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12 Sign up for the COMPLIMENTARY Becker's Hospital Review CEO Report & CFO Report E-Weeklies at www.BeckersHospitalReview.com or call (800) 417-2035 Is Center of Excellence Investment the Silver Bullet Healthcare Has Been Looking For? (continued from page 1) there are some strategies that resemble the proverbial silver bullet more than others — strategies that, while not solving every problem in one go, make significant progress on a wide range of issues. One such strategy (a silver-plated bullet, if you will) that plays a central role in many healthcare organizations' strategic plans is investment in centers of excellence. Developing centers of excellence can provide a platform for hospitals and health systems to align physicians in quality improvement, reduce costs through greater efficiencies and create market differentiation through clinical excellence and high patient satisfaction. Target 1: Enhanced quality As the name suggests, centers of excellence are primarily designed to deliver high-quality care consistently. Developing standardized, evidence-based care processes that ensure high-quality outcomes not only sets the foundation of a center of excellence, but also helps hospitals reach quality standards that are included in federal reimbursement models such as value-based purchasing and bundled payments. Thus, investing in a center of excellence enables hospitals to differentiate themselves through top-tier care and gain cost savings under new payment models. "Right now, there is so much pressure on the cost side that sometimes quality takes a backseat," says Steve Moreau, president and CEO of St. Joseph Hospital in Orange, Calif. "But that is not going to be sustaining. That's why focusing on excellence is such an important effort. We can't take our eye off quality by focusing exclusively on cost reduction." Mr. Moreau says a key aspect of centers of excellence is their consistency, reliability and minimal variation. Reducing variation can improve outcomes as well as patient satisfaction, another aspect of healthcare quality. Patient satisfaction "The more we become responsible in every aspect of care, the better patients seem to feel about [the hospital]," says Marc Sakwa, MD, chief of cardiovascular surgery at Beaumont Hospital, Royal Oak (Mich.) and chair of Beaumont Health System's Heart and Vascular Center of Excellence, which was created about three years ago. "Patients are aware that their wait times are less, that the nurse is there to answer their call buttons quicker. We measure patient satisfaction on a regular basis; it's only gone up since we started doing these centers of excellence." Patients with better experiences are more likely to return to the hospital, generating greater revenue and a stronger reputation for the hospital. Target 2: Physician alignment Physician alignment is both a necessity and a consequence of developing centers of excellence. Physician alignment as necessity To create standard protocols that will increase quality, physicians' and hospitals' incentives should be aligned. Incentivizing physicians for low variation, high patient satisfaction and overall high quality can ensure everyone works collaboratively to meet the goals of a center of excellence. For example, Sacred Heart Hospital in Eau Claire, Wis., aligned with physicians for its robotic surgery center of excellence. By giving physicians a leadership role on a robotic surgery committee, the hospital and physicians reached alignment on goals and approaches to quality care. "What brought HFAP 1039_Layout 1 10/4/11 4:05 PM Page 1 True Partnerships. " Our switch to HFAP was seamless. We began with a collegial and thorough survey process focused on quality and patient safety. Our relationship continues to be a cost-effective and educational partnership. " John M. Kosanovich, MD, MBA VPMA / Network Development Covenant HealthCare Saginaw, Michigan www.hfap.org info@hfap.org PUBLICATION: Becker's Hospital Review SIZE: Half Page 4/color APPEARANCE: 2011 Norcom Inc. 847-948-7762 theteam@norcomdesign.com