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    Hospital Impact can also be seen through:

    Innovative thinking in healthcare

    July 11th, 2007

    by Tony Chen

    Recently, I posted an open question to my linkedin network: "what innovative partnerships with hospitals have you seen?" The answers I got were basically summed up by one of my contacts: "that's probably the first time I've ever seen 'innovative partnership' and 'hospital' in the same sentence. what are you talking about?"

    Nonetheless, this hospital CEO is out to prove you wrong. Read this HealthAffairs interview with Virginia Mason CEO Gary Kaplan. Yes, this is the hospital that periodically flies out their leaders and physicians to Japan to learn Toyota's production process improvement approach. Passionate about "getting rid of all waste" in their system, they have cut everything from unnecessary supplies to unnecessary physical steps staff members used to walk to expensive medical procedures (for a loss).

    If that weren't enough, they have partnered with (gasp!) payers as well as local employers. Yes, Virginia Mason is losing money by eliminating more expensive procedures, but amazingly Aetna has agreed to pay them more for less expensive procedures.

    Even though the hospital is getting the smaller slice of the pie, this seems to be a rare example in which incentives are more aligned. And maybe this provides long-term benefits that we've yet to identify - better reimbursement for a whole slew of activities (e.g. diabetes education, patient education, prevention/screening) that could really make a tangible impact on an entire community.

    Add on top of that these new insurance plans that financially reward healthy living, and we could be on our way to a drastically different health culture. The risk of death typically won't change our lifestyle, but maybe $2,000 will.

    Comments, Pingbacks:

    Comment from: Lavinia Weissman [Visitor] · http://www.workecology.com
    Tony, excellent research!

    It's interesting that I landed in Washington State, I think. Whidbey Island to be precise --- off the coast of Seattle.


    Tonight I went to a meeting of the Goose Foot Foundation. The Goose Foot Foundation (http://www.goosefoot.org) have in its history I believe raised over $450,000. This past year they gave away $27,000 or more for health care needs of people who live on the southern most portion of the island. They do not view themselves a ongoing provider of finance, they believe that sometimes helping to arrange care and organize it and pay for it can be a stop gap to a disaster.

    Their Hospice, which is now in its second year is full staffed by volunteers. Now the numbers are very small. The facility is completely paid for and brand new (no mortgage). It took months to get it certified as an adult care living home (not hospice). It has a medical director and a full time in nurse. It has served 36 people and their family and friends since opening 2 years ago at a cost per day of $125.00. If the client does not have the money it is found. It is a home environment and not subject to the bureaucracy of hospitals and regulations and medicare, etc.

    It is solely supported by the community.

    I like your hospital example. In the future scenarios I read years ago, the idea was that any organized institution providing hospital beds would provide the best care that required hospitalization.

    Somewhere a long the lines, our hospitals got the idea they were to do more than that. That might work in a large city and I am interested to study Goose Foot Foundation more thoroughly that sees itself a facilitator of non based hospital support and the use of discernment to get a community resident to the main land for hospital care and resources not available on the island.

    As for insurance, lots of options are showing up my way. In Massachusetts to assure me access to quailty care, I would have had to forget anything but a high end BCBS policy or Harvard Pilgrim premium at the highest price in the country. Here I can get a high deductible policy that assures me access to clinicians and alternative medicine that keeps me well.

    And there is no waste of breath in the press and government arguing for a universal health insurance, so MA can be number one.

    I am still interested in defining what innovation means in health care.

    I would be happy to write an introductory paragraph that distinguishes what innovation is as a way to launch the conversation here. Let me know what you think. Innovation is a social network factor that requires an understanding of people and how to distinguish the conversations that support innovation. It is unique form and typically in an innovation environment there is a leadership organization that is not dominated by people called or described as managers.

    Health care in insurance and hospitals is inundated with managers.

    Permalink 07/12/07 @ 01:37
    Comment from: hospitaltony [Member]
    Lavinia, great points. I would love for you to write an introductory paragraph that defines "innovation" - I think it would be an important discussion as that word gets thrown around pretty loosely.

    by the way, I had a lovely conversation with Val - thanks again for connecting me with her. We did have a lot to talk about and she was delightful reflective and thoughtful.
    Permalink 07/12/07 @ 21:18
    Comment from: Lavinia Weissman [Visitor] · http://www.workecology.com
    I think before I write this introductory paragraph, I would like to hear from more readers how they define innovation and if they perceive innovation a possibility in the systems in which they work?
    Permalink 07/13/07 @ 21:40
    Comment from: Karl Leistikow [Visitor]
    This is an absolutely interesting topic, as my transition from Pharma/Biotech to Healthcare has portrayed a refrain from innovative thinking. Not to reverberate buzz words, but there is a kind of taboo for "thinking outside of the box" in healthcare. Maybe because of the regulations (although that doesn't stiffle big pharma as much as startups), maybe it's because of the size of organization I work for.

    I tend to look at innovation in healthcare as a unique way to handle the core businesses of any business system(Finance, Ops, CS, Strategic Planning, etc). Interestly enough, innovation is subject to one's own corporate identity and strategy, not all processes work similar in all corporate environments.

    I'm a true & strong believer in methodologies to increase goods/service(whether that be Lean/6-Sigma), and also think Healthcare should look onto other commercial service areas as a means to innovate their current business practices.
    Permalink 10/21/08 @ 14:07

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