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Healthcare Transformation:
A Guide to Success in the Journey to High-Value Healthcare
John L. Haughom, MD
October 2013

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Some Important Points
• Most American hospitals and caregivers provide
safe and effective care for the vast majority of
patients, the vast majority of the time
• The vast majority of caregivers are well trained
and conscientious
• Western  medicine’s  ability  to  save  and  extend  
life, and to improve the quality of life for the ill
and injured is nothing short of miraculous

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…but  that  does  not  change  a  harsh  reality…
…care is far too unsafe…  
…quality is too inconsistent…
…and costs are too high…

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American healthcare
"gets it right”

54.9%
of the time.

McGlynn EA, Asch SM, Adams J, et al. The quality of healthcare delivered to
adults in the United States. N Engl J Med; 2003;2635-2645
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$60
$45.6 trillion
Medicare ~$30 trillion
U.S. Net worth ~$48 trillion

U.S. Comptroller General David Walker, 2006
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30% to 50% waste

(Anderson C, 1991, and James B, et al 2006)
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Feeling vulnerable?

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Deming  101…
Quality improvement
is the

science of process management
(healthcare delivery is a system made up of
thousands of interlinked processes)

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Deming  101…
If  you  cannot  measure  it…
…you  cannot  improve  it…

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Deming  101…

“In  God  we  trust…  
…all  others  must  bring  data.”
W. Edward Deming

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Brent  James,  MD,  101…
“Managed  care” means
“managing  processes  of  care”  ...

…not managing physicians and nurses.
(clinicians are the ones who manage the process of care)

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Deming  101…
…the right data
…in  the  right  format

…at  the  right  time

(and place)

…in  the  right  hands

(the clinicians who operate the process)

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Deming  101…

…engaging  the  “smart  cogs”  
of healthcare…  

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“…historically encumbered and
demoralized…”  

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Are Physicians Willing to Change?
Yes…  
Physician Willingness to Change
16%
Unwilling
84%
Willing

Source: McKinsey Physician Survey, 2011
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“…historically encumbered and
demoralized…”
...inform, engage and inspire…

…ENLIGHTENMENT…
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Innovation

Roger’s Diffusion of Innovation Model
Tipping point at 1520% adoption

Innovations do
not spread
equally over

2º

different society
segments (social
groups) but

Many studies have looked at how these groups differ:

through 5 stages

• Innovators are highly cosmopolite and open to new things.

with particular

• Early adopters tend to be opinion leaders.

profile of

• Early majority provide “legitimization” of the innovation.

reaction

• Late majority are skeptical.

• Laggards put trust in the status quo.
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You can buy the piano (EHR, EDW), but you will
have to learn to use it effectively to produce great
music (greater safety, improved outcomes, lower
costs,  etc.)…  

Who is responsible for
producing great music
in healthcare?

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Unlock

Your data will be integrated, cataloged, and secured in
the Catalyst platform
Metadata: EDW Atlas Security and Auditing

Common, Linkable
Vocabulary

Financial Sources
(e.g., EPSi,
Peoplesoft, Lawson)
Financial
Source Marts

Departmental
Sources
(e.g., Apollo)
Departmental
Source Marts

Cardiovascular
Valves
Administrative
Sources
(e.g., API Time
Tracking)

Administrative
Source Marts

Surgery

Patient
Source Marts

KPA
Cohort Finder

EMR
Source Marts

HR
Source Mart

EMR Source

Human Resources
(e.g., PeopleSoft)

(e.g., Epic, Cerner)

More Transformation

Patient Satisfaction
Sources
(e.g., NRC Picker,
Press Ganey)

Less Transformation

Source:  Catalyst’s  Adaptive  Model
Proprietary and Confidential

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What will success look like?

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North Memorial

Women’s  and  Newborn:  Elective  Inductions
“We  wouldn’t  have  had  a  chance  to  do  some  of  the  things  we’ve  done  in  last  18  months  to  enhance  
care,  reduce  waste  and  lower  costs  without  Catalyst.  It’s  amazing  how  differently  and  effectively  we  
can  gather  and  use  data  now.”    
-Jon  Nielsen,  MD,  Medical  Director  Women  and  Children’s  Services  at  North  Memorial  Health  Care
Objective
• Define existing workflows
and identify improvement
opportunities
• Establish baseline
measures
• Define evidence based
standards for elective
inductions
• Reduce rates of pre-39
week deliveries from 1.2%
to 0.6% to qualify for a
payer partner bonus

Health Catalyst Solution

Results to date

• Late-bindingTM Data
Warehouse Platform

• Standardized workflows to
improve data reliability

• Cohort Finder
• Key Process Analysis
Application

• Established elective
delivery baseline
measurements to track
quality improvement gains

• Population Advanced
Application Module, Early
Induction Application

• Reduced early-term
deliveries from 1.2% to
0.3%

• Installation Services

• Payer partner bonus
payment

• Clinical Improvement
Services

Proprietary and Confidential

21

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HF Readmissions
Large Medical Center
Objective
• Define Congestive Heart
Failure (CHF) baseline
measures for 30 and 90day readmissions rates
• Implement evidencebased practice
interventions to drive CHF
readmission rate
reductions

• Establish balance metrics
including ED visits,
observation days and
patient satisfaction
• Develop sustaining
processes for evaluating
readmission rates to
ensure continuous process
improvement

Health Catalyst Solution
• Late-bindingTM data
warehouse that enables
faster time-to-value
• Integration of clinical,
patient satisfaction and
financial data to establish
baseline, ongoing and
balance measures

• Discovery, Foundational
and Advanced HF
applications including
cohort finder, registry and
evidence- based clinical
content
• Healthcare analytic
visualization including
gauges and trend lines for
at-a-glance view

Proprietary and Confidential

Results to date
• Seasonally adjusted rate
reduction of 21% in 30-day
and 14% in 90-day CHF
readmissions
• 2X increase in the
number of phone calls
made to patients within 48
hours of discharge
• Average of 63 % increase
in physician medication
reconciliation within 48
hours of discharge
• Follow-up appointment
intervention baseline and
balance measures
established

22

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Winner CHIME-AHA Transformational Leadership Award!

Improving Outcomes and Reducing Waste in Asthma
Healthcare: The Impact of Data
“It’s  one  thing  to  establish  an  order  set  and  another to actually drive its adoption.
Seeing how well this process works—how well and how quickly our clinical
improvement teams and evidence-based care experts are able to encourage
clinicians across our organization to standardize processes—is  very  gratifying..”  
- Dr. Charles Macias, TCH Attending Physician and Director,
Evidence Based Outcome Center.

Objective
• Improve clinical outcome
for asthma patients across
the care continue
• Better manage populations
in a new Valued Based
Purchasing environment

• Measure and ensure
sustained clinical quality
improvements

Health Catalyst Solution

Results to date

• Late-Binding™  Data  
Warehouse

• Decreased average LOS
by 11 hours

• Key Process Analysis
(KPA) Application

• Achieved and sustained a
49% decrease in
unnecessary Chest X-rays
over 16 months

• Population Analytics
Advanced ApplicationAsthma Module
• Installation Services

• 80% order set utilization
…67%  sustained  increase  
over 8 months

• Clinical Improvement
Services

• 90% usage of asthma
action plan by providers

Proprietary and Confidential

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Adversity
…is  hard…
…and  an  opportunity…

…lean into it!

© 2012 Health Catalyst | www.healthcatalyst.com
“It  is not the critic who counts; not the man who points out
how the strong man stumbles, or where the doer of deeds
could have done them better. The credit belongs to the
man who is actually in the arena, whose face is marred by
dust and sweat and blood; who strives valiantly; who errs,
who comes short again and again, because there is no
effort without error and shortcoming; but who does actually
strive to do the deeds; who knows great enthusiasms, the
great devotions; who spends himself in a worthy cause;
who at the best knows in the end the triumph of high
achievement, and who at the worst, if he fails, at least fails
while daring greatly, so that his place shall never be with
those cold and timid souls who neither know victory nor
defeat.”
Theodore Roosevelt, 1910
© 2012 Health Catalyst | www.healthcatalyst.com
“To have lived through a revolution, to have
seen a new birth of science, a new
dispensation of health, reorganized medical
schools, remodeled hospitals, a new outlook
for humanity, is an opportunity not given to
every  generation.”
Sir William Osler (1849-1919)

© 2012 Health Catalyst | www.healthcatalyst.com
Healthcare Transformation

An Opportunity Not Often Given
Participating in the Creation of a New Era in
Healthcare
By John L. Haughom, MD
2013

FREE Book!
Available online
January, 2014

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Questions,
discussion,
comments…  
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For Information Contact:
John.Haughom@healthcatalyst.com

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