iHT² Health IT Summit Beverly Hills – Anatomy of a Health System – St. Joseph Health and The Innovation Institute


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iHT² Health IT Summit Beverly Hills – Anatomy of a Health System – St. Joseph Health and The Innovation Institute

Panel "Anatomy of a Health System- St. Joseph Health and The Innovation Institute"

St. Joseph Health (SJH) is an integrated healthcare delivery system that provides a full range of care from facilities including 14 acute care hospitals, home health agencies, hospice care, outpatient services, skilled nursing facilities, community clinics, and physician organizations.

In their award-winning facilities, as well as non-traditional settings like school rooms and shopping malls, SJH maintains a "continuum of care," matched to the diverse needs of the urban centers, smaller cities and rural communities in three states who depend on us every day.

Founded by St. Joseph Health System, The Innovation Institute is a provider of business services, innovation solutions and investment management services to health systems.

Nationally and globally, healthcare providers are now at a crossroads. A true need exists to apply innovative thinking, in order to significantly reduce costs while maintaining high quality care. We must continue service existing communities, but increase the number of people we serve, and serve them all more effectively. This is the premise of an influential movement known as ‘Gandhian Innovation’ and our pursuit to ‘do more, with less, for more people’.

Moderator: Scott Mace, Senior Technology Editor, HealthLeaders Media
Larry Stofko, EVP, Innovation Lab, The Innovation Institute
William Russell, CIO, St. Joseph Health
Darrin Montalvo, President, Integrated Services, St. Joseph Health

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iHT² Health IT Summit Beverly Hills – Anatomy of a Health System – St. Joseph Health and The Innovation Institute

  1. 1. Anatomy of a Health System: St. Joseph Health and The Innovation Institute Darrin Montalvo Bill Russell Larry Stofko November 7, 2013 1
  2. 2. St. Joseph Health Indicator SJH Net Revenue $5.3 Billion FTEs 25,000 Acute Discharges 165,000 Acute Hospitals 14 Integrated Medical Groups Nine – 550+ Physicians Distinct Communities 10 2
  3. 3. MISSION To extend the healing ministry of Jesus in the tradition of the Sisters of St. Joseph of Orange by continually improving the health and quality of life of people in the communities we serve. VISION We bring people together to provide compassionate care, promote health improvement and create healthy communities VALUES Dignity We respect each person as an inherently valuable member of the human community and as a unique expression of life. Service We bring people together who recognize that every interaction is a unique opportunity to serve one another, the community, and society. Excellence We foster personal and professional development, accountability, innovation, teamwork and commitment to quality. Justice We advocate for systems and structures that are attuned to the • We will transition our business model to a balance of great needs of the vulnerable and disadvantaged and that promote a hospitals and great community care. sense of community among all persons. • We will embrace both an illness and a wellness model. 3 3
  4. 4. SJH Vision of U.S. Health Care • Because health care provides a foundation for human dignity to flourish, everyone has a right to basic health care • As part of the common good, health care must take its limited place among other basic goods that protect dignity – education, stable economy, environment, jobs, etc. • Individuals have a duty to promote and protect their health; society has a duty to provide a sustainable health care system • We aspire to a health care system that: – Is health-promoting and preventive – Is transparent and accountable in its inevitable rationing decisions – Is a genuine system, integrated and coordinated across our national community – Allocates its resources across a balanced continuum of care – prevention, acute, emergency, end-of-life, mental, long-term care, etc. – Dedicates health resources to acute care, minimizing spending on administration – Is evidence-based Population Health Management – Is financed according to ability to pay – Keeps inflation at a level that is sustainable • We commit ourselves, with our communities, to make this vision of human dignity a reality 4
  5. 5. Planning for the Future TRANSFORMATIONAL STATEMENTS While the Mission, Vision and Values are the foundation for SJH’s strategic planning as well as a guide for all decisions, in 2006, SJH recognized the need to transform our organization. • We will transition our business model to a balance of great hospitals and great community care • We will embrace both an illness and a wellness model MISSION OUTCOMES To align efforts across the organization and measure our success in carrying out our Mission and achieving our transformation, SJH also introduced three long-term goals in 2006 called Mission Outcomes. Sacred Encounters Perfect Care Healthiest Communities Every experience will be experienced as a sacred encounter All patients will receive perfect care The communities we serve will be among the healthiest in our nation 5 5
  6. 6. We are in a Transition Fee-for-service: Current Population health: Future Care delivery Care coordination Care tracking Patient engagement Patient engagement Care tracking Care coordination Care delivery Confidential 6 6
  7. 7. Transformation 2018 MISSION To extend the healing ministry of Jesus in the tradition of the Sisters of St. Joseph of Orange by continually improving the health and quality of life of people in the communities we serve. VISION We bring people together to provide compassionate care, promote health improvement and create healthy communities. VALUES Dignity Service Excellence Justice MISSION OUTCOMES Sacred Encounters Perfect Care Healthiest Communities FY2014-2018 Dimensions of Performance
  8. 8. What are we Designing to Meet Our Mission & Accomplish our Vision of U.S. Health Care? From: • Fragmented, Siloed Care • Sickness • Patients • Cost vs. Quality To: • Integrated delivery system • Sickness and wellness • Improving the health of the communities we serve • Reducing Cost of Care • Improving the Care Experience 8
  9. 9. FY2014-2018 Strategic Goals Dimension of Performance Population Health Management Physician Partnership FY2014-2018 Strategic Goal We embrace population health management and take accountability for our communities’ health and healing, while promoting wellness and caring for each individual’s needs. Our physician relationships are mutually-beneficial partnerships, founded on shared Mission and Values, as well as aligned goals and incentives, in the management and promotion of quality health services. Network of Care By partnering with others, we provide an integrated, accessible and comprehensive network of care that benefits the health and well being of those we serve in our regions. Value We excel in quality/safety, efficiency and the patient experience, demonstrating what can be achieved when we focus on stewarding our communities’ health resources. Engaged People The community of St. Joseph Health co-ministers are highly engaged and thriving, integrated with Mission, Values and expectations in the delivery of quality health services. Information Sophistication We apply technology to empower the communities we serve to manage their health and wellness and SJH to deliver the highest efficiency, reliability and value. Essentiality St. Joseph Health will be an indispensable partner to those who use, provide and purchase health services. We will use our influence to be a voice for the voiceless in responding to the needs of our communities. 9
  10. 10. FY2014-2018 Measures of Success • Increase share of communities’ care • Reduce the prevalence of access difficulties Increase the primary care providers participating in the management of care through the health information exchange • Improve quality, safety and patient experience • Year over year reduction in the cost of providing services • Increase formation participation • Maintain top decile employee engagement Each region has seamless partnerships in place for an integrated, accessible and comprehensive network • Provider adoption of physician portal • Member/patient adoption of electronic health record / health portal • Improve the health status of a defined population • Grow the number of members in the SJH 10c 10 network
  11. 11. What happens when…
  12. 12. …we can know, quite precisely what people are eating? Tellspec is a laser scanner that reads chemical composition of food.
  13. 13. …we can remotely administer therapies? MIT Thermoelectric Band that raises perceived body temperature remotely.
  14. 14. My Fitness Pal …apps and devices band together to create solutions? Runtastic products integrate with MyFitnesPal, as do dozens of other apps and devices.
  15. 15. …tracking just melts into the background? PerformTek® from Valencell
  16. 16. …mHealth meets the Smart Home?
  17. 17. So what happens?
  18. 18. We don’t know.
  19. 19. We can’t know.
  20. 20. What I eat What I eliminate How I feel, emotionally Where I go How my heart beats How I move My body temperature My skin temperature How I feel, physically How stressed I am How I sleep How busy I am Here’s what we do know. How fast I move How I exercise How much I weigh My altitude My blood oxygen Where I live My friends My insulin levels Where I travel My insurer How my blood flows Anything I’ll share
  21. 21. Moore’s Law Metcalfe’s Law + Here’s what we do know. Integration hassle Effort required = Cost/functionality Data quality Wearability Cultural acceptance time
  22. 22. It’s not in our control.
  23. 23. So we have to be great at listening for, looking at, learning from and linking to the innovation of others.
  24. 24. And we need a system to organize what we learn.
  25. 25. A Platform for Innovation 25
  26. 26. SJH Portal Principles for Innovation
  27. 27. iHT2 Health IT Summit Anatomy of a Health System – St. Joseph Health & The Innovation Institute Larry Stofko EVP, Innovation Lab November 7, 2013 © 2013 The Innovation Institute
  28. 28. Innovation Institute’s Goals The Institute was conceived with two overarching goals: Growth and Innovation Potential • Growth – New Revenue Streams – Growth through Building Networks of Partnership with Non-Profit Healthcare and Other Innovators – “Do More, with Less, for More People” • Innovation Potential – – – – Advance Innovation Design Transform the Traditional Healthcare Model Harness Synergies with Industry Participants Unleash the Creativity of Investor’s Employees, Physicians and Partners 28
  29. 29. Business Model 29
  30. 30. Innovation Lab 30
  31. 31. Innovation Lab • • • • Collector of Ideas Idea Developer Technology Accelerator Showcase Destination 31
  32. 32. Participation Opportunities Challenges Specific Inventor Ideas Disclosure Individual Team Evaluation Participate with Partners Partner Originates Idea Provider Originates Idea Monetization 32
  33. 33. Enterprise Development Group 33
  34. 34. EDG Value Proposition 1 Guaranteed cost savings 2 Conversion of cost center to revenue center 3 Profit sharing interests and capital appreciation 4 Faster decision-making process and execution 5 Capital funding source for new projects 6 Capitalize as investment vs. expense line item 7 Access to debt capital as for-profit company 8 Ability to share “Best Practices” 34
  35. 35. Innovation Fund 35
  36. 36. Investment Lifecycle Lab SEED Fund EARLY MID/ EXPANSION LATE/ MEZZANINE EXIT REVENUES Mezzanine Breakeven Point Debt Investments Venture Angel TIME 36
  37. 37. The Spread of Innovation Collaborate with like minded organizations. Community Create a “culture of innovation” for members. Collaboration Culture Have broad reaching impact on communities. Individual Recognize and reward the individual. 37
  38. 38. Questions 38