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    The most innovative hospital in the country?

    April 20th, 2007

    by Tony Chen

    "What kind of hospitals do you consider when you are looking for really innovative ideas?" That was the question I received recently from a physician leader. My answer: "Innovation comes in all different shapes and sizes. While most people might think of Mayo and Cleveland Clinic as the most innovative, you'd be surprised at how innovative some small community hospitals can be."

    What about you? Who would you vote for as the most innovative hospital in the country?

    Here's the hospital that has my vote: Memorial Hospital and Health System in South Bend, Indiana (note the neat url address).

    It's not every day that you see a hospital with "Innovation" as one of its core values. I spoke with their VP of marketing and innovation strategy, Diane Stover, earlier this week. Boy, was I in for a treat! She explained the process of how their hospital eventually embraced innovation as a key strategic platform. They specifically looked outside of healthcare and visited the likes of 3M, Microsoft, Whirlpool, and many others. They saw innovation as the way to take their future into their own hands. They realized that innovation was the most sustainable way to retain and attract the best talent - to create an environment whereby employees get to do something that really stirs them. This has got to be the most impressive "organizational culture" transformation I've ever seen. Here are some stories that need to be told!

    World-Class Healthcare Development Partner
    Memorial has managed to set up one of the nation's top healthcare R & D centers. Baxter, DuPont, LandsEnd, WalMart, and several other big names you'd recognized are already their alliance partners. Essentially, we all know that healthcare is growing leaps and bounds. These companies need specific clinical expertise & patient access/insights to develop their products further. Memorial becomes their product development partner, their source for patients/focus group members, and their clinical expert advisors. You may ask: why wouldn't a company partner with a Mayo or Stanford instead? Simple, Memorial acts fast - they are set up to delight these corporate partners.

    The Experience Economy

    I'm not sure if Diane has a FACHE certification or not. But it doesn't matter because she has a unique certification in the Experience Economy. What a forward-looking competency that all hospitals should have in house! Similar to the "If Disney Ran Your Hospital" paradigm, we have to realize that as hospitals, we aren't just providing a service. We have to be masters at designing experiences - experiences that delight patients and their families.

    Partnership with IDEO
    Diane and her CEO had a deal - if a company's name came up 3 separate times, they'd check them out. One company was IDEO, the masterful design and product development firm and maybe one of the most innovative firms in the world. They went visit IDEO and was so inspired by their strategy by design concepts that they halted a $40MM heart/vascular center construction. Yes, I'll say it again - they halted construction (can you imagine the headaches?). They realized that they couldn't build this new building without incorporating the human-centered design elements. They hired IDEO and redesigned the building. Today, any new capital project that is submitted has to have a facility design as well as an experience design.

    Innovation can be defined in many different ways - in patient care, in technology, in workflow, in corporate culture. Please share with us your innovation story in the comments! What hospital do you think is the most innovative in the country, and why?

    Comments:

    Comment from: Chris [Visitor]
    you'd be surprised at how innovative some small community hospitals can be.
    small community hospital?
    Permalink 04/20/07 @ 19:05
    Comment from: hospitaltony [Member]
    my comment there to that physician leader really is to emphasize that we don't have to be Mayo to be innovative. In fact, there are many ways that a hospital in a small community can innovate that an AMC couldn't. just look at Nick's hospital at Windber. OSF Peoria and ValleyCare (in Northern CA) are other good examples.
    Permalink 04/20/07 @ 19:54
    Comment from: Lowell Luis, MBA [Visitor] · http://www.ghx.com
    I am an Account Manager for a supply chain services company that--among other things---helps hospitals eliminate non value-added steps in their supply chain processes. In this regard, some hospitals have eliminated paper invoices in lieu of EDI. The most innovative ones have taken this lean approach to a different level: they've instituted ERS.

    What is ERS?
    Evaluated Receipts Settlement (ERS) aka "pay on receipt" is an invoiceless payment process that uses a two-way match instead of the traditional three-way match to pay for an order. ERS is an invoice automation tool for automatic settlement based on goods receipt/service entry. ERS involves an understanding between the vendor and customer whereby the vendor does not issue invoices. Instead, an invoice document is posted automatically by the customer on the basis of data from the purchase order. The packing slip/delivery ticket is included with the materials delivered at the time of delivery. Traditionally, companies match their PO, the delivery documents and the invoice received prior to paying for their order. Assuming a common understanding of how the price is calculated for a particular delivery (e.g. including taxation), the payment terms and method to identify the payment to the supplier, the invoice adds no value to the process. The Purchase Order contains the pricing information and the delivery document shows the quantity. Based upon these two documents, customers can do a two-way match and accurately pay for their orders. When payment is made, the customer issues a check or an Electronic Funds Transfer. The remittance detail reflects the payment breakdown.


    What are the benefits of ERS?
    Elimination of invoices offers significant benefits. By streamlining the matching and payment process, customers can:

    --> Reduce clerical personnel requirements
    --> Reduce mailing or data transmission costs
    --> Reduce forms and stationary costs
    --> Reduce data entry costs

    By carefully clarifying the terms of payment and price construction during the preparation for and implementation of ERS, customers can receive additional benefits:

    --> Fewer clerical errors
    --> Elimination of lost invoices
    --> Elimination of duplicate invoices
    --> Timely price updating, reducing supplier billings for price adjustments
    --> Improved data quality


    How does ERS work?
    Once an ERS implementation is agreed upon, a customer will stop receiving invoices from their vendor. In lieu of an invoice, the customer will remit payment based on the "total delivered" contracted product price multiplied by the quantity of product shipped to them as stated on the Advanced Shipping Notice (ASN) and applying the payment terms that are stated in the contract (it is important that the customer receive the ASN via EDI). When the payment is remitted, the customer can reference the bill of lading number in lieu of an invoice number.
    Permalink 04/27/07 @ 14:12
    Comment from: Anonymous [Visitor]
    I have been an employee of Memorial for ove 10 years. They talk a good game, but the administration does not consider employees perspectives or ergonomics of the workplace when making decisions. Employee surveys constently show that there are big problems with trusting managment and fairness, and Memorial's way of addressing this it to send out memos about why the employee surveys are wrong. A whole new heart center was built and it is an ergonomic nightmare for the employees-chairs cut off cirulation to your legs, counters are too high! The hospital was going to try to get magnet status as a hospital, but cannot do this because the chief nursing officer does not have a Master's degree. In general, the staff is treated as the least important aspect of the hospital, but in truth, the hands-on staff members are caring and kind and do their very best IN SPITE of the administration.Memorial COULD be wonderful if they would quite being a benevolent dictatorship and really work at being a team oriented place to work.
    Permalink 05/04/07 @ 12:15
    Comment from: Anonymous [Visitor]
    I am very afraid to say my real name/position for fear of repercussions. I also work at Memorial and have only ever known this hospital to manage by intimidation. Any innovative ideas that come from employees are squashed. This sounds like great press release material, but it is not the way things are. Disney experience? HAH! Memorial has ignored the fact the happy and inspired employees are the basic requirement for making everything else work.
    Permalink 05/05/07 @ 21:09
    Comment from: Not True [Visitor]
    I also work for Memorial I find my area to be very open to new ideas and innovation. We have a saying in our department, be part of the solution, not the problem.
    Permalink 05/07/07 @ 18:44
    Comment from: Newer Employee [Visitor]
    I really do not understand the negative 2 statements from these employees. I came here from a competing healthcare system. The decisions here are made locally and not many miles away. This allows us to be reactive to trends and also allows us to step back and rethink if needed. I feel really sorry for those who feel this is not a great place to work. I can tell you first hand, the grass is not any greener across the river.

    Being a happy and content worker requires a commitment on your part to do all that you can to make your environment fulfilling and rewarding. Maybe you need to forget the previous history and look to the future. Then again, Healthcare positions open almost daily at many other facilities, and if life is so terrible, why are you still here?
    Permalink 05/09/07 @ 11:40
    Comment from: nancynurse [Visitor]
    I have worked at Memorial for many years. Overall administration DOES want to make this the best place to work, and the best place to be a PATIENT. There are some in management who do not completely buy into this yet. I hope they will either be won over, or find someplace to work that matches their philosophy. The only way to advance is to try new things that spring from the ideas of those who are at the bedside saying, "why do we have to do this in this way when another way will get it done better/faster/more economically" Change is frightening to some people, and should not usually occur just for the sake of change. Change that makes a safer, shorter, better outcome hospital visit is exciting. The vice president of nursing is an example of someone who rose through the ranks and has not forgotten her roots. I strive to follow her example. Some of the other managers may(do) not share this vision. I hope they begin to see the light. We are not perfect, but we are striving to be the best of the best.
    Permalink 05/12/07 @ 22:17
    Comment from: Andreea [Visitor]
    Here's what I found: Windber Named One of America's Most Innovative Hospitals if you were still wondering.
    "What they're doing: Despite its rural location and small scale, there are some things going on at Windber Medical Center that sit on the cutting edge. Windber's system...is tying together the work being done by its Windber Research Institute with day-to-day clinical practice. This concept is mostly at the idea stage in most institutions, including high-profile, big-bucks academic medical centers, but Windber is making it happen."


    _____________
    Double glazing company
    Permalink 03/06/08 @ 10:16

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