Presentation on theme: "Management Lessons from Mayo Clinic"— Presentation transcript:
1 Management Lessons from Mayo Clinic Practicing destination medicineDörthe PrestelBUS 550 Minder ChenMay 24, 2011
2 Historical Background Dr. William W. Mayo, settled in Rochester, MN, in 1863sons, Drs. William J. Mayo and Charles Mayo, joined 1883 /18881893 patients came from 11 different states to receive medical care1914 Mayo Clinic world's first integrated private group practice was found3 campuses: Minnesota; Arizona; Florida: number of physicians & scientists increased from 838 to 2,700Number of employees increased from 6,000 to 42,000Patient care revenue increased from $345 mill to $4 bill2003: 500,000 patients served at 3 campuses
3 How it worksMayo clinic is not a single-specialty boutique but rather a department store of medical care capable of addressing virtually all medical needs from cancer care to cosmetic surgery to joint replacement or organ transplantation
4 MissionTo inspire hope and contribute to health and well-being by providing the best care to every patient through integrated clinical practice, education and research.
5 3 Key Principles Continuing pursuit of ideal service, not profit Continuing sincere concern for the care and welfare of individual patientContinuing interest by every member of staff in professional progressFundamentally unchanged in 100 yearsPatient-first value system
6 Human ResourcesTop of talent pool: team players, commitment to high quality care and service, positive attitude, strong work ethic, understanding of cultural diversityHiring for life: behavioral interviewing techniques > extensive, expensive processEmployees are salaried, no incentive payments > unbinding self interestMany talented clinicians may not fit Mayo because of lack of interpersonal and team player skills- Salary > separating the number of patients seen or procedures performed from personal gain > free to do what’s natural – help each other out < Mayo foundation (1919)
7 Technology / Infrastructure 1 1907 implementation of medical records and MR numbers1914 Conveyance systems to move medical records1928 lifts and chutes systemStrategic investment of millions of dollars each year in industrial engineeringLifts and chutes: lifts raised med records to central distribution center > sorted by staff and placed in chutes destined to each floor > placed on conveyors transporting them to requesting physicians desk
8 Technology / Infrastructure 2 Starting in the 1990s, in 2005 EMR replaced paper chartsIn- and outpatient records are instantly available to Mayo caregivers via 16,000 computer terminals on site7.5 million transactions processed between 8-9 amAround noon up to 15 million transactions"It's harder for a single doctor to get too far off the track when others can carefully scrutinize the thinking that led to the diagnosis and treatment plan."He says that the next advances in quality improvement likely will come from the ability of the computer to offer diagnostic possibilities for a certain combination of signs, symptoms, and test results, or to recommend various therapeutic options for a problem, such as the best antibiotics for a particular infection.
9 Scheduling 1Rapid growth in 1950s urged development of central appointment desk (CAD)Initial system adopted from railway company Pullman1950s: card system1960s: telephony system replaced card system
10 Scheduling 21970s: computer technology with software ideas from Boeing and NASA to accommodate complex rules of Mayo schedulersestablish time intervals between appointments and determine length of appointment types < using stop watches2005: genetic algorithm system
11 Strategy Branding a labor intensive services company Health management is the key business strategy - identifying population health concerns, targeting those issues proactively, and gathering the information needed to measure progress over timeMarketing strategy: customer and employee satisfaction, Facebook, and Podcasts
12 CollaborationEMR, internal paging, telephone and video conferencing, physical spaces that encourage communicationUsing cross-functional teams > using Six Sigma and Leannet operating income increased by 40% in 3 years85% of patients complete clinical itineraries in 5 business daysRadiology department reduced time per appointment by average of 6 minutes6 sigma: identify and eliminate defects (errors) in processes and minimizing variability in manufacturing and business processes - Lean: eliminate waste from processes
13 Team Leadership ModelPhysician-led institution: clinical practice, education, researchPhysicians experience learning-by-doing leadership training at the clinic while practicing medicinePhysician leader + administrator = marriageAdministrative partner = management coach, confidant, reality checker, implementerBalancing business-vs.-caregiving tensionsTeaching for tomorrow’s patients – its okay for highly trained providers to ask for help > strong collegial attitude
14 Destination MedicineEach year 140,000 patients travel more than 120 mi to receive medical care at Mayo ClinicPatients receive efficient, time-compressed care that can usually provide definite diagnosis and sometimes initial treatment – including major surgery – within 3 – 5 daysScheduling system is backbone of destination medicine
15 Learning from Mayo 1Customer demand is unevenly spreadCustomer needs are diverseSpeed and accuracy are essential to performanceMultiple service providers contribute to customer’s service experienceService chain is complexCombining talent where its needed, encourage and enable internal communication, foster organizational competence
16 Learning from Mayo 2Molding firm’s resources and talents to each individual customerPractice “patience” hiringInvest in systems that help employees practice well and encourage to teach coworkersContinuously stress organizations core valuesCandidates for organization designs like Mayo: high reliability organizations – atomic energy plants, aircraft carriers, petrochemical plantsCore values > vitalize the spirit, bring people together, and inspire extra-effort performance
17 Conclusion Cutting edge advantage of Mayo – TIME! Mayo clinic is constantly working on solving the customer’s whole problem, using technology to support values and strategy, and innovating with systems engineeringHowever, Mayo Clinic does not work flawless – 85% success in their goalsHow will they be affected by healthcare reform?Article is from 2003!
18 Thank you for listening. QuizWhich of the following is NOT a success driving factor for Mayo Clinic?Strong organizational cultureconstant innovationTime efficiencyLocation of their campusesThank you for listening.