Supplier Induced Demand (2)

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AHMC overview  AHMC is a private United States company headquartered in Washington D.C. that offers “individualized turn-key services and total hospital solutions” to governmental healthcare authorities and private investment groups seeking to enhance operational performance and quality medical care  Founded in 1998, AHMC is today the leading international hospital management and administration outsourcing company with the global expertise and successful track record worthy of a collaborating partner’s consideration  AHMC’s business philosophy and experience enable it to deliver global resources locally in order to provide high quality technologically advanced Medical Services  AHMC’s affiliated healthcare facilities are Five Star, Class “A” academic medical centers that provide quality care, exceptional service and committed to long-term financial success  Unique to AHMC is its experience and success with Private-Public Hospital Partnerships, as well as with academic, teaching hospitals


Scope of Services  New hospital Feasibility and Business Planning , Project Management, Pre-operational Planning, Commissioning and Operations  Turn-key management and administration of medical facilities operated at International-Level Standards  Strategic Planning and Business Development (also Marketing and Branding)  Organizational transformation & turn-around  Accreditation and Specialized Consulting Services (including quality, safety, financial, governance, etc.)  Hospital staffing, recruitment, training, development and retention  Continuing Medical Education Programs in partnership with Harvard Medical Faculty Physicians to develop world-class physicians, nursed and executives


Phases of hospital development Development of Feasibility Study and Business Plan Project Management Pre-operations and Commissioning Out-sourced Management and Operations


AHMC Medical Center Characteristics  Operated at Joint Commission International standards  Adoption of world class clinical guidelines  Commitment to continuous improvement and enhancements in quality

care  State-of-the-art medical technology and healthcare services  Commitment to continuing medical education and employee development through constant education and technology transfer

 Transparent administration and business practices for to earn investors’ trust and in order to enhance ROI  Access to AHMC’s prestigious Strategic Alliances and related resources


AHMC Hospitals AHMC INDIA Hospitals Office and team locations Russian American Medical Center Eastern Europe And Russia, Russia, Tver WASHINGTON DC

High Tecnology Medical Center, Georgia, Tibilisi

Intercare Dominican Morrocan American Medical Center Centro Medico Cancun, Republic, St. Kitts American Morroco, Casablanca Mexico, Cancun Santo Domingo University Hospital, Swani Road Hospital, Libya, Tripoli La Lima Medical Center, Honduras, La Lima St. Kitts and Nevis Honduras Medical Center, Misr University for Mount Saint John’s Medical Center Honduras, Tegucigalpa PANAMA VIP Hospital Science and Technology (MUST) Antigua and Barbuda Hospital Nacional Libya, Tripoli Egypt, Cairo Trinidad Specialty Hospital Panama, Panama City St. James Medical Center, Ghana, Accra Trinidad And Tobago, Pasteur Laboratories, Colombia, Barranquilla Port Of Spain Trasacco, Ghana, Accra NEW DELHI and Cartagena Clinica Delgado, Peru, Lima

Polo Hospital, Panchkula SSG I & II Hospitals Haryana Sama Hospital, South Delhi, India Monet Hospital, Raipur


MSKMC 6th of October • MUST is a private university founded by a family dedicated to excellent private higher education. MUST has 12 colleges and 3 research centers. The college of medicine has a teaching hospital with 160 beds. With current renovation underway, we look to complete the project with 350 beds in all.


Supplier Induced Demand • Disclosure: • Supplier induced demand has many variables that are subjective and difficult to control for. Today's discussion is in no way an exhaustive approach of all variables but an introduction.


Supplier Induced Demand • Defined: • Simply put, it’s when asymmetry exists between the supplier and consumer. • “ when a physician influences a patients demand for care” • Build it and they will come???


Scale Model


Question • What are some reasons Asymmetry Exists? In other words, what may be the reason/s that the physicians may increase their own demand?


Some things to consider • Income Driver • It could be a motivator for the physician to maintain or acquire a certain life style • Professional Uncertainty • Individual practice patterns


Professional Uncertainty • Typically seen in the ER whereby Residents or Interns order a wealth of tests due to lack of experience and or uncertainty. This is an example whereby over utilization of lab and CT can be minimized through protocol implementation.


Standardization • Some organization seek to use bench mark data and standards which decrease variations. • Standardizing practices allows for a more credible estimation of resource consumption. • JCI- Joint Commission collateral incentives. Increase Quality, Better Resource Estimation.


Other Examples of Provider Induced Demand

Drug Companies- in addition to targeting physicians, Pharmaceutical companies are even more aggressive to target the patient directly. If you want to feel….ask your doctor for…. Ie. Weight loss, Hair Restoration,


Fountain of Youth?

• Can you guess the Drug?


Provider Exception • Lets be Fair, not all Physicians are motivated by income nor are all pharmaceutical companies by their bottom line right? • What happened to the patient advocate ?


Cultural Consideration • Where the provider would want to limit resources either for conservation or limited supply some , cultures expect an exhaustive effort.


Cultural Consideration • What norms or practice would be an example in your own country? • • • •

Ie. Hospice service availability? Nursing home or extended stay availability? Family role in care giving? Patient Expectations - Something must be done….


Paradigm Shift • The relationship of the “ All wise, All Knowing “ is changing… • How?


Modern Challenges • Provider Included demand has and is changing. Sites like WEBMD and just about any Google search Arm would be patients with information to begin self diagnosing. • Direct marketing.


Practical Application • What tools can you use in your administration? • What are some methods of aligning physician incentives? • What is the historical perspective of Provider Induced demand and how has it changed? • What are some cultural considerations?


Practical Application • Align Physicians Incentives. • The Physician gain the availability to increase revenue but is shared with the hospital. • Physician Fees vs. Salary Considerations • Who should collect payments and how?


Group Quiz CT Services • What are some variables to consider? • What controls can act to balance demand and supply? • What could happen if services are provided below market rate? • How do you minimize provider induced demand?


Thank you.


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