Health Care Lunch & Learn Mays Business School December 12, 2016 Leonard Berry | James Abbey

Healthcare: The Largest Single Sector of the U.S. GDP Three Trillion Dollars Annually http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS?contextual=default&end=2014&locations=US&name_desc=false&start=1995&view=chart

Putting the GDP Figures Into Context http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS?contextual=default&end=2014&locations=US&name_desc=false&start=1995&view=chart http://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?end=2014&locations=US&start=1995

Seeing Healthcare and Related Services in Context (Hospitals, Ambulatory Care, Nursing) Retail Trade (Cars, Retail Merchandise, Food & Beverage) Domestic Oil & Gas (Mining, Extraction, and Related Trade) http://www.bea.gov/iTable/iTable.cfm?ReqID=51&step=1#reqid=51&step=51&isuri=1&5114=a&5102=15

So, Healthcare is Huge…. How does the current system run? How do we improve the system? What are the touch points for improvement? Where does a business school play a role? Delivery improvements? Efficiency enhancements? Waste reduction? Effectiveness metrics? Technology innovation? [Recall the talks from Bruce Broussard (’84) and David Cordani (’88)]

Understanding the Business Structure of Healthcare Today: Complexity Abounds The Provider (e.g., Physician) to Patient Relationship is No Longer Simple Lee, S.J., J.D. Abbey, G.R. Heim, D.C. Abbey. 2016. Seeing the Forest for the Trees: Institutional Environment Impacts on Reimbursement Processes and Healthcare Operations. Journal of Operations Management. Forthcoming.

The Tangled Web of Revenue: Provider-Patient-Payer The “simple” case of a laceration Over 6 million lacerations per year in the U.S. at a cost of over three billion dollars annually1 Relatively standard procedure Among the most common care procedures for CMS (Medicare/Medicaid) Depending on intensity of care, provision of care may take only day to a few weeks However, the reimbursement process can persist for years 1Quinn, J.V., Polevoi, S.K., Kohn, M.A., 2014. Traumatic lacerations: What are the risks for infection and has the `golden period' of laceration care disappeared?. Emergency Medicine Journal, 31(2), 96-100. Lee, S.J., J.D. Abbey, G.R. Heim, D.C. Abbey. 2016. Seeing the Forest for the Trees: Institutional Environment Impacts on Reimbursement Processes and Healthcare Operations. Journal of Operations Management. Forthcoming.

Where does Mays Business School Take Leadership Where does Mays Business School Take Leadership? Establishing The Business Case of Healthcare Enhancing Patient, Family, & Provider Experiences Health Policy & Implementation Wellness, Prevention, & Population Health Technology, Innovation, & Entrepreneurship Improving Reimbursement Systems Insights from Healthcare Analytics

Len Berry Mays Business School Lunch and Learn Healthcare A New Mountain to Climb Len Berry Mays Business School Lunch and Learn Healthcare

Why I selected healthcare to study for my 2001-2002 faculty development leave. Why you should consider studying healthcare.

Characteristics of Medical Services that are Dissimilar to Most Other Services Customers are sick Customers are reluctant Customers relinquish privacy Customers need “whole person” service Customers are at risk Clinicians are stressed

On the Mountain at Mayo Clinic

My Personal Journey Conducted Mayo Clinic study 2001-2002 Returned to campus and struggled Defined my path forward Published first medical journal article 2003 Joined the Center for Health Design board 2003 Published “Fable Hospital” article 2004 Joined Nemours Foundation board 2005

My Personal Journey (cont.) Published “Ideal Physician” article 2006 Published Management Lessons from Mayo Clinic 2008 Conducted workplace wellness field study 2009-10 Conducted Wisconsin field study 2011-12 Selected as IHI Senior Fellow to study service improvement in cancer care 2014-15 Taught first healthcare course in Mays Business School 2016

Lessons Learned (or Reinforced) from my Time on the Healthcare Mountain Leverage your strengths Collaborate wisely Strive for impact Go to the data Persevere Enjoy the journey

Where does Mays Business School Take Leadership Where does Mays Business School Take Leadership? Establishing The Business Case of Healthcare Enhancing Patient, Family, & Provider Experiences Health Policy & Implementation Wellness, Prevention, and Population Health Technology, Innovation & Entrepreneurship Improving Reimbursement Systems Insights from Healthcare Analytics All Areas of Business are Stakeholders in this Problem Accounting Finance Management Marketing Supply Chain Information Systems Mays Can Take a Significant Leadership Role in a Tremendously Complex System We are Not An Island Architecture Communication Medical School Bush School Public Policy Public Health & Beyond Healthcare is a Societal Challenge that Spans the Boundaries of Mays and Texas A&M