This document discusses the opportunity for Austin, Texas to become a center for innovating in health care. It proposes creating a "miniature health ecosystem" in Austin that is more open to redesign compared to traditional medical school models. The key strategies outlined are to: (1) recruit leaders committed to care redesign and population health, (2) demonstrate value-enhancing health projects, and (3) use these projects to inspire and validate new technologies. The goal is for Austin to become a "health redesign platform" that can reinvent care, improve health outcomes, lower costs, and accelerate product development through new partnerships between academia and the private sector.

1. Innovating in Health - The Austin Opportunity
Maninder Kahlon, PhD (Mini)
Vice Dean for Strategy & Partnerships

2. .A once-in-a-lifetime opportunity

3. Put health front & center

4. Context: A “Regular” Medical School
• Care
• Research
• Education

5. Context: US Healthcare & Health

6. Why are we paying so much?
Best Care at Lower Cost: The Path to Continuously Learning Health Care in America. IOM, Sept 2012

9. But who will pay for a better
system?

10. Payer, Provider, Consumer - Disconnect

11. Complex & Hard to Change
Jonathan Cohn, New Republic, with help from Kaiser Family Foundation

12. Context: US Healthcare & Health
Cost of a lower
back MRI
Cost of a
lipid panel

13. So how do we fix it?
Do we have to wait on national
policy and legislation?

15. What if
We could create a miniature health
ecosystem more amenable to redesign?

16. What if
A vibrant growing city invests in change.
Innovators are drawn to the region.
Stakeholders choose to be more flexible.

17. The Austin Opportunity

18. We envision … a vital, inclusive health ecosystem
Vital. Vigorous, animated, full of life and energy, dynamic.
Inclusive. Open to everyone
Ecosystem. The complex of a community and its environment
functioning as a system.

19. So how do we transform our
health system?
Do we have to wait on national policy
and legislation?

20. What if
A vibrant growing city invests in change.
Innovators are drawn to the region.
Stakeholders choose to be more flexible.
Could we create a miniature health
ecosystem more amenable to redesign?

21. Austin as Population Health Platform

22. Strategy: PEOPLE
1. Draw leaders self-selecting for care redesign/population
health mission.
2. Recruit expertise not traditionally in medical school but
necessary for mission (population health, health
economics, design, etc)

23. Strategy: CARE
3. Design & demonstrate value-enhancing health
projects.
4. Address business model upfront – bring the payer in
5. Engage the broader community in care redesign
• Hospital partner/s
• Broader community of practitioners

24. Strategy: PRODUCTS
6. Use care redesign settings to inspire and validate new
technologies
7. Redefine models of academic/private partnership to
accelerate product development.

25. 1. Draw leaders self-selecting for mission.

26. 2. Recruit expertise needed for novel
mission
• Population Health
• Employer Health
• Health Economics & Biomedical innovation policy
• Design Institute for Health
• …

27. 3. Design & demonstrate value-enhancing
health projects
• Reducing need for knee and hip replacement
• Predicting and managing risk for second pregnancy
• Managing long-term chronic illness in children
• …

28. 4. Address business model upfront – bring
payer in
• Establishing a shared risk approach for private partner
(Seton) with public partner (Central Health) to rationally
begin allocating $ to value-focused projects.
• Partnerships with Insurers – statewide, on pregnancy
outcomes with Superior Health (80% of Medicaid in Tx)
• Self-insured employer partners – School district, UT
System, other companies (Dell?) etc.

29. 5. Engage the broader community in care
redesign

30. Eg. Hospital Partner
Practitioners – Physicians, Nurses, Pharmacists, etc
Decision-makers: CMO/CFO

31. Caring Wisely results
• 143 project ideas generated in the first round.
• Three projects selected: total cost $225K.
– IV to PO Switch – Pharmacist leader.
– “Nebs No More After 24” – Physician leader.
– Reduction of RBC Transfusions – Nurse Leader.
• Total savings in first year $4 M.

32. Achieved:
• Value-oriented clinical projects aligned with
hospital goals.
• Culture change!

33. Eg. University students/UT Campus
Model Healthy Campus
Improve signage for stairs!
Provide healthier vending machine options!
Removing tanning booth option from Bevo Bucks…

34. Eg. Broader community of practitioners
Anyone proposes value-oriented care redesign project
< Who saves?
< Does society save?
< Can we measure?
< Can it be scaled?
< Evidence?
Payer pays for innovation
Payer decides

35. • 6. Use care redesign settings to inspire and
validate new technologies

38. 7. Redefine models of academic/private
partnership to accelerate product
development.
• Anchor to care and health opportunities
• Enable teams developing across traditional boundaries
• Easy plug-and-play for a range of partners depending on
projects
• Defined approaches to sharing in proceeds

39. Reinvent Care
Improve health; lower
costs
Innovate New Products
Austin: A Health Redesign Platform