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The Role of Technology in
Healthcare Reform
Richard P Shannon, MD
Louise Nerancy Professor of Health Policy Science
Executive Vice President, Health Affairs
Disclosures
• Board Member: Kaiser Foundation Health Plan and
Hospitals
• Board Member: National Institutes of Health Clinical
Center
• Senior Teaching Fellow of IHI
Framing Health Care Reform for the
Organization
• It’s not political; its biological and demographic
• Population health is a euphemism for moving risk from payers to
providers and patients
• Don’t focus on payment reform; focus on practice reform
• Drive value through process excellence
• Technology and innovation can drive process excellence
• Provide what the patient needs when they need it, on time, the first
time, no defects error or waste
The Birth of Medicare: July 30,1965
PPACA: March 10, 2010
The Tyranny of Measurement
• UVA reports 484 measures to 11 agencies
• $17M in annual operating expenses
• Reporting on all; focused improvement on only some
• We report mortality to 8 reporting agencies which
have 4 different values as to our mortality
Unintelligible Public Reporting:
Teaching to the Test vs True Improvement
Penalties Are Not a Measure of Quality But Simply
a Blunt Cost Cutting Instrument
• Hospital Characteristics Associated With Penalties in the
Centers for Medicare & Medicaid Services Hospital-
Acquired Condition Reduction Program
• Ravi Rajaram, MD, MS; JeanetteW. Chung, PhD; Christine V. Kinnier,MD, MS; Cynthia Barnard, MBA; Sanjay Mohanty, MD, MS; Emily S. Pavey, MA;
Megan C. McHugh, PhD; Karl Y. Bilimoria, MD,MS
• JAMA. 2015;314(4):375-383. doi:10.1001/jama.2015.8609
• CONCLUSIONS AND RELEVANCE Among hospitals participating in the
HAC Reduction Program, hospitals that were penalized more
frequently had more quality accreditations, offered advanced
services, were major teaching institutions, and had better
performance on other process and outcome measures. These
paradoxical findings suggest that the approach for assessing hospital
penalties in the HAC Reduction Program merits reconsideration to
ensure it is achieving the intended goals.
Bending the Cost Curve:
Two very different approaches
Cutting (Payer)
• Decrease payment for services
• Decrease services
• Decrease staffing (costs)
• Decrease access for patients
Estimated savings: $8-900B over 10 years
Improving (Provider)
• Focuses on patient needs
• Decreases that which adds no value
• Right care/right patient/right place
• Annual $300B savings to CMS
• $6-900B reduction in US expenditures
• Estimated savings: $6-9 trillion over 10 years
Forms of Waste
• Harm
• Overtreatment
• Failures in care delivery
• Failures in care transitions
• Excessive administrative costs
• Fraud and abuse
14
Drive Value Through Process Excellence!!
Work Redesign Supported By Technology
• New Structures
Service lines
• New systems
Be Safe/ Be Well/ Be Wise/
• New work processes
Real time to root cause problem
solving
• Infrastructure alternatives
• Virtual visits/eConsults
• Labor and Supplies
Enhancements
• Intelligent Augmentation (IA)
• Clinical variation reductions
• Predictive analytics
PHC4 2013
77% reductions
in CA-BSI/UTI
46% reduction in
SSI
52% reduction in
C. difficle
27% reduction in
neonatal
mortality from
sepsis
What Matters to You?
• Clinical Outcomes
• Complication Rates
• Time to return to work
Survival: PCI Risk Adjusted Mortality Rate for STEMI Patients
Heart & Vascular Center
UVA is above
the 90th
percentile
11.1% reduction
year over year
Adverse Events: PCI with STEMI
Heart & Vascular Center
22.7% reduction
year over year
Adverse Events: PCI with STEMI
0.0%
2.1%
0.0% 0.0%
5.3%
4.0%
0.8% 0.7%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Bleeding 72 hrs after
procedure
Heart Failure New Dialysis
Requirement
CVA/Stroke
UVA Health System NCDR 50th %tile
Eliminating Complications
Reduces Cost
• ERAS Work Redesign: Colorectal Surgery
• 43% reduction in mortality
• 2 day reduction in LOS
• 84% reduction in opiod use
• 41% reduction in readmissions
• $7982 reduction in cost per case
• Lowest to highest quartile in patient satisfaction
• Lowest decile in post op complications
Technology Platforms at UVA
• Predictive Analytics (IA)
• Neonatal Sepsis
• Imaging
• Hovering at Home (C3)
• TeleHealth (11,000-60,000 visits)
• Mid-Atlantic Regional Center
• Locus Health
• Redefining Prevention
wearables to insideables to trainables to
shockables
Redefining the University-Industry Relationship
• UVA-Astra Zeneca Partnership
(Cardiovascular/Metabolic)
• VA-Mitre Partnership (Precision Analytics/Hovering)
• Hemoshear
Inova-UVA Academic Partnership
• UVA School of Medicine
• Global Genomics and Bioinformatics Institute
• Darden Business School iLab
• SEAS : material sciences/mechanical/engineering/computer
science
• Data Science Institute
UVA School of Medicine
– Inova Campus
3rd & 4th Year Clinical
Clerkships
Joint Research Institute
NCI Comprehensive
Cancer Center
NIH CTSA Program
Venture Fund LP
Pediatric Network
UVA Collaborations:
iLab, SEAS
EDUCATION INNOVATIONRESEARCH
Expanding UVA’s Presence in Northern Virginia: Faculty Investigators, Educators, Infrastructure & Investment
Inverting the Discovery Paradigm
• Reductionist Approaches: The Needle in a Haystack
• Big Data Approaches: Drug Repurposing
Doubling Down: UVA and the Strategic
Investment Fund
•Cell Based Immunotherapy $11M
•Pri-Med Type 1 Diabetes $17M
•The Brian Initiative $15M
•Focused Ultrasound $12M
AMCs as Customers and Investors
•Seed and Venture Fund
•Locus Health
•Type Zero
•Tear Solutions
The American Dream
Universal access to affordable, high quality healthcare
Technologies

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NVTC Capital Health Tech Summit: Dr. Shannon Keynote

  • 1. The Role of Technology in Healthcare Reform Richard P Shannon, MD Louise Nerancy Professor of Health Policy Science Executive Vice President, Health Affairs
  • 2. Disclosures • Board Member: Kaiser Foundation Health Plan and Hospitals • Board Member: National Institutes of Health Clinical Center • Senior Teaching Fellow of IHI
  • 3. Framing Health Care Reform for the Organization • It’s not political; its biological and demographic • Population health is a euphemism for moving risk from payers to providers and patients • Don’t focus on payment reform; focus on practice reform • Drive value through process excellence • Technology and innovation can drive process excellence • Provide what the patient needs when they need it, on time, the first time, no defects error or waste
  • 4. The Birth of Medicare: July 30,1965
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  • 10. The Tyranny of Measurement • UVA reports 484 measures to 11 agencies • $17M in annual operating expenses • Reporting on all; focused improvement on only some • We report mortality to 8 reporting agencies which have 4 different values as to our mortality
  • 11. Unintelligible Public Reporting: Teaching to the Test vs True Improvement
  • 12. Penalties Are Not a Measure of Quality But Simply a Blunt Cost Cutting Instrument • Hospital Characteristics Associated With Penalties in the Centers for Medicare & Medicaid Services Hospital- Acquired Condition Reduction Program • Ravi Rajaram, MD, MS; JeanetteW. Chung, PhD; Christine V. Kinnier,MD, MS; Cynthia Barnard, MBA; Sanjay Mohanty, MD, MS; Emily S. Pavey, MA; Megan C. McHugh, PhD; Karl Y. Bilimoria, MD,MS • JAMA. 2015;314(4):375-383. doi:10.1001/jama.2015.8609 • CONCLUSIONS AND RELEVANCE Among hospitals participating in the HAC Reduction Program, hospitals that were penalized more frequently had more quality accreditations, offered advanced services, were major teaching institutions, and had better performance on other process and outcome measures. These paradoxical findings suggest that the approach for assessing hospital penalties in the HAC Reduction Program merits reconsideration to ensure it is achieving the intended goals.
  • 13. Bending the Cost Curve: Two very different approaches Cutting (Payer) • Decrease payment for services • Decrease services • Decrease staffing (costs) • Decrease access for patients Estimated savings: $8-900B over 10 years Improving (Provider) • Focuses on patient needs • Decreases that which adds no value • Right care/right patient/right place • Annual $300B savings to CMS • $6-900B reduction in US expenditures • Estimated savings: $6-9 trillion over 10 years
  • 14. Forms of Waste • Harm • Overtreatment • Failures in care delivery • Failures in care transitions • Excessive administrative costs • Fraud and abuse 14 Drive Value Through Process Excellence!!
  • 15. Work Redesign Supported By Technology • New Structures Service lines • New systems Be Safe/ Be Well/ Be Wise/ • New work processes Real time to root cause problem solving • Infrastructure alternatives • Virtual visits/eConsults • Labor and Supplies Enhancements • Intelligent Augmentation (IA) • Clinical variation reductions • Predictive analytics
  • 16. PHC4 2013 77% reductions in CA-BSI/UTI 46% reduction in SSI 52% reduction in C. difficle 27% reduction in neonatal mortality from sepsis
  • 17. What Matters to You? • Clinical Outcomes • Complication Rates • Time to return to work
  • 18. Survival: PCI Risk Adjusted Mortality Rate for STEMI Patients Heart & Vascular Center UVA is above the 90th percentile 11.1% reduction year over year
  • 19. Adverse Events: PCI with STEMI Heart & Vascular Center 22.7% reduction year over year
  • 20. Adverse Events: PCI with STEMI 0.0% 2.1% 0.0% 0.0% 5.3% 4.0% 0.8% 0.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% Bleeding 72 hrs after procedure Heart Failure New Dialysis Requirement CVA/Stroke UVA Health System NCDR 50th %tile Eliminating Complications Reduces Cost
  • 21. • ERAS Work Redesign: Colorectal Surgery • 43% reduction in mortality • 2 day reduction in LOS • 84% reduction in opiod use • 41% reduction in readmissions • $7982 reduction in cost per case • Lowest to highest quartile in patient satisfaction • Lowest decile in post op complications
  • 22. Technology Platforms at UVA • Predictive Analytics (IA) • Neonatal Sepsis • Imaging • Hovering at Home (C3) • TeleHealth (11,000-60,000 visits) • Mid-Atlantic Regional Center • Locus Health • Redefining Prevention wearables to insideables to trainables to shockables
  • 23. Redefining the University-Industry Relationship • UVA-Astra Zeneca Partnership (Cardiovascular/Metabolic) • VA-Mitre Partnership (Precision Analytics/Hovering) • Hemoshear
  • 24. Inova-UVA Academic Partnership • UVA School of Medicine • Global Genomics and Bioinformatics Institute • Darden Business School iLab • SEAS : material sciences/mechanical/engineering/computer science • Data Science Institute
  • 25. UVA School of Medicine – Inova Campus 3rd & 4th Year Clinical Clerkships Joint Research Institute NCI Comprehensive Cancer Center NIH CTSA Program Venture Fund LP Pediatric Network UVA Collaborations: iLab, SEAS EDUCATION INNOVATIONRESEARCH Expanding UVA’s Presence in Northern Virginia: Faculty Investigators, Educators, Infrastructure & Investment
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  • 27. Inverting the Discovery Paradigm • Reductionist Approaches: The Needle in a Haystack • Big Data Approaches: Drug Repurposing
  • 28. Doubling Down: UVA and the Strategic Investment Fund •Cell Based Immunotherapy $11M •Pri-Med Type 1 Diabetes $17M •The Brian Initiative $15M •Focused Ultrasound $12M
  • 29. AMCs as Customers and Investors •Seed and Venture Fund •Locus Health •Type Zero •Tear Solutions
  • 30. The American Dream Universal access to affordable, high quality healthcare Technologies

Editor's Notes

  1. The alternative to price controls is the elimination of waste. We need to move rapidly to demonstrate that this method has greater benefit