Title: U.S.-CHINA HOSPITAL MANAGEMENT CONFERENCE
1 U.S.-CHINA HOSPITAL MANAGEMENT CONFERENCE
MAY 29, 2006
CHENGDU, SICHUAN
- USING THE U.S. EXPERIENCE
- TO IMPROVE H.I.T. INVESTMENT
- RESULTS IN CHINA
2AGENDA
- SHELDONS BACKGROUND AND CHINA BUSINESS APPROACH
- THE U.S. HEALTHCARE INDUSTRY AND ITS USE OF
INFORMATION TECHNOLOGY - OVERVIEW OF H.I.T. STATUS IN CHINA
- A GOOD APPROACH TO SUCCESSFULLY IMPLEMENTING
MAJOR I.T. SYSTEM UPGRADES - DISCUSSION
3BRIEF SUMMARY OF SHELDONS EXPERIENCE IN H.I.T.
- FORMED COMPUCARE 1969 CEO 1969-1976
- FORMED SHELDON I. DORENFEST ASSOCIATES, LTD. IN
1976 CEO 1976-2004 - LONG, RICH HISTORY OF MAJOR CONTRIBUTIONS TO
HEALTHCARE I.T. UNDERSTANDING AND PROGRESS - WAS RECOGNIZED AS THE LEADING SOURCE OF
INFORMATION ABOUT HEALTHCARE I.T. AND A LEADING
HEALTHCARE CONSULTING FIRM - KEY BUSINESS UNITS INCLUDED THE DORENFEST
INTEGRATED HEALTHCARE SYSTEM DATABASE AND
HOSPITAL OPERATIONS IMPROVEMENT AND MEDICAL
SUPPLIER CONSULTING - SOLD THE DORENFEST INTEGRATED HEALTHCARE DELIVERY
SYSTEM (IHDS) DATABASE TO HIMSS ANALYTICS IN
JULY, 2004
4DORENFEST ACTIVITIES IN OTHER COUNTRIES
- CONDUCT MARKET STUDIES AND CONSULTING ASSIGNMENTS
ON USE OF INFORMATION TECHNOLOGY IN HEALTH CARE
IN A NUMBER OF COUNTRIES - CONDUCT WORLDWIDE STUDIES COMPARING THE STATE OF
THE ART IN HEALTH CARE I.T. - CONTINUOUSLY MONITOR AND UPDATE OUR UNDERSTANDING
OF WORLDWIDE HEALTH CARE I.T. THROUGH A VARIETY
OF ONGOING ACTIVITIES - IN-PERSON AND TELEPHONE DISCUSSIONS WITH NUMEROUS
HOSPITAL EXECUTIVES AND I.T. SUPPLIER PERSONNEL - REVIEW OF I.T. IN USE AT HOSPITALS THROUGHOUT THE
WORLD - WORLDWIDE EDUCATIONAL SERVICES
5BRIEF SUMMARY OF SHELDONS EXPERIENCE IN H.I.T.
(CONTINUED)
- DONATED SHELDON I. DORENFEST ASSOCIATES, LTD.
TO THE HIMSS FOUNDATION TO FORM THE DORENFEST
INSTITUTE FOR HEALTH INFORMATION TECHNOLOGY
RESEARCH AND EDUCATION - CONTAINS A LIBRARY OF HISTORIC DATA (FROM 1986
THROUGH 2002 WITH HIMSS ANALYTICS DONATING THE
NEXT CURRENT YEAR OF DATA ANNUALLY BEGINNING IN
JULY 2005) AND PUBLICATIONS - PROVIDES FREE DATA FOR RESEARCH PURPOSES
ELECTRONICALLY AND IN PRINT TO UNIVERSITIES,
STUDENTS, FEDERAL, STATE, LOCAL GOVERNMENT AS
WELL AS GOVERNMENTS OF OTHER COUNTRIES - WILL PROVIDE A VARIETY OF REPORTS ON TRENDS IN
H.I.T. USE - WILL ENCOURAGE ONGOING RESEARCH INTO USING I.T.
TO IMPROVE HEALTHCARE - PRESENT ACTIVITIES
- HELPING HIMSS ANALYTICS IN TRANSITIONAL
RELATIONSHIP - FORMED THE DORENFEST GROUP IN SEPTEMBER 2004 AS
AN INVESTMENT AND CONSULTING BUSINESS - FOCUSING ON INVESTING IN CHINA IN HOSPITAL AND
HEALTHCARE IMPROVEMENT BUSINESSES
6DORENFEST INVESTIGATION OF HEALTHCARE IN CHINA
- VISITED 17 CITIES IN CHINA
- VISITED WITH HUNDREDS OF LEADERS IN THE
HEALTHCARE INDUSTRY IN CHINA TO LEARN ABOUT
HEALTHCARE REFORM IN CHINA ITS PROGRESS, ITS
PROBLEMS, AND ITS NEXT STEPS - VISITED WITH OVER 50 HOSPITALS TO GAIN AN
UNDERSTANDING OF HOSPITAL OPERATIONS IN CHINA,
THEIR CURRENT STATUS, AND OPPORTUNITIES FOR
IMPROVEMENTS - VISITED WITH SEVERAL PROVINCIAL AND CITY HEALTH
BUREAUS TO LEARN WHAT THEIR GOALS ARE FOR THEIR
PROVINCIAL AND CITY HOSPITALS - VISITED SOME PRIVATE HOSPITALS TO OBSERVE THE
RESULTS OF HEALTHCARE REFORM PRIVATIZATION
EFFORTS IN CHINA - VISITED WITH COMPANIES SELLING PRODUCTS AND
SERVICES TO THE HEALTHCARE INDUSTRY IN CHINA AND
WHAT THEY BELIEVE ARE APPROPRIATE NEXT STEPS FOR
REFORMING THE CHINESE HEALTHCARE SYSTEM - EVALUATED A GROUP OF HOSPITAL MANAGEMENT AND
OWNERSHIP OPPORTUNITIES THAT WERE PRESENTED TO
THE DORENFEST GROUP TO BECOME MORE FAMILIAR WITH
THE ALTERNATIVE WAYS TO PROCEED IN BUILDING A
MODEL HOSPITAL IN CHINA - DEVELOPED A STRATEGY FOR BRINGING DORENFEST SKILL
AND EXPERIENCE TO CHINA
7THE DORENFEST GROUP VISION FOR CREATING A MODEL
HOSPITAL IN CHINA
- PROVIDES IMPROVED QUALITY OF CARE TO ITS PATIENTS
- OPERATES AT A HIGHLY EFFICIENT LEVEL THROUGH
EFFECTIVE USE OF SYSTEMS AND BETTER WORK
PROCESSES - OFFERS ITS SERVICES TO PATIENTS AT AN AFFORDABLE
COST - CREATES A HIGHLY SATISFIED PATIENT POPULATION
WITH THE PATIENTS OBSERVING A NOTICEABLE
IMPROVEMENT IN THE SERVICES AND TREATMENTS
PROVIDED BY THE HOSPITAL - UTILIZES APPROPRIATE DIGITAL TECHNOLOGY TO CREATE
A STATE OF THE ART DIGITAL HOSPITAL
8CHINA BUSINESS OPERATIONS
- HOSPITAL MANAGEMENT CONSULTING
- OPERATIONS IMPROVEMENT
- STRATEGIC PLANNING FOR NEW I.T. SYSTEMS
- I.T. SYSTEM SELECTION
- I.T. SYSTEM IMPLEMENTATION
- WORK PROCESS IMPROVEMENT
- MANAGEMENT TRAINING
- OTHER SERVICES
- GENERAL MANAGEMENT CONSULTING FOR HEALTHCARE
COMPANIES - MARKET ANALYSES
- PRODUCT STRATEGIES
- MARKET RESEARCH
- HOSPITAL CONTRACT MANAGEMENT
- WORK WITH HOSPITALS NEEDING NEW MANAGEMENT
(INTERIM OR LONG TERM) - IMPLEMENT NECESSARY MANAGEMENT PERSONNEL AND
SUPPORT SYSTEMS - HOSPITAL OWNERSHIP AND IMPROVEMENT
9CURRENT STATUS OF DORENFEST GROUP CHINA
- FORMING WFOE
- RECRUITING MANAGEMENT TEAM
- CREATING PROJECT ACTIVITIES
- REVIEWING CANDIDATES TO IMPLEMENT MODEL HOSPITAL
VISION - DEVELOPING PARTNERING RELATIONSHIPS TO DELIVER
SERVICES - REVIEWING SOFTWARE SYSTEMS IN CHINA AND OTHER
COUNTRIES TO DEFINE THE BEST SOFTWARE AVAILABLE
FOR IMPLEMENTATION IN CHINA TO PARTNER ON I.T.
PROJECTS FOR HOSPITAL CLIENTS
10U.S.-CHINA HOSPITAL MANAGEMENT CONFERENCE
- THE U.S. HEALTHCARE INDUSTRY AND ITS USE OF
INFORMATION TECHNOLOGY
11HEALTHCARE COST AS A PERCENT OF GDP
GDP 1970- 2004 (not 75) 75.1 245.8 426.8 696.
0 990.3 1,299.5 1,877.6
1,877.6
1,299.5
990.3
696.0
426.8
245.8
75.1
SOURCE CENTERS FOR MEDICARE AND MEDICAID
SERVICES
12OPPORTUNITIES TO IMPROVE THE HEALTHCARE DELIVERY
PROCESSHAVE BEEN PURSUED FOR MANY YEARS
- GREAT REDUNDANCY OF INFORMATION
- HIGH ERROR POTENTIAL
- LACK OF TIMELINESS
- HIGH COST
- ORGANIZATION COMPLEXITY
134 GENERATIONS OF I.T. SYSTEMS IN U.S. HOSPITALS
- FINANCE SYSTEMS (1970s)
- LIMITED CLINICAL SYSTEMS (LATE 1970s AND 1980s)
- MORE ADVANCED CLINICAL SYSTEMS (1990s)
- ELECTRONIC HEALTH RECORDS (2000s)
14H.I.T. MARKET TRENDS ( IN BILLIONS)
in billions
30.5
28.0
25.8
23.6
21.6
20.0
19.0
18.5
16.0
13.6
11.6
10.0
8.5
7.5
Actual
Forecast 2004 -2006
ANNUAL GROWTH RATE
17.6
15.6
2.7
8.0
5.2
9.3
9.3
8.9
8.9
17.2
16.0
17.6
13.3
6.7
SOURCE SHELDON I. DORENFEST ASSOCIATES, LTD.
15HEALTHCARE REFORM BROUGHT INTEGRATED DELIVERY AND
MANAGED CARE
16HOW DID SOFTWARE SUPPLIERS DESCRIBE THEIR
PRODUCTS IN THE 1990s?
17HOW DID SOFTWARE SUPPLIERS DESCRIBE THEIR
PRODUCTS IN THE 1990s?
18WHAT IS TODAYS TYPICAL SITUATION AT USER SITES?
- STILL MANY MANUAL RECORDS
- ERROR PRONE WORK PROCESSES
- POOR IMPLEMENTATION AND USE OF I.T. HAS RESULTED
IN A LARGE AMOUNT OF WORK PROCESS CONVOLUTIONS,
TANGLES, REDUNDANCY, AND DUPLICATION - LEGACY SYSTEMS IN PLACE ARE VERY OLD
- OVERSIMPLIFICATION OF AND MISUNDERSTANDING ABOUT
WHAT TO DO NEXT
19U.S. HAS MADE MUCH PROGRESS
- TODAY OVER 100 HOSPITALS HAVE IMPLEMENTED CPR
WITH CPOE - MANY OTHERS ARE IMPLEMENTING CPR AND CPOE RIGHT
NOW - I.T. IS A MAJOR TOOL FOR IMPROVING HOSPITAL
PERFORMANCE
20BUT U.S. HOSPITALS HAVE BEEN INEFFICIENT INVESTORS
- OVERSIMPLIFICATION OF I.T. INVESTMENT
CONSIDERATIONS (I.E., DID NOT KNOW WHAT THEY DID
NOT KNOW) - POOR PROJECT PLANNING
- IMPROPER ASSESSMENT OF SOFTWARE PRODUCT
CAPABILITIES - IMPLEMENTED A SERIES OF 1/2 SYSTEMS WITHOUT
PROPERLY REDESIGNING THE WORK PROCESS - INDUSTRY MANAGEMENT DID NOT LEARN ENOUGH FROM
PAST MISTAKES, AND THEREFORE, CONTINUED TO REPEAT
THE SAME MISTAKES - THIS LEFT THE NATION WITH REDUNDANT, CONVOLUTED,
EXPENSIVE, ERROR PRONE WORK PROCESSES THAT
PRESENTLY CRIPPLE THE COUNTRYS HEALTHCARE SYSTEM
21THE KEY DRIVERS OF U.S. H.I.T. MARKET GROWTH IN
2004-2005
- COMPUTERIZED PATIENT RECORDS (CPR/EMR/EHR)
- COMPUTERIZED PHYSICIAN ORDER ENTRY (CPOE)
- MEDICATION MANAGEMENT SYSTEMS
- PATIENT SAFETY IMPROVEMENTS
- REDUCING MEDICAL ERRORS
- IMPROVING CLINICAL WORK PROCESSES
- PICTURE ARCHIVING COMPUTER SYSTEMS (PACS)
- SPECIALTY DEPARTMENT INFORMATION SYSTEMS
- EMERGENCY DEPARTMENT (EDIS) SURGERY (SIS)
- PHARMACY (PIS) RADIOLOGY (RIS)
- NUMEROUS OTHER CLINICAL AND FINANCIAL SYSTEMS
- PATIENT DATA SECURITY (HIPAA, ETC)
- RHIOs TO EMERGE TO SHARE ELECTRONIC PATIENT DATA
22U.S.-CHINA HOSPITAL MANAGEMENT CONFERENCE
- OVERVIEW OF H.I.T. STATUS IN CHINA
23INTRODUCTION TO CHINA
- WHEN I FIRST CAME TO STUDY THE HEALTHCARE
INDUSTRY IN CHINA IN LATE 2004, ATTITUDES TOWARD
H.I.T. WERE VERY CONSERVATIVE - HOSPITAL MANAGEMENT WAS NOT HAPPY WITH I.T.
SYSTEMS IN USE - FUNCTIONALITY OF APPLICATION SOFTWARE AVAILABLE
FOR PURCHASE IN CHINA WAS VERY LIMITED AND THE
MOST FUNCTIONAL SYSTEMS WERE SELF-DEVELOPED - THE SKILLS TO MANAGE MAJOR I.T. UPGRADES WERE
FELT TO BE IN SHORT SUPPLY - AS A RESULT, HOSPITAL MANAGEMENT WAS HESITANT TO
MAKE MAJOR UPGRADES TO I.T. SYSTEMS - AT THAT TIME, THERE WAS VERY LIMITED BUYING OF
MAJOR NEW I.T. SYSTEMS IN CHINESE HOSPITALS - DURING THE PAST 18 MONTHS, THE SITUATION HAS
CHANGED - MANY HOSPITALS ARE CONSIDERING MAJOR UPGRADES OF
I.T. SYSTEMS - BIG BUDGETS ARE STARTING TO BECOME AVAILABLE TO
MOVE TOWARD DIGITAL HOSPITALS WITH ELECTRONIC
MEDICAL RECORDS, PACS AND OTHER SYSTEMS - BUT WEAK APPLICATION SOFTWARE AND IMPLEMENTATION
SKILLS ARE DELAYING PROGRESS
24CHINA HEALTHCARE AND I.T. USE HAS SIMILARITIES TO
THE U.S. IN THE 1970s
- CHINA SPENDS 6.0 OF ITS GDP ON HEALTHCARE (800
BILLION RMB OR APPROXIMATELY 100 BILLION)
COMPARED TO U.S. SPENDING ON HEALTHCARE IN 1970
OF 7 GDP (75 BILLION) - MOST HOSPITALS IN CHINA USE I.T. SOFTWARE FOR
FINANCIAL SYSTEMS - I.T. USE IN CLINICAL SYSTEMS HAS EMERGED ON A
DEPARTMENTAL BASIS - SOME HOSPITALS HAVE ACCOMPLISHED MORE ADVANCED
SYSTEMS WITH MUCH CLINICAL FUNCTION AUTOMATED
USUALLY THROUGH USE OF SELF-DEVELOPED SOFTWARE - POOR INTEGRATION OF DIVERSE SOFTWARE SYSTEMS
CREATES PROBLEMS AS I.T. USE EXPANDS - THE HARDWARE AND NETWORKING CAPABILITY AVAILABLE
TO HOSPITALS IN 2005 IS MUCH BETTER THAN IT WAS
IN 1970s IN THE U.S. BUT SOFTWARE AVAILABLE FOR
CHINESE HOSPITALS TO AUTOMATE CLINICAL PROCESSES
IS IN ITS INFANCY
25CHINA HEALTHCARE AND I.T. USE HAS SIMILARITIES TO
THE U.S. IN THE 1970s(Continued)
- CHINA HOSPITAL WORK PROCESSES ARE REDUNDANT AND
ERROR PRONE WITH GREAT OPPORTUNITIES FOR
IMPROVEMENT THROUGH APPROPRIATE USE OF I.T. - CHINESE HOSPITALS WOULD LIKE TO TAKE A BIG LEAP
FORWARD IN IMPROVING WORK PROCESSES AND IN
DIGITIZING ITS HOSPITALS - THE MINISTRY OF HEALTHS GUIDELINES FOR HEALTH
I.T. DEVELOPMENT (2003-2010) CALLS FOR ELECTRONIC
MEDICAL RECORDS AND REGIONAL HEALTH NETWORKS TO
BE IMPLEMENTED PROVIDING MUCH MOMENTUM FOR
HOSPITALS AND HEALTH BUREAUS TO INVEST MORE IN
I.T. NOW - CHINA HAS NOT INVESTED A LOT OF RESOURCES IN I.T.
SYSTEMS AND INFRASTRUCTURE TO GET TO ITS PRESENT
LEVEL OF I.T. USE. WHILE CHINA WOULD LIKE TO
CONTINUE THIS APPROACH AS IT TAKES ITS NEXT STEPS
FORWARD, CHINAS I.T. GOALS WILL REQUIRE GREATER
INVESTMENT
26CHINA HEALTHCARE AND I.T. USE HAS SIMILARITIES TO
THE U.S. IN THE 1970s(Continued)
- THERE IS CONCERN AMONG H.I.T. EXPERTS IN CHINA
ABOUT THE READINESS OF H.I.T. SOFTWARE PRODUCTS,
HARDWARE PLATFORMS, AND INTEGRATION TOOLS TO
FACILITATE THE ACCOMPLISHMENT OF CHINAS GOALS - THERE IS ALSO DEVELOPING CONCERN AMONG H.I.T.
EXPERTS IN CHINA ABOUT THE IMPLEMENTATION SKILL
AND EXPERIENCE AVAILABLE IN CHINA TO TAKE THIS
BIG LEAP FORWARD THAT IS NOW UNDERWAY - SO CHINESE HOSPITALS AND HEALTH BUREAUS ARE
CAREFULLY CONSIDERING HOW TO TAKE THEIR NEXT
STEPS SUCCESSFULLY - FOR CHINA TO ACCOMPLISH ITS OBJECTIVE
SUCCESSFULLY REQUIRES THE FOLLOWING - OVERCOMING RESISTANCE TO CHANGE
- KNOWING HOW TO MANAGE CHANGE
- LEARNING FROM THE U.S. EXPERIENCE
- DOING MORE OF WHAT THE U.S. DID RIGHT AND NOT
MAKING U.S. MISTAKES - DEVELOPING EXPERTISE IN AREAS OF NEED
27U.S.-CHINA HOSPITAL MANAGEMENT CONFERENCE
- A GOOD APPROACH TO SUCCESSFULLY IMPLEMENTING
MAJOR I.T. UPGRADES
28THE PROJECT SHOULD BE DONE IN PHASES
- STRATEGIC PLAN
- SYSTEM SELECTION WITH FINAL IMPLEMENTATION
PLAN - SYSTEM IMPLEMENTATION
29STRATEGIC PLANNING PHASE
- ESTABLISH A PLANNING COMMITTEE
- GAIN THOROUGH UNDERSTANDING OF THE CURRENT
OPERATIONS AND WORK FLOW OF THE HOSPITAL - IDENTIFY OPPORTUNITIES TO IMPROVE OPERATIONS AND
WORK FLOW THROUGH NEW I.T. SYSTEMS - DEFINE THE VALUE OF THE OPPORTUNITIES FOR
IMPROVEMENT IN TERMS OF THE FOLLOWING AREAS - REVENUE IMPROVEMENT
- TIME SAVINGS
- OTHER COST REDUCTION
- REDUCTION OF ERRORS
- OTHER QUALITY OF CARE IMPROVEMENTS
- RAISING LEVEL OF PATIENT SATISFACTION
- SELECT THE HIGHEST PRIORITY IMPROVEMENTS FOR
IMPLEMENTATION - DEFINE THE NEEDED I.T. SYSTEMS AND CHANGES IN
WORK FLOW PROCESSES TO ACCOMPLISH THE
IMPROVEMENTS - DEFINE USER ATTITUDES TOWARD AND TECHNICAL
LIMITATIONS OF CURRENT I.T. SYSTEMS AND DETERMINE
REPLACEMENT REQUIREMENTS
30STRATEGIC PLANNING PHASE (CONTINUED)
- DECIDE WHETHER TO BUY OR DEVELOP THE I.T. SYSTEM
UPGRADE - PROVIDE THE NECESSARY EDUCATION TO HOSPITAL
MANAGEMENT, PHYSICIANS, I.T. USERS, AND I.T.
STAFF SO THAT THEY CAN BETTER UNDERSTAND THE
REQUIREMENTS TO SUCCESSFULLY MANAGE THE CHANGE - CREATE AN ECONOMIC ANALYSIS SUMMARIZING EXPECTED
COSTS AND BENEFITS OF THE CHANGE PROGRAM - GAIN GENERAL APPROVAL FROM HOSPITAL MANAGEMENT
TEAM - FINALIZE A STRATEGIC PLAN TO IMPLEMENT THE
OPERATIONS IMPROVEMENT PROGRAM
31SYSTEM SELECTION AND IMPLEMENTATION PLAN PHASE
- ESTABLISH A SELECTION COMMITTEE OF KEY USERS,
I.T. PERSONNEL, AND MANAGEMENT - PREPARE A FUNCTIONAL REQUIREMENTS DOCUMENT
DEFINING THE OBJECTIVES, FEATURES, TECHNICAL
REQUIREMENTS, AND ANY OTHER KEY CHARACTERISTICS
OF THE NEW SYSTEM - PREPARE A TENDER REQUEST (REQUEST FOR VENDOR
PROPOSALS) - DEVELOP EVALUATION CRITERIA AND APPROACH
- COMPARE AND EVALUATE PROPOSALS
- FOR LEADING SUPPLIERS CONDUCT VENDOR
SYSTEM DEMONSTRATIONS USING PREPARED SCRIPTS
CONDUCT TELEPHONE REFERENCE CHECKS CONDUCT
USER SITE VISITS
32SYSTEM SELECTION AND IMPLEMENTATION PLAN PHASE
(CONTINUED)
- MAKE FINAL SELECTION
- BEGIN NEGOTIATING CONTRACT
- DEVELOP DETAILED IMPLEMENTATION PLAN WITH OVERALL
GOALS, ORGANIZATIONAL REQUIREMENTS, SPECIFIC
TASKS, TIMETABLE BY TASK, AND STAFFING
RESPONSIBILITY FOR EACH TASK - DEVELOP MANAGEMENT PROCESS FOR OVERSEEING THE
IMPLEMENTATION - FINALIZE THE CONTRACT
33SYSTEM IMPLEMENTATION
- START IMPLEMENTING PLAN
- MONITOR RESULTS
- MAKE NECESSARY ADJUSTMENTS AND REVISIONS
- KEEP A CLOSE WATCH ON PROGRESS TO MAKE SURE YOU
AVOID MAJOR PROBLEMS
34- THANK YOU.
- FOR MORE INFORMATION CONTACT
- SHELDON I. DORENFEST
- THE DORENFEST GROUP
- 455 NORTH CITYFRONT PLAZA DRIVE
- NBC TOWER , SUITE 2725
- CHICAGO, ILLINOIS 60611
- PHONE 312-464-3000
- FAX 312-467-0541
- WEB SITE ADDRESS www.dorenfest.com
- E-MAIL ADDRESS info_at_dorenfest.com
- SHELDONS E-MAIL ADDRESS sheldon_at_dorenfest.com