Author Archives: Chris Taylor

Intervention While The Patient Is Still Healthy

The following was first published on The TIBCO Blog.

In a previous article, Healthcare: You can’t improve what you can’t measure, we took a look at the Toyota Production System in Healthcare.

Going beyond Lean and TPS,  new-to-healthcare technology brings significant disruption to the traditional healthcare technology market for one simple reason, laid out in a recent article in TechCrunch, Money Ball for Medicine – Business Models for Healthcare: “By definition, the legacy HealthIT vendors have optimized their solutions around the legacy reimbursement and delivery models that have created the hyperinflation in healthcare crushing family, business, and government budgets.”

Lean and Six Sigma techniques, data analytics, business events and process technology will be used to break the reimbursement model and its attendant software norms.

This is a veritable sea change. What was locked into paper records is now being captured for the first time in electronic medical records (EMRs). By itself, this is simply shifting from paper to an electronic record. That won’t be enough. Smart healthcare will go further and manage many data sources simultaneously. It will be able to sort through this new avalanche of data to find the information, often a combination of data from multiple systems, which can predict problems and allow for intervention before an expensive crisis occurs. This borrows from the way banks detect credit card fraud and is easily applied to avoiding healthcare mistakes and intervening early.

Digital technology also underpins the collaboration necessary for cross-network accountable care described by Seattle Children’s Dr. Jeffries in Healthcare, You Can’t Improve What You Don’t Measure. The rise of social media means that what has progressed from paper to fax to email is now moving to enterprise social networks as the most secure and effective way to draw together the patient and a network of healthcare providers, or to connect health insurance to healthcare delivery. While reform was designed to reward cooperation, Medicare, Medicaid and insurers have the power to incent this to continue, even without legislation.

As Dr. Howard Landa, Chief Medical Information Officer at Alameda County Medical Center, and Association of Medical Directors of Information Systems President calls it, “…looking at the entire population and their health rather than focusing on the provision of clinical care.” Landa forecasts that, “…clinical decision support will extend beyond alerts and reminders to presenting information in a more efficient, timely and usable manner so that we can do the right things with the right information in the right moments that matter.”

Beyond technology, there have historically been limited methods for advances in process, treatment or technology in one healthcare organization to be readily compared, understood, and adopted elsewhere. Analytics performed for both improvement projects and patient care need to be “attached” to standardized healthcare work. This has been done in other industries through the use of frameworks like ITIL for information technology, SCOR for supply chain management and APQC’s PCF for enterprise-level process management. A healthcare framework is the key ingredient for communication. Responding to this, the latest requirements put out by the Federal Government’s National Coordinator, Dr. Farzad Mostashari, make it clear that collaboration must be available across organizational boundaries.

“The framework opens the door to process improvement, a structure for social conversations, and managing metrics and events. The organizations that understand this will be the leaders of the future,” says APQC’s Executive Director of Research Services Ron Webb. Webb is actively engaging healthcare professionals to bring about such a framework.

All of these changes go far beyond legislated reform and relate more to the healthcare dynamics that, as Dr. Landa says, “…are driven by an aging population, provider shortages and a burning need to align payment with quality.” Digitization is the reality of healthcare that has little to do with politics.

Urgency, leadership, vision and culture…does Healthcare have this?

Hearing Virginia Mason Health System’s CEO, Dr. Gary Kaplan, speak today at the WCBF Lean Six Sigma Healthcare Summit makes it quickly clear why Lean is the growing undercurrent for a move to accountable healthcare. Virginia Mason was in trouble in 2000 and losing money, its best people, and potentially, their vision.

The clues were found across the organization from publicized mistakes to low worker morale. Virginia Mason had strong indicators that poor quality was catching up not only with an industry that consistently registers a 3% error rate, but with their healthcare network in particular. But what do you do in a system that is in decline because the system is failing not just patients, but doctors and nurses, too?

They needed a leadership change…and even more importantly, a new management system.

Culture change

They had the benefit of being a neighbor to Boeing, where Lean and the Toyota Production System were being used to make remarkable progress in bringing the time to produce aircraft down to less than half while increasing quality. Mistake-proof processes done in standard ways were Boeing’s answer and Virginia Mason suspected that healthcare needed a similar solution. They needed to standardize work and become a more efficient, safer organization.

But to get there required a tectonic shift. Nothing could change until the organization and its physician leadership understood that the real customer of healthcare was not, in brutal reality, the patient, but the doctors and senior staff who make up the care system. Kaplan gives evidence that everyone can understand: The number of discharges on the weekend, which drop significantly as the 5-day-per-week medical staff sets the release rules, which mean “if not Friday, then Monday.” If that isn’t staff-centric, what is?

Virginia Mason developed a plan that put the patient at the top of a pyramid of supporting concepts that include vision, mission, values, strategies and foundational elements. All of this sits atop the production systems (the base layer of the pyramid): Vision and values first, systems later.

The Compact

But change comes slowly, especially when the people involved are some of the smartest and best educated in the marketplace. Doctors aren’t ‘raised’ in a culture of collaboration or shared vision. The Hippocratic Oath doesn’t say much about leadership. A physician-centered world view prevailed in a ‘Traditional Compact‘ of protection, autonomy and entitlement. It had to switch to the needs of society, competition, and the organization’s strengths. They had to create the Virginia Mason Medical Center Physician Compact. This new system of ‘gives’ and ‘gets’ was foundational to change.

The results are dramatic and industry leading. Virginia Mason Medical Center is the post child for excellent healthcare, patient satisfaction, and staff engagement.

Seeing is believing

Kaplan is about to embark on his 13th trip to Japan. Seeing is believing and they’ve learned that organizational buy-in is everything. These trips are a key part of how they change culture in the organization. Staff see standard work in action and its remarkable results. But does a process focus stamp out positive change in the organization? Kaplan answers that age-old process challenge with, “Without standard work, there can be no creativity and innovation.”

Accountable healthcare: Can ya get there from here?

Today is Day 1 of the WCBF Annual Lean Six Sigma and Process Excellence in Healthcare Summit.  This isn’t a new organization nor is Lean or Six Sigma a new discipline. There are things, however, that are on the horizon that make this a very important place to be at this moment in the US healthcare saga.

Accountable healthcare is coming. There’s simply no way we will continue to throw money at a system that doesn’t have accountability to the patient, payer or society. Yes, there are three customers of healthcare, each with a different agenda, each just as important in the healthcare story. If we can’t serve two masters…how will we serve three?  Getting to accountable care won’t be easy.

Learning curve

Humans have to go through a process to get to what works. The question becomes, “How much can that learning curve be accelerated?” At ThedaCare in Wisconsin, they’ve made a remarkable journey in Lean healthcare but it has taken twelve years. They’re ready to be accountable as quickly as the market asks them too, but does our system have the time and patience to wait twelve more years to be in ThedaCare’s position?

At Kaiser Permanente, the Health Maintenance Organization model is now two decades old and providing evidence that accountable care exists on a large scale, but they built an organization from the ground up around this model. The rest of industry obviously can’t start over or from the ground up.

Roadmap to accountability

What healthcare needs is a roadmap. That roadmap needs to be in the form of a process framework that helps us to get from here to where healthcare needs to be. A framework isn’t a new idea…it has been around in other industries for a while and has a long-standing reputation for accomplishing the following:

  • Standardizing the language of accountability
  • Defining a target future state for new services
  • Allowing for gap analysis and prioritization
  • Defining touch points for the accountable network
  • Providing a place to ‘hang’ metrics
  • Defining the way jobs are restructured and redesigned
  • Benchmarking in an apples-to-apples way between organizations
  • Tackling waste and inefficiency so that ACO ‘works’
  • Keeping compliance intact through organizational seismic shifts
This roadmap can be adopted in part or whole, and can be initially overlaid as a reference model before it becomes an operational one. Most importantly, we need to get started on this model before everyone is forced to reinvent the wheel

What we all need to know about Big Data

Watching the buzz around Big Data, it would be easy to dismiss the hype as an answer looking for a solution. After all, how many times have you read about a remarkably good business model (other than Facebook, Google or Amazon) making millions through Big Data technologies?

However, by the time you read about solutions, technology is likely already in mainstream use and past the hype, meaning: If you wait for your competitors to show results, you’re already many months behind and unlikely to catch up soon. You’re eating everyone’s dust.

Growth spurt

Big Data goes well beyond putting new labels on existing products, though there will certainly be a fair amount of that. Big Data is about a maturing set of affordable technologies that take advantage of several shifts that took place in the past couple of years. You’ve heard it before, but mobile, social, and less-known but very important machine data (logs, etc.) are increasing the data ‘haul’ at a rapid rate. Think of this, too…this is happening to organizations that haven’t maximized the data they already have.

New tech

Just in time for data’s growth spurt, we can now cheaply store lots of information through the web, or Cloud. We can keep it in-memory much more easily, too. Add to that an open source platform, Hadoop and its ecosystem, that can distribute storage and processing across many machines. Each of these is a major change in technology, but taken together, are the key ingredients for a new level of finding and understanding patterns.

Good, Bad and Ugly

Patterns give us insight into what’s happening in our marketplace and world that we never would have had through traditional means. Those patterns can be a way to sell better or to avoid disaster.

  • Good: From better consumer products to getting vaccines to critical places in the world
  • Bad: Learning why things don’t sell or where customer service is failing by ‘reading’ comments and click patterns
  • Ugly: Spotting fraud in credit card transactions, movements of money and other illegal activities

When you look at the growth of data, the advances in storage and computing, and the newly interconnected world, there is an unmistakable opportunity to be involved in game-changing ways of doing business. That isn’t hype, even though hype may blur the benefits. Big Data is our new reality.

Healthcare: You Can’t Improve What You Can’t Measure

The following was first published on The TIBCO Blog.

As shown in Healthcare Reform That Can’t Be Stopped, the Toyota Production System has found a home in healthcare. The Wisconsin-based TPS pioneer, ThedaCare, has been employing Toyota’s industrial efficiency principles in its hospitals to great effect for more than 10 years. Thedacare is now seeing great interest from other organizations, as the healthcare industry moves to reap the rewards of its move to digitize information. So much interest, in fact, that it has created the ThedaCare Center for Healthcare Value to help other organizations realize the promise of continuous performance improvement. Its head, former ThedaCare CEO Dr. John Toussaint, doesn’t mince words when he talks about what’s bringing all those organizations to his door — and it’s not federal legislation.

“Healthcare performance was and still is unreliable,” he says flatly. “Those who are honest about what they’re doing recognize that. Twelve years ago, ThedaCare compared manufacturing and healthcare quality and found healthcare to be far worse: 90,000 to 100,000 defects per million opportunities [versus the three defects per million norm in manufacturing]. That’s quite frankly still how U.S. healthcare performs. A 2010 HHS Study said we were killing 15,000 Medicare patients per month with medical errors. The NIH’s Crossing the Quality Chasm in 1999 showed the same thing. When you peel back the onion, we’re doing really lousy; maybe it has even gotten worse. Those of us who have been in the business of quality improvement have been trying to understand why that is and implement processes to change that.”

As proof of the effectiveness of its data-driven reform efforts, Dr. Toussaint points out that ThedaCare’s Collaborative Care has reduced medication reconciliation errors — that is, errors from incorrect or conflicting orders for medications — to zero and maintained that number for four years. Toussaint also points out that their published thirty-day readmission rate of under 9% is less than half the national average.

Whether reform is repealed or not, Toussaint says, “The reform initiatives in the private sector have already begun and there’s no going back because there just isn’t any money left. Healthcare delivery organizations are going to learn to live with less revenue. We have big problems that won’t be solved by throwing more money at them. We can either cut the healthcare workforce by percent while reducing quality or we can use data and a proven methodology to make it less expensive and maintain quality. This transcends whatever happens in Washington.”

Does the Toyota method work in smaller, specialty healthcare? Seattle Children’s has been focused on the need to reduce variation in care. Dr. Howard Jeffries is the Medical Director of Continuous Performance Improvement and a practicing cardiac intensivist. He believes that regardless of the outcome in Washington, hospitals will be required to assume risk in the form of bundled payments models where both government and commercial insurers will pay a fixed amount for a specific treatment cycle. “The only way to survive is to predict cost. We can’t negotiate these rates until we know what our costs are, so our goal is to reduce variation as much as we can.”

Jeffries states that Seattle Children’s wants the only variation in process to be around the patient’s response to treatment. “What’s unique about us is that other care providers are trying to standardize as much as they can around the patient visit in peripheral ways, but we’re standardizing what we’re doing when we’re making clinical decisions for seeing a patient. We’re also looking at standardizing all other aspects of care from how you move through the system to what types of medication you’ll receive, including discharge and follow-up visits.”

Jeffries’ data-focused approach has the goal of standardizing care for 50% of Seattle Children’s patients within five years, up from the current 18%, but far higher than the 8% they discovered when they started one year ago, a number very common in the industry. They’ll need to tackle increasingly challenging care paths as the laws of diminishing returns kick in.

Asked how they create standards and reduce variation, Dr. Jeffries says, “We talk about it a lot, about the goals and why doctors practice. Are you a doctor to do what you want or to provide good care to your patients? The only way you can know is to measure and to have a standardized practice. If you don’t have a standard practice, anything you do differently is just noise.”

Dr. Jeffries also expects the rise of the Accountable Care Organization (ACO) where healthcare will be paid a fixed amount to manage a population of patients, including their outpatient needs. “This will require efficient networks of providers working with tight collaboration toward a common goal.”

Up next: Intervention While The Patient Is Still Healthy

Disruption: the Facebook and Big Data conspiracy

Facebook goes far beyond a social networking site. It has become the single best identity management service on the planet. Want to leave a comment on TechCrunch? You need to sign in with Facebook, not through LinkedIn or any professional presence. That may seem counterintuitive but the new Web works not on how we market ourselves, but how we’re marketed to. Giving you a platform isn’t about letting you speak, but collecting info to assist in marketing to you. Ouch.

It was pointed out in a recent Forbes article (Hulu To Users: Connect Your Facebook Account Or No Social For Youthat if you want to have a social presence on Hulu you now need to sign in through Facebook first. Why would Hulu take the risk of upsetting their non-Facebook customers? Because they recognize that outsourcing identity management to Facebook has much better returns than trying to build that critical information themselves, user-by-user. Facebook is their marketing database.

Acceleration

This will be an accelerating trend. Facebook is the undisputed social backbone of the Internet. That makes Facebook the best (and getting better) marketing database for the world and has more data on more people than anyone thought possible.

Why does this matter? 100 years ago marketers advertised in a newspaper or magazine because, 1) they thought it had the right demographic that might be looking for the item they were selling, or, 2) the ad would be recalled in the right moment to affect a purchase. Television followed the identical pattern. Reaching a customer just once in a while was as good as it got. That massively inefficient model is being massively disrupted.

Data, Big Data and Efficiency

New Marketing is about efficiency. Getting to an efficient response requires great data before an offer is made. That in turn means complexity needs to happen behind the scenes with heavy reliance on data analytics (Big Data) atop as much relevant data (like Facebook) as possible. The result is the right offer to the right person in the right moment for a decision.

This is the polar opposite of the traditional marketing message which relies upon simplicity and repetition and is directed most often at the wrong person at the wrong time and in the wrong context.  Traditional marketing suffers from scarcity of complexity (data and analytics) and relies instead on massively prolific messaging: The jingle, the mascot, the tag line (“Where’s the beef?”). Pollute the public’s mind often and long enough and they’ll be compelled to buy your product.

There will still be a place for polluting the public’s mind, rest assured, but the one-way channels that support those messages (radio, television and newspapers) are going the way of the dinosaurs…and it accelerated as soon as the Web went mobile. It is only a matter of time before the bi-directional nature of the Internet takes over. Congratulations, Facebook, on figuring that out quite a while back.


Will a system approach heal medicine?

This is an outstanding TED talk by Dr. Atul Gawande, physician and author of The Checklist Manifesto on how to heal medicine.

“The most expensive care is not necessarily the best care, and vice versa, the best care often turns out to be the least expensive; it has fewer complications and people get more efficient at what they do. What that means is there’s hope.”

Dr. Gawande talks about how the best healthcare is a systems, not a combination of components (like drugs, technologies and specialists). A system has inputs, outputs and processes. It has a focus on standard work and checklists. The following are what define his system approach:

  • The ability to recognize success and failure. A specialist doesn’t see the end result, but a system has an end-to-end view.
  • It can devise solutions. Forget more training or technology, solutions have standard work in process/checklists that make experts even better.
  • The ability to implement ideas by getting colleagues to go along even when it involves humility, discipline and teamwork.

Please take the time to watch and comment. Thanks.

The Healthcare Reform That Can’t Be Stopped

The following is an expansion of what was first published on Harvard Business Review.

There are few more personal, passionate, and political topics than health care. The reasons for this are clear: Health care spending has reached 17% of the U.S. GDP, outcomes are worse than in other developed countries, and an attempt to fix the system through the Affordable Care Act (ACA) now sits in the hands of the U.S. Supreme Court. But regardless of ACA’s legal prognosis, the Pandora’s Box of true health care reform has already been opened — and it happened before most of us realized.

It happened in the throes of the recent Great Recession when Congress passed the American Recovery and Reinvestment Act of 2009 (better known as the bailout). Nearly $800 billion was targeted to create new jobs, save existing jobs, and spur economic activity. What many don’t realize is that as part of those funds, the incentives created to digitize medical records were massive — amounting to $40,000 to $65,000 per physician and $11 million per hospital for the “meaningful use” of health information technology.

Just as important as the financial carrot was the accompanying stick wielded by the Centers for Medicaid and Medicare Services, the largest single payer in the United States — the threat to reduce payments to physicians and hospitals by 1% per year if they fail to submit invoices electronically. For an industry typically operating in the low single digits of profitability, this is a heavy stick indeed — prompting many organizations not to wait to see if the bill gets struck down before taking the necessary steps to comply.

The upshot of the big carrot and the big stick has been a rapid shift to digital health care, notwithstanding the well-known and well-documented debilitating effects of the current system’s fee-for-service model that rewards health care providers by the procedure.

That fee-for-service model is being disrupted not only by the shift to digital health care but also by an early effect of the ACA, which laid the groundwork for an accountable care model that is very attractive to employers. This less-talked-about part of the legislation aims to reduce unnecessary hospital readmissions through readmission penalties and by funding accountable care organizations that are rewarded not for doing procedures but for keeping a population healthy.

The introduction of this fee-for-outcome model kicked off a change in health care that many believe is irreversible. One of them is Dr. David Burton, CEO of Healthcare Quality Catalyst, a Salt Lake City-based health care technology company focused on a data-driven approach to continuous improvement. Dr. Burton was an integral part of the early data revolution in health care when he was a physician and executive at Intermountain Health Care, the largest health care provider in Utah. “There is a groundswell that is trying to move from fee-for-service and its perverse incentives,” he says. “At some level, it doesn’t matter too much what happens with ACA because the fuse is already lit.”

And no wonder since employers — the forgotten player in the health care conversation — are the ones footing much of the bill. The move to fee-for-outcome payment models holds so much potential to lower costs and improve the quality of care for their employees that it’s hard to see employers letting up the pressure on the health care providers to move in that direction, no matter what the fate of the ACA’s government mandates in the courts.

With incentives reformed, the potential to apply efficiency techniques that work so well in other industries will have a chance to scale up, and initiatives begun long ago will have new life. Burton and Intermountain Health Care, for example, began working with electronic data in the mid-1970s, long before runaway costs prompted any national discussion of health care. Intermountain has also long been a strong supporter of the data-centric Toyota Production System (TPS) that was so effective in disrupting the automobile industry through its focus on data-driven continuous improvement.

Intermountain Healthcare CEO Dr. Charles Sorenson summarizes their successful approach this way: “We end up having less waste (expressed in our business as fewer medical errors), and that reduces cost. Even more importantly, we have the opportunity to not do things that don’t add value.”

Up next: Healthcare, You Can’t Improve What You Don’t Measure

A radically different model for Healthcare

Healthcare is THE topic of 2012 across the country as it few things touch people so viscerally. It is very hard to have a discussion, in fact, without battle lines being drawn around politics, personal or professional perspective. There is general agreement that something has to change but little agreement on what and how.

Going to the source

My article in the Harvard Business Review last week, The Healthcare Reform That Can’t Be Stopped, talked about the great digitization that is occurring and the Pandora’s Box this has opened in healthcare. I also made reference to the Toyota Production System being used to varying degrees by healthcare providers. Researching the article was very eye-opening and I decided I had to see for myself. I chose to visit ThedaCare, an Appleton, Wisconsin-based healthcare network.

ThedaCare applied the Toyota Production system to their practice of healthcare starting a decade ago. More than a methodology change, they have changed the culture of the organization so thoroughly that this  way of work is now in their DNA.  As Dr. John Toussaint of Thedacare put it, “The answer is in. It works. The trick is to know how to get it in.”

Getting it in

ThedaCare is completely organized around the soft skills that are the hardest part to instill in an organization: Creating a culture of respect for people. They do this through a simple image that expresses their core principles and aligns continuous improvement and metrics under each. Everywhere we went, from the lab and call center to their senior living residence, large boards are used to ensure people are aligned with the central goals of the organization.

What makes it truly remarkable is the executive suite that has an entire room dedicated to summarizing these principles and providing the roll up of effort across so many different work groups and departments. The focus, even at the top is clearly on ThedaCare’s front line workers and their ability to solve problems and improve performance. Toussaint asked an excellent question as the final day ended, “How can healthcare make people healthier if there isn’t a system that involves everyone and transparency in measuring performance?”

For more resources, see LeanROI, Dr. Ideas, and the Harvard Business Review.

What’s the big deal with Big Data?

Big Data is the technology focus of the year, and Hadoop is the software that is gathering all the attention of investors and startups. How much is hype and how much is ‘wave of the future’? There is always some amount of hype around new ideas, but I’ll argue Big Data has its value based in diversity.

Diversity of locations

Those who argue that Big Data is just hype (and there are a few) ignore the argument that there is a new diversity of data that has never existed before. The diversity comes from the combination of internal and external (and cloud), mobile, plus the explosion of personal data from social networks. 800M people have put their preferences and relationships on Facebook, but there are many, many other places where data is now available that was never reachable before.

Diversity of users

Big Data has benefited large organizations that could afford hardware and quantitative analysts for many years, but has been out of the reach of small to medium companies. The low cost of storage and open source software has made this technology available to a broad spectrum of companies. It will only get cheaper, meaning the adoption will increase.

Diversity of data sources

The proliferation of web-enabled devices means that satellite, RFID, machine-generated and many other sources of data are in the mix along with consumer information. This data, taken at the right volume and velocity, demonstrates patterns that are useful for predicting opportunities and problems in supply chains, contagious diseases, drug therapies, and a host of other meaningful ways. It opens the door to ideas and solutions that weren’t imaginable a short time ago.

Data traction

Big Data without context or purpose isn’t all that useful, and that’s where process management comes in. In Clay Richardson’s words, Big Data needs Big Process. In his post, Big Data Ain’t Worth Diddly Without Big Process, he argues that ‘Big Process’ is a move from silo’d approaches to BPM and process improvement to more holistic approaches that have a chance to effect business transformation.

Companies have long brought together subject matter experts and mapped how things should be done, but we’ve never really been disciplined about applying the wealth of available data in a systematic way that can revolutionize business. You can’t improve what you can’t measure, and Big Data is all about having the right, timely information to measure meaningful things and affect change.

That means process becomes less about rigid flows and more about an organization being able to use data in specific ways to improve product development, strengthen marketing and sales, and create better customer service. Big Data used well drives organizational change, and that change needs to be wisely managed as an agile process infrastructure.

The companies that don’t put their ear to the tracks by managing Big Data are the ones most likely to be disrupted. And there is lots of disruption ahead.