Nurse Practitioners: A Solution for the Hospital Bottom Line

Guest Post by Dr. Courtney H. Lyder
 
Dr. Lyder is dean and professor of the University of California Los Angeles (UCLA) School of Nursing, professor of Medicine and Public Health, as well as executive director of the UCLA Health System Patient Safety Institute and assistant director of the UCLA Health System.
 

As hospitals continue to search for ways to control rising healthcare costs and improve their bottom line, they need look no further than nurse practitioners.

For more than 45 years, evidence has shown that nurse practitioners are cost-effective high-quality providers in the primary care setting. In fact, nurse practitioner care resulted in significant savings with a benefit-to-cost ratio of up to 15 to 1.

In light of healthcare reform and a continued consumer spotlight on cost-effectiveness, hospitals should be looking to nurse practitioners as a critical key to their solutions

Nurse practitioners not only have the academic credentials, but on average have already worked 10-plus years as registered nurses, so they have practical, bedside experience to complement what they’ve learned in the classroom. And studies have shown no difference in outcomes when a nurse practitioner or a physician treats patients.

In a study completed here at UCLA, it was found that nurse practitioner-led care was associated with lower overall drug costs for inpatients. In another study comparing nurse practitioner to physician management of high cholesterol following coronary bypass, they found patients in the group managed by nurse practitioners had lower drug costs, while being more likely to achieve their goals and comply with prescribed regimens.

These types of results bode well for the changes coming to the reimbursement for 30-day readmissions in 2013 as part of the healthcare reform act. A growing body of evidence shows that nurse practitioners and other advanced practice nurses can be highly effective when used to coordinate and implement complex evidence-based care programs.

At the University of Virginia Health System, a nurse practitioner model introduced in the neurosciences area in 1999 cut about 2,000 inpatient days on a similar volume and case mix of patients, resulting in a $2.4 million savings the first year.

Other hospitals also have begun including nurse practitioners in their teams. When Loyola University Health System in Maywood, Illinois, revamped its cardiovascular surgery care in the late 1990s, they transferred surgery patients’ care to specially trained nurse practitioners. It was their job it was to ensure that advanced protocols were followed by constantly monitoring patients’ conditions and adjusting their care to keep them progressing towards discharge. They also served as primary contacts for patients’ families and took responsibility for discharge and follow-up care. Results showed a dramatic drop in mortality and cost savings per case of 9 percent. And while the hospital emphasized that gains resulted from the complete cardiovascular redesign, having the highly skilled nurse practitioners dedicated to patient management and coordinating the complex care process, was essential to the program’s success.

Utilizing nurse practitioners outside the hospital setting also can control unnecessary hospitalizations. Nurse practitioners in nursing homes reduce the total costs of caring for patients with Alzheimer’s disease and related dementias by treating a broad array of their medical problems, such s gastrointestinal and genitourinary considerations that can lead to expensive hospital stays. Under the care of nurse practitioners and other caregivers while in the hospital and post-discharge, per-patient costs decreased by nearly $1,000.

The bottom line is that using nurse practitioners is one of the most cost-effective and feasible actions to solve the problems of cost, quality and access to healthcare. That, in turn, makes them the answer to improving your bottom line.

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The Secret to Building Successful Physician Relationships

guest blog post by Rochell Pierce,
Senior VP of Physician Relationship Management
Aegis Health Group
 
 
 
 

For hospitals to implement a successful ACO model, relationships between hospital and physicians must be elevated to reach a new level of “mutual benefit” to truly achieve “win-win” status. True synergy is going to be necessary to deliver on the high-quality, low-cost model to which ACOs aspire.

Many hospitals already have some kind of physician relationship management program in place. Even though they are diligently calling on doctors, many are not achieving a significant impact. That is because, more often than not, instead of seeking opportunities for strategic alignment and ongoing engagement with physicians, they are spending their time in “meet-and-greet” activities or simply addressing quick fixes such as better instrumentation or more convenient block times in the OR.

According to a 2008 survey by the American College of Physician Executives (ACPE), only 16 percent of ACPE members consider the relationship between the hospital and private practice physicians as “doing well.” That is a frightening and untenable statistic. What’s more, 42 percent of hospital leaders expect ACOs to strain their relationships with physicians according to a new report from HealthLeaders Media. Unless hospital leaders take the initiative, the chasm between their institution and their affiliated physicians will only grow wider and deeper, and that’s a dead-end street in a world of ACOs. Fortunately there are many avenues that hospitals can take to bridge this gap. One of the most effective, according to the 2008 ACPE survey, is the implementation of a formal physician relationship management (PRM) program.

Physician relationship management in 2011 needs to evolve beyond a reliance on conventional CRM tools and basic programs, such as “lunch and learns.” When optimally planned and executed, physician relationship management creates referral alignment, economic alignment and strategic alignment that ultimately help doctors and hospitals achieve positive clinical and financial outcomes (see graphic).

Learn more by contacting us today.

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An Employer-focused Business Strategy in the Era of ACOs

guest blog post by Yale Miller
Executive VP, Operations
Aegis Health Group
 
 
 

In the era of ACOs, building relationships with local employers has never been more critical. That’s because it is the one strategy that can simultaneously grow market share, tap into new streams of profitable revenue and enrich the hospital’s brand in the community—regardless of whether the hospital is in an ACO or not.

Under a population management model inherent to an ACO, the hospital is called upon to focus on the community as a whole and shift into an integrated health-system model rather than a more traditional health center. Part of this means thinking beyond admissions and adapting a “right-care, right-time, right-place” mindset. Working closely with local employers puts hospitals in a position to coordinate all elements in the continuum of care by developing programs and strategies that work to keep people healthy and out of the hospital whenever possible.

For many employers, healthcare costs are their second biggest expense after salaries. More than a decade ago, Detroit automakers announced that they were spending more on healthcare than they did on the steel that went into their cars. Back then the statement was shocking. Today it is taken in stride as these automakers are not alone. According to a recent Towers Watson Healthcare Cost Survey, employer healthcare costs for active employees are projected to rise 8.2 percent (after plan changes) to an average annual cost of $10,730 in 2011 – the seventh consecutive year of increases. As a result, today’s employers are looking for answers and will undertake any reasonable strategy that will help them both understand and control these skyrocketing healthcare costs.

Today, more than ever before, hospitals have an opportunity to step in and help employers manage their healthcare cost concerns by establishing partnerships with the local business community that result in improvements in employee health and a corollary reduction in expenses. They are also – in many cases for the first time – positioning the hospital as part of the solution, not part of the problem, of rising healthcare costs. After all, hospitals are employers, too, and usually one of the largest in any community.

For more than 20 years, hospitals have turned to Aegis Health Group for employer-focused strategy that effectively analyzes local markets and targets implementation of results-oriented solutions. Today, we’re on the leading edge of the ACO evolution and on the ready to bring current solutions to help hospitals thrive in this developing era.

Contact us today to learn more.

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Five Hospital Business Development Trends to Watch in 2012

Though we’re just now watching the calendar change from one year to the next, we at Aegis Health Group have long been looking ahead to see what 2012 will mean for our industry.

Here are 5 trends in hospital business development to be on the ready for in the coming year.

Investments in technology – While the healthcare reform regulation aimed at reducing paperwork and lowering administrative costs doesn’t become fully effective until Oct. 1, 2012, much work has been done in this area. This directive, along with the need for hospitals to adopt a data-driven approach for tracking preventable chronic diseases among consumers, will continue to contribute to an information technology boom in the coming year. Electronic health records allow hospitals and providers to gather, monitor and track patient health and utilization over time. Done right, hospitals can both aggregate and segment this data – as well as health risk information about the general population – to market appropriate programs to specific consumers, identify community needs based on health risks, and determine trends within the population health over time.

Greater focus on social and mobile marketing opportunities – While hospitals have been slow adopters of social and mobile technologies as a way to reach and engage consumers, the coming year will bring an increase in the number of hospitals integrating these elements into their overall outreach strategies. Already healthcare organizations have found success through online micro-communities, Twitter and blogs that unite groups of people around a common cause or theme, mobile applications that allow consumers to connect with physicians or monitor emergency department wait times, and Quick Response (QR) codes so consumers can quickly access specific online content from a mobile phone. These are just a few of the ways hospitals will expand their use of social and mobile technologies to reach consumers where they are: on their mobile devices and online.

Employer-hospital partnerships – The majority of insured consumers continue to get health insurance through their employers. At the same time employers are growing increasingly interested in programs that improve the health of their workforce as a way to reduce costs. Hospitals are logical partners to help businesses create a healthier workforce. Through such relationships hospitals can collect actionable data about employees, which can be used to market specific programs, service lines and physicians to appropriate consumers. In the coming year hospital marketers will face greater pressure to provide measurable return on investment for their marketing efforts. Employer-hospital partnerships typically deliver upward of 3:1 ROI.

Stronger physician relationshipsStrong physician relationships are at the core of all hospital initiatives. The increased focus on collaborative care environments driven by healthcare reform will require that hospitals and physicians establish greater loyalty as well as alignment of goals and care strategies. To this end more hospitals will establish formal, measurable and data-driven physician relationship management programs that are led by a dedicated professional liaison who can manage physician issues in a timely manner, help guide physician leadership opportunities, and ensure synergy between the hospital and its medical staff.

Formal population health management programs – As 36 million consumers who are currently uninsured gain access to coverage under the implementation of the Patient Protection and Affordable Care Act, hospitals must take proactive steps to begin identifying and mitigating health risks of the broader population. Population health management programs must include a mechanism to collect and act on data provided by consumers; formal prevention, intervention and health management components; the ability to measure proper utilization of hospital programs and service lines; and a way to monitor improved health trends of the population.

Hospitals that focus their business development efforts in these five areas will experience the highest levels of profitability as they set themselves apart from the competition and establish a healthier population overall.

Here’s to your success in new year!

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Loma Linda University Medical Center Increases Market Share with Aegis Health Group

Discover how Loma Linda University Medical Center (LLUMC) has benefited from more than 10 years of profitable collaboration with Aegis Health Group. With Aegis’ innovative solutions,  LLUMC has seen increased market share and volume for their primary care business and niche services.

Tammy Veach, Executive Director of Marketing for LLUMC, gives a firsthand perspective.

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Three Key Truths About ACOs

As healthcare’s fee-for-service and volume-based reimbursement model continues its gradual fade, the dawn of Accountable Care Organizations (ACOs) heralds new opportunities for compliant providers.

ACOs that meet quality thresholds (e.g., clinical processes and outcomes, patients’ and caregivers’ perspectives on care, and utilization and cost targets) may be eligible to receive additional incentive payments from the Centers for Medicare & Medicaid Services in the form of shared savings.

That’s why many hospitals today are looking at what they must do to effectively participate in this new era. And as they prepare to take action, they will be well served to first take serious note of The Three Truths About ACOs.

The first truth is that ACOs are all about relationships. Looking at the nation’s few successful integrated healthcare systems – Geisinger, Mayo Clinic, Advocate and Intermountain Health – it is clear successful relationships built on trust and an alignment of incentives must be formed between hospitals and physicians. In turn, the ACO and the community must build a solid relationship as well in order for ACOs to succeed.

The second truth is that ACOs are going to breed a new species of competition for some hospitals. As hospitals work to align themselves with local physicians, their competitor across town is trying to do the same thing. Not to mention, payers are entering the fray as well. Commercial insurance companies such as United Health Care, Aetna and various Blue Cross/Blue Shield plans are announcing collaborative ACO trials with hospitals and health systems around the country, and they can’t all win. That’s why this is no time to be timid. Hospitals must be open to new business development opportunities, focused with marketing dollars and acknowledge that taking calculated market share from their competition is the surest road to success.

The third truth, and the one least discussed, is that ACOs are bound to spark a new era of cost shifting. This is not a new concept, as those who could pay have always fronted the burden for those who couldn’t. Under ACOs this will become more important. As hospitals become accountable for the care of their communities in a variety of settings outside of the hospital walls, it will be essential that the sum of those patients who do wind up in the hospital have an overall favorable reimbursement profile/payer mix that assures sustainability for the sponsoring institution. For this to be successful, hospitals must take an active role in influencing patient self-care and preventative measures, which is largely impacted by primary care physicians, whose role will take on even more importance.

The good news is that knowledge of these three key truths can unlock a bright future for the hospitals ready and able to embrace just what it means to be “accountable” in offering “care” organization-wide.

Aegis Health Group has innovative solutions to help hospitals be ready and able in the era of ACOs. Contact us today to learn more!

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Analyze the Market & Assess the Health to Grow Hospital Market Share

by Pearson Talbert, President
Aegis Health Group

The first step to establishing a rewarding health-management program is to perform a thorough market analysis. This identifies appropriate employers in the hospital’s catchment area, based on size of workforce, insurance profile and other factors proven to be most desirable. We at Aegis Health Group pioneered the concept nearly 20 years ago as a core approach for healthcare business development. Today, we continue to offer client hospitals trained Employer Relations Specialists (ERS) to work within the hospital to seek out and manage relationships with area employers.

In establishing relationships with employer-partners, ERSs encourage employees to complete Personal Health Profiles. These surveys collect demographics and key information such as health plan participation, family history, physician relationships and selected health metrics including blood pressure and glucose readings. The questions also identify existing or potential health issues, such as an employee who is diabetic, has hypertension or smokes.

Personal Health Reports can be prepared for each respondent along with specific recommendations for health maintenance or improvement. The reports are provided confidentially to participating employees in an easy-to-understand format. It also provides insightful information for employees to discuss with their personal physicians. Many employers also encourage employees’ spouses to complete Personal Health Reports. There are two reasons for this: First, family members are often covered under the employer-sponsored benefit package, so keeping spouses and children healthy is simply in the best financial interest of the employer. Second, and as seen with growing frequency, an employee’s role as caregiver to ill family members affects the employer through productivity decline, absenteeism or changing health risk factors of the employees themselves.

Using specialized software designed expressly for this purpose, Aegis aggregates the data collected in the surveys into an overall workforce profile that provides an employer a snapshot of the health issues existing within that specific workforce. That information is used to predict an employer’s expected health-related costs if the health risks are left unmitigated.

It’s this level of deep insight and actionable information that brings real value to employers and their employees. With knowledge comes power, the power to address health issues, integrate wellness at every level and build lasting bonds and relationships that bear fruit long term. The more the market shares information, the more hospitals can take action and grow shares of those markets. It’s a real win-win for everyone.

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