Friday, December 23, 2016 Written by Dave Freestone, Executive Director of Systems Marketing, Cepheid

The Ripple Effect

A GeneXpert® System placed in a lab creates “ripples” of savings that radiate throughout an institution

One of the greatest services that Cepheid offers hospitals and laboratories is a complete Value Impact Analysis. In fact, we formed our Systems and Solutions Group to help our customers capture, quantify, and evaluate the impact that real-time, on demand molecular diagnostics can bring to their facilities.

In my 20 years in diagnostics, I have NEVER seen a system that provides such widespread and dramatic impact to the overall healthcare delivery continuum. I am continually amazed at the completion of each analysis engagement at the diversity and amount of resource improvement we find. And this brings us to the reason for the publication you are currently reading — we wanted to be able to share these instances of "impact" with you.”

- Dave Freestone

As part of the Value Impact Analysis process, we utilize standardized tools and methodologies to capture the benefits our solutions bring to the healthcare continuum. Although tests are generally run in the laboratory, the benefits of our products spread well beyond the walls of the lab. Many areas, such as pharmacy, patient management, nursing, housekeeping and surgery (just to name a few) realize savings from the Cepheid solution. We generally refer to this as "the ripple effect". Just as a pebble thrown into a body of still water cause ripples to radiate outward, the Cepheid system placed in a lab creates "ripples" of savings that radiate throughout an institution.

Allow me to take a moment to walk you through what is involved in the Value Impact Analysis process. It all starts with a qualified request from your local sales representative. This request is generally made to help with the justification of a new system, to validate a process (HAI surveillance for example), or to help optimize resource utilization.

Once the request is made, a Systems and Solutions Manager will make contact and begin by simply having a discussion of what is needed and then establish scheduling and help set expectations.

Our initial "on site" visit is the discovery phase of the engagement. During this time in your facility (1–3 days) we will conduct formal and informal interviews with all critical stakeholders, observe your processes in action, and learn as much as we can about your institution. We try to be as discreet and minimally disruptive as possible. There are no teams of people walking around with stopwatches or "efficiency experts" correcting individuals at every turn.

Once all the data is collected we then begin to analyze and evaluate impact areas. Thanks to the broad range of experience that our team members possess, we often find areas of resource utilization that many in the institution didn’t know existed. By mapping out entire processes, and looking for areas that are most affected by the Cepheid value proposition (rapid, easy, and accurate) we can capture and quantify overall resource savings.

This information is then captured in a single draft report. We review this information with all original stakeholders and get complete agreement on the findings. In many instances, we are told that our numbers are too conservative — but we would rather err on the side of prudence. Once there is full alignment on the findings, we provide the final report and presentation to your organization. These presentations are generally to high-level audiences as justification for the previously mentioned scenarios.

Our sole purpose is to support you and the decisions you are making. We know how difficult large budget decisions are to make. We want you to be fully confident in the expenditure you are making, what the return on that investment will be and how far the benefits of this decision extend.

By examining the overall impact to the institution, we are able to capture the compounded savings that can be had across the entire patient care pathway. We try to break down the silos that have existed in the past, to foster a global approach to savings and problem solving within your institution. Going back to my earlier comment, in my entire career I have never seen an opportunity to save a hospital millions of dollars per year across multiple departments. Yet this level of savings is routinely found and delivered by the Value Impact Analysis.

In this issue, there is a wonderful overview of the justification process that Swedish Hospital used for their GeneXpert Infinity-48 system; a laboratory acquisition with profound potential both inside and outside the laboratory.

In future volumes of this publication, you will be able to read about facilities just like yours that have benefited from the Systems and Solutions group. We have many cases to share with you, and hopefully you can glean areas of impact for you own institution.

For example, there is a two hospital group in the Northeast that is beginning to implement our strategy based on the findings of a 3 day engagement. They are anticipating savings of over $1.8 million per year through improved isolation profitability, reduced isolation days, and pharmaceutical stewardship. All these “ripples” are direct results of the Cepheid solution.

Another laboratory has been able to nearly quadruple its workload while reducing the number of FTE’s required by over 50%. They have also gone to lower complexity staff and improved TAT’s by 60-80% (in some cases they are DAYS faster). These benefits have led to bottom line savings and increased market penetration.

Lastly, a large Midwest Hospital is in the process of realizing substantial reductions in overall patient isolation (26% reduction in patients isolated, yielding a 21% reduction in isolation days). This eliminates their acute issues of blocked beds and ER bypass due to persistent high census. These improvements have the potential of allowing this facility to recover in excess of $5 million in revenue annually.

I hope you enjoy this publication today and in the future. I am confident that the Systems and Solutions group can help you find “ripples” of savings within your organization as well. Please contact your local representative for more information.