Latest / Becker’s Healthcare Podcast / Rethinking Hospital Operations with a Central Nervous System Approach
Transcript
- 0:00Hello, and welcome to the Becker's Healthcare podcast.
- 0:02I'm Molly Gamble. Thanks for joining me. Few
- 0:04questions are more pressing for hospital leaders right
- 0:07now than this one. It's not just how
- 0:08to manage through today's environment,
- 0:10but how to fundamentally rethink the way a
- 0:12hospital runs.
- 0:14My guest today has spent the last decade
- 0:16and a half on exactly that. Mohan Giridharadas
- 0:19is the founder and CEO of Leentas, a
- 0:21health care AI and analytics company that works
- 0:23with many of the country's leading health systems
- 0:25on capacity, staffing, and patient flow. Mohan, thank
- 0:28you so much for joining me today. Thanks,
- 0:31Molly. Always good to chat with you.
- 0:33It's great to be with you. In in
- 0:35this conversation today, we're gonna be digging into
- 0:37what a modern hospital operating model actually looks
- 0:40like and why Mohan believes the next leap
- 0:42forward isn't about automating existing workflows, but building
- 0:45something closer to a central nervous system as
- 0:47he describes it for hospital operations. We're gonna
- 0:50get to that in a moment. But, Mohan,
- 0:52maybe first we can establish the stakes here.
- 0:54Obviously,
- 0:55health care leaders are dealing with rising demand,
- 0:57staffing constraints, policy changes, more and more financial
- 1:01pressures all at once.
- 1:02From your vantage point working with 200 systems,
- 1:06what has fundamentally changed in how hospitals operate
- 1:09today? What feels different now even compared to
- 1:11five years ago?
- 1:14Molly, as I think about the last year,
- 1:16most of last year, there was a bit
- 1:18of a freeze with all the new regulations
- 1:20coming out of Washington.
- 1:23I think, you know, with the tariffs and
- 1:25with research grants and with Medicaid policy changes,
- 1:28etcetera,
- 1:29I think we've settled into a new normal,
- 1:31but the new normal is not an easy
- 1:33new normal. I think health system leaders have,
- 1:36you know, fully absorbed that. The demand continues
- 1:39to be high,
- 1:40labor continues to be constrained,
- 1:43and reimbursement pressure will continue. None of those
- 1:45feel temporary.
- 1:47And so that's the new normal that health
- 1:49systems need to
- 1:50operate against.
- 1:51Now in the
- 1:53past, health systems could build their way out
- 1:55of problems by adding beds, adding ORs, hiring
- 1:58staff, putting in new hospitals.
- 2:00And what capacity does
- 2:03is it masks the underlying problem because
- 2:06as long as you've got plenty of capacity,
- 2:08a dashboard showing you how yesterday did was
- 2:10good enough to run the operations.
- 2:12But now that the slack has gone,
- 2:14what we are seeing is persistent gridlock.
- 2:17If you talk to any health system leader,
- 2:20they wake up every day to this pretty
- 2:21much the same set of messages. The ED
- 2:23boarding is high. The census is gonna be
- 2:26high. It's taking three or four hours to
- 2:27get a bed. Its discharges are getting delayed.
- 2:31And that's
- 2:32the problem.
- 2:33Now if you go back to what you
- 2:35said, what is different over the last five
- 2:37or ten years,
- 2:39the reality is clinical complexity
- 2:41today is massively higher than it was five
- 2:44years ago, ten years ago, fifteen years ago,
- 2:46just massively different.
- 2:48Meanwhile, the operational sophistication
- 2:52has not really changed that much. The same
- 2:54dashboards from the same EHR companies
- 2:57plus spreadsheets and human middleware
- 2:59is how most health systems operate.
- 3:01And that's why we're seeing what we're seeing
- 3:04because health systems are running
- 3:07a very complex
- 3:08capacity constrained systems
- 3:11using tools and methods designed for a different
- 3:13era.
- 3:15So it sounds like the the clinical complexity
- 3:17line has just
- 3:18really skyrocketed in terms of being massively different,
- 3:21and then the operational sophistication has remained
- 3:24plateaued. That has not budged
- 3:26as you described it, Mohan. Given
- 3:29that shift over the last five years, what
- 3:31what do you think a modern hospital operating
- 3:34model should actually look like?
- 3:37When I think about what is the starting
- 3:39point, the starting point is recognizing one fundamental
- 3:43truth.
- 3:44Health care is an asset intensive
- 3:47service delivery.
- 3:48Of all the kinds of service operations,
- 3:51asset intensive service businesses are the hardest to
- 3:54optimize.
- 3:55Why? Because you've got very expensive assets
- 3:58that typically are purpose built. They have a
- 4:00very specific purpose,
- 4:02and they have very specially trained people to
- 4:04operate it. Think about an imaging machine or
- 4:06an OR.
- 4:07Not anybody can come in off the street
- 4:08and learn how to operate those things. And
- 4:10so delivering any service
- 4:13requires that you line up the asset, line
- 4:15up the right staff with the right skills,
- 4:17in the right room, with the right patient,
- 4:20and the right supplies.
- 4:21Otherwise, the service can't happen if any one
- 4:23of those things falls apart.
- 4:26That's what makes asset intensive service operations particularly
- 4:29complex. That's why calendar gazing and appointment making
- 4:32simply doesn't do it. Now when I think
- 4:34about
- 4:35what else is an example of an asset
- 4:38intensive service business, it would be airlines,
- 4:41Delta, United, American,
- 4:43or logistics companies, UPS, FedEx, etcetera.
- 4:46Now when you think about those industries, airlines
- 4:48or logistics,
- 4:50they've invested
- 4:51billions of dollars and several decades
- 4:54building sophisticated
- 4:56capacity
- 4:57flow, yield optimization,
- 4:59asset turns, asset,
- 5:01velocities, those sorts of things
- 5:03to their operations.
- 5:04Healthcare has not done those things. So when
- 5:06you look at a very simple metric,
- 5:08operating margin
- 5:10divided by the value of the operating assets,
- 5:13health care is an order of magnitude
- 5:15lower than airlines or logistics.
- 5:18Now in fairness, planes can fly all night.
- 5:20Health care can't do surgeries all night. So
- 5:22by definition, it's a bit of a one
- 5:24arm tied behind your back problem.
- 5:27But
- 5:27health care is also focused on clinical excellence,
- 5:30which by the way, is the right thing
- 5:31to focus on. No patient is gonna say,
- 5:33you know, the surgery
- 5:34wasn't effective, but the operational experience was better
- 5:37than a Disney cruise, so I'm good. They're
- 5:39gonna want the clinical outcomes to be correct
- 5:41first.
- 5:42And so
- 5:43that's the challenge we've got.
- 5:45If you go back to what you said,
- 5:47what does a modern,
- 5:48operation look like?
- 5:50It requires continuous prediction, not a dashboard about
- 5:53yesterday, but a prediction about the rest of
- 5:55today, tomorrow, this week, next week. It requires
- 5:58continuous optimization
- 5:59because you gotta do the asset, the staff,
- 6:01the room, etcetera.
- 6:02It requires continuous adjustment.
- 6:04It cannot be done through manual interventions or
- 6:08frontline heroics.
- 6:09So what we're leading to is what we
- 6:11call a central nervous system,
- 6:12meaning a system that can sense what's happening,
- 6:16understand it and interpret what's happening,
- 6:18take actions,
- 6:20and then learn to get better, over time.
- 6:22That's kind of what we are describing.
- 6:25I appreciate you defining what that is because
- 6:27I think to your point, Mohan, you walked
- 6:28us through whether it's the
- 6:30cruises or the airlines or logistics companies.
- 6:33A lot of parallels or comparisons for health
- 6:35care only go so far. So it sounds
- 6:38like the central nervous system is really a
- 6:40more,
- 6:41transferable way to think about how a health
- 6:43system in modern times operates.
- 6:46Yeah. It that yeah. That's that's exactly right.
- 6:48So describing it as a system that senses,
- 6:51understands, acts, and learns. So let's make a
- 6:54take a simple example.
- 6:55Imagine you touch a hot stove. What happens?
- 6:59Your fingertips sense the heat.
- 7:01You understand
- 7:02instantaneously
- 7:03that that was probably not a good thing
- 7:05to do.
- 7:06Before your brain even processes it, your spinal
- 7:09cord issues the reflex motion to pull your
- 7:12hand away.
- 7:13And then a second or two later, your
- 7:14brain processes it and says, that really wasn't
- 7:17great. I'm gonna learn never to touch a
- 7:19hot stove again. So if you think about
- 7:21what happened, you sensed, you understood, you acted,
- 7:24and you learned
- 7:26all in the space of a second. So
- 7:28if you took each of those concepts and
- 7:30applied it to health care, let's start at
- 7:31sense.
- 7:32SENSE is gathering input that fingertips
- 7:35sense that it was hot.
- 7:36Hospitals generate
- 7:38thousands and thousands of sensory signals
- 7:41every day. Right?
- 7:44But they throw away 99% of it. It's
- 7:46written on post it notes. It's device details
- 7:49that nobody recorded. It's stuff on a spreadsheet.
- 7:52It's stuff on an EHR dashboard that no
- 7:54one looked at. So all these signals
- 7:57are fragmented,
- 7:58delayed, not captured, or thrown away.
- 8:01That is kind of step one. It's like
- 8:03going through the world, you know, with your
- 8:05eyes closed and your ears shut because you're
- 8:07shutting off sensory signals that you should have
- 8:09captured.
- 8:10So what do we need to do? We
- 8:11need to capture those signals, filter out the
- 8:14noise. We can't overreact to everything that happens.
- 8:16Your fingertips
- 8:17would not have freaked out if the stove
- 8:19hadn't been on, and it had been cold.
- 8:21So you've got to filter out the noise,
- 8:23and then you've got to understand it.
- 8:26So understanding has
- 8:28operational understanding, meaning all the queuing theory flows,
- 8:31bottlenecks, etcetera. So it's mathematical sophistication on operations,
- 8:35and then clinical sophistication
- 8:37on acuity is what's happening, what tests,
- 8:40etcetera. And you need both of those.
- 8:42And then you've got to act.
- 8:44Take the necessary steps, whether they're operational steps
- 8:46or clinical steps, and then learn
- 8:49so you get better. So what does this
- 8:51look like in practice?
- 8:53A patient presents at the ED.
- 8:55Imagine based on that initial encounter, you could
- 8:58have predicted
- 8:59this patient's gonna need a chest scan and
- 9:01is gonna need a bed in the pulmonary
- 9:03unit.
- 9:04That's the sensed it, understood it. Now you
- 9:07start acting.
- 9:09Open a slot on the CT on the
- 9:10imaging. Send messages to the right unit. Get
- 9:13stuff started.
- 9:14By the time the patient flows through it,
- 9:17that's happened. Now if we guessed wrong
- 9:20and it wasn't a CT, it needed to
- 9:22be something else, and it wasn't a pulmonary
- 9:24bed, it was a bed somewhere else,
- 9:26then over time, the algorithm learns.
- 9:28And the next time it predicts better and
- 9:31learns better.
- 9:32So this is how a system would adjust
- 9:34and absorb and learn data, and that's
- 9:37the the the notion of how you take
- 9:40a central nervous system concept
- 9:42and make it into an operational reality.
- 9:45Mhmm.
- 9:46Let's add AI now into the fold.
- 9:49You mentioned health systems
- 9:51asset intensive
- 9:53services. Sometimes most often, the hardest to optimize
- 9:56as you had said, Mohan.
- 9:57I'm I'm curious now about how this is
- 10:00playing out with the automation options available at
- 10:03health systems through technology. You're hearing so much
- 10:05about AI.
- 10:06But, in your
- 10:08in your expertise, what really distinguishes
- 10:10a system that is
- 10:12functioning like the central nervous system, so it's
- 10:15sensing, adapting, learning,
- 10:17versus a system that's just automating pieces of
- 10:20existing workflows.
- 10:22So a couple of things. I think what
- 10:24makes health care complicated
- 10:27is that the last mile is incredibly
- 10:29hard.
- 10:30If the scheduler doesn't put doctor Smith
- 10:34with the patient John Doe in 0 R
- 10:372 at 09:30AM
- 10:39with the right team of nurses, anesthesia techs,
- 10:42the robot, and the implant vendor delivering the
- 10:44artificial knee, that's actually won't happen.
- 10:47You can't vibe code your way to that
- 10:50and expecting AI to solve
- 10:53thousands and thousands of these last mile problems
- 10:55that happen everywhere.
- 10:56So that's not gonna happen.
- 10:58If you just blindly automate, you just make
- 11:01a bad process faster.
- 11:03That's all that automation accomplishes.
- 11:05So part of what the central nervous system
- 11:07needs to do is make the workflows more
- 11:10intelligent,
- 11:11automate where you can,
- 11:14offer
- 11:15assistance
- 11:17by surfacing things. For instance, nurses are expected
- 11:19to have read a 20 page medical record
- 11:21before a patient walks in, and they had
- 11:23thirty seconds of time before they picked up
- 11:25the patient. There's no chance they're reading all
- 11:27of that. So intelligent assistance, imagine if they
- 11:30could read all of that and surface the
- 11:31two or three things you need to do.
- 11:33So there is the workflow. There is the,
- 11:36assistive support. There is agentic support. There are
- 11:38some tasks that are low risk that can
- 11:41happen automatically.
- 11:42At the same time, you need the human
- 11:44in the loop to make the last decision.
- 11:47And so
- 11:48all of this forms a very tight control
- 11:51system
- 11:52that can be
- 11:54governed with intelligent AI to do the last
- 11:56mile. Let me give you another,
- 11:59example that we can bring this to life.
- 12:01Way back when before 09:11,
- 12:04I was on a Lufthansa flight Singapore to
- 12:07Frankfurt, fourteen hours, middle of the night,
- 12:10and I got upgraded. So I was happy
- 12:12with that. Turns out this pilot liked to
- 12:15welcome
- 12:16passengers
- 12:17from the upper deck into,
- 12:19the cockpit one at a time. And so
- 12:21the moment I saw that happening, I put
- 12:23my hand up and told the flight attendant
- 12:24I'd love to be, you know, invited back
- 12:26whenever the pilot is up for it. And
- 12:28sure enough, an hour or two later, they
- 12:30pulled me in
- 12:31and I wasn't sure what to expect. I'd
- 12:33never sat in a cockpit of a of
- 12:34a seven forty seven in the middle of
- 12:36the night, and
- 12:37it was fascinating.
- 12:40Still completely dark. The pilots were bored out
- 12:43of their minds. That was the first reaction
- 12:45I had. They were just so happy to
- 12:47have someone to talk to. So both of
- 12:48them are turned around looking at me and
- 12:49chatting.
- 12:51And I was fascinated looking at all the
- 12:53dials and looking out the windows, etcetera. And
- 12:55then I finally said, how come you guys
- 12:57don't fly the plane? Wouldn't it be a
- 12:58lot of fun?
- 13:00And,
- 13:01what he said has stuck with me.
- 13:03The pilot said, sure. I could,
- 13:06but the autopilot can fly it better than
- 13:08I can. So I said, really, why is
- 13:10that? He said,
- 13:11it's taking a thousand signals
- 13:14every minute.
- 13:16Wind speed, ailerons, control surfaces, flaps, tail position,
- 13:20etcetera.
- 13:21And it's making
- 13:22many, many adjustments because the objective is to
- 13:25keep the cabin stable for the passengers
- 13:27and not let them get bounced around and
- 13:29to keep us on track for where we
- 13:31are headed, and that's hard to do manually.
- 13:33So what he is implicitly what what he
- 13:35was implicitly telling me
- 13:37is that from the days of a Cessna
- 13:39when the pilot could feel the plane in,
- 13:41on the controls
- 13:43and manage it,
- 13:44to go to a seven forty seven with
- 13:46a level of complexity and 400 passengers on
- 13:48board, the number of signals exceeded his ability
- 13:51to react correctly.
- 13:53We have the same problem in health care.
- 13:55The number of signals
- 13:56has exceeded the ability of anyone to truly
- 13:59get it in their head. The ways you
- 14:01could arrange a day in an MRI machine
- 14:03is a number of more than a 100
- 14:05zeros, yet we're expecting people to decide
- 14:08in what order patients should be seen. So
- 14:10that's why
- 14:12we've got a unique opportunity here.
- 14:14Very much so. What what year was that
- 14:16again that happened? Oh, it was 2000.
- 14:18But before 09:11, so a long time ago.
- 14:21Now nowadays, there's no chance, on a commercial
- 14:24plane, you're getting let into a How relevant
- 14:26how relevant twenty five years later to to
- 14:28still be thinking about that in terms of
- 14:30health care and what systems are trying to
- 14:32do and build. Honestly, all of it is
- 14:35a bucket list thing to sit in a
- 14:37cockpit of a seven forty seven in the
- 14:38middle of the night. I I still think
- 14:40about that. Very much so.
- 14:42I'm gonna add another caveat, if you'll let
- 14:44me, Mohan, which is that everything you've described
- 14:47thus far, the
- 14:49adapting, the learning, the sensing,
- 14:52making sense of all of these signals that
- 14:55are too overwhelming for any one person.
- 14:58This also needs to be connected in the
- 15:00health system. You you can't have the ED
- 15:01and the OR, the inpatient units, imaging, all
- 15:04the other parts going about this with operational
- 15:07intelligence if there's still silos. Yeah. So each
- 15:10of those individual units can't all go alone
- 15:12in this. Where do you see the limits
- 15:14of trying to
- 15:16do that with the EHR alone when we're
- 15:18talking about connecting operational intelligence?
- 15:21That's an excellent question, Molly, because here's the
- 15:24thing.
- 15:25You can think of the hospital as a
- 15:26living system where each department is like a
- 15:29vital organ. Right? So you've got imaging. You've
- 15:32got the ORs. You've got EDs, etcetera. So
- 15:34you've got vital organs, and they're all interconnected.
- 15:37And they're interconnected because there are so many
- 15:39support services.
- 15:41Imaging touches everything.
- 15:43Patient flow touches everything.
- 15:45EVS,
- 15:47physiotherapy. Lots of things touch everything. So if
- 15:49you thought of it as organs that are
- 15:51connected to the circulatory system, then it starts
- 15:53to get
- 15:54makes sense that they're all interconnected.
- 15:56So what happens today?
- 15:58Health system leaders in each unit, there are
- 16:01two things that are just happening continuously.
- 16:03One,
- 16:04they're making decisions based on data that was
- 16:07either yesterday or right this moment.
- 16:10There is very little decision making with precise
- 16:14forward oriented predictions.
- 16:16Okay. That's that's kind of thing one. Thing
- 16:18two,
- 16:19many decisions are being made based
- 16:22made based on a purview
- 16:24of the immediate environment, meaning their local optimization.
- 16:28Not saying they're making bad decisions. They're making
- 16:30the best decisions
- 16:32for their field of vision,
- 16:34and that sometimes has adverse consequences
- 16:37downstream.
- 16:39So the imaging
- 16:41registrar who decides to do patient a and
- 16:44then patient b because the two
- 16:47of them had the same setup on the
- 16:48machine, yes, it's more efficient.
- 16:50Well but if you've done patient c before
- 16:53b, yes, you'd had two setups and you'd
- 16:55wasted five minutes,
- 16:57but patient c would have got discharged two
- 16:59hours earlier
- 17:00had you done that.
- 17:02That
- 17:03but they don't have the visibility to do
- 17:04that. So it's not like they're doing something
- 17:05wrong. They just don't have the visibility to
- 17:07do that.
- 17:08EVS
- 17:09will optimize the rooms to clean
- 17:12based on their crews traveling the least. So
- 17:14they will do room one, room two, room
- 17:16three
- 17:17instead of room one, room 10, room three.
- 17:20Well, if 10 needed it faster,
- 17:22they don't have the macro view. So they're
- 17:24optimizing for what they've got. Everywhere you go
- 17:26in health care, there are those two problems,
- 17:28which is they're working with current data or
- 17:30old data,
- 17:31and they're working
- 17:33with a local model, not a global model.
- 17:35That's why a nervous system that connects it.
- 17:37So, you know, when you sense danger to
- 17:40one part of your body, your legs get
- 17:42into motion to run from it. So so
- 17:43you've got to be able to connect everything.
- 17:46Now
- 17:47the EHR is a fantastic system of record,
- 17:50but it was never built to be the
- 17:51system of intelligence
- 17:53Because firstly, it doesn't have 80% of the
- 17:55data you need to do all of this.
- 17:56You need stuff from workflows management systems. You
- 17:59need data from devices. You need environmental data.
- 18:01You just need all kinds of other data.
- 18:03So
- 18:05you can't expect the HR to solve it
- 18:07any more than you could have expected an
- 18:09orthopedic surgeon to do cardiac surgery. Brilliant surgeon,
- 18:11no doubt, but but it's a different thing.
- 18:14And so
- 18:15when we think about this scale of technology
- 18:18transformations,
- 18:19it'll take a thousand companies to do it.
- 18:21So when you think about the Internet was
- 18:23not delivered by IBM,
- 18:25AI will not be delivered by Google or
- 18:27Microsoft alone. It's a mosaic of a thousand
- 18:29companies,
- 18:30and 900 of them have probably not been
- 18:32born as yet.
- 18:34Mhmm.
- 18:35We've been talking so far about the operating
- 18:38model being rewired
- 18:39by operational
- 18:41intelligence and how that just will fire differently.
- 18:43But beyond the the model itself, let's talk
- 18:45about some of the effects and the results
- 18:47that
- 18:48systems are trying to achieve through this work.
- 18:51Can you talk about, Mohan, if if a
- 18:53health system begins to operate more how we're
- 18:55describing,
- 18:56connected, it's learning,
- 18:59what changes should leaders really expect to see,
- 19:02whether that's in patient flow,
- 19:04staff experience,
- 19:06financial performance? What are some results
- 19:09most likely here?
- 19:11The
- 19:12benefit and the beauty of operational excellence is
- 19:15it's very tangible, and it's quite
- 19:18quick, meaning you don't have to wait years
- 19:21to see the results. Right? You can start
- 19:22to see it in weeks and months.
- 19:24You'll see improvements in flow, and flow will
- 19:27manifest as shorter waste wait times, shorter cycle
- 19:30times between discharge order and actual discharge, bed
- 19:35placement.
- 19:36You'll see fewer delays at every step, fewer
- 19:38bottlenecks,
- 19:39emerging
- 19:40and a better utilization of, existing capacity.
- 19:44That'll also improve access because the moment you
- 19:46get higher velocity and higher movement,
- 19:49it enables you to see more patients.
- 19:52The shortest
- 19:53cycle time to unlock new capacity
- 19:55is to move an existing patient onwards because
- 19:58that frees up the resource that they were
- 20:00just using.
- 20:01And as a result, financial performance will improve
- 20:04because you're getting more value out of the
- 20:05assets you already have.
- 20:08Staff spending less time on manual stuff and
- 20:12chasing
- 20:12and more time with patients will make them
- 20:15happier. We'll have less burnout.
- 20:18Nobody went to nursing school or medical school
- 20:21to become a data entry operator into an
- 20:23EHR
- 20:23or to become human middleware to patch things
- 20:26from here to there and cut and paste
- 20:27from one spreadsheet to another. Letting them do
- 20:30what inspired them to seek this career in
- 20:32the first place
- 20:33is very helpful.
- 20:35Leaders will spend less time firefighting on day
- 20:38to day issues and more time on strategic
- 20:41things that they need to. And over time,
- 20:43what happens is the system will become more
- 20:45predictable, more coordinated, more resilient.
- 20:47Think about this. You have probably taken 2,000
- 20:50flights in your life, maybe more.
- 20:53Many of them were connecting flights. I bet
- 20:55you've missed less than five connections in your
- 20:57life.
- 20:58Right? And think of the uncertainty.
- 21:01It's a plane. It's a complex piece of
- 21:03equipment flying six miles high at 600 miles
- 21:05an hour.
- 21:06There's weather. There's cruise. There's delays. There's, you
- 21:09know, all kinds of things.
- 21:12But they managed to hit 95%
- 21:15reliability
- 21:16on making you make the connection and making
- 21:18your bag make the connection.
- 21:20Because the number of times you've lost your
- 21:21bag is probably once or twice in your
- 21:24lifetime, not not 20 times. Right? And so
- 21:28it that is also very helpful for health
- 21:30systems.
- 21:32The predictive resilient piece and and comparing it
- 21:34to flying is is such a great point,
- 21:37and that that is what's possible as these
- 21:39systems continue to learn
- 21:40from their own operations over time. Mohan, you
- 21:43mentioned improved access. The financial performance will improve
- 21:46staff, less time chart diving,
- 21:48chasing
- 21:49down things, more time with patients.
- 21:51If you step back holistically,
- 21:54any other reason
- 21:55that this
- 21:56matters most for hospital operations to modernize and
- 22:00actually get things right at this level
- 22:03for for patients and access to care specifically?
- 22:06I might be a bit biased, but I
- 22:08actually think it's one of the highest value
- 22:10things that a health system leader can focus
- 22:12on. Because today's
- 22:14operating
- 22:15model
- 22:17shows up as inefficiencies
- 22:18in delays,
- 22:20whether it's waiting
- 22:21for beds, waiting for a scan, waiting for
- 22:23treatment. And the consequences
- 22:26of the delays are actually hard to quantify.
- 22:29If you don't squeeze a patient in for
- 22:30an imaging scan
- 22:32and the earliest you offer them is four
- 22:34weeks out and you lose the scan, it's
- 22:36not just the scan. You lost all the
- 22:37treatment that followed because where you went the
- 22:40scan probably goes the treatment. So the consequences
- 22:43are quite high. So improving access allows more
- 22:46patients to be treated, which is on point
- 22:48and on mission. When operations improve,
- 22:50patients move through the system, as we talked
- 22:52about, more predictably with less frustration.
- 22:55The staff are less frustrated.
- 22:57So
- 22:58we've talked to a bunch of CFOs. We
- 23:00just published a report recently on what CFOs
- 23:03said.
- 23:04And 72%
- 23:06of them, some number of that order, thought
- 23:08their operating margins are in the two to
- 23:093% range, which
- 23:11is really, really tight margins.
- 23:14For running such a complex, high risk,
- 23:18high value service
- 23:20for
- 23:21humanity, 23% is a very tight margin to
- 23:23operate on.
- 23:24But what that does is it points to
- 23:26why this is important.
- 23:28Say a health system wanted to improve its
- 23:29operating margin by $20,000,000.
- 23:32If it tried to do it through just
- 23:33regular growth,
- 23:35it would need to find a billion dollars
- 23:37of net patient revenue for the 2% of
- 23:39a billion to translate into 20,000,000.
- 23:42Right?
- 23:43That's
- 23:44a billion of new net patient revenue is
- 23:46hard. 20,000,000 in operating improvements by getting sophisticated
- 23:50on this stuff is a lot easier, is
- 23:52a lot quicker,
- 23:53and the ability to deliver it within six
- 23:56to nine months,
- 23:57we've we've shown it a 100 times all
- 23:59over the place.
- 24:01Mohan, I I wanna thank you so much
- 24:02for this conversation today. It's a lot to
- 24:04think about in terms of where health system
- 24:07operations have been,
- 24:08where you see them going, and ultimately why
- 24:10it matters so much. So I wanna thank
- 24:12you so much for your expertise, and thank
- 24:14you to our listeners for joining us. For
- 24:17more conversations like this one, please visit beckershospitalreview.com
- 24:22or subscribe wherever you get your podcasts. Mohan,
- 24:25thank you again. Molly, thank you.