes and costs for every patient
3. Move to bundled payments for care provided
4. Integrated care delivery systems
5. Expand geographic reach
6. Build enabling informatics/technology platforms
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Porter, 2013
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Medical Group Report Card:
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50
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eque
ncy
500 1,000 1,500 2,000 2,500 3,000Direct Surgical Cost, USD
Histogram of direct surgical supply cost
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500 1,000 1,500 2,000 2,500 3,000Direct Surgical Cost, USD
2019181716151413121110987654321
Sur
geon
Box plots of direct surgical supply cost by surgeon
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1911
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4
13
1814
171
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15
129
10
80
20
40
60
80
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400 600 800 1,000 1,200 1,400 1,600Median direct case supply cost, USD
Size of circle is proportional to the number of observations
Complication rate by median direct case supply costC
ompl
icat
ion
Rat
e, %
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Prototype Scorecard
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Surgeon
LOS Index
Direct Cost Index
7 Day Readmit
14 Day Readmit
30 Day Readmit
Mortality Index
PSI 09
PSI 10
PSI 11
PSI 12
PSI 13
A 0.79 0.97 0.00 0.00 1.69 0.00 0 0 0 2 0
B 0.81 1.03 0.00 0.81 0.81 0.00 0 0 0 1 1
C 1.58 1.39 0.00 0.00 0.00 0.00 0 0 0 1 0
D 0.87 1.11 0.40 0.80 2.00 10.11 0 0 0 9 0
CCF 1.09 0.93 0.54 0.75 1.94 0.45 1 0 0 5 0
Stanford 0.99 1.35 0.18 0.46 0.64 0.00 0 0 1 4 0
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16Demonstration Data
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17Demonstration Data
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Operations Councils: Enabling the Front Line
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Quality and Safety
Faculty/Staff
SatisfactionFinance
Patient Experience
Operational Logistics/ Efficiency
Moffatt-Bruce, Funai 2015
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Working together to create the care delivery models of the future
Transformation Coaches & Operations
Council
Governance Committee
Consultant Team
• Transformation Coaches and Operations Council
• Defines scope, maps current state, designs preferred future state and makes recommendations for implementing change
• Key leads for Data Analytics, Care Model, Post-Acute, IHIS/Clinical IT, Communications and Change Management
• Reviews progress of transformation coaches, ensures alignment across clinical areas and provides implementation support
• Executive oversight group• Determines strategic direction of
work, reviews progress and affirms implementation plans
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•Volume•Gain (Loss)/Encounter
•Direct Variable Costs/Encounter
•Length of Stay•Discharge Time•Discharge Disposition
•Clinical Pathway Development
•HCAHPS•CG-CAHPS
•Readmissions•Hospital Acquired Condition
•Post-Op Appointment
Quality Patient Experience
CostOperational Efficiency
Balanced Scorecard
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Patient Journey
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Huerta, 2015
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Deliverables
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• Reliable data that is physician and service specific
• Engagement of stakeholders
• Development of standardized work for procedures and care
• Set reasonable improvement metrics for both quality and cost
• Align quality and outcomes with the value proposition
• Continuously measure and improve based on results
• Publish and share results with AAMC, UHC and other stakeholders (OHA)
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TRANSFORMING SICK CARE TO HEALTH CARE
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Local Learning Health System
Informatics & Health
IT
People & Cultural Issues
Fiscal & Incentives
Systems & Workflow
issues
Local Learning Health System
Local Learning Health System
Local Learning Health System
Clinical Transformation:Enabling the Learning Health System
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Thank you !!!!
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Michelle Nguyen, MD
Santino Cua, MS
Matthew Bethel, MBA
Bob Campbell, MBA
Erica Porter, RN