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Managing Variability in Hospital Patient Flow: A Necessary Foundation for Quality, Safety Improvement and Cost Reduction Eugene Litvak, Ph.D. Institute for Healthcare Optimization www.ihoptimize.org September 11, 2012

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Page 1: Managing Variability in Hospital Patient Flow: A Necessary …app.ihi.org/.../6_1_Flow_EL.pdf · 2012-09-11 · Managing Variability in Hospital Patient Flow: A Necessary Foundation

Managing Variability in Hospital Patient

Flow: A Necessary Foundation for

Quality, Safety Improvement and Cost

Reduction

Eugene Litvak, Ph.D.

Institute for Healthcare Optimization

www.ihoptimize.org

September 11, 2012

This presenter has nothing to disclose.

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2

Objectives

• Demonstrate the effect of patient flow

management on quality of care, patient

safety, mortality rate and hospital margins

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New IOM report

3

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Building a safe and efficient health care

delivery without managing patient flow: Phase I

4

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Building a safe and efficient health care delivery

without managing patient flow: Phase II

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Management of health care

delivery system is a science

Health care delivery systems cannot be

managed based just on feelings, experience,

benchmarking and brainstorming

Which problem is easier to

solve:

∫ cos(ln x) dx =

or … to design effective and efficient health care

delivery system?

x/2 · [sin(ln x) – cos(ln x)]

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Two Medical ICUs with the Same

Patients Acuity

5 beds

Average LOS = 2.5 days

Admission rate = 1pt/day

10 beds

Average LOS = 2.5 days

Admission rate = 2pts/day

Do they have the same waiting times to be

admitted to these units?

7

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Ťw = 0.13 days

1st ICU 2nd ICU

Ťw = 0.018 days

8

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Quotes from the 2006 IOM report

The Future of Emergency Care in the U.S. Health System

(Hospital-Based Emergency Care: At the Breaking Point)

“Hospitals have direct control over operational efficiency, and have a number of variables within their control. They include such factors as impatient bed capacity, ancillary service delays, the scheduling of services and support staff…”

“4.1 Hospital chief executive officers should adopt enterprise-wide operations management and related strategies to improve the quality and efficiency of emergency care.”

9

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“4.3 Training in operations management

and related approaches should be

promoted by professional associations;

accrediting organizations, such as the

Joint Commission on Accreditation of

Healthcare Organizations (JCAHO) and

the National Committee for Quality

Assurance (NCQA)…”

Quotes from the 2006 IOM report

The Future of Emergency Care in the U.S. Health System (Hospital-Based Emergency Care: At the Breaking Point)

10

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Gaps Cited by the Institute of Medicine in

Crossing the Quality Chasm (2001)

• Ineffectiveness of care

• Lack of efficiency in delivery system

• Inadequate safety

• Insufficient patient-centerness

• Inadequate timeliness of care

11

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“If one performs a “Google” search with the key words: “health reform”

and “US OR America” for 2007, one will find about 160,000 links. If one

does the same for 2010, there will be over 2.5 million links.

If one adds to the above Google search “quality OR safety”, the number 2.5

million links is reduced to a still impressive number of over 1.6 million

links. Currently, we probably have more quality specialists in the

healthcare delivery system than the number of avoidable annual deaths, and

yet, the results are far from satisfactory.

If instead of “quality OR safety” one adds to the above mentioned Google

search just two words “operations management”, 1.6 million links would

shrink to just 400(!) This is a perfect evidence of our continuing unrealistic

attempts to improve the healthcare delivery system and to add to it millions

of uninsured, without analyzing its operations.”*)

*)“Mismanaged hospital operations: a neglected threat to reform”

Health Affairs Blog, February 22, 2011.

12

Our “implementation” of IOM recommendations

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“There is no other industry (except maybe education) that

is improving its product without optimizing its operations.

In any industry, with no exceptions, operating systems

have a huge impact on work climate, staffing, financial

results and customer satisfaction (see two well-known

Harvard Business School case studies: McDonald’s Corp.

and Burger King Corp.), and yet we are trying to change

our health care delivery system without changing its core

operations.” *)

13

*)“Mismanaged hospital operations: a neglected threat to reform”

Health Affairs Blog, February 22, 2011.

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Can one achieve high quality

of care without addressing

variability in patient flow?

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Imagine a Boeing 737 that has to carry 300 people aboard on a particular day

from point A to point B. Some people will have a seat, others would have to

sit in the aisle. What would be passengers’ safety level on this plane? What

would be the quality of service provided by the four flight attendants? What

would be the cost of fixing up such a plane after the flight? How about

having rather Boeing 747 more suitable for this load? The problem is that on

the way back from point B to point A there are only 100 passengers to be

carried. Then, using either plane would introduce significant waste, although

for Boeing 747 greater than for Boeing 737. Suppose that this is an everyday

pattern. What plane should one choose: more expensive but safer (under this

scenario) Boeing 747 or cheaper but unsafe Boeing 737?

15

This is a wrong question that we are trying to answer in health

care. The right question is: Why do we have to carry 300

passengers one way and 100 – another way?

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•Patient Safety

• Nurse understaffing/overloading

• ED diversions/access to care

• High cost

Addressing variability is necessary, although

not sufficient, to satisfactorily resolve these

problems.

Major health care delivery problems:

16

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How unsmooth census looks like?

(no holidays, no weekends, weekdays only) #

of

Pa

tien

ts

Time

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# o

f P

ati

ents

Time

How did we staff, and how do we staff

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1. Rudolph M, Buerhaus P, Prenney B., et al. Managing Patient Flow in

Hospitals: Strategies and Solutions, 2nd ed. (Ed. Litvak E.), Oak Brook ,

Illinois; Joint Commission Resources; 2009

http://www.jointcommissioninternational.org/Books-and-E-

books/Managing-Patient-Flow-in-Hospitals-Strategies-and-Solutions-

Second-Edition/1497/

2. Litvak E. & Long MC. Cost and Quality Under Managed Care:

Irreconcilable Differences? American Journal of Managed Care, 2000; 6

(3): 305-312.

http://www.ajmc.com/files/articlefiles/AJMC2000MarLitvak305_312.pdf

3. Litvak E. "Optimizing patient flow by managing its variability". In Berman S.

(ed.): Front Office to Front Line: Essential Issues for Health Care Leaders.

Oakbrook Terrace, IL: Joint Commission Resources, 2005, pp. 91-111.

http://www.ihoptimize.org/Collateral/Documents/English-

US/front%20lines%20chapter.pdf

19

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The Ideal Healthcare System

1. All patients have the same disease with

the same severity.

2. All patients arrive at the same rate.

3. All providers (physicians, nurses) are

equal in their ability to provide quality

care.

(100% efficiency)

20

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Can your health care delivery

system become a

Toyota product line?

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Variability As the

Source of System Stress

1. Clinical stress

2. Patient flow stress

3. Stress by variation in professional

abilities or teaching responsibilities

22

Page 23: Managing Variability in Hospital Patient Flow: A Necessary …app.ihi.org/.../6_1_Flow_EL.pdf · 2012-09-11 · Managing Variability in Hospital Patient Flow: A Necessary Foundation

Natural

Variability

I) Clinical Variability

II) Flow Variability

III) Professional Variability

• Random

• Can not be eliminated (or even reduced)

• Must be optimally managed

}

23

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What Makes Hospital Census Variable? #

of

Pat

ien

ts -

Time 24

Page 25: Managing Variability in Hospital Patient Flow: A Necessary …app.ihi.org/.../6_1_Flow_EL.pdf · 2012-09-11 · Managing Variability in Hospital Patient Flow: A Necessary Foundation

• If ED cases are 50% of admissions

and…

• Elective-scheduled OR cases are 35% of

admissions

then…

• Which would you expect to be the largest

source of census variability?

25

What Makes Hospital Census Variable?

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The Answer Is…

The ED and elective-scheduled OR have

approximately equal effects on census

variability.

Why?

Because of another (hidden) type of

variability...

26

Page 27: Managing Variability in Hospital Patient Flow: A Necessary …app.ihi.org/.../6_1_Flow_EL.pdf · 2012-09-11 · Managing Variability in Hospital Patient Flow: A Necessary Foundation

Artificial Variability

• Non-random

• Non-predictable (driven by unknown

individual priorities)

• Should not be managed, must be

identified and eliminated

27

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A key root cause of hospital

bottlenecks and inefficiency

0

10

20

30

40

50

60

70

80

Daily Weekday Emergency and Elective Surgical Admissions June - August 2008

Artificial Variability

Elective Surgery

Emergency Room

Slide provided by Sandeep Green Vaswani, Institute for Healthcare Optimization

28

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Impact of Artificial Variability Managing variability is necessary, although not sufficient, to satisfactorily

resolve these problems.

Decreased access, particularly for some of the sickest

patients

Extended delays in care delivery

External and internal diversion of patients

Nurse understaffing / overloading resulting in lower

quality and safety

“Census increases up to 25% above an adequate

staffing level subject all patients in the nursing unit in

question to the 7% increase in [mortality] risk…” 1

Decreased provider and staff satisfaction, decreased

retention / recruitment

Overall underutilization of assets leading to decreased

revenue and increased cost

Artificial

Variability is

undesirable for

• Patients

• Providers

• Administration

• Payers (Govt.

and private)

29

1 Litvak, E., et. al. ,Managing Unnecessary Variability in Patient Demand to Reduce Nursing Stress and

Improve Patient Safety, Joint Commission’s Journal on Quality and Patient Safety, June 2005 Volume 31,

Number 6 http://www.ihi.org/NR/rdonlyres/E18D05FD-F4E5-448D-8CBE-

217CB5C03B7C/0/ManagingUnnecessaryVariabilityinPatientDemand.pdf

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Elective Surgical

Requests vs. Total Refusals

0

1

2

3

4

5

6

7

8

9

10

elective surgical patients seeking ICU admission

patients diverted or rejected from the ICU

Michael L. McManus, M.D., M.P.H.; Michael C. Long, M.D.; Abbot Cooper; James Mandell, M.D.; Donald M.

Berwick, MD; Marcello Pagano, Ph.D.; Eugene Litvak, Ph.D. Impact of Variability in Surgical Caseload on

Access to Intensive Care Services, Anesthesiology 2003; 98: 1491-1496. 30

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Why managing variability

today is more important than

before?

31

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Does the healthcare system need more capacity? #

of

Pa

tien

ts -

Time

32

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At what cost?

Typical cost of new capacity

─ Inpatient beds - $1M in capital and $250K-800K annual operating expense

─ Operating rooms - $2 – 7 Million, $250K+ annual operating expense

─ Major imaging (CT, MRI, PET/CT, etc.) – approx. $1M+

─ Cardiac Catheterization Lab – approx. $2M

Nursing and other provider shortages?

33

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Floors

ICU

ED

Variability and access to care

Scheduled

demand

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Variability and mortality

“Each additional patient per nurse was associated with a 7% increase in

the likelihood of dying within 30 days of admission and a 7% increase

in the odds of failure-to-rescue”*

* Linda H. Aiken, Sean P. Clarke, Douglas M. Sloane, Julie Sochalski, and

Jeffrey H. Silber. Hospital Nurse Staffing and Patient Mortality, Nurse

Burnout, and Job Dissatisfaction. JAMA, 2002; 288: 1987:1993

Litvak E, Buerhaus PI, Davidoff F, Long MC, McManus ML,

Berwick DM. “Managing Unnecessary Variability in Patient

Demand to Reduce Nursing Stress and Improve Patient Safety,”

Joint Commission Journal on Quality and Patient safety, 2005;

31(6): 330-338.

http://www.ihi.org/NR/rdonlyres/E18D05FD-F4E5-448D-8CBE-

217CB5C03B7C/0/ManagingUnnecessaryVariabilityinPatientDemand.pdf

36

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Example:

Assumptions:

200 surgical beds

average census for surgical beds 160

staffing level 40 nurses (1 nurse per 4 patients)

average residual from 160 patients census is 20% or 32 patients

patients are distributed evenly between the nurses

How the mortality rate will change with 20% increase in surgical demand?

37

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Results:

32 additional patients will be distributed evenly between 32 nurses: 1 additional patient per nurse or 4 + 1 = 5 patient per nurse

these 32 nurses now will take care of 160 patients, whose

mortality rate increases by 7%

if these additional 32 patients will be distributed evenly between 16 nurses, then each such nurse will take care of 4 + 2 = 6 patients

these 16 nurses now will take care of 96 patients, whose mortality rate increases by 14%

38

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Nurse Staffing and Inpatient Hospital Mortality,

Needleman J., Buerhaus P., et al.

N Engl J Med 2011; 364:1037-1045, March 17, 2011

“There was a significant association between

increased mortality and increased exposure to unit

shifts during which staffing by RNs was 8 hours or

more below the target level “

“The association between increased mortality and

high patient turnover was also significant “

39

Patient Mortality and Patient Flow

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What is easier: to talk to your

colleagues or to your lawyers?!

http://www.nhmedmallawyer.com/blog/post/s

how/hospital-staffing-and-its-effect-on-

quality-care

http://www.healthleadersmedia.com/content/

LED-269595/PDH-Understaffing-a-Possible-

Factor-in-Deaths-at-CRMC##

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Variability and Quality of Care*

Inadequate numbers of nursing staff contribute to

24% of all sentinel events in hospitals. Inadequate

orientation and in-service education of nursing

staff are additional contributing factors in over

70% of sentinel events

*) Dennis S. O’Leary, - former President JCAHO

(personal communication)

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Adoption of National Quality Forum Safe

Practices by Magnet Hospitals

Jayawardhana, Jayani PhD; Welton, John M. PhD, RN; Lindrooth,

Richard PhD

Journal of Nursing Administration: September 2011 - Volume 41 - Issue 9,

pp 350-356

Maintaining higher affordable nurse

staffing levels is only possible by

managing variability in patient flow

43

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Jeannie P. Cimiotti DNS,RN, Linda H. Aiken PhD, Douglas M. Sloane PhD,

Evan S. Wu, BS

American Journal of Infection Control: August 2012- Volume 40, pp 486-490

44

Variability and health

caree-associated infection

“There was a significant association between patient-to-nurse

ratio and urinary tract infection (0.86; P ¼ .02) and surgical site

infection (0.93; P ¼ .04). In a multivariate model controlling for

patient severity and nurse and hospital characteristics, only

nurse burnout remained significantly associated with urinary tract

infection (0.82; P ¼.03) and surgical site infection (1.56; P <.01)

infection. Hospitals in which burnout was reduced by 30% had a

total of 6,239 fewer infections, for an annual cost saving of up to

$68 million.”

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Variability and Readmissions

Does variability affect readmission rate?

“The main outcome variable is unplanned patient readmission to the neurosciences critical care unit within 72 hrs of discharge to a lower level of care. The odds of one or more discharges becoming an unplanned readmission within 72 hrs were nearly two and a half times higher on days when ≥9 patients were admitted to the neurosciences critical care unit …” *)

“The odds of readmission were nearly five times higher on days when ≥10 patients were admitted …” *)

*) Baker, David R. DrPH, MBA; Pronovost, Peter J. MD, PhD; Morlock, Laura L. PhD, et al. Patient flow variability and unplanned readmissions to an intensive care unit.

Critical Care Medicine: November 2009 - Volume 37 - Issue 11 - pp 2882-2887

45

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Quality and Safety Corner at

www.ihoptimize.org

The Institute for Healthcare Optimization’s

approach to managing variability in

healthcare delivery addresses some of the

most intractable quality and safety issues

such as readmissions, mortality,

infections, ED boarding and others. Learn

more »

47

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How do you do this

Questions that you may have:

• Why are we doing this project?

• Why will this project succeed?

• What exactly are we going to do?

• How much additional work is this going to

mean for me?

• How will we ensure this project doesn’t do

damage to what currently works?

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Why do this project?

• Bumped or delayed elective

surgery cases

• Delays in securing OR access

for urgent and emergent cases

(transplantations)

• Overburdened nurses, medical

errors, high overtime, excessive

nurse vacancies

• Lack of timely access to nursing

units

• Prevent ED overcrowding and

boarding

• Improve patient, provider and

staff satisfaction

“By smoothing the inherent

peaks and valleys in patient flow,

and eliminating the artificial

variabilities that unnecessarily

impair patient flow, hospitals can

improve patient safety and

quality while simultaneously

reducing hospital waste and

cost.” Institute of Medicine, June

2006

JCAHO’s Patient Flow Leadership

Standard - "LD.3.15 The leaders

develop and implement plans to

identify and mitigate impediments to

efficient patient flow throughout the

hospital.”

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Expertise Necessary for Success

• Application of operations management to healthcare

• Clinical expertise

• Hospital management expertise

• Project management and data analysis experience

The key pillars of expertise that drive

success in an OR redesign project are:

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IHO Approach to OR Design and

Patient Flow Improvement

Phase I

Separation of OR Flows

Phase II

Smoothing of

Elective Flows

Phase III

Determination of Bed

and Staffing needs

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Project Overview

Phase I

Separation of OR Flows 9 months

Goals

• To assess the extent of

artificial patient volume

variability and patient flow

bottlenecks in key areas

of the hospital, and their

ripple effects on quality

and cost of care

• To separate flows of

scheduled (elective)

patients from that of

unscheduled

(emergent/urgent) and

work-in patients through

the OR

Expected Benefits

• Increase in surgical

capacity / volume (Note:

there will be absolutely

no decrease in any

individual surgeon’s

volume as a result of

this project)

• Decrease in patient wait

times for emergent and

urgent surgeries

• Decrease in OR overtime

• Increase in staff and

patient satisfaction

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Expected Results Phase I

Separation of Scheduled

v. Unscheduled OR Flow

Phases II and IIb

OR and Cath Lab

Smoothing

Phase III

Determination of Bed

and

Staffing needs

Expected Benefits

• Increase in surgical

capacity / volume (Note:

there will be no decrease

in any individual surgeon’s

volume as a result of this

project)

• Decrease in patient wait

times for emergent and

urgent surgeries

• Decrease in OR overtime

• Increase in staff and

patient satisfaction

Expected Benefits

• Further increases in

capacity / throughput

• Enhanced patient

placement in preferred beds

• Decrease in nursing stress

• Decrease in mortality and

medical errors related to

delays and patient

misplacement

• Increase in transplantations

volume

• Prevention of ED

overcrowding

Expected Benefits

• Further decreases in

patient wait times where

they exist

• Further enhancement of

patient placement

• Decrease in staffing

expense

• Enhanced utilization of

existing resources

• Accurate determination of

capacity growth need

(Additional Med/Surg bed

requires ≈ $1 million in

capital cost + over $.25

million annual operational

cost)

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Case Study – Cincinnati Children’s

• Weekend waiting time (for urgent / emergent surgeries) down

34% despite 37% volume increase, Weekday waiting time

down 28% despite 24% volume increase (results for the first

three months after implementation)

• Surgery volume has sustained 7% growth per year for the last

two years

• Initially an equivalent of 1 OR capacity freed up

• OR overtime down by 57% (approx. $559K saved annually)

• Inpatient occupancy increased from 76% to 91% resulting in

$137 million/year plus 100 new beds avoided capital

cost (over $100 million) • Substantially improved provider satisfaction

Source: Frederic Ryckman, MD, Cincinnati Children’s Hospital Medical Center

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Case Study –

Cincinnati Children’s Survey

“We have not had anywhere near the patient complaints or

physician complaints. Physician and Family satisfaction has

skyrocketed…” - Orthopedic Surgeon, Division Director

“The family satisfaction with their experience is better than it used to

be.” – ENT Surgeon, Attending

“As a general observation, nursing staff ‘on call’ are not staying as

late due to add-ons remaining at change of shift.” - OR Nurse

“…We get our case done early, and patients don’t have to wait NPO

until the evenings to have their surgery. This has made call much

less stressful for my surgeons and myself…” - Orthopedic Surgeon,

Division Director

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Case Study – Boston Medical Center

Surgical throughput up 10%

Bumped surgeries down 99.5%

Reduced nurse stress; 1/2 hour reduction (6%) in nurse hours per patient day in one unit

($ 130.000 annual saving)

ED waiting time down 33%

2.8 hour wait in one of state’s busiest EDs vs. 4 to 5+ hours for most of the academic hospitals in Boston

Source: John Chessare, MD, then Chief Medical Officer at

Boston Medical Center

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Case Study – Palmetto Health Richland

• Waiting time for urgent / emergent surgical

cases decreased 38% while overall surgical

volume grew about 3%

• Annual margin growth opportunity of $8M per

year, $2.5M of which has been realized

• Results achieved in less than 1 year

Source: Ellis Knight, MD, MBA, then Chief Medical Officer at

Palmetto Health Richland, now Sr. VP for Ambulatory Services for the

Palmetto Health System

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State-wide collaborative to improve patient

safety and quality of care while reducing its cost

U.S. Senator Robert

Menendez (Senate Finance

Committee) at the Partnership

for Patients New Jersey kick-off

on January 30, 2012

Partnership for Patients - New Jersey

News

On January 30, NJHA in collaboration with The Institute for

Healthcare Optimization kicked off Partnership for Patients-

NJ, part of a national initiative from the U.S. Department of

Health and Human Services to improve the quality, safety

and affordability of healthcare, Learn more»

Patient Flow/Throughput The New Jersey Hospital Association has provided IHO

Variability MethodologyTM to NJ hospitals

to help them improve patient safety and flow/throughput .

Some of these resources and the list of the

NJ Patient Flow Collaborative Members have been publicly

disseminated, Learn more»

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What is here for me?

Patients:

Reduced waiting time and improved access to care

Reduced mortality and medical errors

Nurses:

Reduced overtime

Reduced workload

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Physicians:

Reduced waste of time Increased patient throughput Reduced overtime Hospital: Better utilization of resources Reduced hours of ED overcrowding Staff and patient satisfaction More staffing resources: better tolerating peak loads Reduced mortality and medical errors Reduced length of stay Increased hospital throughput and revenue

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What is next?

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Provide the resources (e.g., staffing) sufficient to meet

current patient peaks in demand - historical scenario (a dream

about the old good times)

Staff below the peaks and tolerate ED diversions, nursing

overloading and medical errors - current scenario (go back

home and pretend that we did not discuss these issues as it

is much easier to create a new patient centeredness

committee than to make tough changes required to achieve

patient safety)

Smooth artificial variability and provide the resources to

meet patient (vs. provider) driven peaks in demand.

Variability methodology can quantify and justify such

additional resources

Three alternatives:

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Patient driven health care?

• Do patients want to spend hours/days in

overcrowded EDs?

• Do they want to be taken care of by stressed

nurses and as a result be subjected to medical

errors?

• Do they want to acquire hospital infection?

• Do they want to be readmitted and start all over

again?

• Do they want to deteriorate during their hospital

stay?

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What would be our national return

on investment from applying

these concepts?

ROI

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OECD Acute Care Bed Occupancy

0%

10%

20%

30%

40%

50%

60%

70%

80%

90% 90% 88% 86% 86%

84%

79% 79% 79% 76% 76%

73%

67%

Acute Care Bed Occupancy 2005

OECD Health Data

Slide provided by Sandeep Green Vaswani, Institute for Healthcare Optimization

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66

We are 1/3 empty and

overcrowded!!!

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National Opportunity – An Example*

• Based on AHA 2007 data, overall nationwide hospital inpatient occupancy

was about 65%

• Even if one were to assume that all admissions are urgent in nature

(statistically random arrivals), 80% occupancy should be achievable (based

on queuing methodology) without compromising access or quality of care1

• A mix of elective and random admissions allows for achievement of

even greater occupancy with simultaneously improved patient safety

and quality of care.

• By comparison, US airlines operated at just under 80% in 2007 and 20082

and US utilities operated at an 80-90% utilization in 2007-20083

* Litvak E., Bisognano M. More Patients, Less Payment: Increasing

Hospital Efficiency In The Aftermath Of Health Reform . Health Affairs,

2011, vol. 30, No. 1, pp. 76-80

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National Opportunity Financial Impact

• Total capital plus operational cost in 10 years

is between $400 billion and over $1 trillion*

*) “Managing Variability in Healthcare Delivery” , in “The Healthcare

Imperative: Lowering Costs and Improving Outcomes: Workshop Series

Summary”, Institute of Medicine, 2010:

http://www.nap.edu/openbook.php?record_id=12750&page=294

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IHO Variability Methodology

Endorsements • Institute of Medicine reports: The Institute of Medicine in its reports has

recommended Variability Methodology as a measure to improve patient safety, reduce hospital

overcrowding and health care cost.

• American Hospital Association’s Hospitals in Pursuit of Excellence: The

Institute for Healthcare Optimization’s approach is recognized by the American Hospital

Association as a key principle for achieving IOM’s Six Aims for Improvement: care that is safe,

timely, effective, efficient, equitable, and patient-centered.

American Nursing Association: ANA has endorsed Variability Methodology as a key

measure for providing safe staffing

• Joint Commission Resources: The Institute for Healthcare Optimization’s approach

to managing variability in healthcare delivery is the central theme of Joint Commission

Resources’ second edition of the book: Managing Patient Flow in Hospitals: Strategies and

Solutions.

• Government Accountability Office: The Government Accountability Office

recognizes variability in elective admissions as one of the key

• drivers of ED overcrowding (see page 23).

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Effects of Flow Variability on

Quality of Care and Patient Safety

http://www.ihoptimize.org/what-we-do-

methodology-quality-and-safety.htm

Patient Flow

Variability

2-4% increase

in mortality risk

for each

exposure to an

understaffed

shift Unmanageable

Nurse : Patient

staffing leading

to overwork

and stress

Up to 500%+

increase in

odds of

readmission

Diversion and

delays for

Emergency

Department

patients Increased

medical errors

infections and

non-

compliance

with NQF safe

practices

Unnecessary

launches of

Rapid

Response

Teams

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IOM: CEO Checklist, 2012

Resource Utilization “Optimized use of personnel, physical space, and other resources Providing high-

value care requires the efficient use of finite resources, yet much of health care today

is suboptimal on both counts. Operations-management tools can help improve returns

on fixed capital investments. Variability in the flow of patients into a hospital unit

results in overcrowding, worse health outcomes due to fluctuations in staffing levels,

increased staff stress, lower patient and staff satisfaction, reduced access to care, and

higher costs. Strategies such as Queuing Theory and

Variability Methodology can be used to eliminate sources of artificial variability,

improving occupancy without increasing staffing or capacity or reducing lengths

of stay. Furthermore, systematic process improvement efforts such as Lean can be

used to make more effi cient use of personnel and other resources. Structured

analysis of daily work can eliminate inefficiencies, increase value-added time spent

with patients, reduce staff stress, and optimize the use of supplies and other

resources.”

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“…rely on systems engineering and operations research to smooth

the flow of patients through the health care system. Backups in

emergency rooms, periodic crowding in hospitals, and the lack of

specialty postoperative beds are often symptoms of uneven

scheduling of admissions, suboptimal scheduling of operating

rooms, and inadequate discharge planning. Hospitals that apply

systems engineering to scheduling and resource use can save many

millions of dollars individually and billions in the aggregate, reduce

overcrowding, and improve staff satisfaction and performance.

Organizations such as the Institute for Healthcare Optimization are

showing the way.23 “ *) 23) Litvak E, ed. Managing patient flow in hospitals: strategies and solutions. 2nd ed. Oakbrook Terrace, IL:

Joint Commission Resources, 2009.

*) President of IOM Dr. Harvey V. Fineberg. A Successful and Sustainable

Health System - How to Get There from Here, N Engl J Med 2012; 366:1020-

1027, March 15, 2012

The most recent quote

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Readings

Managing Patient Flow in

Hospitals: Strategies and

Solutions, Second Edition 2009. 166 pages. ISBN: 978-1-59940-372-4

Patient Safety and Quality of Care: http://www.ihoptimize.org/what-we-

do-methodology-quality-and-safety.htm

http://www.ihoptimize.org/knowledge-center-publications.htm

http://www.jointcommissioninternational.or

g/Books-and-E-books/Managing-Patient-

Flow-in-Hospitals-Strategies-and-Solutions-Second-Edition/1497

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Summary

• Scientific managing variability in patient flow is

absolutely necessary to increase overall hospital

patient throughput while improving quality of

care, patient safety and reducing nursing

workload.

• It requires rigorous data analysis, scientific

management of operations, clinical and

organizational behavior expertise.

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Overcrowding

Mortality

Readmissions

High cost

Medical errors

Nurse shortage

Healthcare

“culture”

Mortality, Readmissions, Medical Errors, High Cost

vs. Health Care “Culture”: What Will Prevail?

You decide!

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Questions:

Meng Kang, [email protected],

Tel.: 617-467-3351