© HTS3 2015 | Page 1

Building Leaders – Transforming Hospitals – Improving Care

Building Skills for a Lean Culture in

Healthcare – Part 1

© HTS3 2015 | Page 2

Faith M Jones, MSN, RN, NEA-BC

Director of Care Coordination and Lean Consulting

Faith Jones began her healthcare career in the US Navy over 30 years ago. She has worked in a variety of roles in clinical practice, education, management, administration, consulting, and healthcare compliance. Her knowledge and experience spans various settings including ambulance, clinics, hospitals, home care,

and long term care. In her leadership roles she has been responsible for operational leadership for all clinical functions including multiple nursing specialties, pharmacy, laboratory, imaging, nutrition, therapies, as well as administrative functions related to quality management, case management, medical staff credentialing, staff education, and corporate compliance.

Sara Stanton Vice President, Business Development

Sara Stanton is responsible for marketing and business growth for both new and existing clients. She is a business development leader with over 15 years of experience in healthcare strategy, consulting, data analytics, and patient communications. Sara has worked with large provider organizations, community hospitals, regional health systems, national ASCs and specialty providers, and the largest IDN’s in the nation. This experience and exposure has given her a broad understanding of the American healthcare market and the initiatives, challenges, and mandates that hospital executives are facing. Stanton earned a BA in

Communication Studies from Baylor University.

© HTS3 2015 | Page 3

45 Years of Delivering Superior Results

Strategy – Solutions – Support

© HTS3 2015 | Page 4

• Turnaround

Strategy

• Financial

• Operations

• Corporate

Compliance

• Board

Development

•Regulatory Compliance and Accreditation Preparation

• Lean Process Improvement

•CHNA

• Gaffey Revenue Cycle Management

• CrossTX Population Health Platform

• Optimum Productivity

• Execuitve Recruiting

• Interim Executive Placements

• Mid-level and Specialty Placements

Formerly known as Brim

Healthcare we have a

45 year track record of

delivering superior

clinical & operating

results for our clients.

We believe that the combination of People, Process & Technology transforms healthcare & provides the required

results

Our Company

Our Executive Team

has experience in

managing hospitals

from multi-billion $

healthcare systems to

community hospitals

Our Team Our Mission

Management Placement Consulting Technology

Strategy – Solutions – Support

© HTS3 2015 | Page 5

Opex Categories

%

Revenue Cumulative

Salaries and Wages 41%

Fringe Benefits 10%

Contract Labor 2%

Total Labor Expense 53% 53%

Supply Expense 14% 67%

Purchased Services 9% 76%

Physicians Fees 4% 80%

* Data from HealthTechS3 Comparative Financial Benchmark Database

80% of Hospital Operating Expenses Fall into 4 Categories

Executive Search

Productivity

Management

Software

Benchmarking

Lean Projects

GPO Services

Cost Benchmarking

Lean SC Consulting

GPO Services

PPM Consulting

Physician Comp

Consulting

Increasing Efficiency/Reducing Waste Our Mission

Management Placement Consulting Technology

© HTS3 2015 | Page 6

HealthTechS3 is a trusted partner our hospitals. We are fair, honest, professional, and provide ongoing support. Integrity

HealthTechS3 has been around for 45 years and successfully navigated many hospitals through an ever changing healthcare market. Longevity

HealthTechS3 knows how to work with community hospitals and health systems to best leverage their assets and resources to serve their market and maintain independence.

Market

HealthTechS3 is flexible and affordable relative to many large national consulting firms who focus on strategic work and ideas rather than implementation and impact.

Value

HealthTechS3 is an award winning healthcare services company. We are a renowned management company with award winning hospitals, health systems and physician practices with CEOs of long tenure.

Performance

HealthTechS3 only has consultants with deep experience; Consultants are

former hospital leaders and executives, clinical resources are best in the industry.

Expertise

Who we are and what drives us?

© HTS3 2015 | Page 7

• HealthTechS3 – currently provides hospital management,

consulting, turnaround, supply chain management, and

professional and physician recruitment services to:

– More than 50 hospitals and health systems

nationwide

– Community hospitals, Critical Access hospitals,

district hospitals, non-profit hospitals

– Most operate physician clinics

– Net Revenue between $20M and $400M

– Business Partner Illinois Critical Access Hospital

Network (ICAHN)

– Preferred vendor with California Critical Access

Hospital Network and Texas Organization of

Rural and Community Hospitals

A Nationwide Client Base Management

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January 2015 Becker’s 50 Rural CEOs to Know • Nicole Clapp, Grant Regional Health Center

• John Gallagher, Sunnyside Community Hospital

• Chandler Ralph, Adirondack Health

• Phil Stuart, Tomah Memorial Hospital

April 2015 HealthStrong Top 100 Hospitals (iVantage Health Analytics)

• Barrett Hospital & Healthcare

• Carlinville Area Hospital

• Grant Regional Health Center

• Hammond-Henry Hospital

• Hillsboro Area Hospital

• Tomah Memorial Hospital

May 2015 Becker’s Top Hospitals for Physician Communication (scored 92% or higher) • Spooner Health System – score 94%

• Tri Valley Health System – score 93%

• Grant Regional Health Center - score 92%

June 2015 Becker’s 100 Great Community Hospitals • Adirondack Health

• Grant Regional Health Center

• Hammond-Henry Hospital

June 2015 Top 100 Critical Access Hospitals (iVantage Health Analytics)

• Barrett Hospital & Healthcare

• Hillsboro Area Hospital

• Tomah Memorial Hospital

July 2015 Most Wired Hospitals – Small & Rural (published H&HN magazine)

• Hammond-Henry Hospital

• Sunnyside Community Hospital

September 2015 Becker’s 50 CAH CEOs to Know • Nicole Clapp, Grant Regional Health Center

• Florence Spyrow, Hammond-Henry Hospital

• Ken Westman, Barrett Memorial Hospital

Client Recognition and Awards Management

© HTS3 2015 | Page 9

Strategy

Growth Strategy Market Positioning

Network Collaboration and Development

Physician Relations and Integration

Turnaround Strategy Financial and Operational

Restructuring

Risk Advisory

Creditor Consultancy

Transaction Advisory Merger Integration

Deal Structuring

Contract Analysis and Negotiations

ACO Transition Analysis

Payment Strategy Transitions

Financial Modeling

Capital Sourcing

Operations

Financial Budgeting/Financial

Planning

Capital Programs

Supply Chain

Labor Productivity

Managed Care Negotiations

Risk Advisory

Revenue Cycle

Business Office Consolidation

Clinical Documentation and Coding Reviews

Operations Lean Workflow Analysis and

Redesign

Patient Access, Throughput, Level of Care

Corporate Compliance

Clinical & Quality

Quality Improvement Quality Program Development

Clinical Process Redesign

Care and case Management Process

Benchmarking and Reporting

Regulatory Compliance and Accreditation Preparation

Survey Readiness

Plans of Correction

Public Reporting of Quality and safety Indicators

Evidence Bases care

Population Health Management

Care Coordination

Transitional Care Management

Governance &

Leadership

Board Advisory Education

Retreats

Hospital Governance Management

Licensing Advisory Services

Regulatory Strategy Development

Annual Report Preparation

Expert Led Solutions Consulting

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Developing a Lean Culture

“I can't overstate the value [lean] is providing. It not only benefits our staff

that has developed professionally, but also community members…the class

is focused on improving the Triple Aim for our patients.”

LEAN INSTRUCTOR NETWORK: 1

HOSPITAL FACILITIES: 13

ON-SITE INSTRUCTORS: 25 LEAN COURSES: 28

PARTICIPANTS/PROJECTS: 291

In 20 Months…

Projected Annualized Lean

Project Savings:

$7.6 MILLION

Reduced Process Variation

& Non Value Added Tasks =

Happier workers

Happier patients

Increased capacity for work

Lower operating costs

Consulting

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Finding The Right Leader

Peter Goodspeed leads our Executive Placement Services group.

With over 30 years experience Peter understands the unique

challenges of today’s hospitals. Whether finding a candidate for a

rural hospital or searching for a multi-hospital system, we focus on

your desired qualifications and specific needs. Services include:

Interim

Permanent

Executive Search Process

45 Years of Excellence

• HTS3 has been recruiting Senior

Executives for over 45 Years

• Our extensive understanding of

hospitals & healthcare helps us

find the right candidates for you.

Placement

Management Placement Consulting Technology

© HTS3 2015 | Page 12

33% Productivity Improvement

Proprietary billing & collections management platform

Total AR Mgmt. & Transparency

Complete Business

Intelligence and AR Management

Proven & Trusted Technology ■ 200+ Hospitals & Health Systems

■ 37 States

■ $ 14 Billion in Revenue Collected

■ 26 Years of Innovation

Industry Expertise ■ Leadership - RCM experts

■ Run our own CBO

■ We use all of our technology

■ Continually innovating

Predictable ROI

■ 1-4% Increase in NPR

■ 33% better productivity

■ 85%+ clean clams rate

■ 20% cost reduction

Unmatched Service ■ Active monitoring efficiency

■ Reduces cost of ownership

■ Improves your productivity

■ Creates Innovation Loop

Best

Technology

=

Best Results

Revenue Cycle - GAFFEY

www.GAFFEYHealth.com

Technology

© HTS3 2015 | Page 13

Technology Solutions that Target Key Areas of Pain

Revenue Attrition / Automation & Efficiency / Closed Loop Learning

Increase in Clean &

Complete Claims

Claims Management

Lack of Collection

Automation

AutoStatus

Poor Workflow &

Task Efficiency

AlphaCollector

Under Payment &

Revenue Integrity

Contract Calculator

Correct Patient

Information

Integrated Eligibility

Integrated Reporting

&

Process Insight

AlphaAnalytics

Revenue Cycle - GAFFEY Technology

© HTS3 2015 | Page 14

The Complete Solution.

The Optimum Productivity Enhancer program

provides you with the tools and support

services necessary to ensure your success in

addressing today’s productivity challenges.

For over 40 years, our experienced

Consulting Staff have been assisting hospitals

in developing sustainable financial

improvement solutions.

Optimize Productivity

Performance.

HealthTechS3 provides your managers,

supervisors and C-suite the

confirmation needed to accurately

calculate workload staffing and

appropriately adjust staffing on a

timely basis.

Productivity– Optimum Technology

© HTS3 2015 | Page 15

HealthTechS3 is a partner with CrossTX to bring a cloud based Care

Coordination Platform, Community Connect, to both independent and

affiliated physician groups.

This platform equips providers and care coordinators to plan, coordinate, track,

and document all care giver relationships and episodes of care according to

the CMS reimbursement requirements.

Community Connect Platform

Population Health : CrossTX Technology

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The estimated average approximate reimbursement is $42.60* per patient per month, which amounts to over $500 per year that your primary care providers are eligible to be

paid. With an average patient panel size of 3,2791 this can add substantial revenue to

your organization’s bottom line.

Patient Panel Size1 3,279

% of Panel on Medicare1 21.85%

Medicare Patients 716

% of Medicare patients CCM Eligible2 68.6%

Number of CCM Eligible Patients 491

Annual Billing for CCM Patient $511.20

Annual CCM Revenue Potential $250,999

Population Health : CrossTX Technology

Community Connect Platform

© HTS3 2015 | Page 17

Building Leaders – Transforming Hospitals – Improving Care

Building Skills for a Lean Culture in

Healthcare – Part 1

© HTS3 2015 | Page 18

The Right Tools for the Job

• Welcome

• 3 part series on building skills for a Lean Culture in Healthcare – Culture and Engagement - Today

– Power of Observation – February 9th

– The Patient Perspective – March 8th

© HTS3 2015 | Page 19

The BHIS (Better Health Improvement Specialist)

Background of a Lean Culture

http://www.healthtechs3.com/category/past-webinars/

© HTS3 2015 | Page 20

Agenda

• Definition of Culture

• Describing a Culture

• Culture Change

• Self Assessments

• Engagement

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Culture

What is it?

According to Merriam-Webster

Dictionary (2015), culture is defined as

“a way of thinking, behaving, or

working that exists in a place or

organization”

© HTS3 2015 | Page 22

Deeply understanding how work

currently happens is essential

before trying to fix it!

A Basic Tenet of Lean

22

© HTS3 2015 | Page 23

Lean: Simple Formula

Liberate the people who do the work to use

a proven method to look at what they do

with “new eyes” to identify elements of the

work that permit:

• Errors and delay in care/service

• Waste of resources

• Frustration in the workplace

© HTS3 2015 | Page 24

Instinct or Genius?

Quality Improvement is Everyone’s Job

• Assumption or Expectation?

• Communicated Clearly?

• Quality Improvement Education is Provided?

• Identified Process, Common Language, Tool?

© HTS3 2015 | Page 25

Describing Culture

• Culture is about people

• Values, Ideas, Ideals

• Behaviors

– Leadership

– Staff

• Impressions

© HTS3 2015 | Page 26

Describing Culture

• Do you have value statement?

• Behavioral expectation?

– Leadership

– Staff

• Impressions

– Yours?

– Others?

© HTS3 2015 | Page 27

Validation of the Culture

• Allows and expects every worker to

participate in improvement, in the

normal course of work

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Validation of the Culture

• Insures truth in understanding

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Validation of the Culture

• Captures potential flaws in

improvement

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Validation of the Culture

• Aligns culture and strategy

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Validation of the Culture

• Breeds mutual respect

• Make every effort to understand each other,

take responsibility and do the best to build

mutual trust

• Stimulate personal and professional growth, share development opportunities, and maximize individual and team performance

© HTS3 2015 | Page 32

Validation of the Culture

• Builds relationships

© HTS3 2015 | Page 33

Validation of the Culture

• Checks safety

© HTS3 2015 | Page 34

The BHIS (Better Health Improvement Specialist)

Culture Change

http://www.reply-mc.com/people/peter-drucker/

© HTS3 2015 | Page 35

The BHIS (Better Health Improvement Specialist)

Assessment

Disagree Somewhat Disagree

Somewhat Agree

Agree

© HTS3 2015 | Page 36

The BHIS (Better Health Improvement Specialist)

Engagement

Disagree Somewhat Disagree

Somewhat Agree

Agree

© HTS3 2015 | Page 37

Does Your Culture:

• Allow every worker to participate in the

improvement, in the course of normal

work

• Insure truth in understanding

• Capture potential flaws in improvement

• Align culture and strategy

• Breed mutual respect

• Build relationships

• Check for safety

© HTS3 2015 | Page 38

Understanding Your Culture

© HTS3 2015 | Page 39

Moving Forward

© HTS3 2015 | Page 40

Faith M Jones, MSN, RN, NEA-BC Director of Care Coordination & Lean Consulting Contact info:

Faith.Jones@HealthTechS3.com

cell-307.272.2207

Next Steps

1.Questions

2.Recording of Presentation may be

accessed and shared with your team

3.Join me next month when we discuss The Power of Observation

4.Contact me if you would like assistance

on your Lean Culture Journey