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Missed off-shoring; don’t worry, it’s coming here

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When is the last time anyone had anything good to say about the economic meltdown or the state of affairs of the affairs of state? What a mess. What if someone were to suggest that buried beneath all the manure there really is a pony waiting to be ridden–best to wipe the saddle first—and that the beneficiaries could be you?

Here’s what I’m thinking. What if one assumes that Mr. Obama winds up winning the election? Personal references aside; that appears to be what will happen. Let’s rewind to the beginning days of the new administration. Obama is promising to help fix the meltdown by increasing the number of employed among us–I was not comfortable suggesting his administration would be creating jobs as that is more difficult to accomplish when one is taxing the institutions which create those jobs—but this is not the proper venue for that topic. Okay, so the number of employed increases. How? Let’s see if there is an answer to that.

There has been a lot of negative discussion around the topics of BPO and ITO, Business Process Outsourcing and ITO, Information Technology Outsourcing. For purposes of this narrative, let’s make the terms outsourcing and off-shoring interchangeable. A simple way to view outsourcing is to assume there are three ways to do it;


1. Off-shoring
2. Near off-shoring
3. And On-shoring


Let’s define off-shoring to include places like India, China, and the Philippines. These countries lead the world in off-shoring because their supply of skilled, English speaking labor, can be purchased for less than what we can supply it. The large off-shoring firms have in some cases purchased off-shoring contracts at rates so low that no US firm can compete. These rates often mean that the off-shoring firms won’t begin to make money until the out years of their contracts. Next there are the near off-shorers; Mexico, and to a much lesser extent not that the dollar has melted, Canada. The On-shoring is us, the US.

So, here’s how I think this all starts to tie together. One way to add jobs is to not lose them—I didn’t say this was going to be taxing to understand. Another way to state that is that for those jobs that have been lost to off-shoring is to bring them home. How? Remember the comment about taxing the institutions that create the jobs? Well, this is simply a different type of tax, not on goods and services but one that is applied as a penalty. This type of tax penalizes a firm for behaving badly. What is their bad behavior? Giving jobs away. If the new administration, as expected, makes it painful to outsource, companies will have to look for other options. One option is Near Off-shoring. Now, Obama stated he is not a fan of NAFTA, the North American Free Trade Agreement. That will mean that it will not be a simple matter for companies to move the jobs closer to home, going from India to Mexico, or to source to Mexico rather than India.

Hence, the new off-shoring may be right in our own back yards. Welcome to the beach Iowa. How will this occur? The same way it happens when any municipality creates favorable economic conditions to attract any new business. We’ve seen it happen when communities do back-flips to get a new Toyota plant. Can’t you picture your local chamber of commerce pushing a slew of tax incentives to attract a national call center for Humana or all of the claims processing for Blue Cross?

So, what’s in it for me, you might ask yourselves? Well, the largest components of BPO are Finance and Accounting, HR, Procurement, and CRM, and the first three each have fairly significant call center components. While BPO will continue to grow-it’s project to triple between now and 2012, I think the market restrictions coupled with tax incentives will incent many firms to look more closely in their own back yards.

Should you off-shore or on-shore? If so, what portions of your business? To which supplier or suppliers? Instead, should you look at a shared services model? Those are difficult questions and should be treated as such. Outsourcing advisory an area where having expertise helps. It’s also an area where we’ve established a pretty good track record.

Most large hospitals have multiple occurrences of a handful of functions.  Most of those could go away and in doing so would improve the provider’s operations.

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Hospital Impact – Healthy Choices: Nine Healthcare Bloggers Worth a Click

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Hospital Impact – Healthy Choices: Nine Healthcare Bloggers Worth a Click http://bit.ly/5KUlg

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EHR: How do you avoid failing?

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I may have mentioned that I’m a runner. In high school and college I’d run anytime, anywhere. I ran cross country, indoor track, outdoor track, and AAU– kept my hair tied back in a ponytail—I miss the hair.

Those were the days. I was the captain of the cross-country team during my senior year. Behind the school was a long series of hills we used for training, and they were blocked from the coach’s view. I remember that one day I told the team it was okay to walk because we were out of the coach’s sight. I also remember when he took me aside after practice and said he didn’t think it was a good idea for the captain to tell the guys they could walk. He said he couldn’t see me but he sure could hear me. I also remember the time I had my mom dropped me off about half mile away from my girlfriend’s house so I could run, making it look like I ran the entire six miles.

My friends and I ran a few 50 mile races and a couple of marathons. But the strangest race we ever ran was one that lasted 24 hours. The event was a 24 hour mile relay. More than a dozen teams entered the event. Our team had seven runners. The idea behind the race was that each person would run around the track four times with a baton and then hand the baton to the next member of his team. If one member of the team was too tired to take his turn, that team was disqualified. The race started early on a Saturday morning. At the end of 24 hours, my team had run 234 miles. We were proud of what we had done. We were even prouder when we saw the article printed in our local paper the following week that we had set a world record for a seven-man team in a 24-hour relay.

I’d like to believe that the world record had something to do with the fact that we were a great group of runners. However, as I look back on it I tend to believe that the world record had more to do with the obscurity of the event than with the capability of the runners. I don’t know if that same event had been run before we ran it or was ever run afterwards. Who knows, we may still hold the record. I guess what I learned from that event, is that it is easier to be viewed as being excellent at something that isn’t done very often.  Obscure or not, it was a one-time event for us.

Doing something once makes it difficult if not impossible to prepare for the gotchas that lay in wait.  There are healthcare providers who are on their second and third attempt at implementing their electronic health records system (EHR).  This is not the type of event where practice makes perfect, far from it.  If you don’t get it right the first time, you’ve probably already laid waste to your most important stakeholders, the users.  They are difficult enough to get on board the first time.  The second time it becomes much more of a fool me once shame on me, fool me twice, shame on you.

How do you avoid second and third attempts of something as difficult as a full-blown EHR?  For some providers, it’s even worse in that they probably have multiple dissimilar instances of EHR already in place in parts of the hospital, instances that will have to be integrated to the corporate platform.  If you let the clinical side run the project, you run the risk of losing the IT side.  If you let the IT side run the project, you run the risk of losing the clinical side.

Who do you trust to run what could amount to a few hundred million dollar project, bring out the best skills of the team members, and make sure the vendor is operating in your best interest?  It’s a difficult question to answer.  The good news is that if you get it wrong you probably won’t have to worry about doing it over, that will probably be your one-time event.

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How can EHR be made to work?

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I’ve never been mistaken as one who is subtle.  Gray is not in my patois.  I am guilty of seeing things as right and left and right and wrong.  Sometimes I stand alone, sometimes with others, but rarely am I undecided, indecisive, or caught straddling the fence.  When I think about the expression, ‘lead, follow, or get out of the way,’ I see three choices, two of which aren’t worth getting me out of bed.

I do it not of arrogance but to stimulate me, to make a point, to force a dialog, or to cause action.  Some prefer dialectic reasoning to try to resolve contradictions, that’s a subtlety I don’t have.  Like the time I left the vacuum in the middle of the living room for two weeks hoping my roommates would get the hint.  That was subtle and a failure.  I hired a housekeeper and billed them for it.

Take healthcare information technology, HIT.  One way or another I have become the polemic poster child of dissent, HIT’s eristical heretic.  I’ve been consulting for quite a while—twenty-five plus years worth of while.  Sometimes I see something that is so different from everything else I’ve seen that it causes me to pause and have a think.  Most times, the ball rattles around in my head like it’s auditioning for River Dance, and when it settles down, the concept which had led to my confusion begins to make sense to me.

This is not most times.  No matter how hard I try, I am not able to convince myself that the national EHR rollout strategy has even the slightest chance of working as designed.  Don’t tell me you haven’t had the same concern—many of you have shared similar thoughts with me.  The question is, what are we going to do about it?

Here’s my take on the matter, no subtlety whatsoever.  Are you familiar with the children’s game Mousetrap?  It’s an overly designed machined designed to perform a simple task.

Were it simply a question of how to view the current national EHR roll out strategy I would label it a Rube Goldberg strategy.  Rube’s the fellow noted for devising complex machines to perform simple tasks.  No matter how I diagram it, the present EHR approach comes out looking like multiple implementations of the same Rube Goldberg strategy.  It is over designed, overly complex.  For it to work the design requires that the national EHR system must complete as many steps as possible, through untold possible permutations, without a single failure.

Have you ever been a part of a successful launch of a national IT system that:

  • required a hundred thousand or so implementations of a parochial system
  • has been designed by 400 vendors
  • has 400 applications based on their own standards
  • has to transport different versions of health records in and out of hundreds of different regional health information networks
  • has to be interoperable
  • may result in someone’s death if it fails

Me either.

Worse yet, for there to be much of a return on investment from the reform effort, the national EHR roll out must work.  If the planning behind the national ERH strategy is indicative of the planning that has gone into reform, we should all have a long think.

I hate when people throw stones without proposing any ideas.  I offer the following—untested and unproven.  Ideas.  Ideas which either are or aren’t worthy of a further look.  I think they may be; you may prove me wrong.

For EHR to interoperate nationally, some things have to be decided.  Somebody has to be the decider.  This feel good, let the market sort this out approach is not working.  As you read these ideas, please focus on the whether the concept could be made to work, and whether doing so would increase the likelihood of a successful national EHR roll out.

  • Government redirects REC funds plus whatever else is needed to quickly mandate, force, cajole, a national set of EHR standards
    • EHR vendors who account for 90%–pick a number of you don’t like mine—use federal funds to adapt their software to the new standard
    • What happens to the other vendors—I have no idea.  Might they go out of business?  Yup.
    • EHR vendors modify their installed base to the standard
  • Some organization or multiple organizations—how many is a tactic so let’s not get caught up in who, how many, or what platform (let’s focus on whether the idea can be tweaked to make sense)—will create, staff, train its employees to roll out an EHR shrink-wrapped SaaS solution for thousands and thousands of small and solo practice
    • What package—needs to be determined
    • What cost—needs to be determined
    • How will specialists and outliers be handled—let’s figure it out
  • Study existing national networks—do not limit to the US—which permit the secure transfer of records up and down a network.  This could include businesses like airline reservations, telecommunications, OnStar, ATM/finance, Amazon, Gmail—feel free to add to the list.  It does no good to reply with why any given network won’t work.  Anyone can come up with reasons why this won’t work or why it will be difficult or costly to build or deploy.  I want to hear from people who are willing to think about how to do it.  The objective of the exercise is to see if something can be cobbled together from an existing network.  Can a national EHR system steal a group of ideas that will allow the secure transport of health records and thereby eliminate all the non-value-added middle steps (HIEs and RHIOs)?  Can a national EHR system piggyback carriage over an existing network?

We have reached the point of lead, follow, or get out of the way, and two of these are no good.

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Know when to ask for help

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I was thinking about the time I was teaching rappelling in the Rockies during the summer between my two years of graduate school.  The camp was for high school students of varying backgrounds and their counselors.  On more than one occasion, the person on the other end of my rope would freeze and I would have to talk them down safely.

Late in the day, a thunderstorm broke quickly over the mountain, causing the counselor on my rope to panic.  No amount of talking was going to get her to move either up or down, so it was up to me to rescue her.  I may have mentioned in a prior post that my total amount of rappelling experience was probably no more than a few more hours than hers.  Nonetheless, I went off belay, and within seconds, I was shoulder to shoulder with her.

The sky blackened, and the wind howled, raining bits of rock on us.  I remember that only after I locked her harness to mine did she begin to relax.  She needed to know that she didn’t have to go this alone, and she took comfort knowing someone was willing to help her.

That episode reminds me of a story I heard about a man who fell in a hole—if you know how this turns out, don’t tell the others.  He continues to struggle but can’t find a way out.  A CFO walks by.  When the man pleads for help the CFO writes a check and drops it in the hole.  A while later the vendor walks by—I know this isn’t the real story, but it’s my blog and I’ll tell it any way I want.  Where were we?  The vendor.  The man pleads for help and the vendor pulls out the contract, reads it, circles some obscure item in the fine print, tosses it in the hole, and walks on.

I walk by and see the man in the hole.  “What are you doing there?”  I asked.

“I fell in the hole and don’t know how to get out.”

I felt sorry for the man—I’m naturally empathetic—so I hopped into the hole.  “Why did you do that?  Now we’re both stuck.”

“I’ve been down here before” I said, “And I know the way out.”

I know that’s a little sappy and self-serving.  But before you decide it’s more comfortable to stay in the hole and hope nobody notices, why not see if there’s someone who knows the way out?

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EHR Strategy, a call to action

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EHR Strategy, What I Do & How I Can Improve Your Efforts

Several people have told me that I need to come right out and state the role I play in the Electronic Healthcare Records (EHR) space, and how my consulting firm will add value to your efforts.  Spell out your services, and state a call to action.  This writing will address that topic, and will be the only time I use your time to try to sell you on me.  If you’ll bear with me for a few minutes, I will explain why I write with such self-assurance that most organizations (Hospitals, clinics, IPAs, and providers) have the wrong EHR Strategy—or no recognizable strategy—and my equally self-assured belief that working together we will mitigate that problem.

Here are the facts around EHR:

  • Most large EHR projects have a high probability of failing—the larger the project, the higher the probability
  • Large EHRs may cost more than a new hospital wing—a number of people know of one truly outstanding hospital who spent more than $300,000,000 on their EHR
  • Hospitals are much more knowledgeable about the requirements of a hospital wing and what it will do for them than they are about their EHR strategy
  • All healthcare providers who have entered the EHR space have done so trying to hit the trifecta of moving Gossamer targets;
    • Certification
    • Meaningful use
    • Interoperability
    • Hundreds of vendors who have their own agenda at heart
    • So many individual, disparate, committees are working on standards…do we need to even go there?  Doesn’t each committee create its own standards—if so, where is the standardization?
    • If one removes DC from the loop, many providers can’t articulate the business problem they want the EHR to solve, nor can they articulate an ROI
    • Providers have budgets without requirements, budgets without any knowledge of what an EHR system should cost
    • An EHR should have a greater impact on patients, providers, and payors than any other single program, yet who is in charge?  What skill set to they have to do this?
    • Most providers do not have a plan, a qualified planner, a decider.  Who is reviewing and approving the plan?  What makes them credible?

Those are the reasons we are here.  Our job is to reposition those facts such that they improve your chances of being successful with your EHR selection and implementation.

You know what?  It’s not about the EHR.  It never should be.  The EHR system only accounts for about 20% of the projects success or failure.  It’s code.  The other 80% comes down to planning, conversion, change management, training, user acceptance (patient, doctors, nurses, and administrators), and workflow improvement.

You know what?  It’s about breaking down kingdoms between intra-hospital departments.

It’s about knowing that you can walk into the EHR war room and know that somebody is the decider.  That somebody is able to say, “This is what we are going to do first, second, and third, because that’s the only way we can improve your chances of having a successful EHR program.

That’s what we do.  Most people, given the opportunity, will fail 100% of the time performing open-heart surgery.  A mere handful will avert failing.  Most people will fail 100% of the time who are leading an EHR program will fail.  A mere handful will not.

We are the ERHPMO (Program Management Office).  We are your advocate in managing the EHR vendor to benefit you.  Needless to say, most vendors do not like having us on board.  We are vendor neutral, provider advocates.

We are the anti-Accenture business model.  We do not back up the bus and drop off the children.  We will not try to put 30 people on your project.  You do that—clinicians, and IT.  We pull up in a Prius, drop off a few grownups who’ve been there, done that, got the T-shirt.

We work hand in hand with Hospitals, IPAs, clinical providers, and doctors to help you successfully address some or all of the following;

  • understand the EHR landscape
  • create your EHR strategy, in-house versus SaaS
  • eliminate wasteful redundant costs via shared services analyses
  • define your requirements
  • issue an RFP
  • evaluate vendors
  • negotiate contracts with the vendors
  • plan and execute the change management
  • rationalize your EHR with other which may exist within your walls
  • define and rebuild workflows
  • develop and execute a training program for user acceptance

This is not the time to experiment, or hope you get it right.  To minimize the probability of failure, this is the time to bring in the adults.

That’s what we do.  Sorry for the sales pitch.  Please let me know how we can help.

paulroemer@healthcareitstrategy.com

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