CHRISTUS Health FY10 Savings Goal Overview <ul><li>System-wide approach for achieving savings  </li></ul><ul><li>Developed...
Top ten categories represent 71% of total savings Priority Savings Target Tactic 1  MUM  $3,285,581 Full implementation of...
Executive Sponsors were critical team members in ensuring savings goals were met <ul><li>Three types of sponsors have been...
Monthly scorecards monitor performance of $30M savings target for FY10 <ul><li>Reviewed at monthly committee meetings and ...
Review of Goal Roadblocks and Missed Opportunity with CFO FY10 Priorities  FY10 Savings Target FY10 Actual Savings Missed ...
Strengths of Developing a Top 10 Goal Process <ul><li>Formal kickoff meetings </li></ul><ul><li>One page document sent mon...
Custom Procedure Tray Standardization – Implementation SAMPLE <ul><li>Savings Target: $841k </li></ul><ul><li>Cost Reducti...
Suggested Approach - Implementation SAMPLE <ul><li>Start with OB CPT’s (Vaginal delivery and C-section) </li></ul><ul><ul>...
Vaginal Delivery Trays Approach - Implementation SAMPLE <ul><li>PHS has no standardized vaginal delivery tray available </...
Current State and Next Steps - Implementation SAMPLE <ul><li>Current State </li></ul><ul><ul><li>General discussion, ident...
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Christus

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Christus

  1. 1. CHRISTUS Health FY10 Savings Goal Overview <ul><li>System-wide approach for achieving savings </li></ul><ul><li>Developed as result of an executive team challenge to achieve $30M in savings to combat economic pressures and declining reimbursement </li></ul><ul><li>Focused on ten categories, including hard to convert physician preference items </li></ul><ul><li>Process was developed and implemented for each category </li></ul><ul><li>Regional accountability for success and regular reporting of status were key to success </li></ul>
  2. 2. Top ten categories represent 71% of total savings Priority Savings Target Tactic 1 MUM $3,285,581 Full implementation of all approved MUM initiatives. 2 Inventory Turns $3,731,922 Increase yearly inventory turns by 1/2 turn system-wide 3 Reprocessing $2,305,190 Maximize re-processing throughout the hospital. 4 Custom Procedure Tray Standardization $840,990 Conversion to standardized trays where applicable. 5 Suture/Endo/Trocar $2,500,000 Implementation of new agreement. 6 Spine $1,818,395 System-wide matrix pricing. 7 CRM $1,795,494 Facility level pricing. 8 Trauma $493,133 Standardize 80% of trauma spend to Stryker. 9 Stents - DES $414,871 Facility level market share optimization. 10 Clinical Resources On-site $4,000,000 On-site clinical assessment and implementation. 11 FY10 Workplan $8,814,424 Implementation of GPO contracts Total $30,000,000
  3. 3. Executive Sponsors were critical team members in ensuring savings goals were met <ul><li>Three types of sponsors have been designated for each goal </li></ul><ul><ul><li>Corporate Clinical, MedAssets (The Broadlane Group), and Region </li></ul></ul><ul><li>CEO/CFO’s elected sponsors within each region </li></ul><ul><li>Sponsors are key stakeholders for region implementation </li></ul><ul><ul><li>Liaison representing all hospitals within the region </li></ul></ul><ul><ul><li>Drive adoption amongst hospital departments </li></ul></ul><ul><ul><li>Communicate with Administration and Department Directors to overcome obstacles and conflicts </li></ul></ul><ul><ul><li>Attend scheduled meetings </li></ul></ul>
  4. 4. Monthly scorecards monitor performance of $30M savings target for FY10 <ul><li>Reviewed at monthly committee meetings and quarterly on-site executive meetings </li></ul><ul><li>Utilized % To Savings Target as a measurement marker for facilities to ensure they are on track to achieve monthly savings </li></ul>
  5. 5. Review of Goal Roadblocks and Missed Opportunity with CFO FY10 Priorities FY10 Savings Target FY10 Actual Savings Missed Opportunity Status Obstacle Hospital Action Item CRM $60,012 $0   Received pricing for Biotronik; working with national contracting to finalize pricing with Medtronic and St. Jude None None DES       Not a FY10 Goal for the region. None None Trauma $150,181 $0   Stryker has completed a series of meetings with the executive staff and identified inventory exchange to take place. Awaiting date to start trial. Unable to confirm that conversations have taken place between Estela Chapa and the primary trauma surgeons to introduce initiatives. Schedule date for Stryker trial. Spine $858,032 $1,773,717   Initiative complete. Reports distributed from 11/09 to 3/10 show savings of $1.4M for Shoreline and Memorial. Savings to be recorded on the April scorecard. None None Clinical Resources On-site   $173,000   Not a FY10 Goal for the region. None None CPT Standardization $221,380 $0   Initiative underway for Labor and Delivery and OR to standardize custom procedure trays system-wide. Region participated in both kick off meetings. Currently thirty-two custom packs in place at facility. New C-section trays should be implemented end of July. Ann met with OR leadership two weeks ago and introduced project--OR will move faster. None None MUM $764,078 $1,150,832   Implementation of the ten approved initiatives. None None Reprocessing $547,887 $251,113 $139,640 Initiative underway with additional savings opportunities identified. Categories where opportunity exists are external fixation, ultrasonic scalpels, endoscopic trocars, and laparoscopic devices. Set up educational sessions for surgeons with Ascent MD's. Endo/Trocar/ Suture $333,221 $7,524   $2,806 of Covidien Endo inventory has to be &quot;burned down&quot; because it could not be returned. Trocar product trial to be completed. Estimated Trocar savings with Applied Medical is $169,672. Minimal savings with conversion to Covidien for trocars. Complete trocar product trials with Applied Medical. Inventory Turns $376,795 ($63,421)   A baseline adjustment was made incorporating the implant investment and bulk buys. February 2011 upgrade to Meditech 5.64 is preventing implementation of the Min/Max Reports and automated inventory turns analysis from HBI data. Report all bulk buys and service line inventory increases to Tina Hanson at month end close for baseline adjustments.
  6. 6. Strengths of Developing a Top 10 Goal Process <ul><li>Formal kickoff meetings </li></ul><ul><li>One page document sent monthly reported savings </li></ul><ul><li>Quarterly meetings with CFO to discuss regional roadblocks </li></ul><ul><li>Accountability given to the CFO </li></ul><ul><li>Regionalizing financial outcomes </li></ul><ul><li>Establishing the baselines, exact goal and measurement, at the kickoff of initiative </li></ul><ul><li>Identified corporate clinical sponsors </li></ul>
  7. 7. Custom Procedure Tray Standardization – Implementation SAMPLE <ul><li>Savings Target: $841k </li></ul><ul><li>Cost Reduction Tactic: Review the custom procedure trays and individual components utilized by each hospital. Identify system-wide standards, convert custom trays to standard trays where possible, and move other custom trays to 1 or 2 trays for the system. </li></ul><ul><li>Sponsors: </li></ul>Corporate Clinical Sponsor Ark-La-Tex Sponsor CLA Sponsor Gulf Coast Sponsor NLA Sponsor New Mexico Sponsor Santa Rosa Sponsor SETX Sponsor Spohn Sponsor SWLA Sponsor MedAssets (Broadlane) Sponsor Nicky Scott Nancy Keenan Lisa Lauve/ Steve Nash Nancy Charlton/ Kimberly Evans Carolyn Moore/ Alissa Anderson Bruce Tassin / Arleen Godbey Katherine Bullard Paul Guidroz Scott Merryman Dianne Teal / Dorothy Corrigan Myra Robinson
  8. 8. Suggested Approach - Implementation SAMPLE <ul><li>Start with OB CPT’s (Vaginal delivery and C-section) </li></ul><ul><ul><li>Range in cost of trays </li></ul></ul><ul><ul><ul><li>Vaginal delivery --$20.63 to $164.69—Total system spend $865,000—11 different trays </li></ul></ul></ul><ul><ul><ul><li>C-section--$55.69 to $153.63—Total system spend $669,458—13 different trays </li></ul></ul></ul><ul><ul><li>Total system spend with OB trays = $1.53 M </li></ul></ul>
  9. 9. Vaginal Delivery Trays Approach - Implementation SAMPLE <ul><li>PHS has no standardized vaginal delivery tray available </li></ul><ul><li>Built spreadsheet that shows common items in all trays for system </li></ul><ul><li>MedAssets OR experts built a suggested tray by utilizing common item list </li></ul><ul><li>Built a standardized tray for system by reviewing items and determining cost </li></ul><ul><li>Clinical Resources Team deployed at facilities for on-site implementation </li></ul>
  10. 10. Current State and Next Steps - Implementation SAMPLE <ul><li>Current State </li></ul><ul><ul><li>General discussion, identify road blocks </li></ul></ul><ul><li>Goal - Revise and standardize two OB trays </li></ul><ul><li>Next Steps: </li></ul><ul><ul><li>Monthly update conference calls </li></ul></ul><ul><ul><li>Face-to-face meeting to determine components of standardized tray with OR directors </li></ul></ul><ul><ul><li>Complete standardization of C-section and vaginal delivery trays </li></ul></ul><ul><ul><li>Supplier on-site with standardized C-section tray and product samples to review for vaginal delivery trays </li></ul></ul>

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