|  Robert V. Stanek President and CEO |
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July 2009
Since its inception in early 2009, the ACT (Achieving Clinical Transformation) Initiative has made significant strides toward its key objective: to identify, analyze and implement clinical transformation opportunities that result in superb clinical outcomes and enhance quality and patient safety across the system, which result in excellent operating and financial performance.
As a recap, the short-term goal was to identify $100 million or more in savings—beyond what was already included in the 2009 budget—within the first one hundred days of 2009. At least $25 million of these actions are to be implemented in 2009. The long-term goal of ACT is to implement breakthrough processes that reduce/eliminate the incidence of hospital-acquired conditions, reduce length of stay, reduce readmissions under 30 days, decrease expenses associated with denial management, further reorganize the System Office to better support clinical transformation and enhance operational improvements related to supply chain value realization, and labor management and revenue management.
During its May meeting, the ACT Steering Committee reviewed the action plans developed to achieve the savings with RHC CEOs and System Office leaders. As a result of table discussions the RHCs committed to approximately $104 million in savings. These savings were driven by improvement in hospital acquired conditions, reduction in Medicare length of stay (LOS), reduction in payment denials and additional opportunities associated with supplies and labor management. The identified savings will be validated by the CHE finance department and included in the 2010 budget. All RHC CEOs signed a “commitment declaration” that recognizes the work accomplished in the first 100 days and the effort required to achieve the goals for 2010.
Since this meeting, hospital-acquired condition task forces have been convened, the definitions for hospital-acquired conditions have been confirmed and the action plans have been initiated. A system-wide target was set as zero for three areas (falls, ventilator associated pneumonia and central line infections). CHE also implemented the MIDAS+ software, which enables us to collect baseline data regarding Medicare LOS and 30-day readmission rates in order to finalize 2009-10 targets.
“While there is certainly a ways to go to meet our objectives, I think we can all take pride in how leaders have risen to meet the challenge of achieving true clinical transformation throughout our health care system,” said Mark O’Neil, CHE’s executive vice president and chief operating officer. “We have achieved tangible results that put us on the path to meeting our clinical and financial objectives, and I am confident that the teamwork and sharing of best practices that has occurred to date will continue to grow and support our long-term efforts.”
The steering committee continues to meet biweekly to monitor results and the work plans developed for each initiative and to identify additional savings. Progress at the RHC and system levels will be formally reviewed by August 1 and adjusted if needed.
Many thanks to leaders and colleagues throughout CHE who have worked so diligently over the past few months to identify and implement breakthrough clinical improvements that will result in improved quality AND financial savings throughout our ministry.
Sincerely yours,
Robert V. Stanek
President and Chief Executive Officer,
Catholic Health East
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