CORUS Suite June 2017 Agenda Topic Topic Details Introduction Agenda review The Need for ActivityBased Costing Surviving in both feeforservice FFS and valuebased contracting VBC ID: 668840
Download Presentation The PPT/PDF document "Next-Generation Cost Management Technolo..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Next-Generation Cost Management Technologies
CORUS™ Suite
June 2017Slide2
Agenda Topic
Topic Details
Introduction
Agenda review
The
Need for Activity-Based Costing
Surviving in both fee-for-service (FFS) and value-based contracting (VBC)The basics of activity-based costing (ABC)
Healthcare cost-accounting pain points
Why costing matters: operating room (OR) use case How CORUS worksCORUS Suite overviewCosting the Health Catalyst wayUPMC example ConclusionFeedback Actions and next steps
$
$
$Slide3
“The only way to be successful in the new world of value-based healthcare and population health is to
understand
your true costs and manage them. To get there, we need access to massive amounts of data
from across the care continuum to identify all of the resources used in delivering patient care.” Robert A. DeMichiei, executive vice president and chief financial officer, UPMCSlide4
Surviving in Both FFS & VBC
4
Predicted Utilization of Population
Contracted Utilization
Cash
Received
Cost to
Deliver Care
Actual Utilization
Margin
Millions of $
1
Source: Moody's Investors Service, "U.S. Not-for-Profit Hospital 2014 Medians" report, September 2015.
Median is 2.6%
1
Levers for ensuring success once you have already taken risk.
Get the highest rate you can! (And, later, use data to inform negotiations) Slide5
Basic Cost Accounting
5
GENERAL LEDGER
(COST)SERVICES
Linking expenses from the GL to services delivered is the key to accurate and useful cost data
EVERYONE’s cost is accurate at a high level – the GL don’t lie!
LINKINGSlide6
Healthcare Cost-Accounting Pain Points
6
Current cost accounting systems are outdatedProcess is time and resource intensive to maintain and updateCurrent cost accounting systems struggle to handle the amount and type of data needed
Validation of data and reconciliation of cost is tediousHistorically under-invested in
Just a person or two checking boxes, which are only used for internal financial reporting
Lack of transparency into calculations limits buy-in from key stakeholdersSlide7
7
Problems with Existing Solutions/Methods
Cost data that comes from:
Cost data from actual utilization:
Existing Solutions
Our Approach
Procedures
Charges
Averages
& Guesses
EMR Activity
Supplies
Dept. IT
Systems
Procedures
Dept. IT
Systems
Staff &
PayrollSlide8
Why Costing Matters: OR Use Case Slide9
Why Costing Matters: OR Use Case (cont’d)Slide10
Agenda Topic
Topic Details
Introduction
Agenda review
The
Need for Activity Based Costing
Surviving in both fee-for-service (FFS) and value-based contracting (VBC)The basics of activity-based costing (ABC)
Healthcare cost-accounting pain points
Why costing matters: operating room (OR) use case How CORUS worksCORUS Suite overviewCosting the Health Catalyst WayUPMC example ConclusionFeedback Actions and next Steps
$
$
$Slide11
11
EMR
Patient Accounting
General Ledger
HR/Payroll
Health Catalyst Data Operating System
Activity-Based Costing
System set-up and administration
Build and assign cost modelsEnter activity-based costingallocationsCreate cost driver queriesLink costs to patients/activitiesSupply Chain
PharmacyAffiliate Data
RTLS
CORUS
Cost Engine
Cost Insights and AnalyticsLeverage detailed and actionable cost data across your analytics environment
Cost Insights, Qlik/Tableau apps, Excel, SQL, etc.
Web Application
CORUS Suite OverviewSlide12
Activity-Based Costing: DashboardSlide13
Activity-Based Costing: Data QualitySlide14
Costing the Health Catalyst Way
Recognized in 2017 as “Best in KLAS for healthcare business intelligence and analytics.”
Embedded costing knowledge from world-renowned academic medical institutions, accelerating cost management transformation.
Integration of EMR data, including patient-level clinical and operational data
, delivering the first truly comprehensive view of the cost of patient-care.
Manufacturing-style activity-based costing
that is scalable and maintainable, freeing analysts to focus on identifying variation and cost saving opportunities.
Dramatically more timely and actionable cost data
based on healthcare’s most advanced analytics platform, which supports over 160 source systems.Slide15
A Service Line Approach to Improving Women’s Health
Used Service Line, Procedural and Physician Variability reporting functionality.
Developed cross functional team and engaged physicians by sharing data, as well as making them part of developing the change.
Opportunity identified with outpatient hysterectomies – Same Day vs Overnight.
90% of patients could go home same day despite standard practice of staying over nightDeveloped clinical protocols that determine a patient’s eligibility to go home same day based upon defined medical status criteria
Pilot project resulted in savings up to ~$700 per case, and satisfied patients with same day procedure
20 percent reduction in inpatient LOS for hysterectomies (over a 3 year time period)
34 percent reduction in open hysterectomies
28.3 percent reduction in 30 day readmissions for hysterectomiesSlide16
Integration of Clinical and Operational Data Use Case
A large academic health system had been using charges as the basis of costing for the operating room.
Knowing the organization now had the CORUS Suite, the operating room (OR) director wanted to find out what her true costs were. Finance was able to use the CORUS Suite to quickly identify precise patient times, resources, and true labor costs—plus, they leveraged updated costs for supplies with the link to their supply chain data sources.When they compared the cost for each surgeon, they discovered that the physician with the shortest time was using additional staff.
The physician-finance dyad lead worked with the surgeons to determine best practices and reduce clinical variation based on a review of time, resource costs, and clinical outcomes.Slide17
Manufacturing-Style Activity-Based Costing Use Case
Large, integrated healthcare system decided five years ago to build its own activity-based costing system.
The platform wasn’t scalable and could not be cost-effectively maintained. Every month, it took six FTE business days to close out the books, eating into time that the analysts could have devoted to identifying and participating in driving outcomes improvements. After implementing the CORUS Suite, the activity-based cost processes have been automated and now run overnight—and clinicians and physician-financial/operational dyad service line leaders have greater transparency into the cost drivers. The health system has saved millions of dollars through improvements.Slide18
What do you think?Feedback / Questions
18