Academic LDI on Innovation Mark S Sothmann Leadership Development Institute- November 16, 2012

What’s Happened Nationally Presidential Election Raised the Debt Ceiling Downgraded Credit Rating Threat of Sequestration and the Fiscal Cliff Supreme Court Upholding of Health Care Reform Implementation of the Health Care Reform

Implications Health Care Funding and Impact on the Academic Health Center – Reduced provider reimbursements – Scope of practice debates – Health system restructuring – Decreased availability of funding for colleges of medicine – More reliance on interprofessional clinical teams Federal Funding of Research Caps on Tuition State Appropriations Unavoidable Costs

Challenge- Leading Innovation The development of new values that meet new needs. Different from invention which is the creation of a novel idea Different from improvement which refers to the same thing made better

Innovation- New Values and New Needs Education Research Clinical Care Funds Flow as a New Decision-Making System

The Innovative University- Changing the DNA of Higher Education “Fundamental change is coming to higher education. It is at the confluence of unsustainable cost/revenues in the traditional model with new approaches to deliver more affordable high quality education. The result will be greater innovation than we have seen in more than a century” Clayton M Christensen & Henry Irving

“We are indeed cautiously optimistic that traditional institutions can change elements of their business models. Some are doing it via separate, independent units, but others are creating innovation teams within the main organization.”

Disruptive Innovation Disruptive Innovation- an innovation that creates a new market by applying a different set of values, which ultimately (and unexpectantly) overtakes the existing market – Wikipedia (community edited, online) and Encyclopaedia Britannica (traditional edited, bound)

The University of Virginia Debacle Online Learning as a disruptive innovation – Ambient Research Institute: % of university students taking some or all courses online. By 2014 will increase to 80% – Less than 50% of public universities offer online courses Open Courses – OpenCulture – OpenCourseWare – Coursera – EdX – Class2Go – Khan Academy

EdX December MITx February x (circuits & electronics course) debuts with 20 MIT students March x debuts worldwide with 154,000 students from 160 countries May MIT, Harvard, UC-Berkley, University of Texas form EdX with $30M investment from each

Potential Impact University-Industry Partnerships Philanthropy Worldwide Certificates of Completion from prestigious universities “There’s no way to argue that my learning experience with top professors from across the country is going to be worse than anyone else’s learning experience. Then its up to the employers.”

MUSC Online Course/Degree Programs 146 credit-granting online courses 405 web based students enrolled 9 different degree granting programs Online degrees delivered nationally and internationally What does Open Course mean for MUSC??

Innovation and New Values /New Needs in Research Funding FederalCorporate %13% ($23M) %16% ($33M) %20% ($48M)

Invention Disclosures, Patents, Start-ups Disclosures Patent App.426 Start-Ups242

15 Drug Discovery Building  112,000 sq. ft.  Small animal imaging  High throughput drug screening  $62 M cost 8/9/2012

16  100,000 sq. ft.  HQ for SC Bioengineering Alliance  Regenerative Medicine: Tissue engineering  Biomedical Imaging, Genomics  $59 M cost Bioengineering Building 8/9/2012

Positioning for the Future Office of Industry Partnerships Center for Innovation and Entrepreneurship Center for Biomedical Informatics Research

Innovation- University Policies Conflict of Interest – Institutional Conflict of Interest – NIH regulations on conflict of interest – Physicians Payment Sunshine Act Strategic Initiatives Policies – Industry Partnerships – Startup Companies Tenure and Promotion

Faculty Senate Statement on Tenure and Promotion “Faculty should be evaluated and recognized for work in the traditional areas of teaching, research/scholarship, and service. Within this framework, faculty should be encouraged to participate in interprofessional activities, innovative and entrepreneurial activities, promoting the use of technology, and engagement in global activities. These activities should be looked upon favorably by APT committees but not seen as additional requirements for tenure and promotion”

Innovation: Interprofessional Clinical Initiatives MUSC Interprofessional clinical University of Pittsburgh Medical Center Office of Advanced Practice Providers Mandates of the Affordable Care Act – Additional 30 million people insured – Rewards health care at lower cost but same quality 25% Physician shortage nationally by 2015

Regulators and Payers Want Change National health insurance regulations and advanced practice providers Third party insurance increasingly recognize advanced practice providers Health care executive leadership Institute of Medicine recommendations

Innovation- Funds Flow as a Decision Making System New communication networks to 1) grow revenue 2)control costs and 3) define prioritized services Different conversations, 1) within academic units, 2) between academic and administrative units, and 3) within administrative units

Thank You!!