A New Way to Think

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• A New Way to Think
• About Value
• Pam Arlotto, CEO
• Maestro Strategies, LLC

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Pam Arlotto
President CEO A national strategy consulting
firm focused on helping executives in healthcare
obtain value from their investments in
information technology. Clients include long
term, acute and ambulatory care providers,
vendors, associations, regional health
organizations and professional service firms.
Author, HIMSS all time best seller and winner
2003 Book of the Year on ROI. Recently released
Beyond Return on Investment Expanding the Value
of Healthcare Information Technology. Also
published in Healthcare Financial Management,
Most Wired Online, Journal of Health Information
Management, etc. Frequent speaker at national
healthcare meetings and featured on National
Public Radio and in Wall Street Journal.
Past President and Fellow HIMSS
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Contributions

• April 2007 completed Information Technology -
  State of the Industry, Multi Facility Research
  Report

Hospital Health Networks Webcast
www.hhnmag.com/ITplanning Helps community based
providers effectively Adopt and implement IT
systems by Creating thorough IT Strategic Plans
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Questions LTC Providers often Ask About IT Value

• How are we doing today cost, quality and
  satisfaction value of our investment in IT?
• How do we compare to others in LTC and healthcare
  in general?
• What should we invest in?
• How will this impact us in the future?

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LTC Leadership View of IT
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Information Technology is critical toyour
organizations future success!
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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The Value of IT
Definition of IT Value
The Degree of Change in the Business
Total IT and Business Investment
Source Return on Investment Maximizing the
Value of Healthcare Information
Technology Arlotto, Oakes 2003
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Success Criteria for Value

• Leadership has a unique Vision for IT and its
  impact on the organization
• The Vision drives an IT Strategic Plan
• The plan is governed by an IT Steering Committee
• Leadership has evaluated the organizations
  readiness
• Gaps have been identified and addressed
• Leadership has completed the proper due diligence
  on the IT vendor(s)s future vision, culture,
  implementation approach and support
• Value realization metrics are in place

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IT Strategic Plans are in place.
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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Does your Strategic Plan include a Vision for
Technologys impact on your organization?

• Examples, Technology will
• Transform seniors residences into interactive,
  independent living spaces
• Drive resident-focused care
• Expand our reach beyond the walls of the nursing
  home to the entire community
• Enable point of care clinical quality, improved
  documentation and increased satisfaction of
  residents, families and staff

The vision thing is the CEOs responsibilityYou
dont need to understand every step of how you
get there, but you have to understand where it is
going to take the organization
Donlon, The CEO
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IT Steering Committee are less frequent
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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How ready is LTC for EMR?
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Readiness Attributes

• Senior leadership buy-in and realistic
  expectations regarding heavy lifting
• A formal process redesign approach is in place
• Project champions and project managers are in
  place
• Appropriate Information Technology infrastructure
  and resources are in place
• The Steering Committee has a structured decision
  making process
• Clinicians understand the implications, gaps and
  steps toward development of clinical systems
• Understand vendors long term vision and
  direction

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What are we automating..
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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What of our Capital Budgets are Spent on IT?
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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Most anticipate increases in both capital and
operating spending.
In acute care, the median IT expenditure per bed
was 5,556 in 2006. The median operating costs
were 12,060 per bed representing a 4.5
increase over 2005.
Information Technology - State of the Industry,
Multi Facility Research Report, April 2007,
Maestro Strategies, LLC
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For more information www.maestrostrategies.com