Transcript Healthcare - Mays Business School

Health Care Lunch & Learn
Mays Business School
December 12, 2016
Leonard Berry | James Abbey
Healthcare: The Largest Single Sector of the U.S. GDP
Three Trillion Dollars Annually
http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS?contextual=default&end=2014&locations=US&name_desc=
false&start=1995&view=chart
Putting the GDP Figures Into Context
http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS?contextual=default&end=2014&locations=US
&name_desc=false&start=1995&view=chart
http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2014&locations=US&start=1995
Seeing Healthcare and Related Services in Context
Healthcare
(Hospitals, Ambulatory Care, Nursing)
Retail Trade
(Cars, Retail Merchandise, Food & Beverage)
Domestic Oil & Gas
(Mining, Extraction, and Related Trade)
http://www.bea.gov/iTable/iTable.cfm?ReqID=51&step=1#reqid=51&step=51&isuri=1&5114=a&5102=15
So, Healthcare is Huge….
How does the current system run?
How do we improve the system?
What are the touch points for improvement?
Where does a business school play a role?
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Delivery improvements?
Efficiency enhancements?
Waste reduction?
Effectiveness metrics?
Technology innovation? [Recall the talks from Bruce Broussard (’84) and David Cordani (’88)]
Understanding the Business Structure of Healthcare Today:
Complexity Abounds
The Provider (e.g., Physician)
to Patient Relationship is No
Longer Simple
Lee, S.J., J.D. Abbey, G.R. Heim, D.C. Abbey. 2016. Seeing the Forest for the Trees: Institutional Environment Impacts on
Reimbursement Processes and Healthcare Operations. Journal of Operations Management. Forthcoming.
The Tangled Web of Revenue: Provider-Patient-Payer
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The “simple” case of a laceration
Over 6 million lacerations per year in the U.S. at a
cost of over three billion dollars annually1
Relatively standard procedure
Among the most common care procedures for
CMS (Medicare/Medicaid)
Depending on intensity of care, provision of care
may take only day to a few weeks
However, the reimbursement process can persist
for years
1Quinn,
J.V., Polevoi, S.K., Kohn, M.A., 2014. Traumatic lacerations: What are the risks for
infection and has the `golden period' of laceration care disappeared?. Emergency Medicine
Journal, 31(2), 96-100.
Lee, S.J., J.D. Abbey, G.R. Heim, D.C. Abbey. 2016. Seeing the Forest for the Trees: Institutional Environment Impacts on Reimbursement Processes
and Healthcare Operations. Journal of Operations Management. Forthcoming.
Where does Mays Business School Take Leadership?
Establishing The Business Case of Healthcare
Insights from
Healthcare
Analytics
Improving
Reimbursement
Systems
Technology,
Innovation, &
Entrepreneurship
Enhancing Patient,
Family, & Provider
Experiences
Health Policy &
Implementation
Wellness,
Prevention, &
Population Health
A New Mountain to
Climb
Len Berry
Mays Business School
Lunch and Learn
Healthcare
Why I selected healthcare to study
for my 2001-2002 faculty
development leave.
Why you should consider studying
healthcare.
Characteristics of Medical Services that
are Dissimilar to Most Other Services
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Customers are sick
Customers are reluctant
Customers relinquish privacy
Customers need “whole person” service
Customers are at risk
Clinicians are stressed
On the Mountain at Mayo Clinic
My Personal Journey
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Conducted Mayo Clinic study 2001-2002
Returned to campus and struggled
Defined my path forward
Published first medical journal article 2003
Joined the Center for Health Design board 2003
Published “Fable Hospital” article 2004
Joined Nemours Foundation board 2005
My Personal Journey (cont.)
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Published “Ideal Physician” article 2006
Published Management Lessons from Mayo Clinic 2008
Conducted workplace wellness field study 2009-10
Conducted Wisconsin field study 2011-12
Selected as IHI Senior Fellow to study service improvement
in cancer care 2014-15
• Taught first healthcare course in Mays Business School 2016
Lessons Learned (or Reinforced) from
my Time on the Healthcare Mountain
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Leverage your strengths
Collaborate wisely
Strive for impact
Go to the data
Persevere
Enjoy the journey
Where does Mays Business School Take Leadership?
Establishing The Business Case of Healthcare
All Areas of Business are
Stakeholders in this Problem
Accounting
Finance
Management
Marketing
Supply Chain
Information Systems
Healthcare is a
Societal Challenge that
Spans the Boundaries of
Mays and Texas A&M
Insights from
Healthcare
Analytics
Improving
Reimbursement
Systems
Technology,
Innovation &
Entrepreneurship
Enhancing
Patient, Family, &
Provider
Experiences
Health Policy &
Implementation
Wellness,
Prevention, and
Population
Health
Mays Can Take a
Significant Leadership
Role in a Tremendously
Complex System
We are Not An Island
Architecture
Communication
Medical School
Bush School
Public Policy
Public Health
&
Beyond