Rodney Dykehouse presented on shaping the future of healthcare IT leaders. He discussed current trends impacting healthcare organizations and the evolving role of CIOs. The presentation identified skills needed for CIO 3.0, including strategic leadership, business partnerships, and preparing for new reimbursement models, consumerism, personalized medicine, and cybersecurity. Dykehouse argued CIOs must help other executives achieve goals and demonstrate business value through optimization, engagement, and leveraging networks to navigate an ever-changing environment.

1. A CHIME Leadership Education and Development Forum in collaboration with iHT2
Shaping the HIT Leader’s Future: Dynamic
Industry Drivers and Trends
Rodney C. Dykehouse, CHCIO, FCHIME
CIO, Penn State Hershey Medical Center & College of Medicine
#LEAD15

2. Learning Objectives
• Identify current and future healthcare and organizational trends,
challenges and drivers impacting provider organizations and the role
of the HIT Leaders.
• Discuss the evolving role of today’s HIT Leaders and the drivers
behind the shift.
• Identify the anticipated skill set and leadership qualities for the HIT
Leader 3.0 including strategies for today’s leaders to prepare for the
future.

3. What is Penn State Hershey?
Penn State Milton S. Hershey Medical Center
• 563-bed teaching & research hospital
• Children’s Hospital, Cancer Institute
Penn State College of Medicine
• $107 million research enterprise
• More than 1,600 learners;
• Nearly 300 College faculty
Penn State Hershey Medical Group
• 59 clinical sites / 1,034,000+ clinic visits
• 750+ physicians/900+ clinical providers
Penn State Hershey Health System
• 19 hospital and provider affiliates
• Rehabilitation Hospital, PPI
• Hershey Outpatient Surgery Center (HOSC)
• Hershey Endoscopy Center; Horizon Healthcare Services
Four Integrated
Missions:
• Education
• Research
• Patient Care
• Community Service

4. Milton S. Hershey 1857-1945*
• 1905
– Hershey Factory completed
• 1907
– Hershey Park
• 1909
– Milton S. Hershey School
• 1918
– Endowed MSH School with
Hershey Chocolate Co.
Stock
• 1963 ……….. Milton S. Hershey
Catherine Hershey

5. How it all got started*
1963 Initial $50 million gift
 worth approximately $369 million
in today’s dollars. (Also gifted 252 acres
in Hershey, to build a medical school and
teaching hospital)
 1967 First medical student class –
40 students, 37 men and 3 women.
 3000+ - Doctor of Medicine
degrees.
The $50 Million Phone Call
PSU President
Eric Walker
Hershey Trust Chairman
Sam Hinkle

6. Agenda
• What is a HIT Leader/CIO 3.0?
– The “New Normal”
– Dynamic times require dynamic, flexible, strategic leaders
• Strategic Leadership
– Several examples to reinforce the need for key strategic skills from HIT Leaders
• Be Strategic. Be Revolutionary. Be Radical.
Be Successful in the “New Normal”

7. CIO 3.0 – What now???
• What is a HIT Leader/CIO 3.0?
– Today’s CIO role is shifting as the healthcare landscape is changing at
unprecedented speed.
– This evolution is anticipated to continue at an accelerated pace with mergers,
consolidations, new partnerships, and evolving management models.
– Added to this dynamic environment is the rapid advancement of technology
and the added pressures from government legislation and compliance
mandates.
– Highly skilled HIT leadership in this environment is critical for future
success.
CIO 1.0 & 2.0
Yep, you’re accountable
for these, too!

8. The Healthcare CIO:
From Crawling to Walking Upright, to Carrying the Organization
Knowledge Purveyor
Technology Interpreter
Process Visionary
Process Consultant
Financial Analyst
Change Agent
Educator
Lobbyist
Service Broker
Project Advisor
Venture Capitalist
Customer Service
Innovator
Economist
Risk Manager
Political Visionary
Application Purveyor
Vendor Manager
Project Manager
Asset Manager
Problem Manager
Skill Manager
Process Navigator
An Advisor role A Driver role
Tech Manager
A Supportive role
CIO 1.0 CIO 2.0CIO 1.5
An Enabler role
IT Operations
+ +
Source: Gartner CIO 2.0 Conference

9. Expectations of CIO 3.0
• Healthcare Information
Exchange
• Certified Electronic Health
Record
• Patient Portals
• Data Warehouse
• Business Intelligence
• Complete Data Integration
• Data Analytics
• World-class IT Team
• Unified Communications
• ACO System
• Population Health System
• Document Management
• Mobile & TeleHealth

10. Expectations of CIO 3.0

11. Predicting the Future: NASA ???
The question is no longer,
“what planet are you on?”,
but rather
“What planet SHOULD you be on…
and how will you get there???”

12. Evolution:
gradual development of
something, especially
from a single to a more
complex form.
Revolution:
fundamental change
in a way of thinking
about or visualizing
something.
EVOLUTION REVOLUTION
vs
.

13. CIO 3.0 – What now???
• The New Normal…
What is YOUR New Normal????
Do you have a Strategic Plan?
Are you focused on Today or Tomorrow?
Are you ready to deliver it…even as
it must remain dynamic?

14. The New Normal – M&A

15. The New Normal – M&A

16. The New Normal – M&A

17. The New Normal – Politics / Govt

18. The New Normal – ACO’s & more

19. The New Normal – Consumerism
Consumerism
Do you understand this?
Mobile apps? Televisits? Virtual care??
Can you support it?

20. The New Normal – Payors???
Consolidation of Payors & Providers
Can you compete?
Is your “IT” ready to meet this demand?

21. The New Normal – excluded!
Health Plan Exclusions
Can you survive this?
Is your “IT” able to reduce costs & improve quality?

22. The New Normal – AMC Survival?

23. The New Normal
Personalized Medicine
Can your EMR handle this?
Do you have enough storage for this?
Can you share and capture this from anywhere?
The New Normal – Genomics

24. The New Normal – More Data!!!

25. The New Normal – Cyber Security!
CyberSecurity
It CAN happen to you!
What are you doing to “prepare” your organization?

26. The New Normal – Cyber Security!
CyberSecurity
What do you have “in the cloud” ??
What is your accountability for it??
It CAN happen to you!

27. The New Normal – Cyber Security!
CyberSecurity
What have you done to understand and
protect your medical devices??
To change your vendor requirements??
What is your accountability for it??

28. The New Normal – Cyber Security!
CyberSecurity
Class-Action Lawsuits…can be expected.
It CAN happen to you!

29. In the news….more security breaches…
…it has happened to us!!!
Sept 9. 2014

30. In the news….more security breaches…
…it has happened to us!!!
CyberSecurity
It WILL happen to you!
What are you doing to “prepare” your organization?

31. In the news….more security breaches…
…it has happened to us!!!

32. In the news….more security breaches…
…it has happened to us!!!

33. The New Normal – Cyber Security!
CyberSecurity
The Govt….are they more secure??
What do we need from them?
LEAD…the info sharing to combat this new
threat to EVERYTHING the Internet and
digital technologies offer
the Health Care Industry!

34. The New Normal – Cost Reductions!
Health Care 2020: “Givens” in Healthcare’s Future
1. Our organization MUST be able to break even on Medicare rates.
2. We must be able to partner with payers/employers to manage trend
3. We will be forced by the market to accept risk in various forms
4. FFS will not go away but it will become a less viable model, most especially for
primary care
5. We will have to train physicians and other healthcare professional differently
than we have in the past for the world they will inherit will be vast different.
6. Absent changes in how we deliver care “personalized medicine” will only be
affordable by the 1%
Medicare Cost
What is your cost compared to Medicare rates ??
What are you doing to reduce costs ??
How will you reduce costs? Staff or Stuff?

35. CIO 3.0 – What now???
• The New Normal…
– M&A: are you acquiring or being acquired? Corporate IT?
– New Reimbursement models: ACO, MSSP, Population Health
– Optimization and Business Value: commoditize everything
and optimize for strategic advantage, e.g. data, quality
improvement, cost reduction
– Patient Engagement: social media, wearables, patient
empowerment for appts, e-messaging, televisits, etc.
– Personalized Medicine: genomics, provider comparisons, etc.
– Cyber Security: for existing and virtual enterprises

36. CIO 3.0 – What is a CIO to Do???

37. CIO 3.0 – What is a CIO to Do???

38. • What is C-Suite 3.0?
– “When external change takes place—for example, the
emergence of a game-changing innovation, or a shift in
the regulatory landscape—it rarely affects only one
function inside the business. …. If anything, achieving
the coherence and alignment across multiple strategies
needed to bring about such changes seems to be getting
harder, particularly for CIOs.”
From Wall Street CIO Journal “Navigating C-Suite 3.0” orig published 2/2/15
CIO 3.0 – What is a CIO to Do???

39. • What is C-Suite 3.0?
– “In version 3.0,” Kelly says, “success will come to CIOs
through engaging as part of a team, and helping others
in the C-suite achieve their goals.”
– From Wall Street CIO Journal “Navigating C-Suite 3.0” orig published 2/2/15
CIO 3.0 – What is a CIO to Do???

40. CIO 3.0 – What is a CIO to Do???
McKinsey: “Why CIOs should be business-strategy partners”
February 2015 | byPedja Arandjelovic, Libby Bulin, and Naufal
Khan

41. CIO 3.0 – What is a CIO to Do???
McKinsey: “Why CIOs should be business-strategy partners”
February 2015 | byPedja Arandjelovic, Libby Bulin, and Naufal
Khan

42. • WSJ: “Navigating C-Suite 3.0”
– Engage as part of the C-Suite team
– Help others in C-Suite achieve their goals
• Panel w Glaser, Calhoun, Kleeburg, et al:
– Interpersonal skills plus technological knowledge
– Adaptability
– Positive relationships
• McKinsey: “Why CIO’s should be business strategy partners”
– Reimagine the CIO’s Role
– Develop IT’s Business Savvy
– Build a Distinctive recruiting engine
CIO 3.0 – What is a CIO to Do???

43. • The New Normal…
– M&A: are you acquiring or being acquired? Corporate IT?
– New Reimbursement models: ACO, MSSP, Population Health
– Optimization and Business Value: commoditize everything
and leverage for strategic advantage, e.g. data, quality
improvement, cost reduction
– Patient Engagement: social media, wearables, patient
empowerment for appts, e-messaging, televisits, etc.
– Personalized Medicine: genomics, provider comparisons, etc.
– Cyber Security: for existing and virtual enterprises
CIO 3.0 – What now???

44. • The New Normal…
– M&A: are you at the Planning & Negotiations table?
– New Reimbursement models: is your data architecture and
analytics in place to support these?
– Optimization and Business Value: have you commoditized
everything and now focused on business process optimization?
– Patient Engagement: are you recognized as a business partner?
Are you innovating? Can you?
– Personalized Medicine: is your EMR & SAN ready?
– Cyber Security: is your team, tools and CIRT ready?
CIO 3.0 – What is a CIO to Do???

45. 45
Leadership

46. Be a Strategic IT Leader
• Understand the business
• Build bridges with clinicians
• Anchor your thinking in process improvement and
measurement
• Use simple and straight forward communication
• Establish trust by achieving results
• Look for direction and new approaches
• Contribute ideas and options

47. Setting Vision and Strategy
• What is a CIO?
– Pragmatic Visionary
• Define the future
• Plan the steps
Today
Understand the
Organization and
Culture
Vision
Define the Vision
Identify the steps
Step 1
Step 2
Step 3

48. IT Governance…. Situational
IT Governance
Council
Zolko
Education
IT Advisory
Verderame
Research
IT Advisory
Leslie
Clinical
IT Advisory
DeFlitch
Bus/Finance
IT Advisory
Abbott
Infrastructure &
Service MGT
IT Advisory
Dykehouse
Data
IT Advisory
Young
CyberSecurity
IT Advisory
Snyder
System/Project
•Student IS
•LMS
•Room Scheduling
•A/V Design - Support
•Conf Rms
•Patient TV
Policies
•Room Scheduling
•A/V use
System/Project
•CRMS
•IRB
•UP Research
•BioRepository
•Research PACS
•I2b2 Database
Policies
•Compliance
•IRB
•
System/Project
•EMR
•PACS
•Lab IS
•Pharmacy
•Oncology
•Endoscopy
•Clinical Device
Integration
Policies
•EMR use
•Med Rec
•
System/Project
•Lawson ERP, (HR,
Finance, Mat Mgmt)
•Kronos
•Rev Cycle
•Coding
•ICD-10
•Web
Policies
•Web
•Compliance
•Coding
System/Project
•Data Center
•Network
•IS Security
•Authentication
•Messaging
•Device mgmt
•Srvc Delivery – Help
Desk, etc.
•Storage
Policies
•IS Security
•DR/ BC
•Device use
System/Project
•Master Data
•BI & Analytics
•Data integrity
•Data reporting
•Dashboards
•Person Identity Mgmt
Policies
•Data use
•Master file mgmt
•Data integrity
•Data Governance
System/Project
TBD
Policies
TBD

49. Project Plans - Transparency

50. “How strategists lead”
Cynthia Montgomery, Harvard Business School
McKinsey Quarterly, July 2012
Strategy & Execution
“I’ve been struck by how often executives,
even experienced ones, get tripped up:
they …overlook how inter-related
strategy and execution are.”

51. Project Plans - Transparency

52. Everyone thinks of changing the world
but no one thinks of changing himself
-Leo Tolstoy

53. HIT Leader / CIO 3.0 – What you can do now!
• The New Normal…
– Leverage your relationships & credibility as a true business partner
focused on business value. Help your peers to succeed! Optimize!
– Demonstrate the value of strategic and operational planning to
be agile and effective in meeting the changing requirements
• Strategic Foundational efforts: EIM (Enterprise Information Mgmt) strategy,
genomics planning, patient engagement strategies
• Operational efforts: HIE, Patient portals, Telemedicine incl televisits, etc.
– Establish peer and external networks to leverage the leading
markets, technologies and lessons learned.
– Don’t forget the basics! Build your team with the right skills. Focus
on IT maturity, commoditization, costs…AND customer service!
It is NOT too late!

54. Thank you!

55. Q & A
Rodney C. Dykehouse, CHCIO, FCHIME
Chief Information Officer
Penn State Hershey Medical Center and Health System
Penn State College of Medicine
MC A-310 / ASB 3200
90 Hope Drive / PO Box 855
Hershey, PA 17033
Phone: 717-531-4544
EMail: RDykehouse@hmc.psu.edu
Web: http://pennstatehershey.org
A CHIME Leadership Education and Development Forum in collaboration with iHT2
Insert Twitter
handle(s) here

56. A CHIME Leadership Education and Development Forum in collaboration with iHT2