The Surging Tide in Healthcare
Today, the first thing we know is that the status quo in healthcare delivery is unsustainable. It will bankrupt the U.S. Government within 25 years.
What that suggests is a series of near-term policy mandates that represent not a sea-change but a tsunami of change. That surging tide is well evident in the first phases of Healthcare Reform and will only accelerate, broaden, and amplify.
Standing still or twiddling with small change guarantees that an organization will not survive.
This presents an issue for senior leadership; “how do we change fast enough especially since any organization’s ability to absorb change is limited?”
The answer is to recognize and embrace the nature of power law economics in healthcare delivery. By that I mean the value of change follows the 90-10 rule in many important and tangible areas of delivery.
We know that …
- Off-quality events drive a very substantial amount of avoidable expense – where 90% of this expense is driven from 6% of physicians;
- A handful of Hospital Acquired Conditions (HAC’s) drive 90% of these expenses;
- A select number of Process of Care Measures drive the majority of Value Based Purchasing losses;
- The same is true of Patient Satisfaction;
- A manageable number of DRG’s represent the majority of clinical utilization issues;
- Fewer than 10 departments represent the majority of your productivity problems.
This is what we reveal–what our program teases apart.
So the cliché “we’re drowning in data and need information” is completely insufficient to move forward. You need answers that provide focus with enough specificity to drive change. And with this focus, you can get to the hilltop ahead of the surging tide.
That’s the iVantage story.
Tom Day is Executive Vice President of iVantage Health Analytics, Inc.