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

3. Healthcare: The Largest Single Sector of the U.S. GDP
Three Trillion Dollars Annually

4. Putting the GDP Figures Into Context

5. 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)

6. 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)]

7. 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 Seeing the Forest for the Trees: Institutional Environment Impacts on Reimbursement Processes and Healthcare Operations. Journal of Operations Management. Forthcoming.

8. 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., Traumatic lacerations: What are the risks for infection and has the `golden period' of laceration care disappeared?. Emergency Medicine Journal, 31(2),
Lee, S.J., J.D. Abbey, G.R. Heim, D.C. Abbey Seeing the Forest for the Trees: Institutional Environment Impacts on Reimbursement Processes and Healthcare Operations. Journal of Operations Management. Forthcoming.

9. 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

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

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

12. 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

13. On the Mountain at Mayo Clinic

14. 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

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

16. 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

17. 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