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The King's Fund Annual Policy Conference 2013
Achieving Transformational Change

Wednesday, 13 November 2013, 4.20p - 4.40p

Achieving Transformational Change:
How to Become a High Performing Organisation
Brent C. James, M.D., M.Stat.
Executive Director, Institute for
Health Care Delivery Research
Intermountain Healthcare
Salt Lake City, Utah, USA
Disclosures
Neither I, Brent C. James, nor any
family members, have any relevant financial
relationships to be discussed, directly or
indirectly, referred to or illustrated with or
without recognition within the presentation.
I have no financial relationships beyond my
employment at Intermountain Healthcare.
Outline
1. A

shared vision of "health care as a system of production"
= training programs

2. A

method to manage the core business of clinical care delivery
= Shared Baseline practice guidelines

3. True

transparency
= data for performance (accountability)
and change (improvement)
Quality, Utilization, & Efficiency (QUE)
Six clinical areas studied over 2 years:
- transurethral prostatectomy (TURP)
- open cholecystectomy
- total hip arthroplasty
- coronary artery bypass graft surgery (CABG)
- permanent pacemaker implantation
- community-acquired pneumonia

pulled all patients treated over a defined time period
across all Intermountain inpatient facilities - typically 1 year

identified and staged (relative to changes in expected utilization)
- severity of presenting primary condition
- all comorbidities on admission
- every complication
- measures of long term outcomes

compared physicians with meaningful # of cases
(low volume physicians included in parallel analysis, as a group)
IHC TURP QUE Study
Median Surgery Minutes vs Median Grams Tissue
Grams tissue / Surgery minutes

100

100

80

80

60

60

40

40

20

20

0

0
M

L

K

J

P

B

C

O

N

A

I

D

H

E

G

Attending Physician

Median surgical time

Median grams tissue removed

F
Intermountain TURP QUE Study
Average Hospital Cost
2500

2500
2233

Dollars

2000
1500

2140 2156

2000

1913

1568
1500 1549

1618

1697

1662

1598

1543

1552 1556

1500
1269
1164

1000

1000

500

500

0

0
A

B C

D

E

F

G H

I

J

K

Attending Physician

L

M N O

P
W. Edwards Deming

Organize everything around
value-added (front line) work processes

(Quality improvement is the science of process management)
Changing culture (a.k.a. "building a leadership cadre")

For a group containing N individuals, you must

recruit / convince / convert
the /N

paraphrasing Dr. W. Edwards Deming
1. Culture change that pays its way
Formal QI training programs:
Advanced Training Program (ATP) - 20 days in 4 sessions
miniATP - 9 days in 4 sessions
others (MD intro course, lab series, etc.)

that
teach methods (key: hands-on projects - creates quality zealots)
change culture (key: early adopters)
improve front-line work (key: organizational learning that rolls ahead;
concrete examples where others can "see the wheels turning")

pays its own way (savings from projects provide a net ROI)
Dr. Alan Morris, LDS Hospital, 1991:
NIH-funded randomized controlled trial
assessing an "artifical lung" vs. standard ventilator management
for acute respiratory distress syndrome (ARDS)

discovered large variations in ventilator settings
across and within expert pulmonologists

created a protocol for ventilator settings in the control arm of
the trial

Implemented the protocol using Lean principles
(Womack et al., 1990 - The Machine That Changed the World)

- built into clinical workflows - automatic unless modified
- clinicians encouraged to vary based on patient need
- variances and patient outcomes fed back in a Lean Learning Loop
2. Shared Baseline guidelines (bundles)
1.

Identify a high-priority clinical process (key process analysis)

2.

Build an evidence-based best practice protocol
(always imperfect: poor evidence, unreliable consensus)

3. Blend

it into clinical workflow (= clinical decision support; don't

rely on human memory; make "best care" the lowest energy state, default
choice that happens automatically unless someone must modify)
4.

Embed data systems to track (1) protocol variations and
(2) short and long term patient results (intermediate and final
clinical, cost, and satisfaction outcomes)

5. Demand

that clinicians vary based on patient need

6. Feed

those data back (variations, outcomes) in a Lean
Learning Loop

- constantly update and improve the protocol
- provide true transparency to front-line clinicians
- generate formal knowledge (peer-reviewed publications)
Dr. Alan Morris, LDS Hospital, 1991
Results:
Survival (for ECMO entry criteria patients) improved from 9.5% to 44%
Costs fell by ~25% (from $160k to $120k)
Physician time fell by ~50% (a major increase in physician productivity,
and arguably the only way we can protect physician income in the future)
Lesson 1

We count our successes in lives ...
Lesson 2

Most often
(but not always)

better care is cheaper care ...
Quality strategy: eliminate waste

50+% of all resource expenditures in
hospitals is
quality-associated waste:
recovering from preventable foul-ups
building unusable products
providing unnecessary treatments
simple inefficiency

Andersen, C. 1991
James BC et al., 2006
Clinical Integration
(Education programs: A learning organization)
(A shared vision for a future state)

1996: (strategic) Key process analysis
1997: Integrated management information systems
(an outcomes tracking system)

1998: Integrated clinical / operations

management structure
1999: Integrated (aligned) incentives
cost structure vs. net income (mediated by payment mechanisms)
integrated facility / medical expense budgets

2000: Full roll-out and administrative integration
Key process analysis
The Pareto* Principle; 80/20 rule; or "the Vital Few":
The IOM Chasm report:

Design for the usual, but recognize and plan for the unusual.
Within Intermountain, we initially identified > 1400 inpatient
and outpatient "work processes" that corresponded to
clinical conditions (e.g., "pregnancy, labor, and delivery;" "management
of ischemic heart disease;" "management of Type II diabetes mellitus")

104 of those work processes (~7%) accounted for 95% of all of
our inpatient and outpatient care delivery.
* Italian economist Vilfredo Pareto, 1848-1923
3. Measure for clinical management
We already had "sophisticated" automated data
- financial systems
- time-based Activity Based Costing (since 1983)
- clinical data for government reporting (JCAHO, CMS Core Measures, etc.)
- other automated data (lab, pharmacy, blood bank, etc.)
- Danger! Availability bias!

Still missing 30 - 50% of data elements essential
for clinical management
(the reason that the 2 initial Intermountain initiatives for clinical management failed)

We deployed a methodology to identify critical
data elements for clinical management, then built
them into clinical workflows (Danger! Recreational data collection!)
A fundamental shift in focus
The past:
Quality defined as accountability / regulatory
compliance - e.g.
- CMS Core Measures
- Pay for Value
- Meaningful Use

The future:
Quality becomes the core business
- Better patient outcomes that eliminate waste and reduce costs
A new health care delivery world ...
All the right care (no underuse), but
only the right care (no overuse);
Delivered free from injury (no misuse);
At the lowest necessary cost (efficient);
Coordinated along the full continuum
of care (timely; "move upstream");
Under each patient's full knowledge and
control (patient-centered; "nothing about me without me");
With grace, elegance, care, and concern.

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Brent James: Achieving transformational change: how to become a high-performing organisation

  • 1. The King's Fund Annual Policy Conference 2013 Achieving Transformational Change Wednesday, 13 November 2013, 4.20p - 4.40p Achieving Transformational Change: How to Become a High Performing Organisation Brent C. James, M.D., M.Stat. Executive Director, Institute for Health Care Delivery Research Intermountain Healthcare Salt Lake City, Utah, USA
  • 2. Disclosures Neither I, Brent C. James, nor any family members, have any relevant financial relationships to be discussed, directly or indirectly, referred to or illustrated with or without recognition within the presentation. I have no financial relationships beyond my employment at Intermountain Healthcare.
  • 3. Outline 1. A shared vision of "health care as a system of production" = training programs 2. A method to manage the core business of clinical care delivery = Shared Baseline practice guidelines 3. True transparency = data for performance (accountability) and change (improvement)
  • 4. Quality, Utilization, & Efficiency (QUE) Six clinical areas studied over 2 years: - transurethral prostatectomy (TURP) - open cholecystectomy - total hip arthroplasty - coronary artery bypass graft surgery (CABG) - permanent pacemaker implantation - community-acquired pneumonia pulled all patients treated over a defined time period across all Intermountain inpatient facilities - typically 1 year identified and staged (relative to changes in expected utilization) - severity of presenting primary condition - all comorbidities on admission - every complication - measures of long term outcomes compared physicians with meaningful # of cases (low volume physicians included in parallel analysis, as a group)
  • 5. IHC TURP QUE Study Median Surgery Minutes vs Median Grams Tissue Grams tissue / Surgery minutes 100 100 80 80 60 60 40 40 20 20 0 0 M L K J P B C O N A I D H E G Attending Physician Median surgical time Median grams tissue removed F
  • 6. Intermountain TURP QUE Study Average Hospital Cost 2500 2500 2233 Dollars 2000 1500 2140 2156 2000 1913 1568 1500 1549 1618 1697 1662 1598 1543 1552 1556 1500 1269 1164 1000 1000 500 500 0 0 A B C D E F G H I J K Attending Physician L M N O P
  • 7. W. Edwards Deming Organize everything around value-added (front line) work processes (Quality improvement is the science of process management)
  • 8. Changing culture (a.k.a. "building a leadership cadre") For a group containing N individuals, you must recruit / convince / convert the /N paraphrasing Dr. W. Edwards Deming
  • 9. 1. Culture change that pays its way Formal QI training programs: Advanced Training Program (ATP) - 20 days in 4 sessions miniATP - 9 days in 4 sessions others (MD intro course, lab series, etc.) that teach methods (key: hands-on projects - creates quality zealots) change culture (key: early adopters) improve front-line work (key: organizational learning that rolls ahead; concrete examples where others can "see the wheels turning") pays its own way (savings from projects provide a net ROI)
  • 10. Dr. Alan Morris, LDS Hospital, 1991: NIH-funded randomized controlled trial assessing an "artifical lung" vs. standard ventilator management for acute respiratory distress syndrome (ARDS) discovered large variations in ventilator settings across and within expert pulmonologists created a protocol for ventilator settings in the control arm of the trial Implemented the protocol using Lean principles (Womack et al., 1990 - The Machine That Changed the World) - built into clinical workflows - automatic unless modified - clinicians encouraged to vary based on patient need - variances and patient outcomes fed back in a Lean Learning Loop
  • 11. 2. Shared Baseline guidelines (bundles) 1. Identify a high-priority clinical process (key process analysis) 2. Build an evidence-based best practice protocol (always imperfect: poor evidence, unreliable consensus) 3. Blend it into clinical workflow (= clinical decision support; don't rely on human memory; make "best care" the lowest energy state, default choice that happens automatically unless someone must modify) 4. Embed data systems to track (1) protocol variations and (2) short and long term patient results (intermediate and final clinical, cost, and satisfaction outcomes) 5. Demand that clinicians vary based on patient need 6. Feed those data back (variations, outcomes) in a Lean Learning Loop - constantly update and improve the protocol - provide true transparency to front-line clinicians - generate formal knowledge (peer-reviewed publications)
  • 12. Dr. Alan Morris, LDS Hospital, 1991 Results: Survival (for ECMO entry criteria patients) improved from 9.5% to 44% Costs fell by ~25% (from $160k to $120k) Physician time fell by ~50% (a major increase in physician productivity, and arguably the only way we can protect physician income in the future)
  • 13. Lesson 1 We count our successes in lives ...
  • 14. Lesson 2 Most often (but not always) better care is cheaper care ...
  • 15. Quality strategy: eliminate waste 50+% of all resource expenditures in hospitals is quality-associated waste: recovering from preventable foul-ups building unusable products providing unnecessary treatments simple inefficiency Andersen, C. 1991 James BC et al., 2006
  • 16. Clinical Integration (Education programs: A learning organization) (A shared vision for a future state) 1996: (strategic) Key process analysis 1997: Integrated management information systems (an outcomes tracking system) 1998: Integrated clinical / operations management structure 1999: Integrated (aligned) incentives cost structure vs. net income (mediated by payment mechanisms) integrated facility / medical expense budgets 2000: Full roll-out and administrative integration
  • 17. Key process analysis The Pareto* Principle; 80/20 rule; or "the Vital Few": The IOM Chasm report: Design for the usual, but recognize and plan for the unusual. Within Intermountain, we initially identified > 1400 inpatient and outpatient "work processes" that corresponded to clinical conditions (e.g., "pregnancy, labor, and delivery;" "management of ischemic heart disease;" "management of Type II diabetes mellitus") 104 of those work processes (~7%) accounted for 95% of all of our inpatient and outpatient care delivery. * Italian economist Vilfredo Pareto, 1848-1923
  • 18. 3. Measure for clinical management We already had "sophisticated" automated data - financial systems - time-based Activity Based Costing (since 1983) - clinical data for government reporting (JCAHO, CMS Core Measures, etc.) - other automated data (lab, pharmacy, blood bank, etc.) - Danger! Availability bias! Still missing 30 - 50% of data elements essential for clinical management (the reason that the 2 initial Intermountain initiatives for clinical management failed) We deployed a methodology to identify critical data elements for clinical management, then built them into clinical workflows (Danger! Recreational data collection!)
  • 19. A fundamental shift in focus The past: Quality defined as accountability / regulatory compliance - e.g. - CMS Core Measures - Pay for Value - Meaningful Use The future: Quality becomes the core business - Better patient outcomes that eliminate waste and reduce costs
  • 20. A new health care delivery world ... All the right care (no underuse), but only the right care (no overuse); Delivered free from injury (no misuse); At the lowest necessary cost (efficient); Coordinated along the full continuum of care (timely; "move upstream"); Under each patient's full knowledge and control (patient-centered; "nothing about me without me"); With grace, elegance, care, and concern.