2. CONTENT
Service concept
Customer involvement/management
Employee management
More operation design
Support/funding
Expansion
In the future
Core competencies
Alternative analysis
3. SERVICE CONCEPT
Professional healthcare & excellent service
Multi-specialty care – comprehensive diagnosis
Expertise
High quality service
Advanced med. tech
Accessibility: Health Information Technology (HIT) & eCleveland Clinic
Clinical research
Patents
Innovations (researches & innovation trips)
Education
Medical educational program: “clinical expertise/practice, scientific inquiry,
biomedical research”
Teleconference room – distance learning. Dry lab. Exp. with advanced surgical
techs.
4. SERVICE CONCEPT
Patient’s Value
High quality healthcare 5
Expertise 5
Medical tech 5
High quality service 5
Medical Innovation 5
Accessibility/Convenience 4 (4 ranking
because doctors focus more on
quality than quantity, limited physical
locations and prediction of demands)
Location 3
Price low 1
1 5
5. CUSTOMER INV./MGMT
Expertise
Specialty Centers and Institutes: Focus on diseases rather than discipline.
Clinically-Focused Teams: improve treatment processes.
Care Teams: Improve efficiency / patient satisfaction“Faster recovery because of
innovations
Advanced med. tech
Promoting innovation!
Outcomes Measurement: disclosure > improve quality / transparency
Health Information Technology (HIT): EMR internal
Staying ahead of the curve and anticipating market demands
Accessibility
eCleveland Clinic, MyChart, Dr.Connect, MyMonitoring >>> Customer Engagement
/ relationship with private physicians
Quality & feedback: World Class Service initiative: 2003. Monthly reports on patient
satisfaction (collected from extensive patient surveys and presented as a series of color-
coded “shade reports”)
6. EMPLOYEE MGMT
Human Resource Strategy:
Training & Edu
Evaluation
World Class Service initiative
Normative: WCS/Review/disclosure of outcomes data vs.
Carrots&Sticks – incentives & 1-yr contract
Transparency: see the possibility of improving results through efforts
Quality of Teams
Care teams
Clinically Focused Teams
Prestige: career advance
7. OPERATION DESIGN
“Patients First” mantra
Innovation trips to unrelated industries.
The Service of Healthcare
Freedom from “The Paper World” (information
technology-driven strategy) > lower paperwork and
administrative costs
The Quality Institute (quality control)
8. SUPPORT/FUNDING
Non-profit (donations)
Revenues 2005 $4 billion
~2,000 doctors and scientists. ~3,2000
other employees (IRS 990 Form)
.6% Exe. Salaries / 40% other salaries and
wages.
The clinic annually managed 53,000
patient admissions, 2.8 million visits,
~70,000 surgical cases.
Calculations:
1 Dr.= 26.5 patients/yr. (9 days/admission);
35 surgical cases/yr (1 case/wk)
Total Revenue
2005
4,298,370,497
100.0%
Total Exp. 3,991,483,982 92.9%
Exe. Salaries 28,601,369 0.7%
Other salaries
& wages
1,777,242,154
41.3%
Equipment
rental & mt.
97,274,260
2.3%
Travel 15,954,656 0.4%
9. EXPANSION
1988, expansion to Florida
Issues replicating the model
distance of facilities: less collaboration
rising competition
health care costs rising
misreading the market pg.11 - failed on market analysis
negative ROI
10. IN THE FUTURE
Alternatives:
1. Canyon Ranch
2. Cleveland Clinic Canada
3. Abu Dhabi
11. C.C.’S CORE COMPETENCIES
Quality HC & SVC
Multi-specialty. Cross-Pollination/Collaboration
Innovations (technology)
Research
Trips
Medical Education
Live broadcast of surgery
Care-team
Clinical-focused team
12. Canyon Ranch
“wellness and lifestyle company”. Partnership 2006. “health as a quality of life.”
“They knew all about exercise, weight control, diet, and healthy living; we knew all
about the other end of medicine. Together, we could provide the full continuum of
care.”
Goal: wellness campus.
* Medical Education
* Research
combine data
* Potential increase of clientele
* Well heeled clients (premium!)
* Low cost of entry
* Lower severity index/op risk
* Confusion about brand info
* Org culture/value clash
* HR stretched for the exe.
Health program
Total Revenue ↑↑↑
Total Exp. →
Exe. Salaries →
Other salaries & wages →
Equipment rental & mt. →
Travel ↑ (slightly)
ROI Positive
13. Cleveland Clinic Canada
Big market for high quality healthcare. 2005-lifted ban on private insurance in
Quebec. 2006 Alberta. >> CC formed CC Canada. Toronto Health and Wellness
Centre.
* Greater demand
* Existing committed Canadian patients
* Less competition for private healthcare
* Lower severity index/op risk
* Potential increase of clientele
* Lower HR cost.
* Political risks (future policy changes?)
* Questionable success of model replication –
quality control/culture replication
- Canadian <50% specialists. U.S. >70%
(Forbes.com) - how to hire enough good
specialists!
* Initial investment high > higher risk
* Privatized healthcare
* Exactly how many more ppl willing to pay for
the private care?
* Mgmt. need to dedicate to new market.
* Experienced doctors being transferred for
team building
Total Revenue ?
Total Exp. ↓
Exe. Salaries →
Other salaries & wages ↓ (NationalPost.com &
Gone South by Pink, G.
PhD, et. al)
Equipment rental & mt. ↑ (transportation)
Travel →
ROI Positive / ?
14. Abu Dhabi
New “Louvre” — one of five museums planned for a multibillion-dollar
tourist development on Saadiyat Island, off Abu Dhabi — to open in 2012.
Tourists! International market!
N.Y.U. article implications: ensure quality/mgmt. // + other renowned
universities > higher quality HR resource in the future!
* Abundant Funding
* Symbol of innovation
* Long Term Commitment
- focus on service/healthcare, not
on ST fin. Performance
- know the market better
- culture cultivation
* Reach other emerging markets
* Hub for knowledge exchange
* Edu: renowned universities > higher
quality HR resource！
* Same quality of doctors?
* Questionable success of model
replication – quality control/culture
replication
* Culture Clash: Language, Live
broadcast/medical education
(article: louvre museum)
Total Revenue ↑↑↑
Total Exp. ABUNDANT
FUNDING!!!Exe. Salaries
Other salaries & wages
Equipment rental & mt. Enough time
to build up
competitive
advantages
Travel
ROI
