Healthcare Innovator Schumacher Group Utilizes Microsoft BI to Gain $30MM in Revenue Patrick BolinVice PresidentHitachi Consulting

Jonathan CaryDirector, Business IntelligenceSchumacher Group

SESSION CODE: BIC301

Welcome to LouisianaLesson on Local Greetings from the NativesHow to properly greet a Louisiana Native

Statement Response

Bonjour Bonjour

Comment Ca Va? Ca Va Bien

Howsyourmomanem? Dey Fine

Schumacher Group TodayOver 160 hospitals 2,000+ physicians and mid-levels 700 EmployeesTreating three million patients per year

$30 Million? Really? You’re KiddingWe’re Not Kidding and That’s $30M a Year FriendUnderstanding the Math – Terms to Understand

Patient Visits or Encounters – Describes an individual visit of a patient to the Emergency Room: One Broken Arm, Cold or H1N1 = One Encounter Relative Value Unit (RVU) – Term used by Medicare to demonstrate relative degree of difficulty of a patient treatment. Measure of how much “work” is performed

Simple Laceration = 2.76 RVUHeart Attack = 5.99 RVU

Collection Factor – Average $ Collected Per RVU

Schumacher Group – Business ChallengeUnderstanding the ProblemThe Environment

Regulation and Legislation are constant threats to the Emergency Medicine industryChanges in federally-funded programs like Medicare and Medicaid can have immediate, serious impacts on Schumacher’s profitability

The ResultSchumacher Group was looking at ways to lower costs, yet maintain qualityThe company needed a flexible model where they could quickly ramp up capacity if new “opportunities” appeared

Two Martinis and some Bang Bang ShrimpThe Birth of a SolutionVision

CEO, Dr. William Schumacher, and CIO, Doug Menefee had a vision to shift Medical Coding from an onshore model to an offshore modelDr. Schumacher wanted to create an environment where doctors and coders worked in concert as a self-managed workforceSchumacher Group wanted to build stronger business partnerships by sharing information that helped their partners improve the quality of their workOne night, over a few Martinis and some Bang Bang Shrimp, Schumacher, Menefee and Hitachi team members birthed the idea that BI could pave the way

Details, Details, DetailsHow to Make It HappenChallenges

Cultural Barriers – Coders in India, Cajuns in LouisianaTraining – Creating intuitive systems that guide people appropriatelyVariability – A chart is not a chart is not a chart. Hard rules don’t applyMotivation – Nurturing vs. fearReducing Risk – Hitting the “sweet spot”Cost – Using technology to provide the right solution at a reasonable costRealistic – Important that team members “buy in” to the realism of the solutionRole reversal – wanted to use the medical coders as feedback mechanism to doctor’s performance

The SolutionPeople, Process and Technology Come Together – With Great ResultsPeople

Identification of “Peer Groups” for Comparison PurposesSimilar treatmentsSimilar facilitiesSimilar insurers

Connecting Work Groups LogicallyDoctors compared to other doctorsCoders compared to other codersAuditors as mentors, not policeLeadership as coaches who understand and reinforce best practicePartners who understand the mutual benefits of the program

The SolutionPeople, Process and Technology Come Together – With Great ResultsProcess

Doctors and Coders Get Individual FeedbackVisual cues that point them towards anomaliesMetrics that show “real” peer comparisonsCollaboration tools that link to training and assistance

Auditors research and confirmExamination of individual charts to review practicesTools to research and identify patternsTracking to see patterns vs. anomalies

Leaders have the tools to see problem areasTime-slicing identifies patterns of improvementMetrics show those who are and are not improvingAudits confirm metrics so appropriate actions are taken

The SolutionPeople, Process and Technology Come Together – With Great ResultsTechnology

Individual and Collaborative FeedbackMicrosoft SharePoint 2007/Performance PointMicrosoft SQL Server Reporting Services 2008Microsoft Exchange/Outlook

Research and AnalysisMicrosoft SQL Server Analysis Services 2008Microsoft SQL Server Reporting Services 2008Microsoft Office ExcelMicrosoft SharePoint 2007/Performance Point

Self Service BIMicrosoft ProClarityMicrosoft Office Excel

Microsoft BI Creates ResultsCoder Management at Schumacher Group

** While it may appear otherwise, characters in this presentation are fictitious. They are NOT played by professional actors. Data has been manufactured for demonstration purposes and does not reflect actual patient or corporate information.

Cast:Billy Wayne Dasgupta – Oklahoman by birth, relocated to India when his mom marriedSunil – Billy Wayne’s BossDr. Schu – Dr. William Schumacher, founder and CEO of Schumacher GroupJC – Jonathan Cary, BI Director at Schumacher GroupGwen Guillotte – VP of Revenue Management at Schumacher GroupPatrick Bolin – VP, Microsoft BI, for Hitachi Consulting

DEMO

One Year Ago….

One Year Later…

Individual Feedback and Training

Alerts and Updates Via Email and Mobile Device

Individually Tailored, Secure Content

Management Report with Drill-Down

Ad Hoc Analysis Via Excel and SSAS

ResultsGetting to $30 MillionBaseline

RVU/Encounter: 3.22Collection Factor: $37/RVU

Sustained PerformanceNew RVU/Encounter: 3.54Assumed Collection Factor: $37/RVU (Actually Higher)Patients per Year: 3 Million (And Growing)

RVU Improvement (3.54 – 3.22) x $37 per RVU x 3 Million Patients = $35.5 Million

ConclusionsIt’s not just about technology• Technology is an enabler• Changing behavior to create awareness and alignment provides value• Microsoft BI Technology is a unique enabler because it enables the

convergence of Analytic and Collaborative content to create powerful business solutions

• Getting to the real answer takes patience, discipline and vision!