Herman Gray, MD, president of Children Hospital of Michigan, presented with Gregory Maddrey, principal of The Chartis Group, on Forging Successful Alignments With Physicians, Faculty and Pediatric Specialists.
Children's Hospital of Michigan has had many challenges the past few years -- most notably the recession's impact on the Detroit economy -- but simultaneously they've been challenged to improve their alignment with their local physicians, faculty and pediatric specialists to ensure they have sustainable staffing relationships in place to continue to care for children.
Children's Hospital of Michigan has a complex governance and partnership structure. Children's Hospital is a subsidiary of Detroit Medical Center, and works with independent physician groups, primarily with Wayne State School of Medicine. The relationship between the Detroit Medical Center and Wayne State University rapidly deteriorated a few years ago, and the result of the fallout is that University Physician Group (UPG) no longer has an exclusive relationship with DMC, but now simultaneously works with several competitors. Parts of the residency program also left DMC to other hospitals in the area.
At the hospital, unionized faculty operate under a complex faculty model with University Physician Group as a separate, not-for-profit pediatric organization. Pediatric surgeons, radiologists and anesthesiologists are separate as well in their own organizations. Children's Hospital employs some surgical specialists (CV, ortho, urology) while others are part of UPG or other private groups.
Margins in the market for both groups -- Children's Hospital and UPG -- have begun to erode, especially in light of the challenged Detroit economy. Competition has increased both locally and regionally -- especially in the affluent suburbs. Children's Hospital has opened almost a dozen ambulatory clinics throughout the area to enhance its competitive position and ensure care needs are met.
To add one more variable to the mix, an investor-owned health care system, Vanguard Health System, is in the process of purchasing Detroit Medical Center, and that transaction is expected to be finished by the end of the year.
That's the context. So where to go from here? This is where cooperation with The Chartis Group came into play. The Chartis Group offered a framework for alignment, and started by looking at these key questions:
- Are partners strategically aligned; are school, hospital and practice plans coordinated together?
- Are government and management structures in place to align boards and committees around collective objectives?
- Are methodologies aligned to support strategic economic performance?
- Are management processes and stuctures in place to align organizations around goals and performance?
- Does each organization understand the overlap in your respective missions and visions?
- Are there trusted and productive relationships in place? This is essential, because without trust the process is simply mechanical and problems will not be engaged and solved.
Think about how these questions might affect aligned relationships at your organization. For a detailed look at the specific alignment challenges identified for Children's Hospital of Michigan and at strategic recommendations for alignment, check out the PowerPoint from the presentation.
The presenters offer these lessons learned:
- Process matters – Engage leaders from both the hospital and physician group to develop models
- Don't shortcut the timeline – This is emotional and taxing work, make sure your timeline is sufficient to complete the work and test the models before implementation
- Don’t focus exclusively on the economic model – If the process is not grounded in establishing a more productive relationship, then it will devolve into a fight about money
- Use good data – The effort will fall apart if the underlying data is flawed or misused
- Share progress and interim deliverables openly with hospital and physician leadership – This is complicated, allow leadership the time to absorb and reflect on the models
- Drive targets and goals down to the division and, if possible, the faculty level – It is vitally important that the faculty understand how payments work and what’s being measured
- Build staff capabilities – Verify that staff have the capabilities and the tools to manage in a more collaborative and data intensive environment