Red Alert for Hospitals

No matter what side you take in the current political debate regarding the Federal debt issue, the bottom line is that there isn't enough funding to support the expansion of our population as the baby boomers age and the cost of providing health care increases.  As an industry, we need to brace ourselves for significant payment reductions from Medicare and Medicaid, but also from commercial and private insurers.  In addition, we need to change how we deliver care. 

WMHS is coming off of one our best financial year's ever;  however, we are stepping up our plans for driving cost out of the system through ongoing process improvement.  Chris Van Gorder, CEO of Scripps Health in San Diego, put it succinctly, "the debt ceiling challenge for our country has created a new and unexpected challenge for us."  Under this challenge, hospitals could close or eliminate services and physicians could stop seeing Medicare patients beyond those who have stopped already.  If the super committee of 12 can't come up with a plan, then Medicare will be cut by $50 billion in payments to hospitals and $11 billion to physicians beginning in 2013.  We have to improve processes and eliminate process variation in the delivery of care ASAP.

Good Corporate Neighbor

I continue to be amazed by the involvement of our staff in their communities.  Our employees spend countless hours volunteering their time to churches, schools, scouts, athletic groups, fire companies, ambulance squads and the list goes on.  Our senior management team alone serves on the boards of twenty six local agencies / organizations.  They also serve on state wide commissions, boards and committees.  These individuals work 10 to12 hours a day at the Health System and still find time to effectively serve a host of other organizations.  Truly, a great group of people.

Another Wonderful Story

I just learned of another wonderful act of caring and kindness demonstrated by one of our employees.  The other evening one of our employees, Sherry Thompson, RN, was leaving to head home after another long day in Same Day Surgery.  As Sherry was getting on the elevator, she saw a woman hitting her head against the elevator door, screaming and almost completely out of control.  Sherry asked if she could help.  The woman's fiancé who was in his forties was being brought to the ED in full cardiac arrest and she was trying to find the ED.  Not only did Sherry bring her to the ED, but she stayed with her for three hours giving her comfort, encouragement and prayer since no other family were available.

We truly have extremely special people at WMHS.  Sherry, thanks for living our Core Values each day.

GE and China

Throughout each week as I come across potential blog material, I save it and read it over the weekend.  One item that I saved was a blog from Jack Cafferty of CNN.  The subject of this particular blog was concerning GE and the message that it is sending to America by closing its X-Ray Division in Wisconsin and moving it to China.  It is extremely hard to believe that a CEO who serves on the President's Jobs Creation Council is creating jobs in another country and investing $2 billion in China to do so.  GE will create research centers throughout China.  GE has been a very successful company in the US and has been a mainstay of our economy over the years.  As a customer of GE, I gave pause after I learned that they didn't pay any US income taxes on $5B in profits from US operations and $14B in total profits for all of last year.  I think that I need to rethink my relationship with GE.  There couldn't be a better time in US economic history when this country could use a boost such as the one that GE is planning to export to China.

Breast Cancer Fundraising

Recently, I read an article about fundraising by the Susan M. Komen for the Cure.  I have always been in awe of the Komen Foundation for what they have done for women through breast cancer awareness and that they are a fundraising machine.  However, the beginning of the article was about a new fragrance called Promise Me.  The article was critical of the group's founder for hawking the perfume on a home shopping network and that the perfume's fragrance can cause nausea, dizzy spells and headaches after chemotherapy treatments in cancer patients.  Not that patients would necessarily wear the perfume after chemotherapy, but just being around the fragrance may cause a reaction.  The good news is that the Komen Foundation is asking the perfume's manufacturer to "reformulate the perfume to remove any irritating scents.  The sad news is why didn't they come up with such a formula from the start. 

I was surprised to read in the same article about the criticism of the Komen Foundation for over- commercializing breast cancer and how other cancer groups suffer from the size and reach of the Komen Foundation. It is obvious as to the benefits that the Susan G. Komen Foundation has had on fundraising for breast cancer research (about $1.9 billion) and as previously noted, on the awareness factor regarding breast cancer.  Like others, I now question if they have gotten too large and insensitive from the hype and over commercialization of an organization that has saved countless lives and done wonderful things for so many women and their families.

The Plight of the Small Business

I was having dinner with a local business owner the other evening and he told me what his health insurance premiums were increasing by for the next coverage year.  When he told me, I almost fell off my chair.  He was told that his premiums were increasing by 50%.   FIFTY PERCENT!!  He was told that his premiums would not have to rise at all should he find another option more desirable.  He said, of course I am interested, sign me up.  He was then informed that under the new option his and his employees’ deductible would increase to (are you sitting down) $10,000.  TEN THOUSAND DOLLARS!!  He then tried to shop around to the two other health insurers available in our area only to be quoted higher amounts.

I wonder where the money is going because it sure isn't coming to hospitals and physicians.  We are given rate increases in the plus or minus 2% arena, yet blood, blood products, drugs, supplies, food, purchased services and the list goes on are all demanding higher price increases to keep up with inflation.  As we work to get cost out of the system, a lot of others in the health care industrial complex aren't.  By the way, my small business friend still doesn't know what he is going to do for health insurance coverage for himself and his employees.

The 300 Becomes 100

Last September as we rolled out an organizational goal of improving patient satisfaction, the WMHS Department Directors group was asked to provide the percentage, in their opinion, of health system employees who don't embrace service excellence.   They said that 13% of employees don't get it.   According to Quint Studer, the percentage of hospital employees nationwide who don't get, understand or care about service excellence is 8%.  The 13% became known as "The 300" (13% of 2300 is 299). 

According to literature, of the 300, 100 should leave the organization when confronted with their lack of commitment to service excellence standards.  Another 100 will improve and be viable employees and the remaining 100 will be a challenge since they don't think that they have a problem with service excellence.  The last third may be fine with patients and families but be horrible co-workers.  They may work at one speed and not be as responsive as they should be to patient needs.  They may not be warm and sincere in EVERY interaction, but only when it suits them. 

As we rolled out revised service excellence standards, the Department Directors group was surveyed almost a year later and asked the same question plus what is the percentage in their own department / patient unit.  On average within their own department or unit it was 4% and system wide it was 5%.  Considerable progress and we have the patient satisfaction scores to prove it; however, that still leaves 115 employees who are interacting with patients, family members and each other not embracing service excellence standards and making everyone else's job that much more difficult.