Children's Hospital Los Angeles faced financial challenges under new DRG-based reimbursement and embarked on an organization-wide transformation. Key initiatives included improving clinical operations through initiatives like standardized patient placement, interdisciplinary care coordination, and reducing clinical variation. Governance was strengthened with a defined leadership structure and patient flow meetings. Enabling technologies such as an optimized bed board and case management system were implemented to improve operations. Tracking progress showed benefits like reduced length of stay, increased capacity to serve patients, continued decreasing mortality trends, and improved financial and patient satisfaction outcomes. Lessons learned emphasized focus on quality, leadership engagement, communications, and strategic technology investments.
1. Operationalizing Clinical Excellence:
Lessons Learned
May 14, 2014
Speakers:
•James Stein, M.D., Associate Chief of Surgery and Chief Medical Quality Officer
Children’s Hospital Los Angeles
•Mary Dee Hacker, R.N., Vice President, Patient Care Services, Chief Nursing Officer
Children’s Hospital Los Angeles
•Larry Burnett, R.N., Managing Director
Huron Healthcare
•Paul Kane, Senior Director
Huron Healthcare
2. Learning Objectives
• Identify keys to improving clinical operations with
DRG-based reimbursement
• Understand foundational strategies to support
interdisciplinary communication and accountability
• Understand how to measure outcomes and sustain high
quality care
2
3. Presentation Outline
I. Children’s Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
3
4. About CHLA
• Founded in 1901, oldest freestanding children’s hospital in California
• By the numbers:
– 347 active beds overall
– 106 pediatric critical care beds (more than any other hospital in the western U.S.)
– More than 5,200 employees and nearly 600 medical staff
– Average length of stay: 7.4 days
• Annual statistics:
– Admits 13,800 inpatients
– Nearly 319,000 outpatient visits
– More than 70,000 Emergency Department visits
– More than 104,000 individual patients
– More than16,000 pediatric surgeries performed
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5. About CHLA – Affiliations and Accolades
• The Saban Research Institute of CHLA is among the largest and most
productive pediatric research centers in the Western US
• One of the country’s premier teaching hospitals, CHLA is affiliated with
the Keck School of Medicine of the University of Southern California
• Children’s Hospital Los Angeles ranks among the top five in the nation
on the U.S. News & World Report Honor Roll of children’s hospitals
• Children’s Hospital Los Angeles is one of just 13 children’s hospitals to
be designated a “Top Hospital” for 2013 by The Leapfrog Group
• The hospital is designated a Magnet Hospital by the American Nurses
Credentialing Center—an honor held by only 7 percent of hospitals
nationwide
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6. Opportunities & Challenges
• Children’s Hospital Los Angeles (CHLA) was forecasting a
significant impact to financial stability and needed to take
immediate steps to transition to a DRG-based payment structure
• The organization embarked on a significant, organization-wide
transformative journey, which included major changes to care
delivery processes
• CHLA fully engaged all members of the care team in innovative
ways, enabling them to work in a results-focused, mutually
accountable, symbiotic manner, maintaining focus on the patient
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7. Opportunities & Challenges
Prior to July 1st
, 2013 After July 1st,
2013
MedicaidMedicaid Medicaid Managed CareMedicaid Managed CareCommercialCommercial
Percentages are
based on
percentage of
patient days.
Percentages are
based on
percentage of
patient days.
7
8. Presentation Outline
I. Children’s Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
8
11. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
11
12. Which area does your organization struggle with the most?
A. Patient Placement
B. Case Management
C. Interdisciplinary Care Coordination
D. Inappropriate Variation in Care Delivery
E. Governance & Accountability
12
Audience Question
Clinical Operations
14. Patient Placement Model Changes
14
Inconsistency
Variability
BEFORE AFTER
Case by Case
Clinical Operations
Centralized
Coordinated
Measurable
15. Patient Placement Metrics
15
Time Stamp Area Responsible
Bed Request
Sending Area and/or Patient
Placement
Bed Clean Environmental Services
Bed Assigned Patient Placement
Patient Ready To Move
Sending Area (i.e. Portals, Nursing
Units, ICU, Admitting, etc.)
Bed Occupied Receiving Unit
Clinical Operations
17. Best Practice Case Management Model
17
Psychosocial
assessments
Abuse, neglect, domestic
violence interventions
Crisis interventions and
counseling for issues such
as bereavement and end
of life
Patient/family support and
conferences
Interventions to help
resolve barriers to care
progression and facilitate
discharge
Post-hospital care referrals
Paperwork assembly/transportation
arrangements
Authorizations
Clinical assessment
Level of Care /
Discharge Planning
Utilization Review
Case escalation /
referral to resolve
barriers to care
progression
Discharge Planning
Clinical Operations
Case Manager
Assistant
Case Manager
Assistant
Case
Manager
Case
Manager
Social
Worker
Social
WorkerPatient/
Family
Patient/
Family
18. Physician Advisor Program
18
The Physician Advisor is a CHLA physician who facilitates the safe and
efficient flow of patients by providing guidance to the care team
Typical issues addressed by the physician advisor:
• Delays in ancillary services (i.e. MRI delay), consults, discharge planning, or discharge orders
• Secondary review (after Case Manager) and follow-up for non-adherence to Clinical
Pathway/Care Sets
• Communication challenges or disagreements amongst the care team
• Guidance and planning on care issues that may be more appropriate for the outpatient setting
• Payer requests for further information to authorize care or prevent denials
• Participates in yellow/red census alerts and works to improve throughput during high capacity
• Clarification and follow-up for the Clinical Documentation Improvement (CDI) program
Clinical Operations
21. Anticipated Date of Discharge Process
21
• Define patient-centered, team approach to align anticipated
date of discharge (ADOD) process with
• Daily care team communication forums
• Proactive communication with patient/family about their course of
care, discharge plans, goals for stay/day and medical milestones
• Why is this important?
• How does it work?
Clinical Operations
23. Reduce variation, decrease LOS and unnecessary resource
consumption and enhance timely care for patients
Care Variation Management
23
Clinical Operations
24. Appendectomy, Pneumonia, Neutropenia and Cystic Fibrosis
Workshops, Clinical Pathway Redesign and Medical Milestone
Tools
Care Variation Management DRGs Selected
24
Appendectomy,
Pneumonia
Workshop & Re-
design
Appendectomy/
Pneumonia
Clinical
Intervention/
Go-live &
Neutropenia
Approvals
Cystic
Fibrosis
Workshop
Cystic
Fibrosis
Clinical
Approvals
Oct-Dec March MayAprilJan
Neutropenia
Initiative
Education,
Training and
Go-live
Feb
Appendectomy/
Pneumonia
Clinical
Approvals
& Neutropenia
Workshop
Prioritization
of future
CVM
Initiatives
June
Clinical Operations
25. • Best/consensus practice
• Education - patient and staff
• Designation of appropriate metrics
• Medical, Clinical and Physician Dashboards
Care Variation Management
25
Clinical Operations
26. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
26
27. • Defined and Actionable Leadership Structure
• Patient Flow Meeting
Governance
27
Governance
29. Approval and Monitoring Process
Objective: Retrospectively review performance on key metrics and identify and address root causes for unnecessary variation
Key Impact: Optimal, reliable performance on outcome and process metrics increasingly available in the public domain
29
Governance
31. Patient Flow Meeting
• Weekly meeting to promote the use of data and metrics in identifying,
monitoring, managing and improving issues in patient flow throughout the
hospital using:
– Focused, structure conversation
– Identification/resolution of barriers
– Measurement and goal-setting
• Analyze performance (PatientONTRAC™, Care Variation Management ,
Quality, Patient Satisfaction, Readmissions, Operational and Other Metrics)
• Address patient flow barriers and discuss performance improvement
activities
• Set and manage to key performance indicator goals
• Celebrate successes and share best practices
31
Governance
32. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
32
33. What systems/processes have you used, or are you
considering for improving clinical operations?
1)Bed Board
2)Case Management System
3)Operational Metrics
4)Clinical Benchmarking Data Program
33
Audience Question
Enabling Technologies
34. • Bed Board Optimization
• Case Management System Implementation
• Operational Metrics
• Clinical Benchmarking Data Program
Implemented New and Optimized Existing
Technology to Improve Operations
34
Enabling Technologies
35. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
35
36. Project Results
• Decreased severity-adjusted and straight length of stay
• Created the capacity to serve additional patients
• Continued re-enforcement of the historical decreasing
mortality rate trends
• Reduced overall cost per case significantly
• Reduced capacity-related admission denials
• Mitigated negative readmissions impact to the hospital
• Improved patient satisfaction
• Enhanced overall clinical operations efficiency
36
37. • Severity Adjusted Average LOS has decreased by 1.45 days for all
in-scope patients
• Severity Adjusted Average LOS has decreased by 1.94 days for
Medi-Cal patients
Clinical Ops Improvement Outcomes
Estimated Range of Results
3 Month
Results
Annualized
ConfirmedLow Mid High
Average LOS Reduction (Days) 0.3 0.45 0.6 1.45 1.45
Patient Day Reduction 3,300 5,000 6,700 5,115 20,462
Updated as of March 31, 2014
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38. Revenue Enhancement & Cost Savings Benefit
Clinical Ops Improvement Outcomes
Preliminary Draft Benefit Model
(Currently Being Validated/Finalized)
Estimated Range of Results
Estimated
AnnualizedLow Mid High
Revenue Enhancement/ Backfill Benefit
(Based on Incremental Discharges in Nov Projected to April)
$5.5M $8.4M $11.3M
$6.5M
Dark Green (Excluding Nursing/Tech Labor) Cost Savings
Benefit
$6.2M
Subtotal Benefit $12.7M
Light Green (Nursing/Tech Labor) Cost Savings Benefit $6.6M
Total Potential Benefit $19.3M
Updated as of March 31, 2014
38
39. Medi-Cal/ Medicaid LOS Trends vs. Case Mix Index
Clinical Ops Improvement Outcomes
Updated as of March 31, 2014
39
CDI Go-Live
ClinOps Go-Live
Physician
Advisor/CM Tool
Go-Live
41. Expected vs. Observed Mortality Rate Continuing Favorably Trend
Updated as of March 31, 2014
41
CDI Go-Live
ClinOps Go-Live
Physician
Advisor/CM Tool
Go-Live
Expected vs. Observed Mortality Rates
42. Medi-Cal/ Medicaid Direct Cost Per Case % Reduction
Clinical Ops Improvement Outcomes
Updated as of March 31, 2014
42
43. Clinical Ops Improvement Outcomes
Average Daily Census Fiscal Year 2013 vs. 2014
43
Updated as of March 31, 2014
44. Clinical Ops Improvement Outcomes
Admissions Fiscal Year 2013 vs. 2014
6.3% Increase In
Admissions FY14
6.3% Increase In
Admissions FY14
44
Updated as of March 31, 2014
45. In addition to the strong LOS reduction, CHLA:
•Created the capacity to treat more patients which is reflected in the significant decrease in
capacity related admission denials
•On track for an 75% in comparison to FY 2013
Clinical Ops Improvement Outcomes
45
Updated as of March 31, 2014
47. 47
• LOS reduction achieved while maintaining or improving patient satisfaction
comments/scores
• How would you rate the overall teamwork between doctors, nurses, and staff?
Improving the Patient Experience
47
Rating Total Responses
Excellent 3152 58%
Very Good 1244 23%
Good 656 12%
Fair 304 6%
Poor 69 1%
Totals 5425 100%
Rating Total Responses
Excellent 1754 73%
Very Good 384 16%
Good 166 7%
Fair 69 3%
Poor 22 1%
Totals 2395 100%
November 2011-June 2013 July 2013 – March 2014
48. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
48
49. Critical Success Factors
1. Focusing on Quality Before Financials
2. Leadership At All Levels
3. Transparent and Consistent Communications
4. Staff and Stakeholder Engagement and Buy-in
5. Strategic Investments (e.g., IT Systems, Physician
Advisors, Case Management Assistants, External
Implementation Expertise)
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50. Next Steps
1. Evolution of Clinical Operations
• Service based inpatient case management
• Increased physician participation in care coordination rounds
• Implementation of best practices in out of scope areas (NICU/Rehab)
1. Full Care Continuum Management
• Ambulatory/outpatient redesign
• Case management
• Access
• Clinic operations
1. Data Analytics and Performance Improvement Investments
2. Labor/ Staffing Management
3. Re-negotiating Contractual Arrangements
50
51. Presentation Outline
I. Children's Hospital Los Angeles Opportunities & Challenges
II. Transforming the Organization: Key Initiatives
A. Clinical Operations
B. Governance & Accountability
C. Enabling Technologies
III. Tracking Progress & Measuring Benefit
IV. Lessons Learned
V. Questions
51
52. Today’s Speakers
52
Larry Burnett, R.N.
Managing Director
Huron Healthcare
Mary Dee Hacker, R.N.
Vice President, Patient Care
Services, Chief Nursing Officer
Children's Hospital Los Angeles
James Stein, M.D.
Associate Chief of Surgery and
Chief Medical Quality Officer
Children's Hospital Los Angeles
Paul Kane
Senior Director
Huron Healthcare
54. Project Timeline
Project Initiatives May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
Refresh Data Analysis, Finalizing Initiatives &
Reporting Metrics
Develop Workplans, Team Charters and Workgroups
Complete design sessions
Implement Clinical Operations (CO) Management
Tools & Execute on Implementation Plans
Improve CO Work Process to Drive Results
Monitor Realization and Sustain Value
Conduct CO Training and Knowledge Transfer
Implementation Timeline 12 MonthsImplementation Timeline 12 MonthsMonth
CM
CM
CVM
PP and CC
CM=Case Management, CVM=Care Variation Management, PP=Patient Placement, CC = Care Coordination
54
55. Medi-Cal/ Medicaid Average LOS trends by severity
Clinical Ops Improvement Outcomes
Updated as of March 31, 2014
55
56. Medi-Cal/ Medicaid Average LOS trends by severity
Clinical Ops Improvement Outcomes
Updated as of March 31, 2014
56
57. Medi-Cal/ Medicaid Direct Cost Per Case trends by severity
Clinical Ops Improvement Outcomes
Updated as of March 31, 2014
57
58. Significant reduction in mortality rates since Fiscal Year 2004
Expected vs. Observed Mortality Rates
58
Editor's Notes
Improved Access to Care: Ensures patients access the right care setting and provider at the right time to improve outcomes and maximize the use of valuable resources.
Proactive Case Management: Proactive management of patients across the continuum driving quality and cost effective care. Strong case management reduces avoidable admissions and minimizes delays in clinical settings.
Interdisciplinary Care Coordination: Increases communication with the care team, ensures continuity of care, provides seamless transitions for patients.
Care Variation Management: Clinical practice redesign that improves the reliability, quality, and safety of patient care by integrating and coordinating medical, nursing, and ancillary practice while decreasing process variation.
Process Improvement:
Establish consistent processes that minimize artificial variability
Clarify individual roles and performance expectations
Improve timeliness and effectiveness of communication (e.g., tools, key medical record inputs, policies)
to support bus clinicians and care managers
to troubleshoot care variation and obstacles to throughput
problem-solving role and advocate. very clear that this job function must be filled by a physician
Speak to some examples relative to units
Why Is this Important?
Improve Care Team communication
Improve Care Coordination
Enable RN to leverage ADOD and care plan discussions to advance the progression of patients through the continuum of care
Continue optimizing Interdisciplinary Care Coordination discussions
Align process for integrating ADOD into daily capacity planning and staffing infrastructure
Align ADOD processes with key metrics
How does it work?
Physician/Provider completes anticipates date of discharge at time of patient admission
Bedside RN updates anticipated date of discharge during day as aligned with changes to patient plan of care and patient/family communication
[JIM]
Revenue Enhancement = Volume Increase x Contribution Margin Per Day
Cost Savings = Payer Mix Adjusted Patient Day Reduction x Direct Variable Cost