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GROUP PROJECT OUTLINE: UVA HEALTH SYSTEM
Group Project
University of Virginia Health System Epic Phase 2
Ballance/Heck/Lemieux/Bailey/McIntyre/Newberne
Liberty University
BMAL 504 – Leading Organizational Change
UVA HEALTH SYSTEM 2
The University of Virginia Epic Phase 2
Description of the Organization
The University of Virginia Health System (UVAHS) is a teaching hospital located in
Charlottesville, Virginia. The health system employees over 7000 clinical and support staff
(About the Health System, 2016). The health system has 600 inpatient beds with over 28,000
inpatient admissions, and 800,000 outpatient visits in 2014 (About the Health System, 2016). In
2014, the operating expenses at UVA Health System were $1.2 billion (About the Health System,
2016).
Description of Change Process
In 2009, the UVA Health System began the implementation process of its electronic
health record (ERH), Epic Systems. The implementation was called Epic Phase 1 and included
clinical applications. Dr. Marshall Ruffin served as the Chief Technology Officer and among his
personal goals for the project was to be on time, on budget and the largest ambulatory Epic go-
live (Clinical Staff Retreat Report, 2009). In September 2010, 140 ambulatory clinics went “big
bang” live, and this was Epic’s largest go live to date (Student Handbook, 2016). In March 2011,
all inpatient departments went live. Many of the original project team continue to support the live
system. Over the years, UVA Health System customized Epic to provide physician satisfaction
and to make it work with the legacy Siemens financial application.
Epic’s financial applications include patient scheduling, registration, medical coding,
hospital and professional billing, and claims. Although the option was available to install Epic's
financial system in 2009, senior leadership decided against this due to the high customization of
the current financial system and the fear of increased Accounts Receivable (AR) if systems were
changed. However, in recent years, Epic’s financial applications have proven to decrease AR
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days by speeding up insurance payments, automation of medical coding, and consolidation of
patient billing (Revenue Cycle, 2016). UVA Health System has decided to move forward with
sun setting legacy systems and move forward with Epic’s revenue cycle applications. This will
mean a fully integrated system.
Epic’s recommendation is implement 80% of their foundation since future installs and
upgrade are more difficult if there is more customization (Wiedower, 2016). UVAHS
customized 50% of their Epic clinical systems to allow for integration with legacy systems, and
special clinical workflows. In 2013, work began to bring UVA’s instance of Epic back to
foundation. This was the first steps to preparing for implementation of the revenue cycle
applications of Epic.
UVAHS’s Chief Executive Officer (CEO), Pamela Sutton-Wallace presented to the
University of Virginia Board of Visitors on February 15, 2015. Sutton-Wallace stated to install
the Epic Revenue Cycle applications, the estimated cost would be between $65 and $85 million
(Rectors and Board of Visitors of University of Virginia, 2015). Of note, Sutton-Wallace is the
former senior vice president for hospital operations at Duke University Hospital where Epic’s
full suite of applications was installed for $300 million (Lewis, 2012).
In August 2015, UVAHS began the project to implement Epic's financial system. This
project is called Epic Phase 2, and the project team does not report to the same management team
as the Epic Phase 1 team. The major goals for Epic Phase 2 implementation is to align with the
health system’s Be Safe program, create patient friendly scheduling and provide a patient
friendly bill. The go-live is scheduled for July 1, 2017.
Prior to the project’s official kick off, analyst and managers where recruited to fill 150
positions. Each application team within the revenue cycle has several analyst and each team has
UVA HEALTH SYSTEM 4
a team lead and a manager. The team leads major function is to direct the workload and
complete a smaller amount of the application build. Team leads spend an average of 25 hours a
week in meetings, and are not salaried employees so they are not allowed to work more than 40
hours a week. The rest of the team is made up of former operational member and new hires who
have past Epic experience. Team members who do not have Epic certifications are required to
complete the Epic Certification process which is a two month process and requires passing an
examination. Team members who are working on their certification are required to focus strictly
on this process. The certification exam is limited to three attempts and as part of the
employment contract, if the team member does not pass on the third attempt, they will no longer
work on the project. The various teams have lost several analyst due to not passing the exam on
the third attempt and this has meant another round of recruiting.
As the project officially kicks off, many decision are required to be made that involve
operations to adopt and validate. One of which is whether or not to use Epic’s recommended
Single Billing Office (SBO) approach. SBO integrates physician and hospital billing into one
statement, and UVAHS now calls SBO Patient Friendly Billing (PFB) since focuses on a goal for
the project. In January 2016, UVAHS and University Physicians Group (UPG), the professional
billing, make the joint decision to move forward with PFB as a measure to have patient friendly
billing and increase patient satisfaction. This decision comes three months behind schedule.
After the PFB decision is made, UPG and UVAHS have other incremental decision such as legal
parameters for late payment of bills and collection of bills that must be decided upon jointly.
The Epic Phase 1 and Phase 2 managers have different leadership styles. The phase 1
managers prefer to control and assign work to their team. The managers on Phase 2 allow their
teams to prioritize their work and the manager only intervene when help is needed. Epic Phase 1
UVA HEALTH SYSTEM 5
and Phase 2 teams must work together since the system is being integrated. The phase 1 team is
responsible for maintaining the current procedure records for the live system. All new procedure
records must be built as part of the revenue cycle integration. These new procedure records will
allow hospital charges to generate. This means the phase 1 team is heavily involved in the phase
2 project.
Unfortunately, decisions surrounding PFB have not come easily since both UVAHS and
UPG will have to shift how business is done. Decision on lockbox payments, the collections
process and how patient self-pay balances will be applied are still outstanding. The project
sponsors felt the slow decision process has put the project at risk and have asked Epic to
determine the cost of undoing the build already completed for PFB, and the cost to split out the
billing office. The sponsors presented this information to the Chief Financial Officer, Larry
Fitzgerald on Friday, June, 10, 2016. The same day, before the close of business, the
Administrator of Epic Phase 2 sent the team the following email:
Many of you may have been aware of the wavering by our operational partners on
whether to go SBO [PFB] or not. A meeting was held early today to discuss. This
email is to confirm that the senior leaders have decided to stay the course and do SBO
[PFB]. We will begin working on the mitigation plan for our late decisions so we can dig
out of this hole (Parkin, 2016).
UVA HEALTH SYSTEM 6
Part 2
Definition of the Project
Electronic records are one of the most recently developed forms when it comes to
recording patients’ documentation (Brooks & Grotz, 2010). That is why the UVAHS needs to
shift away from legacy systems. This consulting proposal is taking place to make sure that
everything is looked at in the right mindset, so the Phase 1 and Phase 2 Epic product will align
with the goals set forth. In Epic Systems in Phase 1 clinical setting documentation was made
easier, and patients are ensured of privacy. The focus is patient centered, and Epic allows
UVAHS to provide for patient safety as well as an integrated system. The health systems need to
not make any mistakes, and these Epic Systems will help prevent this.. Epic Phase 1 deals with
all of the patients’ documentation, where Epic Phase 2 is all about having a more friendly
approach to make sure the safety of the client, and insure the financial stability the system will
provide. These two phases have to work together in order for the Epic Systems to be a success.
This is not an easy task to do, but with a workforce that is efficient the job will get done. This
means that every employee needs to be trained to the best they can be to make sure they are up
for this type of work, and make sure everyone is up to date with all the technology that goes
along with the Epic Systems.
Diagnosis of Current Situation
When it comes to a system such as the Epic Systems, efficiency should be at the top of
the list. The more efficient the job, employees, and system is the more successful it should be. To
make sure this is a successful implementation, the UVAHS needs to know that there will be
bumps in the road. By planning for risk at all phases of the project, the project will move more
smoothly. This way when parts of the process do not work, everyone can be ready to fix the
UVA HEALTH SYSTEM 7
situations at hand. When it comes to Epic Phase 1 and Epic Phase 2, both teams will need to
work together to get the job done. The current organizational structure has both teams working
with different goals which set different priorities for each team. Another difficult situation is the
cost to training people to work with the Epic systems is pricey, and many people do not pass the
exam on the third try. This means that more people have to be recruited and trained. To work
with the Epic Systems, everyone has to be accredited to be able to work with clients or to
counsel patients (O’Brien, 2006). There needs to be a way to make sure everyone is trained
efficiently, so they can pass the first go round. Also there can be glitches in the computer
program. There needs to be some type of back up to make sure all records can be found if any
glitches do happen.
Epic- Electronic Health Records- Pros/Cons
Electronic health record (HER) systems are the latest strategic improvements that
hospitals around the country are attempting to implement. Consequently, EHR’s have been
promoted to hospitals as tool to streamline patient care, reduce costs and improve patient safety
(Ziabek, Wickus, & Mathiason, 2001). Epic systems in the undisputed leader in EHR’s, and is
positioned to continue their dominance due to legislation that cemented Epic systems, while
making it all but impossible for smaller companies to break into the field with innovated
improvements (Glenn, 2013). Therefore, Epic continues to recruit big name hospitals, like the
UVAHS that continue to spend millions of dollars implementing its expensive system (Glenn,
2013). Consequently, Epic has been described as the most expensive project implemented in the
history of the UVAHS (Strong, 2010). In fact, implementing the system was due to cost the UVA
Health System a total of $122 million over a seven year period (Strong, 2010). No doubt the
UVA HEALTH SYSTEM 8
UVAHS has benefited from its implementation, but critics have continued to complain about it
costs and other liabilities.
In fact, many healthcare executives are starting to question if Epic health systems are
worth the cost of implementation (Moukheiber, 2012). Moreover, some critics contend that
Epic’s market dominance could have disastrous effects on healthcare information technology as
well as patient care (Glenn, 2013). In fact, many hospitals including the UVA Health System are
beginning to suffer financially due to passage of the HITECH Act, because hospitals are faced
with the increased spending due to Obama Care and decreased Medicare reimbursement
(Moukheiber, 2012). Moreover, with 40% of the United States population health records stored
on Epic; the company is poised to either improve its market share or limit the technological
advancements in the field of electronic health records (Glenn, 2013).
Epic is the company that makes the software that physicians and hospitals use to track the
medical records of its customers (Boulton, 2016). Here is a comprehensive look at what critics
like and dislike about Epic electronic health records software. For instance, many hospital
executives are reluctant to commit to EHR’s because they are expensive to implement due to
startup and maintenance costs (Silow-Carroll, Edwards, & Rodin, 2012). However, others
contend that with the passage of the Health Information Technology for Economic and Clinical
Health (HITECH) Act that authorize incentive payments from the Medicaid and Medicare
programs makes EHR’s more affordable (Silow-Carroll et al., 2012). In addition, some hospitals
report that EHR’s save lives by preventing drug interactions, and other errors due to physician
error in ordering, filling, and administering drugs (Silow-Carroll et al., 2012). However, others
contend that Epic’s EHR’s are difficult to use, because entering information is time consuming
and detracts doctors from patient care responsibilities (Boulton, 2016). However, nurses and
UVA HEALTH SYSTEM 9
other healthcare professionals proclaim that Epic system make their job more efficient because
they do not have to search for charts or solicit doctors for written orders (O’Brien, 2006).
In addition, one of the main complaints of Epic systems is that it’s a closed system that
does not with other EHR systems (Glenn, 2013). Critics contend that Epic’s closed system could
possibly stifle innovation due to its market dominance (Glenn, 2013). Interoperability should be
the goal of Epic systems, because the ability to interface with other systems is paramount to
patient care and safety (Woodward, 2014). Lastly, some physicians have been reluctant to use
EHR’s which could be detrimental to the bottom line of hospitals due to incentives programs
built written into HITECH Act (Cleveland, 2015).
All in all the research reveals that Epic systems are serviceable but there is work to be
done due to usability and interoperability problems (Cleveland, 2015). However, efficiencies in
chart review, note transcription, billing, medical clerk ordering, and patient scheduling were
greatly improved (Silow-Carroll et al., 2012).
Recommendations
It is recommended that the UVAHS create a training program to equip their staff with the
knowledge and skills of the new program they will need in order to have the ability to navigate it
correctly. As each employee is well rounded in their knowledge of the new system they will be
well prepared for any potential issues that may arise as the new system is set in motion. As there
are two different phases to implementing these systems it will be important the staff is well
informed and they know what to expect. There will need to be weekly training sessions set aside
for all staff to familiarize them with the new systems before they are implemented. Due to the
intensity of the test individuals must take and the passing success rate there will need to be some
sort of incentive to motive staff. It is imperative that enough staff are trained and accredited to be
UVA HEALTH SYSTEM 10
able to operate the new systems. It will also be important that in the beginning stages of using the
system staff keep additional documentation in the occurrence of the system failing or misplacing
patient records. Th UVAHS’s leadership will be the driving force behind the success of
incorporating these new systems into the everyday routine. They will need to communicate
clearly to their staff daily in order to keep everyone on the same page in regards to the
implementation process.
The cost itself of implementing such a large system is a major factor in the entire process.
A recent study conducted by KPMG advises that the funding for these types of projects is a
continuing concern that remains throughout the remainder of the implementation process and
beyond (Lewis, 2012). However, the cost to implement these systems will ultimately help
advance documentation and keep much more accurate patient records.
Implementation
Successfully implementing a new workflow for over 1,000 employees UVH must have
its strongest leaders in each department who can drive change. To successfully manage change,
organizational leaders must strategically design, execute, and communicate their change strategy
with the same focus and intent that they spend conceiving of the change (Wilson, 2014). If they
don't invest in this effort and carefully coordinate change implementation, they run the risk that
the planned change will fail (Wilson, 2014). The leaders must hold its staff accountable by
promoting the use of the new system by using meetings, newsletters, and electronic bulletin
alerts to communicate the benefits of adapting to the new system and should be rewarded for
cooperating with the new changes.
Effectively implementing changes at the hospital must be set by setting realistic
expectations. Establishing a system of goals is a valuable tool that will enable managers to
UVA HEALTH SYSTEM 11
manage themselves and others in pursuit of larger organizational goals (Merritt & Berger, 1998).
In addition, organizations that implement goal setting reap greater profits than organizations that
do not (Merritt, & Berger, 1998). Leaders must understand that the new transition to learning the
new system is not a one-time task but an ongoing process of updates and improvements.
Conclusion
Having a modern healthcare establishment is critical for our technologically advanced
country. Yet, healthcare records are extremely behind in technology compared to various
organizations in the U.S. (Levey, 2009). The healthcare field is changing every day and it is time
to revolutionize the way records are kept and used to make better decisions. Electronic Medical
Records improve the way records are kept and reviewed and can make an extreme difference in
the treatment of a patient (Brooks, & Grotz, 2010).
Moving forward UVH will depend on strong leadership, involvement of all clinical staff
to demonstrate that the new system is a high priority, report to mandatory training, make sure to
stick to strict budgets and adhere to scheduled timelines. This will allow impatient and
outpatient care to have accurate faster communication along with improved patient care because
EHR systems can provide safer, more effective care and help monitor, improve and report
necessary health care data and the quality of each visit. The implementations of the new record
keeping system need to be perfectly orchestrated to prevent admitting physicians from
redirecting admissions to the competing hospital. Ultimately, the goal is to improve the quality
care of patients. Employees may find that the Epic system makes their jobs more efficient and
nurses and other healthcare professionals are not searching for charts, calling for results, or
begging physicians for a written order. Everything they need is in the system, and it is all
UVA HEALTH SYSTEM 12
paperless (O'Brien, 2006). Electronic medical record implementation is complex, but the benefits
of organization and improved healthcare outweigh the minor setbacks (Brooks, & Grotz, 2010).
UVA HEALTH SYSTEM 13
References
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