This document provides an overview of St. Joseph Health and its approach to innovation. Some key points:
- St. Joseph Health is a large health system with $5.3 billion in net revenue, 25,000 employees, and 14 acute hospitals.
- It has established the Innovation Institute to pursue new revenue streams and transform healthcare delivery through partnerships and innovation.
- The Innovation Institute operates an Innovation Lab to collect ideas, accelerate technologies, and showcase innovations. It aims to advance design and transform traditional models.
- The Institute also has an Enterprise Development Group to convert costs centers to revenue centers through partnerships and a for-profit structure. It established an Innovation Fund to invest across different stages of startup companies.
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iHT² Health IT Summit Beverly Hills – Anatomy of a Health System – St. Joseph Health and The Innovation Institute
1. Anatomy of a Health System:
St. Joseph Health and The Innovation Institute
Darrin Montalvo
Bill Russell
Larry Stofko
November 7, 2013
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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
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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.
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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
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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
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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
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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. 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
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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.
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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
12. …we can know, quite precisely what people are
eating?
Tellspec is a laser scanner that reads chemical composition of food.
13. …we can remotely administer therapies?
MIT Thermoelectric Band that raises perceived body temperature remotely.
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.
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. Moore’s Law
Metcalfe’s Law
+
Here’s what we do know.
Integration hassle
Effort required
=
Cost/functionality
Data quality
Wearability
Cultural acceptance
time
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
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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
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Access to debt capital as for-profit company
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Ability to share “Best Practices”
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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.
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