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MAKING THE BUSINESS CASE FOR ASP:TAKING IT TO THE C-SUITE
Gary R Kravitz MD FACP FIDSA FSHEASt. Paul Infectious Disease AssociatesHospital Epidemiologist/ Director ASP United Hospital, St. Paul, MN
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Disclosure StatementNothing to Disclose
Except: Lots of help from my friends:Patrick J Brennan MD Professor of Med and CMO
University of Pennsylvania Hospital. Stanley Deresinski MD Clinical Professor of
Medicine, Stanford UniversityGNYHA Antibiotic Stewardship Toolkit Appendix N
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Definition of 'C-Suite'
C-Suite gets its name because top senior executives' titles all start with the letter C for chief, i.e. CEO, COO, and CMO, etc.
Term not used in many parts of the country
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Actual “C-Suite”
Vice President, Quality and Effectiveness
Chief of the Medical StaffDirector, Quality ImprovementVice President, Patient Care Services
& Chief Nursing Officer
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Why is the Business Case for Antibiotic Stewardship Important to the C-Suite?
Hospital margins are thin Future: do things better, but with less money If hospitals are to thrive, they will need to:
Improve quality, while becoming More cost-effective … While growing revenue (new services, volume)
C-suite also knows that … It is easier to calculate the cost of running the ASP than the savings that may result
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“I am going to cut your costs”, or “I will increase your revenue”
What does Hospital Administration want to hear from you?
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“I will cut your costs and increase your revenue”
But … Is there robust evidence that ASPs save enough money in direct costs to pay for themselves?
Do they mitigate the development of HAIs? MDRO’s? Will that save money?
Could ASPs somehow increase hospital revenue?
What the CEO really wants to hear is:
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Fewer cases of C difficile and MDROs can result in:↑ Reputation of hospitalMore satisfied patients who will return if they
need Free up beds for new admissionsHappier physicians who want to work thereVBP/P4P in the near future - hospitals that
perform better will get paid more
potential positive effects of ASP on hospital revenue:
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C-Suite is well aware of the problem of HAIs
“99,000 Die Yearly From Preventable Hospital Infections”
“Hospital-Acquired Infection Rates Go Public”
“Study reveals Clostridium difficile spreads differently than hospitals thought”
“Hospital-Acquired Superbugs on the Rise”
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The Economic Imperative of Hospital-Acquired Infections is Compelling
Patients without hospital-acquired infection (HAI): Mortality = 2.0% Length of stay = 4.7 days Average Charge = $37,943
Patients with (HAI): Mortality = 12.2% Length of stay = 19.7 days Average Charge = $191,872
Pennsylvania Health Care Cost Containment Council
January 2009
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HAI problem is compounded by MDROs:Incidence of MDROs is Growing
Drug -Resistant infections prolong length of hospital stay by 24% and increase costs by 29% vs. susceptible infections (Maudlin et al. Antimicrobial Agents and Chemotherapy
(2010) 54:109-115.)
In the U.S. antibiotic resistance adds 8 million additional hospital days per year.(Roberts et al. Clinical Infectious Diseases (2009) 49:1175-
84; & PRN Newswire ―Antibiotic-Resistant Infections Cost the U.S.)
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The Costs of Resistance
Roberts RR et al CID 2009; 49:1175-84. Hospital and Societal Costs of Antibiotic-Resistant Infections: Implications for Antibiotic Stewardship
• $ 18,588 - $29, 069/ patient (188 patients studied)
Medical costs attributable to ARI
• 6.4 – 12.7 daysExcess LOS
• 6.5%Attributable mortality
• $10.7 – $ 15 billion/ year Societal Costs
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Why target antimicrobials?
30% of hospitalized patients at any given time receive antimicrobials
1/3 – 1/2 are inappropriate or unnecessary Leads to
Antibiotic Resistance Increased morbidity/mortality Collateral damage, e.g., C. difficile Increased costs
“Antimicrobial use is the key driver of resistance. This selective pressure comes from a combination of overuse… and also from misuse.”
-WHO Global Strategy for Containment of Antimicrobial Resistance, 2000.
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How ABX affect Patients and Populations
IncreaseABX use
IncreaseResistance
IneffectiveTherapy
Increase LOS & ABX
use
IncreaseUse of
Resources
Limited Txoptions
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Dwindling Antibiotic Pipeline
0
2
4
6
8
10
12
14
16
18
83-87 88-92 93-97 98-02 03-'07 08-12
New Antibiotic Agents Approved
New Drugs
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Increase in MDROs Demands a Response: that response is … Antibiotic Stewardship
Regulatory bodies JCAHO CDC MDH
Professional Guidelines IDSA SHEA
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Antimicrobial Stewardship
A multidisciplinary approach to optimizing antimicrobial use through appropriate selection, dosing, and duration while minimizing unintended consequences.
Correct agent Cure/Prevent Infection
Right Dose Minimize Toxicity
Right Duration Prevent Resistance
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Antimicrobial Stewardship - Goals
Optimize patient clinical outcomes Minimize unintended consequences
1. Toxicity2. Selection of pathogenic organisms (e.g. C.
difficile)3. Emergence of resistant organisms
Other Aspects1. Reduce health care costs
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Intervention Types
Prospective audit with intervention & feedback
Restrictive formularies Streamlining De-escalation Dose optimization
IV PO switch Guideline pathways Combination therapy Targeting high cost/
broad-spectrum drugs Education Antibiotic cycling
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Antibiotic Stewardship Effectiveness?
Cochrane review – 81% reported decreased antibiotic use (60 programs)
Reduction in ABX usage, 22-36% Savings range from $200,000 - $900,000
(depends of size of hospital/ service lines) Another review (Patel et al.): 36 studies
Cost: 27/29 studies showed a cost reduction, average 25%
Efficacy: 22 studies with pos. effects on resistanceCochrane Database Syst Rev. 2005(4):CD003543, Patel D et al. Expert Review of Anti-Infective Therapy 2008; 6:209 – 22.
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Antibiotic Stewardship Effectiveness in Smaller Hospitals?
Several smaller hospitals with limited staff and resources have instituted cost-effective programs
LaRocco S. Clin Infect Dis 2003;37:742-3 www.cdc.gov/getsmart/.../stories.html
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Effectiveness: ASP vs. phone approval of restricted antibiotics by ID fellows
Outcome Measure
ID Fellow ASP
Appropriateness of Recommendation
47% 87%
Clinical Cure Rate 42% 64%
Treatment Failure Rate
28% 15%
Univ. of Penn HospitalGross R, Morgan AS, Kinky DE, Fishman NO et al. Clin Infect Dis. 2001;33:289‐295.
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Implementing Antimicrobial Stewardship: the third step of the IP pyramid
Environmental Services + Infection prevention Efforts + Antimicrobial Stewardship Program
Despite the benefits of ASPs, an APIC survey found that fewer than 50% of hospitals surveyed have one
It should be a focus for every hospital.
AntimicrobialStewardship
Infection Prevention
Environmental Services
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Getting traction with the C-Suite
Keys to Success in Negotiating: It is all about relationships
Good relationships are based on trust
Trust has to do with credibility
Are you this kind of ballplayer?
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What is the CEO looking for in your proposal?
Is it consistent with the hospital’s strategy? What is the evidence for the proposal? How does it compete with other strategies?
Why should I burn my budget capital on this idea?
How will we measure success? Outcomes Patient Safety Goals Satisfaction Efficiency
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ASP Proposal/BudgetMust be Scalable to reflect ….
Size of hospital (# of beds) Case-mix index/ service lines Availability of ID physicians/ ID PharmD
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Stewardship Program Options
There is no one way toimplement ASP.
It can be tailored to an organization’s needs and can be implemented at a system-wide or unit-by-unit level. Options include: Formulary restrictions and
preauthorization; Selective reduction of targeted
agents; Earlier discontinuation; Prospective audit, intervention;
and feedback.
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The Stanford ASP Resources
Member ResponsibilitiesID Physician (0.5 FTE) • Physician champion
• Coordinate program• Leads educational/academic detailing• Report to hospital administration
ID trained pharmacist (2 FTE) • Coordinate day-to-day activities• Daily prospective audits with
interventions and feedback• Provide in-services
ID Fellow (0.25 FTE) • Work with ID pharmacist on a daily basis
• Curbside consults
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Summary of Costs at Stanford:(antibiotic budget at $4.4 million/ year)
Component CostsID Physician (0.5 FTE) $130,000*
ID trained pharmacist (2 FTE) $360,000*
ID Fellow (0.25 FTE) $22,000*
Data analyst • $102,000 annually• $15,000 server hardware (one-time)• $12,000 setup costs (one-time)
Total Annual Cost (Year 1) $641,000
* Includes Benefits (30%)
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Summary of Costs: United Hospital(antibiotic budget $950,000/year)
Component CostsID Physician 70,000
Unit-based pharmacists 0
Data analyst 5,000
Total Annual Cost 75,000
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Building your business case:try keeping it simple
Will your program be self-supporting?How much can you estimate an effective ASP can save
through easily measured cost savings?Answer: conservative estimated savings:
20% savings in antibiotic costs 20% decline in hospital-acquired C difficile costs Totals to about $400,000/year for a 300 bed hospital
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Next step: Make a written proposal
Make the business case: Cite savings reported by similar hospitals or Results of a pilot study on a high use unit at your
hospital
Delineate the mechanics of ASP Delineate the time estimates needed to do
the job Time spent on AST rounds Time spent on staff/program development
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Delineate how the ASP will operate
Who? Where? When? How? Standards used? Reportable to whom? How effects are measured
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Outcome Measures
Collect baseline data Delineate Process goals
Recommended acceptance rate Dose optimizations Route optimizations Eliminate needless courses of antibiotics
Delineate Outcome goals Total ABX expenditures ($, DOT/1000 days) ABX cost per patient-day Impact assessments (C. difficile rates, MDRO rates) 30 day readmission rates
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Getting a contract – it takes two to tango
Make a contract(See link to sample contracts provided on last slide)
Hospital pays at “fair market value” for your services (as determined by them)
Be sure to perform the terms of the contract
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Maintaining your contract?
Remember this: the average tenure of a hospital CEO is 3 years.
Soon you will have to re-justify your program to a new CEO.
Have baseline and annual data to measure the value of your ASP.
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Acceptance of ASP Recommendations (2011)
Acute Care FacilityAccepted
Discharged
Outcome notrecorded
Other
82%
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ASP Sustained Lower Antibiotic Costs/Patient Day at LTACH
Ab$/Pt-day
$16.36
$17.31
$10.05 $10.05 $9.73
$11.37
$9
$12
$15
$18
2004 2005 2006 2007 2008 2009 2010 2011
ASP Start
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Compare Yourself with Other Hospitals in Your Health System
400
450
500
550
600
650
700
750
2006 2007 2008 2009 2010 2011 2012
United (ASP) Hospital A Hospital B Hospital C
Days of Therapy/1000 pt-days
Est. savings $100,000/year
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Comparison- Antibiotics ClassesDOT/1000 pt-days
3rd Generation Cephalosporins
0
20
40
60
80
100
120
140
160
180
2006 2007 2008 2009 2010 2011 2012
40
80
120
160
200
2007 2008 2009 2010 2011
United (ASP) Hospital AHospital B Hospital C
Fluoroquinolones
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Comparison with Other Hospitals in System - C Diff Rates
0
5
10
15
20
25
2008 2009 2010 2011 2012
United (ASP) Hospital AHospital B Hospital C
United Hospital saved $100,000 in 2011(vs. mean rate; based on 20 cases prevented @$4500 per case )
Cases/ 10,000 pt-days
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Conclusion
ASPBuy In
Proposal Evidence
Needs
We Have Made the Business Case
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Business Case: On-line Resources
Greater New York Hospital Association Antimicrobial Stewardship Toolkitwww.gnyha.org/antimicrobial/toolkit orSummary of rationale and sample proposal: www.idologist.com/Blog/wp.../Generic_ASP_Business_ Case1.doc
Sample proposal http://www.shea-online.org/Assets/files/kuper/ASP proposal_blinded_K__Kuper_.pdf
Davey P, Brown E, et al. Interventions to improve antibiotic prescribing practices for hospital inpatients. Cochrane Database Syst Rev. 2005. p. CD003543. [PubMed]