An overview of the cost reduction opportunities for a Health Care provider. These opportunities can be identified, quantified and optimised through data-driven insights. The slide pack also provides a strategic overview of how one would set up such a project within a large organisation, whilst mitigating patient-care concerns.
3. 1) PROJECT GOALS
Goals
⢠Achieve cost reductions through advanced data analytics
Reminder
⢠Not a business intelligence or management reporting project
Requirements
⢠Focus on big saving areas, however some quick wins are also
required
⢠Adopt a strategic approach
⢠Run analytics projects in conjunction with HCâs domain experts,
Hospital Quality Team and Procurement
⢠Transfer analytics skillset to HCâs staff in process
⢠Project costs are small in comparison to savings
4. 2a) INITIAL FINDINGS: DATA SOURCES
HC operates a number of hospitals across Australia, with a full range of
clinical services, a medication centre, pathology and pharmacy
businesses. It relies on the following systems:
⢠7 independent SAP Accounts modules (collectively 900k transactions
/ month)
⢠1 SAP General Ledger module (15k transactions / month)
⢠1 of 2000 âgreen screenâ pathology billing system
⢠1 web-based HR / payroll system
⢠4 different time & attendance programs
⢠17 different rostering systems
⢠3 HSE management systems
⢠Numerous independent clinical systems and patient databases.
⢠A wide variety of excel sheets
5. 2b) INITIAL FINDINGS: DATA SKILLS
Over the last week, The Data Analysis Group (TDAG) met with 43
managers and department heads across the 4 divisions. Using Excel as
a benchmark:
⢠Most clinical employees do not use Excel
⢠Operational and unit managers have some skill and use Excel
regularly.
⢠Finance and procurement employees are regular users with two
people identifying themselves as advanced.
⢠IT Department has 2 database administrators however overworked
and unable to assist with project.
⢠A finance controller, <name withheld>, classifies herself as a âdata
geekâ. Her manager described her as âsmart & hardworkingâ
6. From a data / analytics perspective:
3) SWOT ANALYSIS
STRENGTHS WEAKNESSES
⢠Capturing a lot of data
⢠Direct & indirect costs correctly
allocated to cost centres
⢠Existing SQL license and
infrastructure
OPPORTUNITIES THREATS
⢠Current environment is ripe for data-driven
savings
⢠Develop in-house analytics
capability
⢠Cost effectively improve patient care
⢠Multiple systems make for difficult
analysis
⢠Some data is unclean
⢠Lack of analytics expertise
⢠Amount of available data precludes
use of Excel
⢠Costs continue to rise
⢠Savings opportunities foregone
⢠Deterioration of patient care
7. 4) POTENTIAL SAVINGS OPPORTUNITIES
The following projects have been identified to potentially yield
significant savings:
⢠Accurately costing patient procedures and services
⢠Addition of new high-yielding patient services
⢠Benchmarking of comparative BUs within the group
⢠Closure of low-yielding patient services
⢠Cost reduction through elimination of unnecessary effort and waste
⢠Cross subsidisation of preventative services from curative services
⢠Developing standardised and optimised health care policies
⢠High spend and complicated supply chain categories
⢠Increased bed utilisation through greater number of admissions
⢠Convert inpatient care to high-tech outpatient services
⢠Moving from reactive maintenance to preventative maintenance
⢠Outsourcing / insourcing of indirect services
⢠Reduced labour costs through improved scheduling
⢠Stock-loss analysis of high value drugs and medical supplies
TARGET SAVING: 9% OF SPEND
8. TDAG propose a 4 week diagnostic process to quantify high-yielding
savings opportunities.
3 Weeks 1 Week 2 Weeks 8-10 Weeks 4 Weeks
Extract, Clean
& Load data
⢠Focus on last 5 years
SAP data.
⢠Extract, transform &
load years into SQL
data warehouse
⢠Include CC, BU &
Divisional dimensions
⢠Check aggregated
values align with
financials.
Data Mining
to Quantify
Opportunities
Develop & Select
Pilot Project
Pilot Project
Review, Refine &
Embed Processes
⢠Identify savings
opportunities
⢠Size the prize
⢠Select suitable
projects for pilot
approach
⢠Develop assessment
criteria for pilot
⢠Scope out 3 projects
in conjunction with
BU owners,
Procurement & HQT
⢠Assess project risks,
rewards & duration
⢠Identify
stakeholders,
internal/external
team & success
criteria
⢠Commence pilot,
TGAG running
analysis, HC running
project
⢠Identify & optimise
business levers
through data insights.
⢠Conduct regular
Stakeholder reviews
⢠Review / capture
learnings during each
stage of the process.
⢠Review pilot project
against key criteria
⢠Refine processes
based upon learnings
⢠Achieve sign-off from
stakeholders and
process owners
⢠Agree roll-out plan for
implementation
⢠Agree training and
resource
requirements to
deliver
Diagnostic Phase
Review findings &
agree next steps
5) PROPOSAL & TIMEFRAME
CFO approve
1 pilot project
9. 6) PROJECT REQUIREMENTS
Analytical skillsets required
⢠High-end analysts to be provided by TDAG.
⢠Access to <name withheld> within finance, to join team and transfer knowledge.
Business skillsets required
⢠Access to finance, procurement and Hospital Quality team, as per individual projectsâ scope.
⢠Access to HCâs domain experts and stakeholders. Permission to be obtained from domain expertsâ
superior(s) first.
⢠IT department to set up server, and provide access to data exports for existing systems.
⢠Weekly review with project owners and monthly review with stakeholders.
Data requirements
⢠Data for each project will be specified in the project brief, along with any cleansing requirements
Software / hardware requirements
⢠Virtual server with administrative access
⢠Installation of
o SQL server (Existing license)
o SSIS, SSRS, SSAS and SSMS (Existing license)
o RapidMiner (OS)
o Notepad & Vim (OS)
o Excel (Existing license)
o Tableau Professional (1 seat at USD $1,999) and QlikView (no charge)
o Remote access to SQL and to server
10. 7) RISKS
Although each data-project will come with its own risks, the
common risks of this overall project include:
RISK MITIGATION
Compromised patient care
from too much cost cutting.
⢠Patient Standards Committee (PSC) signoff
before implementation phase
Loss of employee trust. ⢠Acknowledge that staff will not be blamed or
victimised for past performance
⢠Involve stakeholders in project
Unsafe medical practices. ⢠Project signoff from PSC
Project costs exceed savings. ⢠Rigorous review process to prevent projects
with insufficient returns from going ahead
⢠âFail fastâ methodology, with weekly reviews
Disclosure of sensitive data. ⢠Sensitive data (eg. salaries, patient data etc.) to
be aggregated and/or de-identified
⢠Available to project team on a restricted basis
11. The benefits from this project strategy include:
⢠Cost effective. Gain access to skilled data analysis professionals,
without the overhead associated with building and maintaining your
own internal infrastructure and team.
⢠Fast time-to-benefit
⢠Reduced possibility of project abandonment. Actively involving end
users in the process creates buy-in and commitment.
⢠Continuous feedback throughout the project cycle results
in processes that meet the actual needs of patients and staff.
⢠Streamlined face-to-face communications improve HC - TDAG
relationships by developing trust and sharing knowledge.
⢠Sign off procedure prevents compromised patient care.
8) BENEFITS
12. 9) DISCUSSION AND NEXT STEPS
Discussion
⢠Does this strategy meet your needs?
⢠If not, what do we need to change?
⢠Do you foresee any additional risks or implementation challenges?
Next Steps
⢠Formalise strategy and signoff
⢠Commence Diagnostic Phase
⢠Update meeting in 1 month.
13. 10) CONTACT DETAILS
For further information, please contact
The Data Analysis Group on:
James Karis
CEO & Chief Geek
p) 1300 788 662
e) info@data-analysis.com.au
w) www.data-analysis.com.au