Slide 1: Clinician Guided Strategies: Cut Waste, Not Care
Clinician Guided Strategies: Cut Waste, Not Care © Health Catalyst. Confidential and Proprietary.
Slide 2: Health Catalyst Speakers
Health Catalyst Speakers Pat Rocap Kathleen Merkley Daniel Samarov VP, Financial Services SVP, Professional Services Chief AI Officer © Health Catalyst. Confidential and Proprietary.
Slide 3: Agenda
Agenda ▪ How to Identify Waste with Activity Based Costing ▪ A Clinician’s Perspective ▪ Scaling and Transforming Actionable Insights in Activity Based Costing with AI ▪ Q&A © Health Catalyst. Confidential and Proprietary.
Slide 4: How to Identify Waste with Activity Based Costing
How to Identify Waste with Activity Based Costing © Health Catalyst. Confidential and Proprietary.
Slide 5: Audience Poll
Audience Poll 1 Is your organization able to identify unwarranted clinical cost variation? A Yes B No C Uncertain © Health Catalyst. Confidential and Proprietary.
Slide 6: Audience Poll
Audience Poll 2 Does your organization provide detail data to Clinical Leadership to resolve unwarranted cost? A Yes B No C Uncertain © Health Catalyst. Confidential and Proprietary.
Slide 7: Quadruple Aim Focus
Quadruple Aim Focus Healthcare Framework Focusing on Four Key Goals Improving the patient experience: Improving the health of populations: Enhancing the overall experience Promoting the health and well-being of patients receiving healthcare of entire communities. services. Improving workforce well-b
Slide 8: Addressing a Changing Healthcare Landscape
Addressing a Changing Healthcare Landscape Challenges Continued Labor Wage Growth Elevated Cost for Supplies Increasing Pharmaceutical Cost Decrease Reimbursement – 2025 Big Beautiful Bill Volume Shifts Looming Tariffs -2025 Regulations © Health Catalyst. Confidential and Proprietary.
Slide 9: Health Care Financial Pressure Is Real
Health Care Financial Pressure Is Real Increasing financial scrutiny Struggle to identify and prioritize opportunities Legacy Costing Systems do not Clinician distrust in financial uncover the true opportunity data Higher expectations. Bigger gaps in cost visibility. © Health Catalyst. Confidential
Slide 10: Why Traditional Tools Fail Service Line Leaders
Why Traditional Tools Fail Service Line Leaders You get data, but not the tools to act on it. © Health Catalyst. Confidential and Proprietary.
Slide 11: Introducing Clinical Cost Intelligence
Introducing Clinical Cost Intelligence WHAT IT IS A precision cost intelligence solution purpose-built for service line leaders to eliminate unwanted variation, improve outcomes, and drive performance across sites. WHAT IT DOES It delivers trusted, case-level insights that help leaders: • Identify h
Slide 12: Why Clinical Cost Intelligence Works
Why Clinical Cost Intelligence Works Start Where It Matters Most Focus on high-impact service lines under financial pressure. Uncover What Averages Miss This isn’t a Reveal hidden cost variation at the case, provider, and procedure level. costing tool. Engage Physicians with Trusted Data It’s a Give
Slide 13: What Sets Us Apart
What Sets Us Apart BUILT FOR TRUSTED BY UNCOVERS HIDDEN SERVICE LINES CLINICIANS VARIATION ▪ Focused on where ▪ Data is accurate, case- ▪ Goes beyond averages cost, care, and level, and defensible — to reveal high-impact margins collide not finance fluff differences ACTION-FIRST DESIGN FAST, MEANING
Slide 14: Example of Clinical Cost Variation - HIP TJR
Example of Clinical Cost Variation - HIP TJR © Health Catalyst. Confidential and Proprietary.
Slide 15: Example of Clinical Cost Variation - Knee TJR
Example of Clinical Cost Variation - Knee TJR © Health Catalyst. Confidential and Proprietary.
Slide 16: Let's Talk About Your Transformation Journey
Let’s Talk About Your Transformation Journey Transformation starts with understanding where you are today. Clinician Readiness for Current Approach Barriers to Change System Pressures Engagement Something Better ▪ How are you ▪ Where are you ▪ Are you being asked ▪ Do your physicians ▪ Are you explo
Slide 17: A Clinician's Perspective
A Clinician’s Perspective © Health Catalyst. Confidential and Proprietary.
Slide 18: Activity-Based Costing Data A Clinician's Perspective
Activity-Based Costing Data A Clinician's Perspective Reveals true cost drivers Identifies waste and variation Supports prioritization and strategic decision making Enables clinician and service line engagement Drives continuous improvement © Health Catalyst. Confidential and Proprietary.
Slide 19: Audience Poll
Audience Poll 3 As a clinician or financial leader what is a major pain point you are experiencing in controlling costs? A Difficulty identifying what cost driver(s) to focus on B Lack of data granularity to understand variation C How to prioritize the work D Involving clinicians in lowering costs E
Slide 20: Heart Failure Cardiologists Comparisons
Heart Failure Cardiologists Comparisons © Health Catalyst. Confidential and Proprietary.
Slide 21: Individual Heart Failure Patient Detail
Individual Heart Failure Patient Detail © Health Catalyst. Confidential and Proprietary.
Slide 22: A Heart Failure Story
A Heart Failure Story Process Metrics Analysis Large Health System Data Queries / Clinical Cost Intelligence ▪ Prolonged LOS and high average ▪ Echocardiogram analysis variable cost for HF patients ▪ Daily weights revealed in a Power Costing ▪ Guideline directed medical therapy not added analysis du
Slide 23: Variation Analysis
Variation Analysis Clinically Indicated Guideline Directed Daily Weights Diuretic Dosing Medical Therapy ▪ LOS decreased by ▪ LOS decreased by ▪ LOS decreased by X X days X days days ▪ Variable cost ▪ Variable cost ▪ Variable cost decreased by X$ decreased by X$ decreased by X$ © Health Catalyst. Co
Slide 24: What Next?
What Next? DOMAIN- or INITIATIVE-FOCUSED 7 Guiding Questions Improvement Framework © Health Catalyst. Confidential and Proprietary.
Slide 25: Steps 1 – 4 (Daily Weights)
Steps 1 – 4 (Daily Weights) Do we know the Do we have an Do we understand Do we know where causes and what to implementation the problem? we want to be? change? plan? 01 02 03 04 Patients with HF Every patient who Short staffed, Education, new are not being has a HF diagnosis access to scales, a sca
Slide 26: Relation of Goals, Metrics, and Interventions
Relation of Goals, Metrics, and Interventions THE “HOW” Intervention #1 THE “WHY” THE “WHAT” Outcome Goal Process Metric THE “HOW” Intervention #2 2–4 four process metrics should produce significant outcome improvement © Health Catalyst. Confidential and Proprietary.
Slide 27: Relation of Goals, Metrics, and Interventions
Relation of Goals, Metrics, and Interventions THE “WHY” THE “WHAT” Intervention #1 Outcome Goal Process Metric Educate the nursing team on the importance of daily weights for HF patients by 9-30-25. ▪ Decrease the LOS Increase the of patients with percentage of HF heart failure from patients who Int
Slide 28: Steps 1 – 4 (Guideline Directed Medical Therapy)
Steps 1 – 4 (Guideline Directed Medical Therapy) Do we know the Do we have an Do we understand Do we know where causes and what to implementation the problem? we want to be? change? plan? 01 02 03 04 Patients with HF Every patient who Variation in Physician are not being has a HF diagnosis practice
Slide 29: Relation of Goals, Metrics, and Interventions
Relation of Goals, Metrics, and Interventions THE “WHY” THE “WHAT” Intervention #1 Outcome Goal Process Metric Educate physicians on current guidelines and their associated outcomes by 9-30-25. Decrease the Increase the mortality of patients percentage of HF Intervention #2 with heart failure patien
Slide 30: Scaling and Transforming Actionable Insights in Activity Based Costing with AI
Scaling and Transforming Actionable Insights in Activity Based Costing with AI © Health Catalyst. Confidential and Proprietary.
Slide 31: AI Enabled Activity-Based Costing
AI Enabled Activity-Based Costing ▪ Hundreds of thousands of combinations of Multistep/Multi-Agent Framework providers, procedures, supplies, etc. ▪ Our goal is to identify cost and reimbursement ▪ Statistical/machine learning models variations/irregularities adapted to the complexity and nuances of
Slide 32: Models Adapted to ABC
Models Adapted to ABC Distribution of costs for the same procedure across providers ▪ We want to isolate provider specific variation in a scalable and generalizable manner ▪ Standard summary statistics, e.g., mean, median, CV, etc. will miss important nuance in the underlying data distribution ▪ Mus
Slide 33: Quality Improvement Agent
Quality Improvement Agent Guidelines (Overview) Apply each of the 7 steps from the Health Catalyst framework Instructions: Improvement Framework For each step, include a Cross-Check & Validation Section that examines: • Are there valid clinical reasons that could explain these patterns? • What addit
Slide 34: Utilization rates for ureteroscopy with lithotripsy
Utilization rates for ureteroscopy with lithotripsy Problem Statement: Provider 10281 shows variable utilization rates of disposable ureteroscopes (ureteroscope disp aptra and ureteroscope disp aptra revers) ranging from 9.2% to 20% across different diagnosis codes, while other providers (6938, 1175
Slide 35: Complete Generated Output
Complete Generated Output Quality Improvement Agent: Utilizes Health Catalyst’s Quality Improvement Framework Problem Statement: Implementation Plan: Provider 10281 shows variable utilization rates of disposable ureteroscopes - Week 1-2: Conduct provider interview and case review (ureteroscope disp
Slide 36: © Health Catalyst. Confidential and Proprietary.
© Health Catalyst. Confidential and Proprietary.
Slide 37: Questions?
Questions? Pat Rocap | VP of Financial Services Kathleen Merkley | SVP of Professional Services Daniel Samarov | Chief AI Officer Alora Martin | Webinar Program Manager hcwebinars@healthcatalyst.com © Health Catalyst. Confidential and Proprietary.