PRESCRIPTION FOR ROI:  INNOVATION IN HEALTH CARE  DELIVER ON ROI -- PDMA, CINCINNATIMeredith BaratzOctober 2012           ...
Never leave well enough alone –                                                       Raymond Loewy, Designer             ...
Who We Are    Our Mission                                        Helping people live healthier lives.    Our Purpose      ...
UnitedHealth Group’s Business ModelOUR HEALTH BENEFITS BUSINESS: UNITEDHEALTHCARE            OUR HEALTH SERVICES BUSINESS:...
Strategic Guideposts for Improving HealthHelp people achieve the best possible healthProvide people with transparent perfo...
The Health Care Landscape              Consumer as purchaser with increased financial responsibility drives              ...
UnitedHealth Personal Rewards                                © 2012 UnitedHealth Group. Any use, copying or distribution w...
Keys to Innovation Success  • Integrated Innovation Capabilities     Strategy and Structure  • Process Discipline  • Focus...
Our United Culture Values                            © 2012 UnitedHealth Group. Any use, copying or distribution without w...
Structure: Integrated Innovation Capabilities    Business Segment                                                        U...
Process: A Focused Discipline of InnovationIdeas:            Filter:            Incubate:                    Pilot:       ...
Systematizing the “Front End”                        Understanding Unarticulated Needs                        • Empathize ...
Identifying OpportunitiesMultiple sources for business opportunitiesInternal sourcing:                             Externa...
Harnessing Unarticulated Needs: Design Thinking in Health Care•     A new way to understand and solve      problems       ...
Designing Experiments: Getting Going vs Getting PerfectCultural shift introduces rapid, iterative prototypingExperimentati...
Harnessing Analytics and Discontinuity:Type 2 Diabetes Epidemic: The Human Toll    One of the fastest-growing diseases in ...
The Type 2 Diabetes Epidemic: The Financial TollRising costs for the health care system• Annual U.S. health care spending ...
The Type 2 Diabetes Continuum Overweight     Obesity                  Prediabetes                                         ...
The Diabetes Prevention and Control AllianceAn Alternative Model of Care Delivery           Diabetes         CDC-endorsed ...
A Platform for Growth• Diabetes Health Plan• Natural History of Disease                                                   ...
Culture: AlignmentCore pillar of cultural values    Constant and consistent reinforcementInnovation Day    Learning sessio...
Culture: Compensation/CareersCurrent State                                           EvolutionLocal recognition and awards...
UnitedHealth Group: Recognized for Leadership, Innovation and Social Stewardship                                          ...
ROI: Assessing Impact Across DimensionsThe Objective:To modernize the U.S. health system, developing new, financially resp...
Innovation: In the Service of Practical Solutions     Our fundamental role is to Make Health Care Work for Everyone     He...
Telehealth for the Navajo Nation                                   © 2012 UnitedHealth Group. Any use, copying or distribu...
Upcoming SlideShare
Loading in …5
×

Prescription for ROI: Innovation in Health Care by Meredith Baratz of UnitedHealth Group

2,057 views

Published on

UnitedHealth Group (UHG), a leader in the health benefits and health services industries, was awarded PDMA’s prestigious Outstanding Corporate Innovator Award in 2011 for its sustained innovation success. In her presentation Ms. Baratz will describe how UHG created an innovation ecosystem to address the transformation occurring in the health care system today. She will share the disciplined innovation best practices employed by UHG in areas such as problem identification, solution development and open innovation. She will use a case study to demonstrate the application of these best practices. Meredith will also discuss how UHG measures innovation ROI and how the company structures platforms for future innovation.

Published in: Health & Medicine
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,057
On SlideShare
0
From Embeds
0
Number of Embeds
217
Actions
Shares
0
Downloads
52
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Prescription for ROI: Innovation in Health Care by Meredith Baratz of UnitedHealth Group

  1. 1. PRESCRIPTION FOR ROI: INNOVATION IN HEALTH CARE DELIVER ON ROI -- PDMA, CINCINNATIMeredith BaratzOctober 2012 © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  2. 2. Never leave well enough alone – Raymond Loewy, Designer © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  3. 3. Who We Are Our Mission Helping people live healthier lives. Our Purpose Making health care work better for everyone. Our Values Integrity Compassion Relationships Innovation Performance 33 © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.Proprietary Information of UnitedHealth Group. Do not distribute or reproduce without express permission of UnitedHealth Group.
  4. 4. UnitedHealth Group’s Business ModelOUR HEALTH BENEFITS BUSINESS: UNITEDHEALTHCARE OUR HEALTH SERVICES BUSINESS: OPTUM Helping People Live Healthier Lives Making the Health Care System Work Better UnitedHealthcare Community & State for Everyone • Health care information technology UnitedHealthcare Employer & Individual OptumInsight • Consumer engagement and support UnitedHealthcare Medicare & Retirement OptumHealth • Integrated care delivery • Pharmacy OptumRx • Serving 39 million Americans at every stage of life • Health financial services • Innovation-driven growth A dedicated and independent business providing • Well positioned to evolve and grow through services to: 6,000 hospital facilities, nearly 250,000 health care reform health care professionals, 58 million consumers • 63,000 employees across Unitedhealthcare and corporate 39,000 employees FOUNDATIONAL Domain knowledge around care management and care resources Actionable health care information and intelligence COMPETENCIES Advanced, enabling technology
  5. 5. Strategic Guideposts for Improving HealthHelp people achieve the best possible healthProvide people with transparent performance data to help them use the systemHelp the system perform at its highest potential © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  6. 6. The Health Care Landscape  Consumer as purchaser with increased financial responsibility drives product innovation and retail strategies.  Aging, declining health status and coverage expansion creating need for clinical effectiveness and assistance to navigate the system. Consumers  Reimbursement pressures driving greater pay for performance and clinical integration.  Primary care capacity and structural changes in medical practice giving Care rise to alternative strategies for care delivery. Providers  Fiscal challenges driving need for innovative cost-effective solutions executed at scale and delivered locally.  Increasing role of government driving greater regulatory requirements and changes in market structure. Payers A Market in Transition
  7. 7. UnitedHealth Personal Rewards © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. 7
  8. 8. Keys to Innovation Success • Integrated Innovation Capabilities Strategy and Structure • Process Discipline • Focus on the Front End Harnessing Analytics • Rapid Prototyping • Culture Acceptance of Risk • Open Innovation • Measurement © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  9. 9. Our United Culture Values © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  10. 10. Structure: Integrated Innovation Capabilities Business Segment UnitedHealth Group Innovation Labs Innovation Council Center for Health UnitedHealth Group Reform and Modernization IT R&D © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  11. 11. Process: A Focused Discipline of InnovationIdeas: Filter: Incubate: Pilot: Assess: Launch:• Customers • Translate • Pilot design • Integration Rapid-cycle • Disposition• Innovation need to and build with other development • Integrate, Advisory approach (StageGate) UHG or exit revise, Group • Market • Customer businesses or launch or kill• Trend studies research engagement external • Key• Market • Rigorous partners learnings research prioritization •4-5• Competitive process incubations OR analyses become 2 - 3• Operational/ pilots/yr Redirect/ cost analyses dissect Better information. Better decisions. Better health. © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  12. 12. Systematizing the “Front End” Understanding Unarticulated Needs • Empathize with the customer and identify unmet needs Exploration Harnessing Discontinuities Concept Development • Spot trends and patterns that could change the rules of the game phase 1 Challenging Convention • Question deeply held dogmas inside the company and industry about what drives success Leveraging Competencies and Assets • Thinking of UHG as a portfolio of skills and assets rather than a provider of products and services © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. 12
  13. 13. Identifying OpportunitiesMultiple sources for business opportunitiesInternal sourcing: External sourcing: • Involvement in industry and trade• Frequent communication with groups business leaders, corporate development • Interaction with customers (including government entities)• Insight-driven research widely distributed • Relationships in academia and research institutions• Rich data and analytics • Soliciting ideas from healthcare• Formal cross-organizational entrepreneurs intercompany advisory group • Linkage to Fortune 500 and technology firms • Active alternative investment portfolio © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  14. 14. Harnessing Unarticulated Needs: Design Thinking in Health Care• A new way to understand and solve problems Common to CPG – Revolutionary in health• Developing competency for: Empathy Contextual understanding Seeing beyond the survey• Creates rich insights that spur creativity• Inspires solutions with meaningful impact My Health Sherpa © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. 14
  15. 15. Designing Experiments: Getting Going vs Getting PerfectCultural shift introduces rapid, iterative prototypingExperimentation: – Unlocks insights about customer behavior and desirability – Low-cost, low-fidelity learning opportunities – Informs solution development while reducing riskBuilding out the competencies: – Frame the right questions to ask – Construct the learning prototype – Rapid resourcing – Quick, easy access to customers © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  16. 16. Harnessing Analytics and Discontinuity:Type 2 Diabetes Epidemic: The Human Toll One of the fastest-growing diseases in the U.S. 2010 2020 Estimated prevalence (adults) 40% 52% Diabetes 27 million 39 million Prediabetes 67 million 96 million Annual US Spending $194 Billion $500 Billion © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  17. 17. The Type 2 Diabetes Epidemic: The Financial TollRising costs for the health care system• Annual U.S. health care spending on diabetes and prediabetes will rise from $194 billion in 2010 to an estimated $500 billion by 2020 – or about $3.35 trillion over the next decade.Rising costs for the individual $20,700 $11,700 Person with Complications Related $4,400 Person with Diagnosed to Diabetes Diabetes Person without diabetes © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  18. 18. The Type 2 Diabetes Continuum Overweight Obesity Prediabetes Type 2 diabetes © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  19. 19. The Diabetes Prevention and Control AllianceAn Alternative Model of Care Delivery Diabetes CDC-endorsed weight loss Prevention and exercise Program protocol Pre-diabetics who lose 5-7% of their weight reduce conversion to full-blown diabetes by 58% In-store Diabetes pharmacist Control consultation Program on medication management Glucose, blood pressure, and cholesterol control may reduce diabetes complications 12% to 50%
  20. 20. A Platform for Growth• Diabetes Health Plan• Natural History of Disease Type 2• Diabetes Prevention and Control Overweight Obesity Prediabete diabetes Alliance• Diabetes Prevention Program – Virtual• JOIN for Me 20 © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  21. 21. Culture: AlignmentCore pillar of cultural values Constant and consistent reinforcementInnovation Day Learning sessions – Expo – Award dinner Virtual setting for remote employees CEO Challenge Golden ticket to Innovation CouncilPrepare/Launch Challenges Collaboration sessions Ignite! Toolkit Consulting for business unit leadersSpace to Innovate © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  22. 22. Culture: Compensation/CareersCurrent State EvolutionLocal recognition and awards Local recognition  More consistency across teamsEnterprise-level recognition Enterprise-level recognition • Innovation Council presentations • Innovation Day Award ceremony • SimplifyCareer opportunities Career opportunities • Innovation Lab leadership • Adapt Human Capital approaches • Innovation Champions for participation • Executive-in-Residence • Executive Leadership positions © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  23. 23. UnitedHealth Group: Recognized for Leadership, Innovation and Social Stewardship 2011 Recipient of the Product Development and Management Association’s Outstanding Corporate Innovator (OCI) Award, the Only Innovation Award Which Recognizes Nine Key Attributes of UHG’s Reputation Industry Sustained, Quantifiable Business Results Rank from New Products and Services, and First Innovation 1 in Our Industry to Receive This Award People Management 1 Use of Corporate Assets 1 Social Responsibility 1 Quality of Management 1 Financial Soundness 1 Long-Term Investment 1 Received the U.S. Chamber’s 2011 Corporate Quality of Products/ Services 1 Citizenship Best Business Neighbor Award for “Deploying Vast Resources and Technological Global Competitiveness 2 Expertise to Combat America’s Diabetes Epidemic” © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  24. 24. ROI: Assessing Impact Across DimensionsThe Objective:To modernize the U.S. health system, developing new, financially responsible ways to make quality care more accessible and affordable for all Americans. Goals: • Outgrow our competitors • Create the best experience for patients and caregivers • Enable measurable increases in the quality of care • Help the system work better with the resources it has Units of Measure: Membership Revenue from More Value Employee Public Recognition/ in New New Services in Care Engagement Goodwill Products Delivery Index © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  25. 25. Innovation: In the Service of Practical Solutions Our fundamental role is to Make Health Care Work for Everyone Health Care Environment Advocates of Change • Must be engaged in constant • We must be thoughtful change, yet embody a positive advocates of the always dynamic changing health care • It must change progressively environment We Must Adapt Challenge the Status Quo • Encourage and invest in new • We value change ideas • Must be proficient at adapting • We must be continually curious We are not afraid to fail in honest efforts to focus on practical and purposeful innovation that builds value and benefits the entire health care system – so it truly works for everyone. © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited.
  26. 26. Telehealth for the Navajo Nation © 2012 UnitedHealth Group. Any use, copying or distribution without written permission from UnitedHealth Group is prohibited. 26

×