Consulting services and the digital transformation of healthcare - Choosing the right consulting partner to drive value creation

White Paper Consulting services and the digital transformation of healthcare Choosing the right consulting partner to drive value creation siemens-healthineers.com/value-partnerships SIEMENS Healthineers White Paper · Consulting services and the digital transformation of healthcare Executive Summary Pressure continues to increase on healthcare providers worldwide. Multiple factors are at work: e.g. aging of populations, the increasing importance of patient experience, shortage of qualified clinical staff, and margin pressure. In this environment, the efficiencies that digitalization promises are no longer luxuries. They have become necessities. Success with digitalization of systems and processes may well determine financial stability for healthcare providers in the future. In this environment, the value of savvy, knowledgeable, and experienced consultants from the medical technology industry has never been higher. Healthcare enterprises are discovering that such consultants bring together the vital components of informed strategy, technological know-how, and expert implementation. Imagine that a hospital purchases new technology, receives training on it, and secures arrangements for service and maintenance. That would typically be the extent of the institution’s engagement with the supplier, vendor, or partner. But the complexity of healthcare operations today demands more: There is a need today for a partner capable of — and responsible for — looking at far- reaching challenges: Clinical excellence, operational efficiency, and financial performance across the institution, of course, but also the impact on staff and patients. How will these stakeholders manage the change? Healthcare providers can help ensure their success in the implementation and management of technology by partnering with highly qualified consultants who can and will make an enduring commitment to seeing them through the lengthy and challenging process. In the healthcare industry, those consultants whose expertise and experience are enhanced by leadership in medtech innovation are especially well qualified to provide a fact-based strategic perspective and deep implementation know-how. Siemens Healthineers is such a partner, with innovative solutions like AI-Pathway Companion, a decision support tool that integrates multiple data sources to help clinicians devise precise, personalized treatments for patients. The result of working with such consultants is a framework for a range of services, strategies, and solutions that can help healthcare providers optimize operations, expand capabilities, and prepare for a strong future. 2 Consulting services and the digital transformation of healthcare · White Paper Contents Introduction 4 How digitalization creates impact 7 How consulting services can help healthcare providers strengthen their operations and their offerings 8 The value for hospitals and health systems 12 Conclusions 14 References 15 Read more 19 3 White Paper Introduction Today, healthcare providers everywhere are under pressure to do more with less. That pressure is increasing every day. Multiple factors are at work: 1 Patient populations are evolving. Populations are aging globally. By 2030, the number of people in the world aged 60 years or more is expected to approach 1.5 billion. By 2050, the number is expected to reach 2 billion. In the U.S., the population over the age of 65 is expected to grow from about 50 million today to nearly 100 million by 2060.1 Urbanization is another factor at work. More than half of the world’s population now lives in cities.2 Urban health systems are finding it difficult to keep pace with their growing constituencies, particularly in places where rapid urbanization is resulting in living situations not conducive to health or budget restrictions prevent an investment in additional hospitals.3 2 The importance of patient experience is growing. Patient consumerism is more important than ever as medical ** costs and insurance premiums rise and patients actively pursue the best value for their investment in healthcare. In addition to requesting excellent value, patients also want process efficiency and a positive environment. Tolerance for time-consuming processes or delays is declining. Today, quality in healthcare includes not just clinical effectiveness and safety, but also sound, patient-centric processes — a good experience for the patient.4 Success in delivering on a quality patient experience is now a key differentiator for healthcare providers. 4 White Paper 3 Qualified clinical staff are in short supply. The availability of qualified staff is increasingly challenging for the healthcare industry. In a recent survey, 58% of ....... healthcare executives said they were extremely or very ....... ...... concerned about finding job candidates with the right skill set.5 Those candidates who are well qualified expect to be better compensated. Moving forward, the gap between workforce demand and supply is projected to widen, rising to vacancy rates as high as 30% on average in 2025 due to the labor force growing more slowly and becoming both older and more diverse. 4 The cost of providing care is rising overall. S Due to the issues above, and others, providing care is becoming more expensive and more challenging. Devices, drugs, and services are all becoming sophisticated and increasingly expensive. In this demanding environment — and despite it — it is the healthcare provider’s responsibility to consistently deliver the highest standard of care while also garnering top marks for quality and patient experience. Optimizing the core medical and non-medical will soon be essential for organizations to survive, and even more to excel. 5 White Paper · Consulting services and the digital transformation of healthcare 5 Healthcare spending has outpaced economic growth. Around the world, spending on healthcare is on the rise. In Health spending growth per capita nearly every instance, the growth of spending on healthcare is outpacing the growth of GDP per capita. In some cases, GDP growth per capita healthcare spending is growing more than twice as fast. Average growth rate of health spending and GDP per capita, 1990-2012 % 8,0 7,0 6,0 5,0 4,0 3,0 2,0 1,0 ITA DEU CHE CAN FRA ESP MEX USA AUS JPN NLD GBR PRT TUR KOR Source: OECD 6 Consulting services and the digital transformation of healthcare · White Paper How digitalization creates impact Digitalization offers numerous approaches to meeting With all the aforementioned factors in mind, healthcare today’s healthcare’s challenges. It can provide benefits of providers should consider: standardization, reduce the opportunity for human error, • Are you prepared to meet the challenges? and introduce time and cost savings. But digitalization • Which partners can offer you qualified guidance? also involves the introduction of new processes, new • What does a trusted partner offer in this arena? tasks, and new questions. And an inefficient analog • What should that partner bring to the table? process becomes an inefficient digital process if it is not improved and adapted before it is digitally implemented. The importance of finding the right partner to collaborate with a healthcare provider and support in the digital transformation of its organization cannot be overstated. That partner is critical. ? Cost of ? providing care ? ? ? Patient Qualified population clinical staff 01 10 ? 10 1 01 01 10 ? ? ? Cost of ? regulation and Patient compliance ? experience 7 White Paper · Consulting services and the digital transformation of healthcare How consulting services can help healthcare providers strengthen their operations As healthcare becomes more complex and delivering Medical technology company consultants are highly healthcare services more challenging, the value qualified to structure and run such models. Similarly, of tech-savvy, experienced consultants is growing as digital twins can simulate various infrastrcture and well. Healthcare enterprises are discovering that process for an enterprise – even the most complex ones – consulting services offered by medical technology and reveal the way forward to workflow optimization. As companies bring together the required components of efforts like these strengthen a healthcare provider, it informed strategy, technological know-how, and expert becomes a more attractive place to work and gains implementation. advantage in the competition for staff. These assets encompass clinical knowledge and experience Siemens Healthineers, for example, can provide you with patient contact and services, elements that distinguish with an analysis of your enterprise’s entire treatment the business of healthcare from any other. The net result pathway, from diagnostic imaging, through therapy, to is a consulting partner combining the advantages of a the delivery of therapies to patients, as well as solutions knowledgeable insider with an objective outsider, a partner powered by information technology, innovative who is uniquely positioned to provide a holistic view engineered products, and artificial intelligence. The of the endeavor and to provide insight and solutions for solutions are applied by healthcare specialists, enabling concerns like those summarized above. you the benefit of their expertise. Where healthcare providers need to keep pace with patient While it offers enormous potential, digital transformation populations that are aging and increasingly insistent on an is also a complex undertaking. Success requires a thorough excellent patient experience, medical technology company understanding of an institution’s starting situation, the consultants can advise on approaches to streamline clinical national health economy, and the financial impact of the pathways and patient management. Rising costs and measures under consideration. Additionally, it requires deep inadequate staffing are problems that can be mitigated expertise in existing digital solutions, implementation, through the improved efficiency that digitalization and change management. Failure in any of these can represents. doom the project. Effective partners for a healthcare provider pursuing the benefits of digitalization must then Future challenges are better understood and better met deliver expertly on strategy, technology, and process with advanced analytics such as predictive models. implementation. 8 Consulting services and the digital transformation of healthcare · White Paper “Medtech companies are in a sweet spot — they can offer the framework for a range of strategies and solutions that help healthcare providers thrive in challenging times, unlock value and drive future-proof transformation.” Sören Eichhorst, Global Head of Healthcare Consulting and Transformation, Siemens Healthineers Strategy Technology Implementation 9 White Paper · Consulting services and the digital transformation of healthcare Strategy Strategy should encompass short-term, medium-term, digital dashboards to increase efficiency. There is tremen- and long-term planning in a balanced combination. dous opportunity and need for strategic thinking in It should be developed with an experienced partner who healthcare today. Consider e.g. what the hospital of the can help stakeholders sort out short-term measures from future 2030 should look like. What technological long-term vision. It starts with process optimization and requirements will healthcare providers need to meet in prioritization. the next decade? How can an innovative health system be built? Who can help guide you and your team in planning Process optimization is the prerequisite for a productive your approach to a strong future? As the role of sensors, engagement. This is about defining with an experienced cameras, and robotic scanning devices increases; partner which processes should be addressed first. applications of Artificial Intelligence multiply; automation reshapes the healthcare provider’s workday; and more Decisions regarding the optimization of core processes and more care is provided in settings other than hospitals, should be made by maximizing the added value while answers to these questions are crucial. keeping in mind both the highest potential to succeed and general timelines. Digital twin simulations of processes, like those used in manufacturing, can be helpful to simulate stress tests. White Paper Digital twin technology The value of digital twin technology Virtualized presentations of facilities and Transforming care delivery in a single department or an entire healthcare enterprise An experienced strategic planner is also required when siemens-healthineers.com/value-partnerships processes – have emerged as powerful tools introducing and using established digital solutions. for healthcare providers. They can reduce Consider for example the standardization of integrated the time and expense of piloting different solutions and decision support for clinical pathways, solutions and approaches in the physical world. communication tools to connect service providers, and ..... . siemens-healthineers.com/ localization solutions such as RTLS* tracking or central Health MENS whitepaper-digital-twin 7144_ES_Whitepaper_Digital-Twin_DD.indd 1 28.02.19 09:29 Technology Healthcare is about people and the processes and insights Digital ecosystems are a key requirement for digital that serve them. But today, technology is an essential transformation and are built on network structures. There tool in providing that service. Digital transformation allows are multiple possible network structures. They include: networking across hospital boundaries with other hospitals, • outpatient doctors and patients as well as the exchange Access to data within a clinic through a Vendor Neutral of vital data and information. It should be thought of as Archive (VNA) where data of different origins and the creation of a digital ecosystem in which various actors different formats is consolidated and made available work together to achieve innovative solutions for patients. • An electronic patient health record that provides all relevant information across hospital and network The heart of a digital ecosystem is an open digital platform boundaries that overcomes the isolated application approach in terms • Use of secondary data such as DICOM /HIS / RIS / PACS of usage, departments, and indications and truly fosters via cloud-based data aggregation a value-add offering. An open digital platform connects people and devices with data and applications (apps) that support integration of data from a wide variety of sources. 10 * RTLS = Real-time Locating Systems Consulting services and the digital transformation of healthcare · White Paper An important aspect is the integration of existing isolated optimized through real-time localization of beds and application solutions into comprehensive, end-to-end, consistent availability of patient data. defined clinical pathways. Here is where an enterprise’s existing investment in technology can be maximized. AI-Pathway Companion from Siemens Healthineers provides For example, with appropriate tools, patients with heart one example of the next generation in clinical decision insufficiency can be centrally monitored by a local hospital support systems, cleverly integrating relevant data using and managed at home via sensors. artificial intelligence technologies to facilitate diagnosis and treatment decisions along disease-specific pathways. If a hospital stay is necessary, patients can be coordinated AI-Pathway Companion also works to personalize and through digital scheduling and reminder solutions. standardize patient management, offering process Patients are then accompanied on their clinical journey improvement insights through cohort data analysis of by standardized E-Health solutions. Patient flow can be key performance indicators. In-vivo data In-vitro data Pre-recorded data AI Enable risk assessment Facilitate diagnosis decisions Support personalized therapy decisions with Artificial Intelligence (AI) After the inpatient stay, all the patient’s data are transmitted The added value of such solutions – which are already through integrated digital solutions to the family doctor, being implemented today for many indications – lies who stays in contact for follow-up via telemedicine. in the new approach of defining clinical pathways beyond departmental or even hospital boundaries, thus incorporating them into a holistic picture. Implementation Expertise and know-how in implementation and change Value Partnerships are enduring technology-enabled management are essential to deliver the benefits of good performance-based relationships between healthcare strategy and technology. This is made clear by the fact providers and organizations that offer medical technology that as many as 70% of change programs fail because services. While every Value Partnership is unique, there strategy and technology are not properly implemented.7 are factors they have in common: established trust, aligned objectives, defined incentives, an assembled portfolio, Because change programs like those focused on digital and the co-creation of innovation. These Partnerships transformation represent significant commitments, offer the framework for a range of services, strategies, and institutions should choose partners who will make solutions designed to help healthcare enterprises expand significant commitments to them, partners who are capabilities, advance the level of innovations in their willing and able to stand with the institution throughout organizations, and prepare for a strong future. the course of its journey toward change and help shoulder responsibility for success. Siemens Healthineers designed the Value Partnerships to meet this need. 11 White Paper · Consulting services and the digital transformation of healthcare The value for hospitals and health systems Imagine that a hospital purchases a piece of equipment, There is a need today for a partner capable of – and receives training on it, and secures arrangements for responsible for – looking at far-reaching concerns: service and maintenance. That would typically be the Clinical excellence, operational efficiency, and financial extent of the institution’s engagement with the supplier, performance across the institution, of course, but also vendor, or partner. But the complexity of healthcare the impact on staff and patients. How will these operations today demands more: stakeholders experience the change? Consider a radiology department, for example. In the context of a modern hospital, the decisions made and • ? Has anyone examined how the equipment interfaces with existing processes implemented around radiology will impact other equipment or procedures? departments and processes throughout the institution. While the radiology department’s goals and issues are • How will various departments or individuals be impacted? the starting point, they must align with the objectives • Who is taking responsibility and concerns of the institution as a whole, which include for the holistic view? financial health, and the satisfaction of patients and staff. How exactly the various sets of concerns intersect may not be clear without careful thought and examination. Optimization for the benefit of the entire organization must be the goal to reduce unwarranted variation. And smart, forward-looking digitalization of operations is a vital means to address the big challenges like aging populations, rising costs, and tight labor markets. Topics, trends and drivers in the healthcare sector 362 C-level executives8 of hospitals and patient care facilities in Germany have been interviewed about digitalization in healthcare: 71% S 64% Quality of patient care will improve Hospitals will experience cost savings C 67% 63% Procedures and surgeries will become more efficient Digital patient record is the most important topic 12 Consulting services and the digital transformation of healthcare · White Paper Digitalization offers enormous potential at the health insurance provider with approximately 4 million insured. system level — up to 36 billion EUR in the EU German At the same time, Clalit also serves the largest hospital health economy, for example.9 Transformational consulting network in Israel. Clalit encompasses about 20 years of at the health system level focuses on care coordination, patient data, both clinical and administrative. The integrated patient engagement, and the provision of value-based database is used to inform continuous improvement and care. There are several early and noteworthy achievements the further development of medical care, but its primary available for consideration: benefit has been in enabling the health care system to reduce the cost of care and improve its finances. The electronic health records system in Austria, ELGA, which includes more than 5.8 million patients and their Another example of an already successful implementation healthcare providers, is one example of a successful of innovative solutions is the Mercy Virtual: this virtual digital transformation at the health system level. ELGA telemedicine center, called “Hospital without beds,” demonstrably improved the quality of healthcare while houses a large team of doctors and nurses, but no patients. simultaneously achieving cost savings by establishing With highly sensitive two-way cameras, online-enabled a linked network of healthcare providers and processes. instruments, and monitoring options in real time, the team A similar system is being introduced in Switzerland. cares for patients remotely. Patients might be in one of In Denmark and Estonia, digitalization has allowed for Mercy’s traditional hospitals, a doctor’s office, or even medical prescriptions to be sent electronically from at home. doctors directly to pharmacies, which in turn deliver the appropriate drugs to the patients. In some cases, it may be possible for existing insular solutions to be made part of comprehensive, end-to-end Israel provides an example of a health system that has clinical pathways. Value Partnerships can provide the successfully broken up its data silos. There the integrated fresh perspective and unique insight that reveal such system Clalit is at work serving the largest health possibilities. Telemedicine enhances interventional management for heart failure patients10 27% higher rate of survival in 1st year with heart insufficiency 26% shorter retention time in clinics for patients with heart insufficiency 13 White Paper · Consulting services and the digital transformation of healthcare Conclusions Digitalization in healthcare will lead to a fundamental In choosing partners to help them implement and redefinition of service delivery, one that will, it is hoped, manage digitalization, healthcare providers should benefit institutions, staff, and patients. But sustainable, consider: impactful change cannot be achieved in a piecemeal or haphazard fashion or by means of shortcuts. Success requires the right strategy, the right technology, and • ? Who has the required knowledge expert implementation. of digital assets and data? • Who has deep clinical knowledge? Healthcare solutions are often complicated, and so is the • Who understands healthcare marketplace in which it operates. Partnering with a professionals best? consultant provides tangible impact. Transformational • Who has a comprehensive consulting services can enhance Value Partnerships and understanding of patients and the are exceptionally qualified to deliver the insight and patient experience? guidance that can make digitalization successful and • Who can provide value-added services allow healthcare providers to fully reap the benefits. like e.g. Real-time Location Systems Bringing technological, clinical, and process expertise and Managed Equipment Services? to the engagement, such consultants go beyond business • Who is capable of overseeing consulting to form active, ongoing collaborations with the digitalization end to end? healthcare provider’s team and help them meet their goals into the future. Most importantly, they enable providers to deliver better outcomes at lower costs. 10000101100 1011000109 01110 1000 14 Consulting services and the digital transformation of healthcare · White Paper References 1 https://www.forbes.com/sites/williamhaseltine/2018/04/02/aging-populations- will-challenge-healthcare-systems-all-over-the-world/#58c587ff2cc3 2 https://www.forbes.com/sites/danielrunde/2015/02/24/urbanization- development-opportunity/#34680c2f6ca3 3 https://www.who.int/globalchange/ecosystems/urbanization/en/ 4 https://www.bmj.com/content/339/bmj.b4346 5 https://www.healthcarefinancenews.com/news/talent-shortage-plaguing- majority-healthcare-execs-according-jp-morgan-survey 6 Demand for Healthcare Workers Will Outpace Supply by 2025: An Analysis of the US Healthcare Labor Market, Mercer, 2017 | https://www.mercer.us/our-thinking/career/workforce-for-the-future/ demand-for-healthcare-workers-will-outpace-supply-by-2025.html 7 https://www.imaworldwide.com/blog/the-truth-behind-why-70-of- organizational-change-projects-are-still-failing 8 https://www.rochusmummert.com/downloads/news/Studie_Mangelndes_ Know-how_und_Finanzierungsl%C3%BCcken_bremsen_Digitalisierung_in_ Gesundheitswirtschaft_aus.pdf 9 Hehner et al., 2018 10 Koehler F, Koehler K, Deckwart O et al. Efficacy of Telemedical Interventional Management in Heart Failure Patients II (TIM-HF2): a randomized controlled trial, Lancet 2018, Published online August 25, 2018, DOI: https://linkinghub.elsevier.com/retrieve/pii/S0140673618318804 15 Consulting services and the digital transformation of healthcare · White Paper Read more from our series on Value Partnerships and how to create more value for healthcare providers: Technology management – Value Partnerships – Healthcare enterprises continually White Paper These game-changers help strive to simultaneously optimize Improving medical technology management healthcare providers meet their operations, expand their through Value Partnerships their challenges by digitalizing capabilities, and advance A new approach for healthcare provider organizations and transforming care delivery siemens-healthineers.com/value-partnerships innovation. Therefore, one of the while expanding precision most critical focus areas is the medicine and improving holistic management of their patient experience. White Paper Value Partnerships: medical technology. A game-changer for healthcare providers siemens-healthineers.com/ worldwide siemens-healthineers.com/ whitepaper-value- How a new concept enables providers to deliver value to all stakeholders whitepaper-technology- siemens-healthineers.com/value-partnerships .... partnerships management Healthineers SIEMENS ... Healthineers 6949_CIT13626_ES_Whitepaper_Technology_Management_DD_Print.indd 1 28.01.19 15:54 19-166_7381_WhitePaper_ValuePartnerships_S4_DD.indd 1 07.05.19 16:47 Digital twin technology – Financing models – Virtualized presentations of White Paper Innovative financing models facilities and processes – have The value of emerged as powerful tools for digital twin technology become a vital part to meet unique challenges for healthcare providers. Transforming care delivery in a single department healthcare providers. They can or an entire healthcare enterprise The combination of expertise, siemens-healthineers.com/value-partnerships reduce the time and expense of financial solidity, and passion piloting different solutions and for creating value in healthcare approaches in the physical world. separates Siemens Healthineers White Paper Enabling the from other potential financial transformation siemens-healthineers.com/ partners. of healthcare Innovative solutions for whitepaper-digital-twin healthcare financing siemens-healthineers.com/value-partnerships .... siemens-healthineers.com/ whitepaper-financing- models Healthineers Healthineers 7144_ES_Whitepaper_Digital-Twin_DD.indd 1 28.02.19 09:29 16 The scientific overlay is not that of the individual pictured and is not from a device of Siemens Healthineers. It was modified for better visualization. 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