Health IT Summit Miami 2015 - Case Study "Consolidation: Greasing the Skids With Interoperability"

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The document discusses hospital consolidation in the US healthcare industry. Over 600 hospitals were involved in mergers and acquisitions from 2007 to 2013. Interoperability between healthcare systems is currently lacking. The document argues that improving interoperability could help newly consolidated hospitals optimize operations, reduce onboarding times, and keep patients and providers engaged after a merger or acquisition. Examples are given showing how interoperability could make consolidated hospitals stronger, integration processes quicker, and stakeholders happier.

Education

Qi Li, MD, MBA
Director, Product Innovation
InterSystems
consolidation:
greasing the skids
with interoperability

© 2014 InterSystems Corporation. All Rights Reserved.
goal

© 2014 InterSystems Corporation. All Rights Reserved.
agenda
•  background
•  current state of interoperability
•  how can interoperability help?

© 2014 InterSystems Corporation. All Rights Reserved.
what’s going on?
from 2007 to June 2013:
607 hospitals involved in M&A activity
(American Hospital Association)

© 2014 InterSystems Corporation. All Rights Reserved.
who?
•  large
•  Ascension Health ($15 B)
•  Trinity Health ($12 B)
•  Tenet ($11 B)
•  small (avg. acquisition 1.7 hospitals)
•  inpatient and ambulatory
•  for-profit and not-for-profit (roughly 50/50)
•  acute and sub-acute (Kindred-Gentiva-Centerre)

© 2014 InterSystems Corporation. All Rights Reserved.
an
interes)ng
trend

provider
payor

© 2014 InterSystems Corporation. All Rights Reserved.
why?
•  capitalization
•  economies of scale
•  increase market power
•  optimize service lines
•  defensive

© 2014 InterSystems Corporation. All Rights Reserved.
how
can
we
succeed?

complementary
oﬀerings

interoperability

cultural
ﬁt

© 2014 InterSystems Corporation. All Rights Reserved.
interoperability
is
a
big
deal

Royal Philips, “The New Healthcare Enterprise”

© 2014 InterSystems Corporation. All Rights Reserved.
where do we fall short?

© 2014 InterSystems Corporation. All Rights Reserved.
is
it
any
surprise?

within two years of consolidation:
•  roughly 1 in 5 hospitals start to lose
money
•  59% fail to outperform market peers

© 2014 InterSystems Corporation. All Rights Reserved.
how
can
interoperability
help?

• op,mize
current
opera,ons

• reduce
onboarding/transi,on
,me

• keep
pa,ents
and
providers
engaged

© 2014 InterSystems Corporation. All Rights Reserved.
stronger

© 2014 InterSystems Corporation. All Rights Reserved.
• 178
beds

• $225
million
annual
revenue

• problem:
lab
tests
performed
out
of
network

stronger

© 2014 InterSystems Corporation. All Rights Reserved.
quicker

© 2014 InterSystems Corporation. All Rights Reserved.
happier

© 2014 InterSystems Corporation. All Rights Reserved.
wrap-up
•  background
•  current state of interoperability
•  how can interoperability help?

© 2014 InterSystems Corporation. All Rights Reserved.
Qi Li, MD, MBA
qi.li@intersystems.com
@drqili
questions

Health IT Case Study "Consolidation: Greasing the Skids With Interoperability" We enter 2015 with the full expectation that the trend of mergers and acquisitions in the healthcare industry will continue. Much has been discussed about the forces that are driving consolidation in healthcare - payment reform, population health, and others - but not as much around the tools that are available now to facilitate consolidation. Strong interoperability capabilities, already in use and generating value in many institutions, can have a large role to play in supporting consolidations and ensuring their success. iHT2 case studies and presentations illustrate challenges, successes and various factors in the outcomes of numerous types of health IT implementations. They are interactive and dynamic sessions providing opportunity for dialogue, debate and exchanging ideas and best practices. This session will be presented by a thought leader in the provider, payer or government space. Danielle Micciantuono, MSN, RN Clinical Application Analyst InterSystems

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