Title: Duke%20Beijing%20Healthcare%20Leadership%20Forum
1 Duke Beijing Healthcare Leadership Forum
APRIL 26, 2007
DURHAM, NORTH CAROLINA
- USING THE U.S. EXPERIENCE
- TO IMPROVE H.I.T. INVESTMENT
- RESULTS IN CHINA
2AGENDA
- THE DORENFEST GROUP AND ITS CHINA BUSINESS
APPROACH - THE U.S. HEALTHCARE INDUSTRY AND ITS USE OF
INFORMATION TECHNOLOGY - CHINA CAN BENEFIT FROM THE U.S. H.I.T. EXPERIENCE
- A GOOD APPROACH FOR SUCCESSFULLY IMPLEMENTING
MAJOR I.T. SYSTEM UPGRADES AND CHANGES - DISCUSSION
3THE DORENFEST GROUP
- HEALTHCARE CONSULTING AND INVESTMENT FOCUS
- OFFER HEALTHCARE IMPROVEMENT SERVICES TO SUPPORT
A MORE POSITIVE WORLD FUTURE - HELP HEALTHCARE ORGANIZATIONS TO IMPROVE
HEALTHCARE SERVICES WHILE REDUCING COSTS BY
IMPROVING WORK PROCESSES, MANAGEMENT SYSTEMS,
SERVICES TO PATIENTS, AND QUALITY OF MEDICAL CARE - IN 2006 THE DORENFEST GROUP FORMED THE DORENFEST
CHINA HEALTHCARE GROUP, BASED IN SHANGHAI, TO
BRING OUR SKILL, TECHNOLOGY, AND CAPITAL TO CHINA
IN A TWO-PHASE PROGRAM - WE ARE NOW OPERATING IN PHASE 1 OF THIS PROGRAM,
OFFERING A VARIETY OF CONSULTING, TRAINING, AND
EDUCATION SERVICES TO THE CHINA HEALTHCARE SYSTEM - WE EXPECT TO ENTER PHASE 2 OF OUR ACTIVITIES IN
CHINA IN 2008 WHEN WE WILL BEGIN TO MAKE
INVESTMENTS IN WELL-DEFINED, GOOD BUSINESS
PROJECTS, IN PARTNERSHIP WITH CHINESE HEALTH
BUREAUS AND HOSPITALS
4BRIEF SUMMARY OF SHELDONS PAST 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
5BRIEF SUMMARY OF SHELDONS PAST 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 - THE DORENFEST INSTITUTE CONTAINS A LIBRARY OF
HISTORIC DATA AND PUBLICATIONS FROM 1986 THROUGH
2004 WITH HIMSS ANALYTICS DONATING THE NEXT
CURRENT YEAR OF DATA ANNUALLY - PROVIDES FREE DATA FOR RESEARCH PURPOSES
ELECTRONICALLY AND IN PRINT TO UNIVERSITIES,
STUDENTS, FEDERAL, STATE, LOCAL GOVERNMENT AS
WELL AS GOVERNMENTS OF OTHER COUNTRIES - PROVIDES A VARIETY OF FREE REPORTS ON TRENDS IN
H.I.T. USE - ENCOURAGES ONGOING RESEARCH INTO USING I.T. TO
IMPROVE HEALTHCARE
6DORENFEST 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
7DORENFEST 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 100 HOSPITALS TO GAIN AN
UNDERSTANDING OF HOSPITAL OPERATIONS IN CHINA,
THEIR CURRENT STATUS, AND OPPORTUNITIES FOR
IMPROVEMENTS - VISITED WITH PROVINCIAL AND CITY HEALTH BUREAUS
TO LEARN WHAT THEIR GOALS ARE FOR THEIR
PROVINCIAL AND CITY HOSPITALS - VISITED 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
8A FEW CONCLUSIONS ABOUT THE CURRENT ENVIRONMENT
IN CHINESE HEALTHCARE
- THERE WILL BE RAPID GROWTH IN HEALTHCARE SPENDING
AND THERE IS A STRONG DESIRE TO IMPROVE
HEALTHCARE SERVICES - THERE IS A DESIRE TO MOVE TOWARD INTERNATIONAL
STANDARDS FOR SERVING THE GROWING MIDDLE CLASS
AND WEALTHY POPULATION - THERE IS LIMITED SKILL IN CHINA TO ACCOMPLISH
CHINAS HEALTHCARE IMPROVEMENT OBJECTIVES - FOREIGN SKILLS ARE CONSIDERED IMPORTANT AND A FEW
UNIVERSITIES AND HOSPITALS, SUCH AS DUKE, ARE
HELPING BY BRINGING THEIR SKILLS TO CHINA - BRINGING OUR HEALTHCARE SERVICE IMPROVEMENT
SKILLS TO CHINA WILL BE VALUABLE TO CHINA AND A
GOOD BUSINESS FOR US
9THE 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
10CHINA 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
11CURRENT STATUS OF DORENFEST GROUP CHINA
- FORMED DE RUI YI LIAO ZI XUN, A WFOE BASED IN
SHANGHAI IN 2006 - RECENTLY COMPLETED PHASE I PROJECT TO HELP
SHENZHEN HEALTH BUREAU PLAN ITS REGIONAL HEALTH
NETWORK AND DIGITAL HOSPITAL PROJECTS - DEVELOPING OTHER PROJECT ACTIVITIES
- REVIEWING CANDIDATES TO IMPLEMENT MODEL HOSPITAL
VISION - NOW BUILDING A MANAGEMENT TEAM
- 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
12DUKE BEIJING HEALTHCARE LEADERSHIP FORUM
- THE U.S. HEALTHCARE INDUSTRY AND ITS USE OF
INFORMATION TECHNOLOGY
13U.S. HEALTHCARE COSTS AS A PERCENT OF GDP ( IN
BILLIONS)
20.0
4,043.6
20
GDP 1970- 2004 (not 75) 75.1 245.8 426.8 696.
0 990.3 1,299.5 1,877.6
1,987.7
15
990.3
1,299.5
696.0
426.8
10
245.8
75.1
5
0
1970
1975
1980
1985
1990
1995
2000
2005
2015
CMS Forecast
SOURCE CENTERS FOR MEDICARE AND MEDICAID
SERVICES
14OPPORTUNITIES 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
15HOSPITALS SEEK THE E.H.R. AS THE HOLY GRAIL
THROUGH FOUR GENERATIONS OF I.T. SYSTEMS
- FINANCE SYSTEMS (1970s)
- LIMITED CLINICAL SYSTEMS (LATE 1970s AND 1980s)
- MORE ADVANCED CLINICAL SYSTEMS (1990s)
- ELECTRONIC HEALTH RECORDS (2000s)
16HEALTHCARE REFORM BROUGHT INTEGRATED DELIVERY AND
MANAGED CARE
17H.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 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.
18POORLY IMPLEMENTED CHANGE HAS LAYERED REDUNDANT
WORK STEPS ON TOP OF ORIGINAL INEFFICIENCY
GROWTH IN REDUNDANCY
4x
Legacy I.T. Systems
Manual
New Thrusts of the 2000's
3x
NOW
1990's Systems and Surrounding Integration
2x
BEFORE I.T.1x
TOTAL HOSPITAL WORK PROCESS
19U.S. HAS MADE MUCH MORE PROGRESS RECENTLY
- 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
21DUKE BEIJING HEALTHCARE LEADERSHIP FORUM
- CHINA CAN BENEFIT FROM THE U.S. H.I.T.
EXPERIENCE
22INTRODUCTION 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 2 YEARS, 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
23CHINA HEALTHCARE I.T. IS MOVING TO ITS SECOND
GENERATION
- 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
24CHINA HEALTHCARE I.T. IS MOVING TO ITS SECOND
GENERATION (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 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
25DUKE BEIJING HEALTHCARE LEADERSHIP FORUM
- A GOOD APPROACH TO SUCCESSFULLY IMPLEMENTING
MAJOR I.T. UPGRADES
26THE I.T. UPGRADE PROJECT SHOULD BE DONE IN PHASES
- STRATEGIC PLAN
- SYSTEM SELECTION WITH FINAL IMPLEMENTATION
PLAN - SYSTEM IMPLEMENTATION
27STRATEGIC 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
28STRATEGIC 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
29SYSTEM 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
30SYSTEM 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
31SYSTEM IMPLEMENTATION
- START IMPLEMENTING PLAN
- MONITOR RESULTS
- MAKE NECESSARY ADJUSTMENTS AND REVISIONS
- KEEP A CLOSE WATCH ON PROGRESS TO MAKE SURE YOU
AVOID MAJOR PROBLEMS
32- THANK YOU.
- FOR MORE INFORMATION CONTACT
- SHELDON I. DORENFEST
- THE DORENFEST CHINA THE DORENFEST GROUP
- HEALTHCARE GROUP NBC TOWER, SUITE 2725
- RENMIN ROAD NO. 988 455 N. CITYFRONT PLAZA.
DRIVE - JINGTIANDI INTERNATIONAL TOWER CHICAGO, IL
60611-5555 - SUITE 908 UNITED STATES OF AMERICA
- SHANGHAI, CHINA PHONE 312-464-3000
- PHONE 13816109802 FAX 312-467-0541
- WEB SITE ADDRESS www.dorenfest.com
- SHELDONS E-MAIL ADDRESS sheldon_at_dorenfest.com
- E-MAIL ADDRESS info_at_dorenfest.com