Driving Decisions with Data: The CHRISTUS Health 10Year Journey to Excellence

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Driving Decisions with DataThe CHRISTUS Health
10-Year Journey to Excellence

• MEDITECH Physician Workshop
• Canton, MA
• October 16, 2008

Presented by Thomas C. Royer, M.D. President and
CEO
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Introduction

• A decade of challenges, changes, and progress
• Like our mission, vision, and values, information
  systems and data are foundational in CHRISTUS
  Health
• Our Journey to Excellence is a necessity, not a
  luxury

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The Questions to Ponder

• What did we accomplish on our Journey to
  Excellence?
• What lessons have we learned?
• Where has data been a critical success factor?
• How do we envision the future?

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Some of Our Major Accomplishments

• Embraced a sacred name CHRISTUS which has
  become our brand
• Created a CHRISTUS culture, with a lived
  mission and values
• Developed a CHRISTUS promise to provide an
  exceptional patient experience and an exceptional
  environment for physicians and associates and
  striving to be one of the best health care
  systems in the world

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Some of Our Major Accomplishments

• Articulated a clear vision Journey to
  Excellence
• Committed to metrics driven by internal and
  external best practices in "4" Directions
  supporting a balanced scorecard
• Implemented a three-year rolling strategic
  planning process
• Focused on 19 recommendations from Futures Task
  Force I
• Committed to, and implemented, full transparency

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Some of Our Major Accomplishments

• Became a global ministry
• Developed strong advocacy and philanthropy
  programs
• Created excellent governance processes and
  structures
• Embraced innovation and technology expertise as
  critical success factors, while seeking
  operational stability
• Developed a Best Practice Program driven by a
  benchmark competitive evaluation process and
  Touchstone Award Program

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Some of Our Major Accomplishments

• Developed a new region in Santa Fe, New Mexico
• Systematized and grew home care and hospice
• Systematized managed care contracting, Unity
  Project, and Biomedical Engineering
• Became the sole member of the CHRISTUS Stehlin
  Cancer Research Foundation

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What Do We Look Like at this Moment in Time

• CHRISTUS Healths assets have grown to 4.7
  billion from 3.3 billion and our net revenue has
  grown from 1.9 billion to 3 billion
• All of our 10-year trends are positive when
  compared to our performance measurements in 1999

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CHRISTUS Healths Organizational Evolution Today
Consistent Predictable
CHRISTUS Health

• Increasing System
• Influence
• Capabilities
• Coordination

Holding Co.
Operating Co.
Hyper-Operating Co.
Influence Co.
Inconsistent Unpredictable

• Sharing
• Best Practices

• Must Haves
• Shared Services

Decentralized
Centralized
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What Lessons Have We Learned?

• Listen to the voices demanding change
• If you cant measure it, then do not do it
• Embrace outstanding health care governance
• Developing, sharing, and rewarding best practices
  are critical success factors
• Effective teamwork is critical
• Never be satisfied
• Unlimited optimism is paramount
• Use of a Balanced Scorecard approach is essential

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What Lessons Have We Learned?

• A high level of accountability must be sought
• Incremental victories must be identified and
  celebrated
• Great dreams do not occur overnight where
  CHRISTUS is today is no accident
• Our theological and ethical foundations do make a
  difference
• Future thinking and monitoring of innovations are
  important
• Change management is difficult, but a critical
  CHRISTUS leadership competency

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The Six Continuing Drivers of Future Change Will
be

• Declining reimbursement
• Rapid introduction of non-invasive technologies
• Hospital inpatient roles will continue to change
• Trauma will become the leading cause of death in
  people 54 years and younger

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The Six Continuing Drivers of Future Change Will
be

• Physician-hospital relationships will continue to
  be reshaped
• The aging process we have been observing will
  continue
• Demand for transparency will increase from
  payors, patients, and their families

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For Our Journey, We are Embracing These Three
Umbrella Strategies

• Strengthen CHRISTUS Healths position across the
  full continuum of services
• Develop customer-centric innovative and
  integrated approaches to care delivery
• Grow and develop CHRISTUS Healths International
  Ministry

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We Will Continue to Develop and Capitalize
Strategies to Evolve CHRISTUS Healths Portfolio,
Programs, and Services into

• Care requiring an acute inpatient bed and the
  outpatient related services

• Post-acute
• Community-based services
• Senior services
• Physician/Provider Clinics
• Retail Services

1/3 International
1/3 Acute Care
1/3 Non-Acute Care

• Mexico
• Other

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June 2009 Summit

• Directions to Excellence Goals
• Sustain Excellence
• Educate
• Influence
• Reward
• Employer of Choice
• Magnet Status
• Baldrige Award

The Journey to the 2009 Summit
June 2008
June 2007
June 2006 Summit -Directions to Excellence
June 2005
June 2004
June 2002
June 2003 Tip Point
June 2001
June 1999
Rev 05/19/08
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We Will Maintain A Full Understanding and
Integration of the Continuum of Care
Healthy, Independent Living
100
Community Clinic
Chronic Disease Management
Doctors Office
Assisted Living
Quality of Life
Specialty Clinic
Skilled Nursing Facility
Community Hospital
ICU
Home Care
Residential Care
Acute Care
0
1,000
10,000
1
10
100
Cost of Care/Day
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I Have A Dream

• ?

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Key Strategies to Create a Sustainable Future of
Excellence for CHRISTUS Health

• Birthed the virtual CHRISTUS Innovations
  Institute
• Commissioned Future Task Force II whose findings
  and recommendations will be presented in
  February 2009 at the CHRISTUS tri-annual
  Governance Conference
• Clear strategies for growth and acquisition of
  our 1/3, 1/3, 1/3 portfolio evolution
• Capital re-allocations through a System-wide
  Capital Committee

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Key Strategies to Create a Sustainable Future of
Excellence for CHRISTUS Health

• Matrix Planning
• Partnership development
• International business development
• Organization redesign
• Potential governance redesign
• Designed and implemented System-wide
  Organizational Ethics Program
• Developed a comprehensive Enterprise Risk Program
• The continuing focus on performance metrics
  supported by outcome data

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The CHRISTUS Vision 2016 and Beyond

• Some diseases will be cured (Alzheimers,
  Parkinsons, Non-Hodgkins Lymphoma, Cystic
  Fibrosis, Osteoporosis, some Behavioral
  Diagnoses, some GI Cancers)
• Trauma will become the leading cause of death in
  people 54 years of age and younger
• Six diseases, at least, will be best treated by
  alternative and complementary medicine, including
  migraine headache and tinnitus
• Heat illnesses related to global warming will
  increase
• Home Health and remote monitoring will become
  CHRISTUS Healths primary care delivery tool
  resulting in retail rather than payor orientation
• Retail services, including e-Commerce will
  quadruple

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The CHRISTUS Vision 2016 and Beyond

• Philanthropy, including estate planning, will
  double
• Innovative partnerships with payors for disease
  management and wellness maintenance will result
  in major cost savings and re-aligned industry
  incentives and payment strategies
• A more innovative CHRISTUS physician employment
  model which enables a sophisticated
  community-based care delivery strategy
• Innovative border strategy and medical tourism
  will be fully integrated into our major system
  services offering increasing international
  services which fully integrate into regional and
  system strategies

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The CHRISTUS Vision 2016 and Beyond

• CHRISTUS will have a fully integrated EMR and
  sophisticated IT networks driving patients,
  physicians, payors, and other partners inside our
  network
• Critical partnerships and other non-acute
  programs with innovative senior housing
  developments will expand CHRISTUS markets well
  beyond current acute care geographics

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Some Closing Thoughts

• CHRISTUS Health has journeyed through a decade
  earmarked with challenges, changes, and progress
• All "4" Directions to Excellence have been guided
  by data-driven decisions

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Questions?