Value Partnerships: A game-changer for healthcare providers worldwide - How a new concept enables providers to deliver value to all stakeholders

White Paper Value Partnerships: A game-changer for healthcare providers worldwide How a new concept enables providers to deliver value to all stakeholders siemens-healthineers.com/value-partnerships SIEMENS Healthineers White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide Executive Summary Today’s healthcare providers face unique and unprecedented challenges. An aging population is driving up global demand for healthcare.1 The era of personalized medicine has arrived – according to the Personalized Medicine Coalition, 42% of the new molecular entities approved by FDA in 2018 are personalized medicine.2 Artificial intelligence (AI) in medicine has become a reality, with 80% of physicians acknowledging use of AI in some capacity in their practice according to a recent survey by healthcare consulting firm ZS.3 New developments and care pathways have to be mastered within limited budgets; providers need fiscal predictability in order to adapt and grow sustainably. These and other macro trends have forever altered the way hospitals and networks do business. But the most fundamental goals in medicine – improving patient care and delivering value to all stakeholders – remain. Healthcare providers will thrive in the coming decades if they embrace key challenges like expanding precision medicine, transforming care delivery, improving patient experience, and digitalizing healthcare. Strong forward-looking partnerships with healthcare innovators can help providers meet these challenges and handle unexpected adversity or opportunity. In this paper, we take a look at the defining moments that can mark partnership opportunities and what an valuable partnership might help a provider achieve. We also present key steps or events in the development of an effective partnership. Finally, we demonstrate the value of partnerships through a series of case studies. 2 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Contents Executive summary 2 Creating value in healthcare 4 Defining moments in healthcare – is it time 5 to establish a new partnership? What do providers want from a partner? 5 How to create a Value Partnership 6 Combining interdisciplinary modules and 7 competencies for effective outcomes Value Partnerships case studies 7 Creating a high value care heart center 8 Financing the future 9 Cultivate a reputation for innovation 10 Financial health and patient experience 11 Case Studies at a Glance 12 Conclusion 13 References 14 3 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide Creating value in healthcare Healthcare providers continually seek ways to deliver value to patients and other key stakeholders. On this journey there are multiple ways to add value in healthcare: Expand capabilities by adding staff, facilities, ........ capacity, services or some mix of these. 0000101100 101100010 01110 1000 Advance the pace of Optimize current innovation within the operations in order to healthcare institution get more done with the by developing novel same resources. capabilities and approaches. Leveraging these engines of value creation can be Provider organizations also see value in a partner that challenging for healthcare providers. That is why demand has a broad portfolio and global reach so they can for enduring partnerships with medical technology combine multiple complementary aspects under a single providers is on the rise. Long-term performance-oriented umbrella agreement. Finally, a partner with deep insights partnerships let providers put their med tech partners’ into the science of medicine can help set the provider interdisciplinary competencies in medical technology organization on a course for success. management, facilities design, process optimization, and digital technology to work, creating value for the organization and the patients it serves. What do providers look for in a med tech partner? They expect a partner with the technological expertise to help drive innovation in efficiency, personalization, and digitalization of the healthcare enterprise.4 And that transformation requires dedicated change management experts who can guide healthcare providers through the challenges of today and tomorrow – empowered by strategical and clinical consulting. 4 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Defining moments in healthcare – is it time to establish a new partnership? There are certain watershed events that motivate these are opportunities to reconsider the way things administrators to seek a partnership. These events work in the institution and look for ways to make include new hospital construction, expansion, them work better. If you’ve gone through (or are in replacement of an aging technology fleet, financial the midst of) such changes at your institution, you uncertainty, performance issues, changes in probably recognize that these are times of opportunity reimbursement, changes in ownership/management, as well as challenge. Do you see areas where a strong and not least because of a recognized need for a step med tech partner might help you make the most of such change in quality and cost improvement. Times like opportunities? What do providers want from a partner? Providers have specific wants and needs that they look to An effective partnership can help providers meet these partners to help them satisfy: challenges today, with an eye to long-term creation of value and sustainable success. Extend clinical Improve patient Standardize care Improve access Increase process capabilities outcomes How can I standardize to care efficiency How can I advance How can I focus my entire the quality of care How can I make care How can I manage the clinical capabilities operation to improve the provided throughout more affordable, my processes more of my institution to foster outcome for patients? my institution? accessible and available? efficiently? innovative concepts of care? ** 01 Drive workforce Enhance Increase patient Secure financial Leverage excellence competitiveness & satisfaction sustainability digitalization How can I manage reputation How can I improve the How can I ensure that my How can I keep up with my operations more How can I ensure that patient experience across organization is financially digital and technical efficiently to better my operations remain the total continuum of sustainable? changes and leverage the leverage my workforce? competitive and that my care to sustain their potential of digitalization? institution’s reputation loyalty? positively impacts my business results? 5 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide How to create a Value Partnership Value Partnerships are enduring technology-enabled, performance-based relationships between healthcare providers and organizations that offer medical technology and services. While every Value Partnership is unique, there are factors they have in common. 1 Create 3 Define 5 Co-create/ trust incentives innovate 2 Align Assemble ........... objectives 4 portfolio ....... ...... 1 Create a foundation of trust 4 Assemble portfolio For a partnership to be effective, the healthcare provider Once these key agreements are reached, a Value has to trust the potential partner. This is a long process Partnership can begin in earnest. The specific services that usually arises out of long-standing business and products provided within a Value Partnership vary partnerships. “You need, first of all, to clearly understand as widely as do the needs of healthcare provider what the main challenge of the healthcare provider is. organizations. The one constant is that the Partnership It’s very unlikely that you find two provider organizations should help the healthcare provider create value by with the same kind of challenge, and the same priorities, optimizing current operations, expanding its capacity where you can use the same strategies for success,” and range of services, and driving innovation. says João Seabra, Global Head of Enterprise Services at Siemens Healthineers. 2 Align objectives 5 Co-create and innovate Both sides of the partnership will come to agreement Value Partnerships go beyond typical transactional not only on the nature of the challenge at hand, but relationships. Co-creation of a Value Partnership, also on the discrete steps to be taken, and how to including its goals and its KPIs, is at the heart of it. define success in those activities. A partner with deep And co-creation doesn’t stop at the contractual level. experience in both healthcare and technology can help It is integral to the success of the project on the ground. providers define and meet objectives that will advance That is why Siemens Healthineers engages clinicians and their big-picture goals and help sustain success. staff on all levels, from clinical chiefs to technologists to nurses to non-clinical staff. Change management goes 3 Define incentives hand-in-hand with co-creation. Meaningful changes to Every partnership is different, but all Value Partnerships workflows and clinical pathways require close must be beneficial to all partners and provide value to all coordination from the provider organization and its stakeholders. Benchmarking performance and clearly partners to help staff understand the goals of these defining key performance indicators (KPIs) are vital to the changes. Effective change management can re-orient the success of a Value Partnership. In some cases, team to new ways of thinking, and new approaches to performance milestones may be linked to financial care delivery that can produce better results. Effective incentives. “It’s not about risk sharing, but it’s really co-creation and change management throughout the about how to jointly define performance sharing,” course of a Value Partnership are vital to its success. according to Seabra. 6 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Combining interdisciplinary modules and competencies for effective outcomes Real value is created when the technology partner can offer a suite of competencies and modules that can be combined to maximize benefit to the provider organization and the patients it ultimately serves. Value Partnerships may cover one or more of these key service areas: Technology Management Design Planning Reduce operational complexity and increase technology Improve patient and staff experience by having process- availability through one single contact for all equipment- oriented and appealing departmental layouts. related topics, providing additional budgetary surety. Consulting & Transformation Digital Platforms Optimize clinical operations with an innovative digital Digitalize healthcare by leveraging modern IT and consulting portfolio – from strategic advice over artificial intelligence. Gain insights from solution- operational improvement to transformation and change oriented key performance indicators. management approaches. Knowledge Access Operations Management Advance the level of innovation within your organization Increase workforce productivity through education by implementing globally created insights and best programs and transfer of dedicated operations towards practices, equally available and easily accessible. your trusted partner. Value Partnerships case studies How can healthcare providers make use of this wide variety of modules and competencies in a coherent, Red Cross Admiraal De results-oriented Value Partnership? Siemens Healthineers Hospital Ruyter has designed a comprehensive, but flexible, framework Ziekenhuis for co-creating Value Partnerships with provider organizations. Value Partnerships are enduring, performance-oriented relationships. Our innovative business models have a track record for increasing enterprise-wide value in order to meet providers’ Klinikum Worcestershire immediate and longer-term goals. The following case Braunschweig Royal Hospital studies illustrate the challenges and the opportunities that some of our partners have faced recently and how we created more value together. 7 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide Creating a high value care heart center Challenge: Create a reference center in cardiac care Red Cross Hospital Partnership Solutions Anticipated Outcomes • Facility design • Position new Heart Center Heart Center • Medical technology and as reference site for advanced digital solutions integrated cardiology care continuum Lisbon, Portugal management and evolution • Attract and retain top Private Hospital, 120 beds clinicians • Change management • Workflow Optimization • Increase patient loyalty via superior care and patient • Advanced education experience • R&D partnership • 10 years strategic support When the leadership of Red Cross Hospital in Lisbon set Insights gained from facility design enhanced by the out to build a state-of-the-art cardiac care center, they latest technology (e.g., virtual reality walk-throughs) had a few key goals in mind. First, they wanted to create helped guide med tech and IT solutions planning, and a modern digitalized reference center for the city and allowed the hospital to acquire the solutions that best surrounding area. They also wanted to attract and retain fit its needs. the best clinicians they could. And above all, they wanted to deliver high-quality care that would help attract and The Partnership is now entering the operational stage. keep patients. According to Teresa Magalhaes, CEO of Siemens Healthineers will continue to provide Red Cross Hospital, “We … want to be recognized as a operational support, including technology management center of technology, of investigation, of innovation and workflow optimization, throughout the 10-year and with the latest information systems where the term of the contract. But that’s not all. patients’ experience as individuals are set at the center of interest of this whole future and in this The partners are also working to develop and implement whole new approach.” new patient-centric care models. This requires extensive education and change management, but is expected Siemens Healthineers worked closely with the hospital to improve both care quality and patient experience to assess the needs of the patients it serves and plan the compared with other heart centers. facilities and services that would best meet those needs. During the course of this process, the hospital’s In order to attract and keep top-notch staff, Red Cross managing board changed, but the partnership with Hospital and Siemens Healthineers are co-creating robust Siemens Healthineers endured as the new board educational and research programs. Red Heart Center recognized its potential value. The ongoing co-creation will share best practices via periodic seminars and program led to a partnership where Siemens Healthineers communications and also support on-site grants was engaged across a number of key domains. and scholarships for PhD and MSc candidates. In order to maximize performance and deliver a great What’s the key to success in such an ambitious patient experience in the new heart center, Red Cross partnership? Filipa Baptista, Enterprise Services Manager and Siemens Healthineers collaborated on facility design. at Siemens Healthineers, says it boils down to trust. In addition to traditional facility design services, the “Red Heart Center believes that we, our team, will be partners are leveraging workflow simulation technology there no matter if it’s one or two or three years from to stress-test and optimize key processes in a “digital now. We will have the right people to support them. twin” of the facility, before committing to costly real- We share a commitment to success with them,” she said. world changes. 8 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Financing the future Challenge: Upgrade care offering in a small market with high seasonal variability in demand Admiraal De Ruyter Partnership Solutions Anticipated Outcomes Ziekenhuis (ADRZ) • Facilities planning • Expanded clinical capabilities • Medical technology • Unlocked €12M in “frozen” Goes, Vlissingen, Zierikzee, Netherlands procurement and capital Private Hospital, 500 beds management • Staff training • Leasing model for clinical complex Admiraal De Ruyter Ziekenhuis (ADRZ) Hospital is a Siemens Healthineers worked with ADRZ to identify mid-sizes hospital in the Netherlands, located in the departmental needs and to prioritize them based on towns of Goes, Vlissingen, Zierikzee. Goes is the main the needs of the patient base. The result is a Value hospital site and part of the Zeeland region, the western- Partnership in which Siemens Healthineers helps ADRZ most and least populous province in the Netherlands. finance the acquisition of equipment, reconfigures physical space to accommodate the equipment, provides The hospital serves a patient population of approximately training for ADRZ staff, and maintains the equipment. 250,000, but the relatively sparse population in the But this partnership goes well beyond technology area means the hospital has to provide the full management services. Siemens Healthineers financed spectrum of care, beyond what one might expect from and built the hospital’s new OR complex and nuclear a hospital serving a population this size, according medicine center, which it leases to ADRZ. The Partnership to Gré Schroevers, business manager for ADRZ. has enabled ADRZ to expand its clinical capabilities Additionally, Vlissingen and the surrounding area is and better serve patients in the area. a popular beach destination for many tourists who visit the Netherlands on holiday, so ADRZ’s emergency room By spreading payments for capital improvements over must be capable of handling a larger than usual influx 10 years, this arrangement frees up nearly €12 million of patients during the summer holiday season. for other investments. “The strength [of the Value Partnership] is when there are issues … whether it ADRZ’s challenge was financial. It is a small hospital is about equipment that is underperforming, training in a remote location, yet it needs to provide cutting- or something else. Both sides look for a solution edge care to the population, who cannot easily travel together,” Schroevers said. elsewhere. Cutting-edge care means up-to-date technology. “We needed to replace our CT and MRI and reconfigure the physical spaces for them,” Schroevers said. 9 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide Cultivate a reputation for innovation while increasing fiscal predictability Challenge: Cultivate reputation for innovation while increasing fiscal predictability Klinikum Partnership Solutions Anticipated Outcomes Braunschweig • Facilities planning • Enhanced reputation as innovator • Medical technology Brunswick, Germany procurement and • Cost security for 10 years Municipal Hospital with University Lectureship, management • Improved efficiency 1,500 beds • Tailored financing solutions • More personalized cancer • Modern IT infrastructure treatment • Innovative cancer diagnostic technology Klinikum Braunschweig is going through a major This partnership goes beyond operational excellence transformation. The hospital is becoming the teaching in existing domains. Braunschweig also adopted hospital of University Göttingen, and the leadership team powerful new diagnostic technology from Neo New wants to develop and foster a forward-looking, patient- Oncology, a Siemens Healthineers subsidiary. Clinicians centric mindset befitting this role. “I want us to evolve can now characterize many tumor genetic factors with from a conventional hospital to a healthcare provider one test and make tailored treatment recommendations that offers solutions that go beyond our core business,” more quickly than standard methods allow. “By including said Dr. Andreas Goepfert, CFO of Klinikum the Neo technology as part of our routine pathology Braunschweig. procedures, we can now offer comprehensive molecular tumor analyses as part of our diagnostic services,” The Braunschweig team recognized the importance of Dr. Goepfert said. This translates to better cancer care stability to foster innovative care strategies. That’s why for patients. they partnered with Siemens Healthineers to reshape their medical technology fleets and optimize key These successes have opened the door for future processes for greater efficiency. Siemens Healthineers projects, including a planned overhaul of the hospital’s is Braunschweig’s med tech procurement partner. ultrasound fleet. Dr. Goepfert sums up the value of this The flexible partnership agreement ensures the hospital partnership: “How can we foresee device innovations continual access to the latest and greatest in medical for the future that we don’t know exactly today? We technology, while providing financial predictability via have the impression that we have entered into a a move to monthly operating fees and away from large good, solution-oriented partnership with capital expenditures on medical technology. The partners Siemens Healthineers for the future.” also worked together to design and implement a modern IT infrastructure that will position the hospital for continued success over the next decade. 10 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Financial health and improved patient experience for Worcestershire health provider Challenge: Ensure both ongoing access to state-of-the-art med tech and financial stability Worcestershire Partnership Solutions Anticipated Outcomes Royal Hospital • Technology management • Improved patient satisfaction • Radiology Performance • Improved staff retention Worcestershire Acute Hospitals Management Service • NHS Trust, Worcester, United Kingdom Financial stability Public Hospital, 500 beds • Implementation of long-term clinical service strategy • Up-to-date med tech fleets Worcestershire Royal Hospital /Acute Hospitals NHS Trust The partners created a standardized, centralized in the United Kingdom is engaged in a performance technology management approach to optimize the management Value Partnership in which availability and performance of the hospital’s med tech Siemens Healthineers helps maintain the hospital’s fleet. They also leveraged the Radiology Performance medical technology fleets. This Value Partnership Management Service from Siemens Healthineers accomplishes two key goals: smoothing budgetary to increase efficiency of their clinical processes. uncertainty; and providing clinicians, technologists, The partners gathered input from multidisciplinary and patients access to the most up-to-date equipment. teams – radiologists, booking clerks, radiographers, administrative staff, and others – to ensure that The sheer scope of the Worcestershire Acute Hospitals key stake-holders’ requirements were represented. NHS Trust is daunting. The Trust has three main sites: Alexandra, Kidderminster, and Worcestershire Royal Data-derived insights enable the partners to drive Hospital. The hospital serves a population of more than continuous, sustainable improvement. Dr. Johnson 550,000 people in Worcestershire and the surrounding describes the benefits of this performance improvement counties. About 2,000 patients are treated at the hospital effort: “The patient’s experience will benefit from the every day. The Trust employs more than 5,500 fact now that we’ve mapped out the process from staff members. With this much on their plate, the beginning to end, so it’s from referral to report,” he said. administration at Worcestershire Royal sought out a partner to keep its nearly 30,000 medical This Value Partnership has delivered far reaching technology assets running smoothly. benefits in both patient experience and staff satisfaction. Dr. Jeremy Thomas, Chair of the Investment Committee “ In my local institution … we have three main sites, at the Trust, summed up his feelings on the Value … and each of those has Its own history and culture; Partnership: “Siemens Healthineers is an excellent working together is the goal, and we knew we had to get partner who will listen to our needs. We couldn’t do to an end point that was standardized and efficient for this without its help. Siemens Healthineers is ace. patients,” said Dr. Robert Johnson, Consultant Radiologist It is the people who make the difference,” he said. at Worcestershire Royal. 11 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide Case Studies at a Glance Partner Challenge Partnership Solutions Anticipated Outcomes Red Cross Hospital Create a reference center • Facility design • Position new Heart Center Heart Center in cardiac care as reference site for advanced • Lisbon, Portugal Medical technology and digital solutions integrated cardiology care continuum management and evolution • Attract and retain top clinicians • Change management • Increase patient loyalty via superior care and • Workflow Optimization patient experience • Advanced education • R&D partnership • 10 years strategic support and operations management Admiraal De Ruyter Upgrade care offering in a small • Facilities planning • Expanded clinical capabilities Ziekenhuis market with high seasonal • Medical technology • Goes, Vlissingen, Zierikzee, variability in demand Unlocked €12M in “frozen” procurement and management capital Netherlands • Staff training • Leasing model for clinical complex Klinikum Braunschweig Cultivate reputation for • Facilities planning • Enhanced reputation Brunswick, Germany innovation while increasing as innovator • fiscal predictability Medical technology procurement and management • Cost security for 10 years • Tailored financing solutions • Improved efficiency • Modern IT infrastructure • More personalized cancer treatment • Innovative cancer diagnostic technology Worcestershire Royal Hospital Ensure both ongoing access to • Technology management • Improved patient satisfaction Worcester, United Kingdom state-of-the-art med tech and • • financial stability Radiology Performance Improved staff retention Management Service • Financial stability • Implementation of long-term clinical service strategy • Up-to-date med tech fleets 12 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Conclusion Value Partnerships are premised around a clear “We use our expertise understanding of the healthcare provider partner and their primary challenge. Value Partnerships help in change management, healthcare providers meet their challenges by digitalizing and transforming care delivery while expanding medical technology, precision medicine and improving patient experience. Value Partnerships are enabled by the technological, process optimization, digital clinical, and process optimization innovation and technology – our full suite of expertise that Siemens Healthineers brings to the table. These enduring, performance-oriented partnerships pay capabilities and exceptional real dividends in the near term and prepare healthcare providers for sustained success in the future. They are people – to improve outcomes not rigid contracts; they are the product of active ongoing collaboration between provider organizations and patient experience. and Siemens Healthineers, with room for flexible Ultimately, that is why I’m adaptation, if needed. in this business – to make things better for patients.” João Seabra, Head of Enterprise Services from Siemens Healthineers, sums up the value of Value Partnerships. Value Partnerships Advance Expand How do you gain trust from patients and Optimize providers for new technologies? How do you get them to see technology like AI and connected healthcare as liberating and empowering, rather than dehumanizing or threatening? These are exactly the questions that Siemens Healthineers is here to answer. siemens-healthineers.com/value-partnerships 13 White Paper · Value Partnerships: A Game-Changer for Healthcare Providers Worldwide References 1 PWC. “Changing demographics demand healthcare reforms,” accessed 3.22.19 at https://www.pwc.com/gx/en/industries/healthcare/emerging-trends-pwc-healthcare/changing- demographics-healthcare-reform.html 2 Personalized Medicine Coalition. “Personalized medicine at FDA. A progress and outlook report.” Accessed 3.22.19 at http://www.personalizedmedicinecoalition.org/Userfiles/PMC-Corporate/file/ PM_at_FDA_A_Progress_and_Outlook_Report.pdf 3 ZS. “Artificial intelligence in healthcare infographic 2018.” Accessed 3.22.19 at https://www.zs.com/-/media/pdfs/three-potential-roles-for-ai-in-healthcare_v2.pdf 4 Roland Berger Krankenhausstudie, p.24, München, Juni 2018, survey attendees: 500 largest German hospitals 14 Value Partnerships: A Game-Changer for Healthcare Providers Worldwide · White Paper Read more Read more from our series on Value Partnerships and how to create more value for healthcare providers: Technology management – Healthcare enterprises continually White Paper strive to simultaneously optimize Improving medical technology management their operations, expand their through Value Partnerships capabilities, and advance A new approach for healthcare provider organizations siemens-healthineers.com/value-partnerships innovation. Therefore, one of the most critical focus areas is the holistic management of their medical technology. siemens-healthineers.com/ whitepaper-technology- .... management SIEMENS Healthineers 6949_CIT13626_ES_Whitepaper_Technology_Management_DD_Print.indd 1 28.01.19 15:54 Digital twin technology – virtualized presentations of White Paper facilities and processes – have The value of emerged as powerful tools for digital twin technology Transforming care delivery in a single department healthcare providers. They can or an entire healthcare enterprise siemens-healthineers.com/value-partnerships reduce the time and expense of piloting different solutions and approaches in the physical world. siemens-healthineers.com/ whitepaper-digital-twin .... 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