25-16757158-OPT-EIS Webinar Recording_4 (1).mp4

Speaker 1 [00:00:00] All right, everyone, thank you again for joining today's webinar. I will go ahead and turn it over to our presenter for today. Laura Kennedy. Thank you so much for joining. 

Speaker 2 [00:00:10] Yes, thank you, Lillian. Hello and welcome everyone to today's webinar brought to you by Optum's Enterprise Intelligence Suite. The focus of today's webinars is around streamlining your clinical value analysis process amidst a rapidly growing surgical market. Before we get into the content for today, I did just want to address a couple of housekeeping items you'll see during this webinar. For managing your audio, hopefully you can all hear me, but if you cannot, there are two real ways to log in and listen to this webinar. So the first is through your telephone and this is the method that we typically recommend all of you to use for clear audio. However, you do also have the microphone and speakers on your computer as well. So if you can already hear me that is great. But before we go ahead, we'll leave this screen up. for a second in case anyone's having any difficulty at this time. Additionally, within your Webex panel, you should see a Q and A section towards the bottom of that panel. So if there are questions throughout today's presentation, please feel free to type those questions in and send them to us. We will be monitoring those as they come in, but we'll likely be saving them until the end of today's representation and we'll cover them before we close. As Lily mentioned, my name is Laura Kennedy, and I am a Senior Director within Optum Insights Provider Business. I have been with Optum for over 12 years, spending majority of my time helping health systems achieve value from a variety of analytical solutions. Optum has always been a leader in the analytics space, driving millions in return on investment and using data and insights to solve for hospitals most pressing challenges. The challenge we wanna focus on today is centered around value analysis and really staying ahead of that exponential growth in the surgical supply market. We'll be showcasing our latest analytical enhancements and advancements that help healthcare leaders manage supply evaluation demands despite their limited hospital resources. Our aim is to facilitate collaboration between clinicians, physicians, finance, and supply chain teams to ensure cost containment through supply and preference car standardization and enhance the overall quality of the procedural care for those patients. 

Speaker 3 [00:02:49] So with that being said, let's dive in. 

Speaker 2 [00:02:54] to start with some of the challenges that have motivated Optum's investment in this space. The surgical equipment market was estimated at $16.9 billion in 2023 and is projected to grow to $45.61 billion by 2034. And that's rising at a compound annual growth rate of over 9%, 9.44%. in just a decade. So as you can see, surgical care continues to innovate and new approaches and technology bring new supplies and expenses to our healthcare systems. So for most value analysis teams, it can feel like drinking from a fire hose, trying to stay on top of all of these new supplies. Dollars spent on supplies are up. Traditional cost reduction strategies are not enough. single or dual vendor sourcing. traditional category management, shifting vendors, right? Those are not enough to chip away from the impact of the volume of products coming in your doors. And an increase of the costly supplies isn't the only pressure. Negative quality outcomes like excessive readmissions are also on the rise. As you can see, 75% of hospitals receive penalties from CMS. So when you think about where the value analysis process can help mitigate these cost pressures, visibility into cost and quality are essential to deliver the best possible care. And that's the pain point where Optum has focused the most, shifting conversations from cost to value. We have invested significantly in an integrated cost quality and efficiency data for our value analysis and supply cost analytics. When working with hospitals across the country, we hear time and again, how difficult and time consuming it is to get clean, actionable data. and there is an immense amount of pressure on data accuracy, particularly when dealing with surgeons and the decisions around their clinical practice and preference. So our solution solves for those challenges and simplifies that process for organizations and it is really unique in how it can deliver. Leveraging next generation capabilities such as AI enabled smart opportunities to increase that speed to insight. Risk adjusted quality data across both the inpatient and outpatient care settings. EMR integration. Just think about the process of automating preference card cleanup. These are going to be game changers in overall support for your value analysis teams. So that solution is the Enterprise Intelligence Suite. This is Optum's new and improved clinical analytics platform. Across any care setting, EIS helps organizations manage the total cost of care, overall quality of care and helps reduce unwanted care variability. Comprised of multiple modules that target specific opportunity areas. EIS uses a proprietary risk adjustment models to provide apples to apples comparisons and predict more accurate quality outcomes. Our AI and machine learning algorithms do the opportunity mining for you. And by being on a singular platform, EIS can unify more disparate data, driving more robust insights and benchmarks. Here is just a snippet of the range of performance improvement opportunities we can work on. I want to draw specific attention to some of the supply cost and value analysis centric items, optimizing vendor and category spend, surgical complications, hacks and PSI's, reducing unnecessary opioid utilization, preference cart analytics, contracting and price status data integrated with surgeon utilization, just to name a few. And since we spoke on the emphasis of quality reporting just a few moments ago, I wanted to call this out particularly. There are over 150 quality metrics that can be tied back to surgical cases and leveraged in conversation surrounding supplies and care variation. What is most important to point out is the representation across all care settings and the specificity to those care settings. We're not just talking a generic ED visit after an outpatient procedure. We're getting granular down to that risk standardized hospital visit rate after an patient colonoscopy. 

Speaker 3 [00:07:55] These are specific to surgeries and procedural level outcomes. So now that you understand the breadth and depth. 

Speaker 2 [00:08:05] data at your fingertips and the PI areas or performance improvement areas we can support, let's bring it back to value analysis. Taking the example of controlling for surgical supply cost, EIS supports a multi-faceted approach by eliminating unwanted expenditures through procedural standardization, achieving competitive price points for supplies purchased, and eliminating wastage through preference card management. For all three approaches, we can identify where the greatest opportunities lie, analyze those root causes, review the assisted recommendations, confirm the impact to quality, and then implement and monitor the success of that intervention. 

Speaker 3 [00:08:53] Let me show you what I did. 

Speaker 2 [00:08:55] Hopefully, everyone can see my screen and the tool here. The first thing you'll see when logging into the EIS surgical module is a summary of the performance and supply cost drivers at your organization. Working left to right, you can see actual performance, but also trending across the previous time period, which in this case is six months. In a glance, you could easily understand if your costs are increasing, or for seeing improvement in our common opportunity areas. Now these KPIs are customizable to what is really important to you and your needs as an organization. And as we scroll down, you can see that there's more information and added metrics and visuals of what's driving those figures. What I like to really highlight is that speed to insight. In just three clicks, right, I can look at spend. I see that I have a rise in the total number of new products that are coming into my organization. I wanna click on those new products and I quickly have a list of all the items that have come in, what was paid, what the overall spend is, and then this is key here, the contract status. What is coming in outside of our value analysis process and vendor processes that are allowing for things to come in off contract? Look into one of these items and get more detail on if that is even a fair price point. Right. As you're thinking about contracting and overall impact across our cohort on quality and where it's been purchased, et cetera. So, this is something that's very crucial for value analysis. So, whether to find a place to start and or a tactical actions to take, you can get your answer at a speed not found in really any other tool. And emphasize that even further, I'm going to jump to a lot of that AI investment we've made. So we here in the tool and really across all of our modules within the Enterprise and Eligen suite, we have something called AI Assist. And this AI Assist feature is our AI chat bot that scans all of your data plus Optum's enrichments and benchmarks to answer your top of mind questions. So we have some prompts. You could type in what you need, but I'm going to use a preloaded prompt here on what are the top five items that had a price point jump in our most recent purchase order data. Very quickly, I not only get a list of all of the different products and their vendors and overall price point and price increases, I can export that data and act on it. I can create some initiatives, which we'll get into. a little bit further into our demonstration here, but very easily have those insights on some of the more pressing questions you may have. Especially in times where resources are limited and people are wearing multiple hats, being able to quickly ask a question and get an answer, an answer that's supported by hard data is going to be a huge game changer for organizations. You'll also notice in our AIsys feature, and you'll notice it throughout the rest of our demo, is our smart opportunities. So these are another AI and machine learning enabled capability that really summarizes across all of your data and multiple different use cases where your opportunity is and what actions you should take. So I'm just gonna go back to the summary page here. And now this would be a very short-lived webinar if all I did was show you that you can quickly get to an answer using our AI assist. So if you will indulge me, I'll show you the long way of getting to some of those insights and the broader wealth of information that's contained in this module. So I wanna first focus on procedural variance. So scrolling down in our summary page, I can see that there's over $10 million in potential savings. And those majority of those savings are found within our orthopedic service line or more particularly our total knee replacements. So this is an area where I'm going to hit explore and begin investigating. On the screen here is kind of a blow up of what you just saw, but an ability to sort this by service line procedure. You can see the variation across facility. If you want to compare facility to facility locations, and then at the bottom, get that overview of how that variability is generated. So, when we talk about variance opportunity, we're talking about the supply cost comparisons. So what we're saying, and this is on the aggressive variance opportunity is. If you can get all of your surgeons performing at the lowest cost surgeons, cost per case, excluding outliers, of course, what do you stand to gain? Now, I do want to comment. This is not, you're not going to get every savings to the dollar. We are not advocating cookbook medicine here, but it is directional and really help you focus your time and effort because one of the big things we hear is. I've been tasked to find an extra million dollars in cost savings, or, you know, I'm being pushed to find double the amount of cost savings that I saw last year. Where do I begin? Where is my biggest bang for my buck? Where should I spend that limited time? And that is all that this is very much focused on to streamlining for you. So, by dropping down orthopedics, I can see total knee replacements up at the top. I have a large volume. a handful of surgeons performing these cases, our average supply of costs per case, and then a mix and a max range. So I'm going to click into that total knee replacement. And at this stage, and there'll be multiple points across our analysis, you have times to refine. Getting back to that need for strong, clean, accurate data and that one shot that you might have with presenting data to a surgeon. We have a bunch of little stop gaps in here that enable that apples to apples comparison. So here we can refine procedures. So you can actually look at the total knee replacement, which is what's being documented on the case and in the EMR is what has been scheduled for. But then you can, actually run that up against and compare against the billing codes. So was a total knee. I want to only look at cases that were scheduled as a total and billed as a totally and and did not change. after the fact, once you opened up the patient. So we see that both on the inpatient and outpatient setting. The next step is to look at facility and refine by facility again. So you can choose to include or exclude and you can see that variability over time. I'm going to jump straight to surgeon. This surgeon page, I think about as that further refinement. We have the opportunity to remove cases with surgeons less than a certain amount. So if we wanna say, I only wanna see surgeons that perform this case with five cases or greater, or say six, one per month, you also can look at their overall kind of breakdown of volume, cost, efficiency. You can see total length of the surgeries, the average length of stay for the patient. And here's where we can bring in those outcome measures as well. So as we're looking at our surgeons and thinking about cleaning up, you can look at it from a, you can eliminate and refine those outliers based off a lot of different factors. And what I find to be the most helpful, particularly in talking with surgeons is you can also eliminate specific cases. So we've all been there where you spend a ton of time on a deep analysis to bring forward to a surgeon and they ask, You know, what is that? What is that case? Well, that case was a double knee replacement or a revision immediately. This analysis is not worthwhile because there was revision cases in here. EIS, you can actually adjust for that live and you can continue your conversation moving forward by gaining a lot more trust and confidence from that surgeon by being able to come in and showcase here's what we've excluded. You can exclude based off of case and items. You can exclude, based off the total supply cost, the ASA rating. There's a lot of different ways for you to go in and remove individual cases as needed. The next step on this procedural analysis component is to set that comparison. So we've already done the refinement, we feel really confident in the data that we have and now we wanna set those comparisons. So as I highlighted before, when we have that outcome measure, we really wanna be targeting, comparing our higher cost surgeons with our lower cost surgeons that have very good quality and efficiency measures. paying special note here to surgical site infection rates. The having this breadth of quality data to make this so specific to what surgeons care about is also extremely helpful in these conversations. 

Speaker 3 [00:18:41] So I'm going to apply the set here. Now I have. 

Speaker 2 [00:18:48] data set for my comparison and my overall analysis. I always say that this is my favorite screen and all of the tools because I've been working in this space for so long I remember doing all of this by hand and the advancements that come and even more so with all of AI and ML we have in here just does hours and hours of work for you in just a click. But to orient you on the here is a summary of. our comparison sets and what's included in our data and then as you scroll down what you will see is every single item that has been used on this total knee replacement across these selected surgeons and the overall is sorted by overall impact and when we say overall impact what we mean is it's looking at for each individual item and card what is the overall cost of that item. What is the quantity used per case? And then how is that differing in overall utilization between our set A and set B? So we're really trying to pinpoint that variability. So scrolling down, you can see some bond cements as options here. You can see here we have the hemostat arresta which is very high dollar amount. Right below it, we have an alternative hemostate, A flow seal. That's significantly lower. You know, those are things and we see just a complete difference, right? Our lower cost surgeons are only using flow seal the lower, lower cost alternative. Whereas the higher cost surgeons, are always using the higher costs item. This item recommendation bucket or button, excuse me, it can actually give you that side by side profile as you're evaluating items. And so you can see details on. unit cost, broader utilization factors. You can identify which preference card it's on. You can get an idea on if this is a good price point. So you can actually get a lot of information on each individual item that you see. The other thing you can do is actually group items. So I just typed in cement here, and if I scroll down a bit, you can see that there's a multitude of bone cement, so particularly those with antibiotic-loaded bone cement. So we have this one here. We have this on with gentamicin. We have one from bio-met. We have a simplex with antibiotic loaded, tobramycin included. So these are things where you can see there's little bits that are spread out. So these are things that we can actually create a custom item view and see all of these rolled up together into a specific item. For any of these items that you select, you can view case data. A common question we get is, all right, are there other items that you're using that are dependent on this item or you're using potentially in replace of so you could quickly look at every other item that's been used on that case at just a glance. And then the last thing I'll show you here is that supply comparison. And so, looking at the bone cement, and this thing's pretty powerful here. is we are organizing all of the different factors that typically value analysis is collecting and condensing to bring forward to department chairs or to specific department meetings to showcase, here's how your group is leveraging the variety of different bone cements used across the organization. And while it has those quantity and cost factors, it shows the variance in the impact on cost per case, and then bringing in those quality metrics again. So we're not suggesting causation. We're not saying you have a better quality outcome because you're using a specific item, but it is answering the questions and really mitigating any concerns surgeons might have about seeing a negative quality outcome by making a change to their preference or the items that they're using. What you can easily see is, you know, in this last five minutes that we've worked through this analysis, I now have a bunch of different projects I can take forward. We can talk about the bone cement standardization. We can talk about replacing flow seal and we can talk about replacing the Arista with the flow seal. Something I forgot to show you is you have the details on who's using what and where and information on contracting status on each individual item card. And so as you're finding these opportunities, the other thing you can do is create initiatives. And so by creating an initiative, you're saying, I want to take forward the reviewing of this bone cement. Here's all the items that I've included. Here's who I want devoted to. We'll start it and we'll go ahead and save. 

Speaker 3 [00:24:02] and I'll bring you to the initiatives. 

Speaker 4 [00:24:03] page in just a moment. 

Speaker 3 [00:24:07] So now this is the best this procedural variance. 

Speaker 2 [00:24:12] Click path and workflow is best used to help with discussions with surgeons because you have all of that data in one place. The difference in utilization and data to prove if his or her peers are using something different and having that impact to quality right there comparison slash competition against amongst their peers is a huge motivator and. Question that we get from surgeons all the time. They are hungry for information and they are eager for transparency into price and to peer utilization. but I will say this is your hardest path to cost savings because you are dependent on physician buy-in and changes to behavior. So there are more traditional spend style analytics that identify opportunities for standardization, rebate securement, FDA recalls and monitoring new products. So I'm actually gonna jump. 

Speaker 3 [00:25:15] into our spend analytics workflow. So across the board, similar to what you saw. 

Speaker 2 [00:25:23] summary page and even in procedure costs, we always want to bring that opportunity and KPI banner at the very top to bring your attention to where there is the greatest opportunity or things that require your attention. We also have an overview of spend and just that breakdown year over year. We can look at contract compliance, category optimization, price changes, price parity showing where you might be spaying. one price at Facility A and for that exact same item a different price at Facility B. So kind of all the different levers you can pull to find some quick cost savings without necessarily having to impact behavior. So by clicking into explore this is just even more information on overall spend. I can look at this by facility or department. I can look at the most vendors with spend. And then you saw me do this earlier, but that new product list, so I clicked it on the first page, but here's another place where you get it. So, right. There's a long way to get to every answer. But the 186 new products we saw is available. Backing up to the contract compliance. So what this is showing is we have all of your. Contracting data to show based on expiration dates, how many items, what's at risk, what is not risk at falling off of that. And just staying on top of those many, many, many, different vendor contracts, price points. A common opportunity and project that our value advisor team works on is identifying all those price changes and things that may have fallen off contract so we can very quickly get them back on contract. and get refunded for whatever that difference in cost is. So clicking into contract compliance, you can see your rebate at risk and that broken down by facility or service line as well. But looking at our top opportunity here with bio surgical hemostatic agents. And so what we're seeing is with Medline, we're at risk of securing our rebate based off of the utilization thresholds required to meet. Whereas with Zimmer, we are trending strongly and more likely to secure our rebate. And so I'm actually going to click that view opportunity just to show you. Right. So here's our impacted, our impacted ability, and you can create an initiative right here. Another cool thing I like to highlight is the prediction. So this is looking at base off of historical spend patterns. As well as utilization patterns, you know, what are we likely to hit during this contract period in this year calendar period so we can track the actual and then see what our projection is and you can see where overall market share commitments is and where our target is for. 

Speaker 3 [00:28:32] that specific contract. going one level deeper. 

Speaker 2 [00:28:41] even further where you can see vendor by vendor and I should have started off. Reminder. This is a demo site. So you'll see demo information in here, but an opportunity just to get even further into all of the details behind these individual contracts. And speaking of contracts and contract negotiations, a common need across supply chain and value analysis is to check the prices of all of the items coming through the doors and ensuring that you are getting the best possible price for your organization. When we think about value analysis and controlling of the introduction of new items and evaluating those against what you currently have in utilization, this is a great tool to have at your disposal. Whether you're trying to get standardization across product categories or source at the best possible point. 

Speaker 3 [00:29:34] need something like price pulse. we'll be able to see all of our vendors. 

Speaker 2 [00:29:43] High level profile of the total spend and item that items that we're purchasing within that organization. You can see what is on and off contract. So, another way to quickly identify where we need to be having conversations with our vendor partners and getting things back on contract. And then on the right hand side here is that percentile into pricing. And so within optimum, we look at your price point. compared to all of the other price points that our organizations within our cohort are purchasing. And we benchmark those and we use the K-means algorithm to ensure comparing like items, right? So we have measures in place to ensure we're comparing a box of syringes to a box syringe and not a box of a syringe to a single syringe. And looking at that as our. top quartile, median, and bottom quartile. And so for the example of let's use Boston Scientific here, because I'll click into there in a moment, you can see that majority, we have very good pricing here, 93rd percentile. This means that we have some of the best overall pricing compared to all the other organizations within Compass. And So 71% of the items we purchased from Boston Scientific. are at that top quartile pricing or higher. 9% fall between that 50th percentile and 75th percentiles. So good, better than average, right? And then we do have 20% of items that are below that 50 percentile. And so a common opportunity or initiative we can take is how can we get all of our spend? 

Speaker 3 [00:31:39] into those top quartile pricing bands. and I can just click into Boston Scientific to. 

Speaker 2 [00:31:48] just that, right? So we'll have a list of all the items we see. It's sorted by the overall aggressive savings opportunity and conservative savings opportunity. And what is the difference between these is based off of your last price paid, this minus the 75th percentile price is your savings opportunity. Conservative is taking your actual price paid versus subtracting the 50th percentile, and that's showing that conservative savings. So you can see that here. For a lot, they're similar. Here we have some differences. And then the contract status and price negotiated. What's really helpful when talking to vendors because their favorite response to say is, you are getting the best price pointer. We've never offered a lower price point to. anyone in the organization, or if you want to pay that price, you need to give us a hundred percent of your business. Those things are just simply not true in order to have the best possible price point. So this is a view that many a supply chain manager loves to print out and have handy when talking to some of their vendors and dealing with negotiations because you can see the total number of price points paid for that item. So we have 17 unique price points from across 13 members in this example. And then we can scroll down and see all of those 13 members blinded, of course, but looking at the institution type, looking at where they're located, the overall size of the institution, volume purchased, and price point they are achieving. So easy to say, well, they're a large system. So therefore they have the volume to get the better price. We can actually prove if that's true just here in this screen. And then even bringing in that market share, right? You can understand if our lowest cost is committing the most. In this instance, that 766, a low cost that we saw our benchmark, they're giving 50%. So that's a little reasonable. but looking at some of the others, right? We see very low commitments or not as much spend as you may be doing with your. 

Speaker 4 [00:34:13] specific vendor. 

Speaker 3 [00:34:22] This is a very detailed view. 

Speaker 2 [00:34:25] I'm going to back up here to just price place on all of the different ways that you can understand your overall spend across an organization and monitoring of the supplies that are coming in. Next place I'll go and and highlight is around preference cards. So we talked about ways to find some cost savings and reducing variation. Finding items to substitute or change for a lower cost alternative, finding better price points, ensuring we're hitting our rebates. You know, these are all different tactics. But one of the essential things to hardwiring change is to Ensure that we are not wasting products and where waste happens is in the and is most often driven by inaccurate. 

Speaker 3 [00:35:20] preference cards. 

Speaker 2 [00:35:24] So we have a whole workflow devoted to the preference cards. Cause like I said, you can get surgeons on board with a change and not see any of those savings materialize because we continue to open the wrong item based off of those outdated preference cards so we can see the summary of that here. I'm just gonna actually go into search preference cards by supply. And so I have a specific stem. Um, that I, you know, want to specific implant that I want to see where all the preference cards this is listed on. How often are they utilizing this item? Is this something that should remain as open or shifted to either being removed entirely from that preference card or shifted? To being on hold and just available, but not open and able to be returned if not used during the procedure. 

Speaker 3 [00:36:25] So we can see, or this item really all the different procedures it's listed on as well as this button here to be able to remove from the card. So. Is on here. I want to actually highlight this feature because I mentioned it at the. 

Speaker 2 [00:36:49] of our meeting here, but being able to remove items and sink directly into the EMR. So as you're identifying opportunities, you know, where this stem is on, Dr. Morris's total hip replacements is only ever opened 100, or excuse me, 101 percent of the time and has been performed on 22 cases. So it's been opened on 22 cases and is a rather high dollar implant. We can go about removing that item from the cart. So directly in the tool, you can start making changes to the preference cards. Now it is not automatically changed. We still want to leave part for human control and intervention, but moving to the EMR sync, I'll show you what that looks like. So essentially you can push through any sort of changes into the EMr and choose to sync. So here's the preference card. Here's the surgeon. It's in fact impacting. Has the surgeon approved to remove this product? You know, where has it been denied? And therefore we are not pushing that through or pending versus scheduled. All of those things, really automating the process. But none of this will be done unless you hit that push. 

Speaker 3 [00:38:14] to pass these through. Another cool thing just to track here is here you can see. 

Speaker 2 [00:38:24] immediately or cancel this thing, but audit changes. So this is really helpful to showcase, you know, when changes are being made to specific cards across what time period, how often, what was changed, what was added, right? So we removed allografts, but we added bond cement. 

Speaker 4 [00:38:45] center. So I'm just gonna keep an eye on time. 

Speaker 3 [00:38:53] because I want to ensure we save some time for questions at the end here. But we talked about. We talked about really all. 

Speaker 2 [00:39:04] of these different workflows and how these can support your value analysis process. And I want to circle back to some of the opportunities we identified or shortcuts really you can find. And so in the opportunities, these are the smart opportunities that I highlighted at the very beginning of today's demonstration, but they're all saved here. And once you can see that what we could stand to save $26,000 by shifting our. Arista utilization across three specific surgeons to Flosio. And it gives kind of that status update. This is helping really stay on top of monitoring these things. We're moving off of paper. We're not managing in different trackers. All of it lives here directly in the tool. And you can showcase, you have all the data and the details at your fingertips. And you could always just show that variance analysis and you'll get that pop out of, here's the difference in the utilization and what caused us to decide to bring forward this initiative. expert data, launch an initiative if you haven't already, but this is one of the top opportunities within the organization. Speaking of initiatives, let's actually go to that initiatives page. So you saw me create an initiative directly from the screen at that analyze page on the procedural variance workflow, but you can create an initial from scratch and then monitor that initiative going forward. So bone cements was another one that we identified as an opportunity area across our total new replacements. So this is ongoing. I'm going to click in and what's really cool here is it's a tracker. Right? So we could see from the time that we're implementing this change. Are we seeing the reduction in utilization as expected? Are we seeing resistance to change? And where is that located? So you can look at it from both supply as well as quantity. We can look at overall organization supply cost versus the track supply cost. Typically we say, you know, let's try and get the most out of this and look at an abroad scale. But there are a lot of times where we're really focused on a particular facility or particular surgeon. and focused on more local change. So that would be when you'd see a difference in the numbers here. But scrolling down, we have details on our initiative, details on the data and overall. 

Speaker 4 [00:41:46] trends here. 

Speaker 3 [00:41:53] And the last thing that I want to highlight is our spotlight category. 

Speaker 2 [00:42:02] And in that spotlight category, you actually can just pull up different surgeon information and look at individual supplies. You can look at, individual procedures, individual vendors, lots of different things. Just, if you have appointed initiative, they'd like more information on when you think about that supply, we can look, at that supply that we saw. So I'm just taking back that. stem example that we identified not only in the in the price pulse as a pricing opportunity, but also on the preference cards as a preference opportunity. And you get that spotlight and supply detail. So once again, bringing in our AI machine learning to highlight what is going well on the cases that this product is being utilized. So in this instance, there are zero surgical site infection rates on cases. where we're utilizing this hip stem. However, we're seeing a higher readmission rate compared to five similar items used on that same procedure. Well, only 1.5% higher, but still higher. We're also seeing that when leveraged, this is bringing up your cost per case. So you can actually look at the supply information, the utilization of it, where it's being utilized. all the kind of substitutes, contract information. Here's where we can bring in that quality data. So back to thinking about some of the happenings and value analysis meetings, wanting just to get a quick answer on what is the quality associated with an individual supply. You have that at your fingertips through many different ways, but in this spotlight, extremely easy and can look at not only just. readmission rates, but hacks, mortality, AHRQ, complicated. 

Speaker 4 [00:44:05] et cetera. When you think about 

Speaker 2 [00:44:16] Some of the supply detail, and you saw that we had recommendations that we would bring forward those recommendations are driven from a couple of different areas minus through our kind of industry expertise across optimum and the work we've done in this space for the past 15 years. We also leverage categorization schema. So you'll see this GMDN categorization throughout the tool what this means stands for is. global medical device nomenclature. And it's internationally agreed upon descriptors and is the leading global standard for classification and categorization of medical device products. So this is a great way to help if you're unclear or unsure of what a potential replacement could be or you don't have alternative replacements leveraged within your organization, You can use this to see what others in. the cohort are leveraging or to help assist in some of that category management. So that was a lot of information to process. I'm going to go ahead and stop sharing my screen and see if we have. 

Speaker 3 [00:45:41] And while we wait for the questions to come in, I'm actually just gonna jump right back. 

Speaker 2 [00:45:44] into our slide presentation. 

Speaker 1 [00:45:48] Hey, Laura, I have one question that came in and that was, how do you acquire pricing? 

Speaker 2 [00:45:57] It's a great question. So we collect pricing from a couple of different sources. So first is your purchase order information. So, we collect every single purchase order that processes through your organization and are able to see that true acquisition cost of that item. And that's the source for majority of our benchmarking thinking about the vendor part numbers and manufactured part numbers. Those are how we're linking those benchmarks and those price paid. When we think about supply costs per case, we also pull in data from the EMR. So normally there is a integration between your materials management system and your EMR, so usually what you'll see is the price that you have on contract is what's listed with the item on the source. But we know that there are instances in which products are opened at the bedside and you can cure it. type in individual items and price points and free text. So we actually collect pricing in both ways and then use our enrichments within the backend of the tool to ensure we have the accurate price for every item. Thanks. 

Speaker 1 [00:47:12] That's the only question that came in. 

Speaker 2 [00:47:16] Was a good question in case there's any others. I did just want to call out, as I mentioned, we've had a long tenure and supporting organizations in this space and through a lot of these challenges. And we have a whole team of value advisors whose sole job is to ensure that every customer is getting value out of their tool and seeing return on their investment. And not only is the return on investment exciting to see and helpful for other organizations to understand the impact they can drive within their own. It's also a source of good networking and best practice sharing to show how your peers across the, the nation may have overcome. Different value analysis challenges. So we have 3 represented here 1 from Lehigh Valley help network. They have implemented a very strong care variation reduction project process in which they have this data integrated into their value analysis teams and are able to see significant cost savings, multimillion dollar cost savings a year after year. And so, since they first went live and joined us in their fiscal years, 2017, which is around fall of 2017, they've seen 21.7Million dollars. and true cost savings. Medical Center in Southeast spoke to a case study on how they're strengthening their value analysis and focusing on cost reduction strategies and surgical costs. So across nine years. 

Speaker 3 [00:48:55] They've saved $16.3 million. And just as a leave behind is you guys will have access to these slides. 

Speaker 2 [00:49:06] We know that there's a lot of questions around AI and machine learning and how those can benefit you and your organization. So I did just want to leave a little bit of a deeper overview of all of the AI enablement. 

Speaker 3 [00:49:20] we've integrated into the models that you saw today. Well, I appreciate everyone's time today. 

Speaker 2 [00:49:30] I hope that this was useful for all of you. I'll stay on for a couple more questions if they come through, but otherwise, thank you for your time and attendance and we hope to connect soon. Thanks, Laura.