The healthcare delivery system is on the forefront of significant change in the year ahead. And not necessarily because of who’s in office or that hospitals and health systems really want to embrace change, but because they must simply to survive. As one of the last major industries to leverage data to drive operational efficiency, hospital and health systems will increasingly look to achieve a level operational clarity that will ultimately allow them to improve their financial performance and focus on their core mission: providing safe, quality care to their patients.
So what will these changes mean for Hospital IQ, its customers and partners? We hope it will mean a year of significant growth and success.
In 2016, we engaged in strategic partnerships with two of the significant players in the healthcare space: Allscripts and another marquee partner we’ll be announcing in the weeks to come (watch this space to learn more). These partnerships are significant because one of the biggest challenges for hospitals and health systems is the ability to generate accurate insights and actionable recommendations from the data these companies’ solutions provide. The billions in healthcare incentives over the past few years has helped to generate a wealth of information; however, this valuable data is too often siloed, which introduces the hurdle of system integration. Strategic collaboration with these partner organizations takes the burden of system integration off our customers’ plates and not only maximizes the investment they’ve already made in their existing systems, but also provides investment protection for the future.
This past year, we worked with several hospitals that truly understand the value of data and that are leading the pursuit to capitalize on the opportunities that a modern, robust operations management platform can deliver. Hospitals are struggling to maintain single-digit margins, so even small improvements or cost reductions can represent millions of dollars to their bottom line. At Hospital IQ, we feel strongly that for a hospital to gain real operational clarity, they must start with a holistic view. Otherwise how will you understand the impact a proposed change or series of changes will have upstream or downstream — and how will you know if you’re focused on the true source of the problem and not just a symptom? It’s also critical that hospitals stop reacting and constantly working in crisis mode. They must be able to see what’s going to happen far enough in advance to proactively solve problems before they happen. But that brings us back to the challenge at hand…access to data in a way that informs these decisions and actions. Using manual spreadsheets, back of napkin calculations, “management by walking around” or floor-level meetings, or even consultant recommendations often means the data isn’t the most recent available and you can’t address questions at the time they are asked… when everyone is in the room. As a result, the validity of the data comes into question and can often extend the decision to take action indefinitely. We’ve learned that our customers need the ability to quickly and transparently drill down into each critical input associated with a recommendation. And the ability to answer any question when asked, in real time.
Yes, this past year we’ve seen success. We saw a Midwest Medical Center increase its orthopedic cases by 44% per week without needing to increase its bed capacity. A two-million-dollar annual revenue increase from just that one service line. We helped an East Coast Safety Net improve its on-time first-starts from 35% to 85%, grow its surgical volume 2.7% and improve its OR utilization from 80-85%, which added an annual operating margin of over a million dollars. We’re also helping a Midwest System reduce its LWBS rate from 8% to its target goal of 3% while also accepting two additional high-acuity transfers per week to increase its annual revenue by $18 million.
So this year we hope to find and work with even more industry innovators that know what they want to accomplish or can envision what’s possible with the right investment. If you are one of these hospital innovators and forward thinkers, please reach out. We are here to help make your operational goals happen in 2017. It’s going to be an exciting year for us all.