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Building a Culture for Successful Physician Preference Savings

Presented to AHMMA

February 1, 2011

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Objectives:

Discuss four approaches to physician preference savings and the varying degrees of alignment needed for each approach

Identify the barriers to physician alignment

Outline critical factors for building a supportive culture

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Approaches to Physician Preference Savings

•Working with the vendor to obtain good pricing on the products physicians use

Pricing

•Working with physicians to narrow the field of vendors to obtain better pricing

Standardization

•Working with physicians to ensure the right product/service is being utilized at the right time based on the need of the patient (i.e. cost per case)

Utilization

•Working with physicians to develop protocols for the care of patients with similar conditions/circumstances

Care Management

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Physician Alignment Needs

Pricing

Standardization

Utilization

Care Management

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Barriers to Physician Alignment

Lack of support from Administration and/or Physician leaders

Lack of trust

Lack of awareness or understanding

Inconsistent or poorly defined process

History of failed attempts

Failure to recognize value of alignment

Lack of incentives

Poor communication

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Five Critical Factors for Building a Supportive Culture

Executive Support

Accountability

Physician Champion

Process

Communication

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Communication

“The single biggest problem with communication is the illusion that it has taken place.”

– George Bernard Shaw

Communication

Messenger

Message

Receiver(s)Interpretation

Feedback

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Vital Communication Points

Meet with physicians to understand the purpose of the product/service and their needs as it relates to product or service.

Determine the type of contracting approach(es) that are feasible for this initiative—validate this with physicians.

Enlist the physician’s help in designing a contracting strategy.

Share the results of the RFP with the physicians and ask for their assistance in working with vendors.

Enlist support of involved physicians in implementation.

Report compliance with contract(s) on a regular basis and ask for their suggestions if commitments are not being met.

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Communication Tips

You cannot over communicate

Use various methods of communication

Use language the physician understands

Provide an avenue for feedback during the entire process

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Evaluation

Consistent & Transparent Process

Trust & Credibility

Application

Analysis

Rigor

Accountability

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Ways to Build Trust

Shared experiences over time,

Multiple instances of follow-through and credibility,

In-depth understanding of unique member attributes,

Get to know each other,

Encourage empathy and understanding and

Discourage unfair and inaccurate behavioral attributions.

The FIVE Dysfunctions of a Team, A Leadership Fable;

by Patrick Lencioni, 2002

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Physician Champion

Champions are an important success factor for your process and initiatives

Excellent Communication

Skills

Data Oriented

Respected connector

Subject Matter Expert

Open to change

Positive Attitude

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Accountability

Economic Credentialing:

• During the recruiting process• During annual evaluations (physician profiling)

Physician Incentives

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Executive Support

Ways to gain/keep executive support:

• Educate/Inform Executives about your process• Frequently relate the value the process is adding to

the organization• Keep executives updated on initiatives in process and

any potential barriers• Explicitly state the support/assistance you need to be

successful• Channel difficult and politically charged initiatives

through the executives before beginning your process

This VHA Inc. information is proprietary and highly confidential. Any unauthorized dissemination, distribution or copying is strictly prohibited. Any violation of this prohibition may be subject to penalties and full recourse under law. Copyright 2011 VHA Inc. All rights reserved.v1

Carol Pennington, RN, BSN, MBA – cpenning@vha.com