Unlocking The Opportunities For Health Care Delivery Transformation
Unlocking The Opportunities For Health Care Delivery Transformation
Unlocking The Opportunities For Health Care Delivery Transformation
“I feel our current system of health care is so fundamentally flawed and rife with
anachronistic processes and perverse disincentives that the only likely way we’ll achieve
true transformation is through disruption,” says Richard Zane, MD, Chief Innovation
Officer at UCHealth System and Chair of the Department of Emergency Medicine at
the University of Colorado School of Medicine.
Zane is one of eight NEJM Catalyst Insights Council members – a qualified group of
U.S. health care leaders and clinicians at organizations directly involved in health care
“I FEEL OUR CURRENT SYSTEM OF HEALTH CARE IS SO
delivery – who candidly shared their experiences and insights for this ebook. This past
year, NEJM Catalyst Insights Council survey results illuminated the opportunities and FUNDAMENTALLY FLAWED AND RIFE WITH ANACHRONISTIC
barriers that exist in health care delivery transformation, as you will see in the data
shared throughout the ebook. You’ll also get an inside look at how our eight leaders PROCESSES AND PERVERSE DISINCENTIVES THAT THE ONLY
are helping their organizations hurdle the hard stuff, so they – along with their
LIKELY WAY WE’LL ACHIEVE TRUE TRANSFORMATION IS
patients – can enjoy the benefits that transformation promises.
THROUGH DISRUPTION.”
RICHARD ZANE, MD
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Unlocking the Opportunities for Health Care Delivery Transformation 2
Many health care leaders join Zane in calling for is coming, and who view fundamental change as
bold changes in health care, saying the industry an opportunity to lead instead of a big threat.”
is too mired in traditional thinking and heavy- These are health systems with “not much to
handed government regulation. “The waste in lose,” like Intermountain Healthcare or University
health care is shocking. The redundancy in health of Colorado Health, which he describes as
RICHARD ZANE, MD care is shocking. And the profits in health care “forward-thinking and willing to embrace and
Chief Innovation Officer at are huge,” he says. “There just can’t be any more define disruption” and “without much
UCHealth System and Chair of tolerance for the high cost and truly mediocre competition.”
the Department of Emergency outcomes.”
Medicine at the University of As an example, he says health care can be
Colorado School of Medicine, Taking a slow-but-steady approach to
“Amazon Primed” by offering a few free
Aurora transformation won’t move the needle, in his
primary care visits via a virtual home
opinion. “Medical homes, new payment models,
health system with an annual membership.
“MEDICAL HOMES, NEW scribes, practice redesign, and things like that are
slow and iterative. There is nothing disruptive
PAYMENT MODELS, SCRIBES, Such out-of-the-box thinking is difficult for
about them,” Zane says. Gaining “wholesale
entrenched health systems because many are
PRACTICE REDESIGN, AND change” is going to take either an outsider like
“totally hooked” on fee-for-service medicine. “It’s
THINGS LIKE THAT ARE SLOW Amazon, Google, “three guys in a garage in Palo
the entire system, which includes the providers.
Alto,” or a partnership like CVS and Aetna.
AND ITERATIVE. THERE IS If the general principle of a new idea means
Disruption could also come from “a health care
agreeing to take a pay cut, everyone is less
NOTHING DISRUPTIVE system or two not so completely addicted to
willing to do that.”
fee-for-service care that they can’t know change
ABOUT THEM.”
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Unlocking the Opportunities for Health Care Delivery Transformation 3
“UNTIL WE SHOW
state of care and push harder to get away
from fee-for-service and other constricting
parameters, says Zane.
32%
CONSUMERS WHAT
Joanne Roberts, Senior Vice President and Chief
EXCELLENCE LOOKS LIKE,
Value Officer at Providence St. Joseph Health,
THEY WON’T KNOW. ONCE headquartered in Renton, Washington, agrees that
THEY SEE IT, I BELIEVE THEY real change in health care will require more
aggressive moves than the shift to value-based
WILL GO FOR IT.” One of the involved parties does not
care has required thus far. “I just think the system is One of the involved parties does not
have strong incentive to proceed
still so unwieldy and difficult to use. Patients aren’t
shopping around, they are just filling themselves
have strong incentive to proceed
with dread about having to go through the health
care system. Until we show consumers what
excellence looks like, they won’t know. Once they
see it, I believe they will go for it,” she says.
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Unlocking the Opportunities for Health Care Delivery Transformation 4
IN THE PAST, DATA WOULD BE Offering transparency into quality, patient regional, local, unit, or provider-based, is presented in a
satisfaction scores, and other measures has the non-blinded fashion so that the organization can be
USED TO REPRIMAND LOW-
potential to overturn health care delivery because constantly learning. In the past, data would be used to
PERFORMING HOSPITALS, BUT patients will demand value, or so the hypothesis reprimand low-performing hospitals, but then leaders
THEN LEADERS “FLIPPED THE goes. In practice, transparency has yet to drive “flipped the culture,” she says, and now, low-performing
wholesale change. The top two barriers to successful hospitals are paired with higher-performing hospitals
CULTURE,” AND NOW, LOW- implementation of transparency in organizations, to increase learning.
PERFORMING HOSPITALS according to our survey on the topic, are data
54%
seem to want detailed information on quality and
JOANNE ROBERTS (collecting, risk-adjusting,
cost, even though they are on the whole paying a
disseminating)
larger share of health care bills.
Lack of buy-in
For instance, the health system collects data, under
the rubric called “Value-Oriented Architecture,”
which reveals variation of quality against costs at
48% amongproviders
on transparency’s
importance
a granular level and shares it across “all strategic
domains,” Roberts says. All data, whether system,
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Unlocking the Opportunities for Health Care Delivery Transformation 5
Effecting behavior change through analytics is not an realize he was towering over the patient in an
easy task, according to Frederick Southwick, MD, intimidating manner. Since then, he has made a
Professor of Medicine at the University of Florida conscious effort to be eye level with patients. The
College of Medicine in Gainesville. Analytics are usually experience led him to believe that all medical staff,
neither granular enough nor turned around fast including seasoned physicians, could use a coach to
enough to resonate with physicians. “Feedback is very review and then help improve their performance.
helpful, but I think a lot of it needs to be more Although he has received pushback from some staff,
qualitative and less quantitative,” he says. Traditional Southwick is intent on making coaching commonplace
FREDERICK SOUTHWICK, MD scoring systems like Press Ganey take weeks to make within the organization.
Professor of Medicine at the their way back to medical staff. “How can you change
University of Florida College of your behavior if you don’t remember what happened?”
Medicine, Gainesville
Delays in feedback also have an impact on patients
because when feedback is requested at the time of
ANALYTICS ARE USUALLY
their stay, “it is diametrically opposed to the feedback
NEITHER GRANULAR ENOUGH survey results.”
NOR TURNED AROUND FAST
ENOUGH TO RESONATE WITH To ensure that patient feedback is taken
seriously, the medical staff Southwick leads
PHYSICIANS. does end-of-round check-ins where everyone
on the care team reviews what they observed.
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Unlocking the Opportunities for Health Care Delivery Transformation 6
BEATA SKUDLARSKA, MD Transforming data collection and analytics usage is As an example, when he assumed the administrative
Executive Medical Director for going to take a complete redesign of feedback duties of the diabetes center, he integrated a
Palliative, Geriatric and Hospice solicitation, according to Beata Skudlarska, MD, psychologist into his subspecialty endocrinology practice
Care at Atrium Health, Charlotte Executive Medical Director for Palliative, Geriatric and to overcome behavioral health barriers to successful
Hospice Care at Atrium Health in Charlotte, North diabetes management. “For years, people would come in
“WE HAVE TO STOP ASKING Carolina. Data collection today tends to be disease- to the practice with poorly controlled diabetes that
specific, focusing on a population’s hemoglobin A1c seemed to result from mental health problems, like
HOW WE’RE DOING AND ASK
numbers or vaccination rates, for example, but she depression and stress. It was embarrassing for me to
HOW PATIENTS ARE DOING?” contends that’s not what patients are after. “Patients report back to their primary care physicians that our skills
want to know about their functional status, but we as endocrinologists were inadequate to improve their
don’t yet have a good grasp of that,” she says. patients’ blood glucoses. We started the conversation
about integrating behavioral health services multiple
Until feedback scoring systems such as Press times but had no measurements to quantify the
Ganey and Leapfrog become patient-centric contribution of behavioral health disorders to diabetes
instead of taking the point of view of the control and to justify the integration,” he says.
health system, hospital, and provider, invoking
change will be difficult, she says. “We have to In partnership with the MaineHealth Clinical
stop asking how we’re doing and ask how Integration Program, his practice contracted
patients are doing?” with Maine Behavioral Health to bring on the
part-time expertise of a psychologist who can
“Data and analytics is where I would actually like to bill for consultations separately. Since then,
see more resources, and where I find frustration,” Brodsky has noticed a positive effect,
says Irwin Brodsky, MD, MPH, Medical Director for anecdotally, although he’d like to have
Diabetes at Maine Medical Center in Portland. He analytics to back up that assessment.
credits his health system, MaineHealth, for being
“forward-thinking,” but would like to see greater Even though MaineHealth is an accountable care
investment in data and analytics to fully assess the organization and receives merit-based incentive
value of certain clinical programs. payments, “our minds are still in fee-for-service because
that’s how we get paid,” Brodsky says. “We’re trying to
innovate but it’s difficult to switch over.”
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Unlocking the Opportunities for Health Care Delivery Transformation 7
“
Integrated care will definitely require transformation at some health What do you consider the top two most
systems. Integration of mental and behavioral health services has
What do you consider the top two
pressing
most pressingbarriers related
barriers to to
related delivery
deliveryof
posed a significant challenge to primary care. Roberts says she’s
looked at many integration models and has yet to see one that works ofmental
mental and
and behavioral healthservices
behavioral health services
Our survey on mental and behavioral health integration finds that the
most pressing barriers to integrating these services into care delivery
are absent or inadequate insurance coverage (34%), fragmentation of AbsentAbsentor
orinadequate
inadequate Fragmentation
Fragmentation
care (33%), and lack of access to specialty care (32%). coverage
insurance coverage of care
of care
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Unlocking the Opportunities for Health Care Delivery Transformation 8
FOR INTEGRATED CARE TO BE David Grace, MD, Chief of Internal Medicine at turnover, rapid access, and long-term panels all at once,
Atrius Health’s PMG Physician Associates in will refer patients to other independent practices in the
SUCCESSFUL, THE INDUSTRY
Plymouth, Massachusetts, says his practice is community, but, according to Grace, they don’t get the
NEEDS TO MOVE TO MORE fortunate to have good access for urgent same kind of quality and access. “We need urgent and
VALUE-BASED CARE, GRACE psychiatric needs, but follow-up care for long- long-term care going forward,” he says.
term psychiatric needs is still lacking.
SAYS. “RIGHT NOW, IT’S A The Swedish health services experience is similar.
Urgent consultations are handled by a hospital-
VERY SCHIZOPHRENIC
based outpatient psychiatry practice, which “has “We pick up initial intake, triage, a few visits,”
ENVIRONMENT. made itself very accessible for primary care Dale says, “but then how to navigate to longer-term
health,” he says. “Where it breaks down is when behavioral health, the handoff, the scope of services,
DAVID GRACE, MD
the patient needs chronic care.” Oftentimes, the requires more thoughtfulness.”
psychiatric practice, which can’t deliver rapid
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Unlocking the Opportunities for Health Care Delivery Transformation 9
Grace believes the industry-wide move away from He would like physicians to be rewarded instead on
primary care toward specialty medicine over the quality, outcomes, and keeping medical expenses
years has created fragmentation and contributed to under control.
the increase in the cost of care. “We’ve tried as an
industry to develop a team approach, but we’ve One disruptive approach to improving health
actually become more siloed in care delivery with care would be to redesign care delivery
specialists upon specialists,” he says. so that patients can receive care without
actually entering a health system’s facility,
Roberts agrees. “It’s redesigning primary care to be a according to Dale.
primary care rather than a referral service. We want
DAVID GRACE, MD
people to not have to use hospitals. We haven’t been “We haven’t offered people the dominant solution
Chief of Internal Medicine at
completely explicit in that message and we need to yet – the better thing for less cost,” he says.
Atrius Health’s PMG Physician
be,” she says. “Consumers and health systems want the best
Associates, Plymouth, MA
overall health with the least amount of burden.”
“WE’VE TRIED AS AN Grace would like to see a restructuring within
primary care as well, where the physician
INDUSTRY TO DEVELOP A
leads the team at the top of his/her licensure.
TEAM APPROACH, BUT WE’VE “Doctors should see the complicated patients,
and a physician’s assistant or nurse
ACTUALLY BECOME MORE
practitioner can see the not-so-complicated
SILOED IN CARE DELIVERY patients,” he says.
WITH SPECIALISTS UPON
For integrated care to be successful, the industry
SPECIALISTS.”
needs to move to more value-based care, Grace says.
“Right now, it’s a very schizophrenic environment. We
have a capitated system where revenue is prepaid and
based on quality measures; and a system based on
productivity, so we get paid for patients we see.”
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Unlocking the Opportunities for Health Care Delivery Transformation 10
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Unlocking the Opportunities for Health Care Delivery Transformation 11
“A LOT OF THESE PARTS OF What are the top three barriers to applying design thinking to health care problems?
KU ynamreG anihC adanaC a aeroK htuoS Australia ailartsuA South Korea a Canada China Germany aUK Australia South Korea Canada China Germany UK
More robust technology will help eliminate the middle steps (according to 95% of respondents) but faces obstacles in
that can make health care seem complex, Skudlarska says. respondents’ organizations due to limited buy-in from
decision-makers (52%), limited understanding of design
Much like the travel industry enables consumers to (47%), and insufficient training in design (32%).
directly book their travel, she expects to see more
Digital innovation is just one driver of change at
health systems encouraging patients to schedule
Providence St. Joseph Health. “We plan to go from a
appointments and procedures through a portal or
hospital-based system of 51 hospitals to hospitals being
mobile app, reducing the need for dedicated schedulers.
just one-sixth of our business units by 2022,” Roberts says.
“A lot of these parts of medicine can be done without Community partnerships, digital access,
human interaction,” she says, which would free up behavioral health prevention (including behavior
resources for medical personnel who can work to the change management), and wellness will be at
top of their licensure. the forefront of the redesigned system.
Over the next few years, Roberts says Providence St. Joseph “Our new intention is what happens outside of the
Health expects to concentrate more on digital innovation hospitals,” she says. “The idea is to find the resources
and new models of care, all driven by design thinking with before or at the emergency room door and put a whole
heavy input from patients. Design thinking, as our survey lot of energy there.”
on this topic shows, has great applicability to health care
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Unlocking the Opportunities for Health Care Delivery Transformation 12
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Unlocking the Opportunities for Health Care Delivery Transformation 13
Community-Driven Change
“
Jonnathan Busko, MD, MPH, FACEP, Emergency What are the top two biggest barriers to
Department Medical Director at St. Joseph Hospital in What are the top two biggest barriers to
providing excellent care in rural settings?
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Unlocking the Opportunities for Health Care Delivery Transformation 14
“IF PAYERS ARE SPECIFYING Busko finds that many people living in rural areas Payers have to unshackle providers and health
will travel to a larger town for primary care visits, care systems so they can innovate, Busko says.
BOTH OUTCOMES AND
often scheduling multiple appointments and Recently, he was exposed to a bat and needed a
PROCESS – OR OTHERWISE other errands at once, but are looking for access series of rabies vaccines. While the vaccinations
THEY WON’T PAY FOR IT – to urgent and emergency care in their own cost only $700, the insurer required the shots to
communities. These patients are pushing back on be administered in an urgent care or emergency
THEN THERE REALLY CAN’T health systems to invest more heavily in the department, increasing the total cost to more
BE INNOVATION.” types of services they need, he says. than $5,000. “I could have had a home health
nurse come to my house for $150 and give me the
JONNATHAN BUSKO, MD, MPH, FACEP
shots,” he says. “If payers are specifying both
For instance, one rural community in
outcomes and process – or otherwise they won’t
northern Maine is evaluating the disruptive
pay for it – then there really can’t be innovation.”
move of having specially trained Community
Care Paramedic Practitioners perform some
aspects of urgent care under the remote
oversight of a physician, including wound
management and administering certain
medications beyond routine Emergency
Medical Services care.
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Unlocking the Opportunities for Health Care Delivery Transformation 15
The local community also is instrumental in What are the top three biggest challenges
“
promoting behavior change and understanding
in scaling social network tools for health
social determinants of health, Brodsky says. What are the top three biggest challenges
cin
are delivery?
scaling social network tools for health
IRWIN BRODSKY, MD, MPH
MaineHealth’s evidence-based program
Let’s Go! was created to battle and
care delivery?
”
@
Medical Director for Diabetes at prevent childhood obesity.
Maine Medical Center, Portland, ME
ORGANIZATION WILL HELP sustaining weight loss (39%) are the two biggest
barriers to getting patients into treatment. And although she finds health care to be far behind in patient-
DETERMINE WHAT STEPS ARE facing technology, she optimistically says, “the sky’s the limit”
Skudlarska, who treats patients diagnosed with
POSSIBLE NOW AND DOWN in putting devices and apps to good use going forward.
dementia or impaired memory loss, is hoping for
THE ROAD. innovation in social networks. For her part, she Understanding the barriers and opportunities within your
leads group visits where patients, families, and own organization will help determine what steps are
RICHARD ZANE, MD other caregivers engage in collective discussions possible now and down the road. “Unequivocally, we will
and share resources such as patient care. end up with a fundamentally transformed health care
system,” Zane says. “The time frame could be six months
or 60 months, but it’s going to happen.”
What are the top two biggest barriers in engaging patients in treatment for obesity?
39% 39%
Lack of patient perception of obesity Difficulty sustaining weight loss
as a problem/health issues
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We’d like to acknowledge the members of the NEJM Catalyst Insights Council. It is through
their voice and commitment to the transformation of health care delivery that we are able
to provide actionable data that convene a collaborative dialogue about moving the
industry forward in a positive direction. Insights Council members participate in monthly
surveys and the results are published as NEJM Catalyst Insights Reports, including
summary findings, expert analysis, and commentary from NEJM Catalyst leaders.
NEJM Catalyst brings health care executives, clinical leaders, and clinicians together to share
innovative ideas and practical applications for enhancing the value of health care delivery.
From a network of top thought leaders, experts, and advisors, our digital publication,
quarterly events, and qualified Insights Council provide real-life examples and actionable
solutions to help organizations address urgent challenges affecting health care.
catalyst.nejm.org