Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Driving Data to Cut Healthcare Costs

112 views

Published on

At the Chicago Technology For Value-Based Healthcare October 2018 meetup (https://www.meetup.com/Chicago-Technology-For-Value-Based-Healthcare-Meetup), Omar Husain cuts through healthcare data to show how providers can save their bottom lines.

Published in: Healthcare
  • Be the first to comment

Driving Data to Cut Healthcare Costs

  1. 1. Chicago Technology For Value-Based Healthcare Driving Data to Cut Healthcare Costs Omar Husain Solution Architect, Data Integration Strata Decision Technology October 30, 2018
  2. 2. © 2018 Strata Decision Technology 2 By the end of this session, participants will understand… • The cost crisis in American health systems • The data elements that are useful for costing • How to tie data elements together to reduce cost Objectives
  3. 3. © 2018 Strata Decision Technology 3 National Health Expenditures (1980 – 2025)
  4. 4. © 2018 Strata Decision Technology 4 National Health Expenditures as a % of GDP and Breakdown of National Health Expenditures(1980– 2060)
  5. 5. © 2018 Strata Decision Technology 5 U.S Population Trends and Projections by Age (1980– 2060)
  6. 6. © 2018 Strata Decision Technology 6 % of Medicare FFS Beneficiaries vs. % of Spending by Number of Chronic Conditions (1960– 2014)
  7. 7. © 2018 Strata Decision Technology 7 % of FFS Medicare Beneficiaries w/ Chronic Conditions (2015)
  8. 8. © 2018 Strata Decision Technology 8 Managed Care Plan Avg. Operating Margins(1998 – 2015)
  9. 9. © 2018 Strata Decision Technology 9 Annual Change in Health Insurance Premiums (2000 – 2017)
  10. 10. © 2018 Strata Decision Technology 10 Consumer Out-of-Pocket for Health Expenditures (1995 – 2016)
  11. 11. © 2018 Strata Decision Technology 11 Announced Hospital Mergers and Acquisitions (2005 – 2017)
  12. 12. © 2018 Strata Decision Technology 12 # of Hospitals in Health Systems (2005 – 2016)
  13. 13. © 2018 Strata Decision Technology 13 Inpatient Days per 1,000 Persons (1995– 2016)
  14. 14. © 2018 Strata Decision Technology 14 Total Hospital Outpatient Visits in Hospitals (1995– 2016)
  15. 15. © 2018 Strata Decision Technology 15 Distribution of Outpatient vs. Inpatient Revenues (1995– 2016)
  16. 16. © 2018 Strata Decision Technology 16 Number of Full-time and Part-time Hospital Employees (1995– 2016)
  17. 17. © 2018 Strata Decision Technology 17 Average Operating Margin by Fiscal Year (2015 – 2017)
  18. 18. © 2018 Strata Decision Technology 18 You Must Scale You Must Pursue “Smart Growth” and Find New Revenue Streams You Must Measure/Manage Cost and Margins You Must Become a Brand You Must Operate as a System, Not Just Call Yourself One You Must Act Small You Must Engage Your Physicians You Must Leverage Analytics You Must Protect Yourself You Must Manage Social Determinants of Health You Must Help Solve the Opioid Epidemic You Must Deliver Value
  19. 19. © 2018 Strata Decision Technology 19 Market Problem: Healthcare providers have little to no access to accurate and actionable information on the cost of care. According to a recent survey, 90% of healthcare leaders are “flying blind” when it comes to understanding cost. How can you reduce variation, waste and inefficiency in order to invest in and improve care if you don’t have any access to data? Strata’s Solution: StrataJazz is rated #1 in KLAS for Decision Support and Advanced Cost Accounting and is known as the “gold standard” for understanding cost and margins and the most sophisticated Business Intelligence engine in healthcare.  Cost Accounting  Contract Analytics  Episode Analytics  Advanced Reporting and Analytics  Strategic Pricing Financial Decision Support  Licensed solution
  20. 20. Data Integration
  21. 21. © 2018 Strata Decision Technology 21 Key Data Elements • General Ledger • Payroll • Charges • Payments • Encounter Summary • Patient Demographics • Diagnosis Detail • Procedural Detail
  22. 22. © 2018 Strata Decision Technology 22 Additional Data Sets • Supply Detail • APC/CPT Detail • Surgical Times • Time and Attendance • Admits, Discharges, and Transfers • Drive/Visit Times for Homecare
  23. 23. © 2018 Strata Decision Technology 23 How Does Data Get Imported? Files are Placed on sFTP Strata Picks Up File From sFTP File is Imported into Separate Tables in Database
  24. 24. © 2018 Strata Decision Technology 24 Common Issues with Data Integration • Resource Constraints • Bad Data Governance • Inconsistence Code Structures • Disparate Source Systems • Overlapping Source Systems • Bad EHR Systems • System Overload
  25. 25. © 2018 Strata Decision Technology 25 Data… Integrated! Foundational data validated Billing data validated General Ledger to Pre-Costing dollars reconciled Initial costing results reviewed
  26. 26. © 2018 Strata Decision Technology 26 • Department Code • Ties charges to GL • Encounter Record Number • Ties all patient data Major Keys
  27. 27. © 2018 Strata Decision Technology 27 CostingProcess Align revenue and expenses Consolidate cost components and assign variability Allocate overhead expenses Distribute costs to patients and activities Add topside adjustments and patient specific costs Report Costing Process Overview DecisionSupport EHR GL Payroll Integrate Clinical and Financial Data
  28. 28. © 2018 Strata Decision Technology 28 Processing All This Data • Employ an analysis services cube to process all data and relationships on a nightly basis • Can pull a report tying any data elements you wish in seconds • Processes all cost calculations nightly so that results can be viewed in seconds
  29. 29. Latest and Greatest
  30. 30. © 2018 Strata Decision Technology 30 Clinicians are either unaware of or disengaged/ unmotivated when it comes to the cost implications of their behaviors Utilize dashboards to communicate using the metrics/data clinicians are familiar with first (volumes, root causes, etc.), financial impacts second T HE PROBLEM T HE PLA Y(S) Publish Dashboards to Communicate Effectiveness of Cost Savings Initiatives with Both Financial and Clinical Data
  31. 31. © 2018 Strata Decision Technology 31 The Payoff • Clinical buy-in • Committed, sustained behavior change • Lower practice variability • Cost savings w/out sacrificing quality or clinical outcomes
  32. 32. © 2018 Strata Decision Technology 32 Deploy Time-Driven Costing (Surgery) Time is the most significant cost driver and source of variation. Current methodologies don’t enable true labor cost variation and analysis • Integrate timestamp and resource data from EHRs + other ancillary systems • Create a patient- specific cost driver TH E P ROBLEM TH E P LA Y (S)
  33. 33. © 2018 Strata Decision Technology 33 TDC™ Time-Driven Costing Deploy Time-Driven Costing TDC Surgery Anesthesia Physician Clinic ED Nursing Imaging TD-ABC 1. Integrate RFID/EHR Data 2. Align to current cost structure and deploy TDC 3. Calculate costs and identify variation 4. Compare capacity and operational issues
  34. 34. Questions and Discussion

×