ebook: business intelligence in the or

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A publication of Identifying performance pain points to reap remarkable results © Copyright 2013. Surgical Information Systems. All Rights Reserved. V11052013 | LBL-40-0002.

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This eBook (written for my current employer) discusses the benefits of implementing a business intelligence tool in a hospital's operating suite.

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Page 1: eBook: Business Intelligence in the OR

A publication of

Identifying performance pain points to reap remarkable results

© Copyright 2013. Surgical Information Systems. All Rights Reserved. V11052013 | LBL-40-0002.

Page 2: eBook: Business Intelligence in the OR

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3 Reasons To Dig Deeper into Your Hospital’s OR Data

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INTRODUCTIONAs a member of your hospital’s OR and management team, you understand the complexities of the surgery department and the importance of advancing patient safety and quality outcomes. On one hand, the OR is the financial engine of your hospital, generating up to 70% of its revenue and 55% of its operating margin1. The flip side is that the OR also accounts for nearly 50% of your hospital’s costs and medical errors. Add to that a mix of changing regulations and a volatile healthcare reform landscape and you quickly realize your team needs accurate and timely perioperative data that gives you insights into how to succeed in this environment.

The OR accounts for1:

1 Report by Towers Perrin (now Towers Watson), 2004

Page 3: eBook: Business Intelligence in the OR

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3 Reasons To Dig Deeper into Your Hospital’s OR Data

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While tracking and monitoring the perioperative process is important, analyzing your surgery department’s performance measures is just as critical.

Your hospital’s surgical care team can use near real-time data to analyze key business, financial, and clinical measures to help:

Boost financial performance

Increase operational efficiencies

Support quality compliance and patient safety improvement measures

This eBook will identify pain points you may be experiencing in the OR and explain why digging deeper into your surgical data can support your goals of improving financial performance and patient outcomes.

“The goal is to turn data into information, and information into insight.”- Carly Fiorina, Former CEO of Hewlett Packard

Page 4: eBook: Business Intelligence in the OR

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1: BOOST FINANCIAL PERFORMANCEHospital ExecutivesAs business, finance, and technology leaders, you play a critical role in meeting the seemingly insurmountable challenges of delivering quality healthcare, controlling costs, and maximizing margins.

While roles may differ, hospital executives face similar financial pain points caused by the surgery department’s struggle to manage resources effectively in order to reduce certain costs, capture all charges, and receive accurate reimbursement.

Such as, difficulty: • Analyzing cost-per-case, per procedure and per

surgeon, to make better service line decisions.• Measuring and tracking key financial, patient care,

and quality metrics to meet reimbursement goals related to outcomes-based payments like Value-Based Purchasing.

• Pinpointing and analyzing clinical metrics to help your facility improve quality, which is imperative for meeting regulatory and compliance requirements.

Page 5: eBook: Business Intelligence in the OR

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3 Reasons To Dig Deeper into Your Hospital’s OR Data

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Why Dig Deeper into Your OR Data?Your hospital’s perioperative operation generates multitudes of static data that, when explored and converted into useable information, enables you to identify trends and make better decisions about opportunities for improvements, such as:

• Generating near real-time reports (i.e., staff overtime, procedure length, cost of supplies and implants) that help you improve cost containment measures.

• Facilitating data-based materials and resource cost discussions with staff, anesthesiologists, and surgeons.

• Measuring quality indicators (i.e., SCIP) to help your facility monitor standard of care practices and patient outcomes.

• Supporting compliance with documentation standards which can help ensure billing is comprehensive, accurate, and timely.

Page 6: eBook: Business Intelligence in the OR

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BOOST FINANCIAL PERFORMANCEOR LeadershipAs leaders of the surgical department, fostering a streamlined perioperative process, starting and ending cases on time, producing accurate compliance and performance reports, and improving patient safety are always top of mind. You may view the department through a different lens than hospital executives; however, you also suffer from financial pain points:

• Lengthy turnover times: Isolating the root causes that lead to decreased case volumes and margin.

• Inefficient scheduling: Understanding average historical procedure time and resource requirements to help maximize OR resource use, prioritize block schedules for high-volume surgeons, reduce nursing overtime costs, and improve staff and patient satisfaction.

• Tissue waste and high implant costs: Effectively managing tissue inventory and implants to reduce waste and costs while improving OR throughput.

• High materials costs: Analyzing supply costs to renegotiate with vendors or standardize supplies.

Page 7: eBook: Business Intelligence in the OR

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Move Beyond Static Reports to Generate Greater InsightsUnlike static reports, perioperative-specific analytics tools allow you to visually drill down into your surgery department’s data to a granular level and quickly uncover knowledge. Beyond the simple, and often delayed, facts and stats in a traditional report, analytics tools can “think” like you think, providing timely, insightful information that can help you make better decisions that can promote a healthier bottom line, such as:

• Understanding room utilization percentages by hour of day, and sharing that information with surgeons so they can release unused block time, which can improve OR utilization and allow for more

cases, as well as add-on cases, to be scheduled.• Analyzing case volume, procedure, and surgeon time trends to

better schedule nursing staff to meet caseload demands, thereby, reducing overtime.

• Pinpointing the root causes for case start delays, including timely and actionable turnover-time data, to help increase case volumes.

• Performing comparative analysis of average supply costs across services/surgeons to help standardize and reduce the cost of materials.

Page 8: eBook: Business Intelligence in the OR

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2: INCREASE OPERATIONAL EFFICIENCYOR LeadershipA well-oiled perioperative process is critical to the success of any OR. Without near real-time data on patient milestones, procedure status, and block utilization, bottlenecks are created, resulting in a chain reaction that diminishes the performance of your OR. Like many OR managers, the following pain points may contribute to inefficient processes:

• Late first-case start times, which can delay the entire surgical schedule, frustrate staff and patients, and contribute to reduced case volume.

• Lack of availability on the schedule for surgeon blocks or new/add on cases.

• Inefficient room turnover time and slow patient throughput.

Page 9: eBook: Business Intelligence in the OR

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Remove the BottleneckPerioperative analytics can help relieve these pain points by giving you access to key performance indicators, like block utilization, turnover time, and OR capacity. In addition, analytics can remove barriers to the data (i.e., additional programming or assistance from IT staff) and displays your OR performance measures in an easy-to-interpret format with interactive graphs and tables. This makes reviewing the information and implementing process improvements in the OR much easier, such as being able to:

• Document and monitor the causes behind late first case starts in order to proactively identify areas for improvement.

• Analyzing historical block utilization percentages by surgeon in a given time frame to more effectively assign block schedules and

increase OR utilization.• Tracking key performance indicators (i.e., room turnover time) via

up-to-the-minute notifications displayed on electronic communication boards to help ensure patients are moving efficiently through the perioperative process.

Page 10: eBook: Business Intelligence in the OR

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3: IMPROVE QUALITY & PATIENT OUTCOMESOR and Anesthesia LeadershipIt’s a well-known fact that complications after surgery can result in patients experiencing a diminished quality of health, lengthier hospital stays, readmissions, increased healthcare fees, and mortality. To help improve the quality of care, surgical teams, including anesthesia providers, are required to document, track and report on clinical quality measures (i.e., Surgical Care Improvement Project) throughout the perioperative care process to help reduce the incidence of postoperative complications.

A 2009 Annals of Surgery study shows that each hospital participating in ACS NSQIP on average prevents 250-500 complications, saves

12-36 lives, and reduces costs by millions of dollars per year.*

*Does surgical quality improve in the American College of Surgeons National Surgical Quality Improvement

Program: an evaluation of all participating hospitals., Annals of Surgery, September 2009

Page 11: eBook: Business Intelligence in the OR

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3 Reasons To Dig Deeper into Your Hospital’s OR Data

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While it’s imperative for surgical care teams to comply with these regulatory guidelines in order to receive reimbursements, more importantly, improving the quality of care and patient safety is the driving force behind these guidelines. Unfortunately, given the manual process of tracking these specific quality measures, you may be experiencing pain points that prevent you from accurately documenting and reporting on these measures, such as:

• Inability to electronically track standard of care compliance, such as antibiotic administration during Preop and Postop.

• Inability to pinpoint and analyze clinical metrics for improvement, which can lead to reduced CMS payments.

• Difficulty tracking and reporting core quality measures and developing strategies for improvement.

Page 12: eBook: Business Intelligence in the OR

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Reporting Made Easy As pressure mounts from the federal government, regulatory agencies, and payers to tie hospital reimbursements to quality of care rather than volume of services, analyzing your OR’s clinical metrics has become an essential task. Perioperative analytics tools can enable you to not only report on quality measures, but also plan and implement strategies for improving patient safety and quality of care. For example:

• Tracking administration of prophylactic antibiotics to help ensure they are given at the standard time frames set forth by SCIP guidelines.

• Documenting selected quality measures (i.e., percent of surgery patients who’ve stopped receiving antibiotics within 24 hours of surgery) to help ensure improvement points are given for Value Based Purchasing incentive payments.

• Measuring quality indicators (i.e., number of hypothermic patients) to help your facility monitor patient outcomes.

Page 13: eBook: Business Intelligence in the OR

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YOU CAN’T MANAGE WHAT YOU CAN’T SEEAs the federal government and other payers shift from their traditional roots of fee-for-service to pay-for-performance/quality of care, relying on static numbers in a report based on weeks or months-old data to manage performance is not going to foster a thriving perioperative department. Business discovery tools that enable proper analysis for improved decision making are essential. Surgery departments must adopt more effective strategies to:

• Improve financial performance by understanding and controlling resource costs, reducing waste, and delivering high-quality care to generate accurate reimbursement.

• Enhance operational efficiency by identifying root causes of productivity issues and putting improvement plans into place to mitigate those issues.

• Help improve quality compliance and patient safety by properly documenting and reporting on quality measures.

Not only does analytics provide you with the near-real-time information you need, the insights you can glean by digging deeper into your perioperative data can enable you to turn static digits into intelligence and make better and more informed decisions.

Page 14: eBook: Business Intelligence in the OR

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10 Unproductive Practices You Should STOP in Periop || 14

Want to learn more about SIS Analytics? Hear Amy Smith, Director of Perioperative Services at Robert Wood Johnson University Hospital talk about how SIS Analytics has helped to increase OR utilization by 70%, decrease overtime costs by $563,000, and improved first case on-time starts to 85%.

To learn more about the AIMS from Surgical Information Systems, call us at 1.800.930.089 or visit www.SISFirst.com.

555 North Point Center EastAlpharetta, GA 30022800.866.0656