Becker's Hospital Review

12 EXECUTIVE BRIEFING EXECUTIVE BRIEFING 1 According to the American Hospital Association, more than 40% of expenses hospitals incur come from administrative costs. This significant burden impacts providers and can even lead to delays in patient care. To address this issue and proactively get ahead on costs, Barry T. Katzen, M.D., chief medical innovation officer for Baptist Health South Florida, launched Baptist Health Innovations. This unique business unit is designed to provide clinicians and staff with resources to turn their ideas into transformative products and services. To learn more about Baptist Health Innovations and HealthChain, a supply chain platform it had a role in launching, Becker's Healthcare recently spoke with five healthcare leaders with in-depth knowledge of these initiatives: • Nila Bhakuni, assistant vice president, innovation, Baptist Health South Florida • Mark Coticchia, corporate vice president, innovation, Baptist Health South Florida • Misty Garrison, director of procurement operations, UVA Health (Charlottesville, Va.) • George Godfrey, chief supply chain officer, corporate vice president of shared services, Baptist Health South Florida • Barry Katzen, M.D., chief medical innovation officer and founder of Baptist Heath Innovations, and founder and chief medical executive emeritus of Miami Cardiac & Vascular Institute, part of Baptist Health South Florida. A culture and infrastructure that democratizes innovation The Baptist Health Innovations team is known for its excellence in commercializing know-how, data and processes. Its reputation is particularly strong in commercialization of nonclinical technologies and inventions like HealthChain. This patent-pending supply chain management toolset reduces costs in the procure-to-pay process and smooths operations for suppliers, vendors, contractors and employees. The individual and institutional knowledge of over 28,000 employees is a unique, valuable asset and a major source of innovative product and service ideas. The organization's leadership team believes that great ideas can come from anywhere — ranging from financial professionals to pharmacists, nurses, clinical institute leaders and more. "We have no prejudice against where innovation can come from," Dr. Katzen said. "And, for us, innovation goes beyond clinical innovation. We are dedicated to improving healthcare delivery in all its forms. As a result, we need an infrastructure that accepts innovative ideas from literally anywhere in the organization." Baptist Health Innovations plays a central role in helping creators develop ideas and move them through implementation and commercialization pathways so they can bring value to the organization. The team has fielded hundreds of employee ideas and helped many successfully move into commercialization. An essential part of this approach is rewarding staff members for their creativity. "Developing an intellectual property policy with very generous revenue-sharing terms for inventors was one of the first things we did at Baptist Health Innovations," Mr. Coticchia said. Katzen believes the opportunities for operational innovations are huge. These types of projects align with Baptist Health Innovations' pragmatic and action-oriented philosophy. As Coticchia explained, the team focuses on projects that can be completed in a five-year time frame. Since operational innovation projects do not require FDA approvals or clinical trials, they come to fruition with greater agility and speed. "The future is now, Coticchia said. "We look to develop new products and processes that can have near-term impact. Progress in tech transfer is measured by doing deals, such as intellectual property and codevelopment agreements, licensing deals, spinoffs and more." Between 2019 and the end of fiscal year 2024 (Sept. 30), the organization has completed 980 transactions; 16 co-development collaborations with companies like Fujitsu, Philips and Becton Dickinson; 25 license deals; 3 equity investments; and launched a startup company. These initiatives have generated millions of dollars in licensing revenues for Baptist Health and millions more in cost savings. Through the support of the John S. and James L. Knight Foundation, Baptist Health Innovations launched the Knight Foundation Fellowship in Healthcare Technology Innovation. This competitive program attracts, trains and empowers healthcare visionaries and entrepreneurs to develop a diverse and connected community of innovators at Baptist Health and in South Florida. "The grant was the largest award ever provided to a healthcare institution by the Knight Foundation," Ms. Bhakuni said. "To date, the fellowship program has produced 140 fellows both inside Baptist Health and outside the health system. It teaches a curriculum based on a series of practicums using real world problems and solutions." Baptist Health has succeeded in creating a culture of innovation, as well as in the ability to create the transactions and deal flow needed to make ideas real for people who value them. Katzen noted that having those skills internally is a prized asset for the organization. Operational innovation in action HealthChain is a patented supply chain management solution that is fully emblematic of Baptist Health's focus on operational innovation. The toolset and integrations were designed by Mr. Godfrey. A national leader in supply chain and logistics, Godfrey became an especially important and innovative leader during the COVID-19 From ideas to impact: How Baptist Health South Florida is transforming healthcare operations through innovation

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