Case Study: St. Joseph Health System

Situation

In 2010, St. Joseph Health was a 16-hospital health system in three (3) states, with disparate healthcare technology management programs in each region and location. Costs of the various hospital clinical technology programs were on the rise, especially due to ballooning third-party arrangements and costly service contracts.

A system-wide strategic initiative led by Deloitte identified healthcare technology management as a major opportunity for the health system. Consequently, Tech Knowledge Associates (TKA) was launched under the auspices of the Innovation Institute, with the express purpose of consolidating the various SJH biomedical programs, and reducing SJH’s risk and costs, while improving service levels.

St. Joseph Health System

Approach

For seven years, TKA has provided SJH with a full-risk healthcare technology management service model, with highly significant associated operating. The long-term agreement covers both current and future clinical engineering assets, and fully covers catastrophic equipment failures of every type. TKA’s unique business model – supported by the Innovation Institute’s capital structure – allows us to stand behind the accelerated operating cost reductions and catastrophic equipment guarantee over the life of the agreement.

As part of the employee value proposition in service to SJH, TKA employed all existing clinical engineering staff from each hospital, and recruited additional staff/expertise to eliminate costly service contracts and reduce costs. This approach allows for a rapid service ramp-up and aligned incentives down to the technician level.

Results

Cost Savings
From program inception until the end of March 2019, the TKA healthcare technology management program has saved St. Joseph Health hospitals $58.5 million.

Uptime and Preventative Maintenance
Two of the most critical measurements of healthcare technology management program performance are Equipment Uptime and Preventative Maintenance completion. TKA’s program at SJH hospitals has been exemplary throughout their years of service. In Equipment Uptime, TKA has maintained a 99.7% average over the years, as compared with the industry-typical benchmark of 95.0%. In Preventative Maintenance completion, TKA uses Joint Commission standards, divided into two categories: (1) high-risk Life Safety Maintenance – 100% completed, and (2) All Other Maintenance – 97.7% of scheduled maintenance completed. These results compare favorably against national standards of 100% and 90% respectively.

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Program Quality Evaluations (PQE)
The Program Quality Evaluation (PQE) is an industry audit tool developed as a best practice and highly regarded by Joint Commission. Its intent is to help meet the important goal of providing the highest quality healthcare technology management program, by focusing on the operational aspects of each hospital’s program, with a strong emphasis on regulatory agency requirements.

Satisfaction Survey Report
As an integral part of TKA’s commitment to quality service, quarterly surveys and reports are gathered and maintained respectively, tracking our customers’ satisfaction levels across all regions. The chart below shows our satisfaction results across all SJH hospitals.

Cost-to-Value ratio — what is yours?