Update on the JHM Strategic Plan: Performance

To the Johns Hopkins Medicine community

Dear Colleagues,

For Johns Hopkins Medicine to continue carrying out our three-part mission in research, education and patient care, we must ensure we are meeting our financial goals. A healthy bottom line means we have resources to invest in finding cures, providing top-notch care and training tomorrow's leaders. To maintain fiscal stability—particularly in today's tough economic climate in health care—we must set up smart processes, efficient systems and financial controls. This month's Strategic Plan update is focused on our goals surrounding performance and the important steps we are taking to "create sustainable financial success and implement continuous performance improvement."

We have made significant progress toward accomplishing our performance goals in just the first year of the plan's implementation. So far, we have achieved the following:

• We saved Johns Hopkins Medicine $10 million through the Supply Chain Initiative. By agreeing on the best supplies and materials, standardizing what we buy and use system-wide, and eliminating waste in products and services, this project is anticipated to yield much more savings in the years to come.
• We implemented a hospitalist program across Johns Hopkins Bayview Medical Center, Howard County General Hospital and Suburban Hospital. Hospitalists are physicians who specialize in caring for patients in the hospital. The hospitalist program ensures the highest-quality care plans and protocols by examining outcomes, reducing costs and disseminating findings.
• We promoted and implemented best practices across the enterprise that reduced the length of patients' hospital stays while maintaining quality. The Johns Hopkins Hospital implemented the Enhanced Recovery After Surgery program in colorectal surgery, which resulted in shorter hospital stays and fewer readmissions. Other departments will have the opportunity to test similar programs.

Financial performance has always been a high priority, but it takes on increased urgency with the new policies dictating how Maryland hospitals will be reimbursed. Hospital rates for all payers in Maryland are set by the Health Services Cost Review Commission—a system made possible by an agreement with the federal government known as the Medicare waiver. A recent overhaul of this statewide payment system places much greater emphasis on efficiency, quality and population health by setting a global budget for hospital spending. The shift in focus from volume to value will require us to think very differently about where and how we treat.

How You Can Help
Here are a few things you can do to support the performance strategic priority:

• Carry out your job responsibilities in the most efficient way.
• Identify, share and adopt opportunities for efficiency and cost savings in partnership with your colleagues and supervisor.
• Go to a Johns Hopkins physician or location when you or your family members need health care.
• Use the Johns Hopkins pharmacies; employees receive a discount depending on the type of prescription.

Again, we want to thank you for all you do to improve the well-being of our patients and to ensure the continued financial health of our institution. We are always pleased to hear from you. Share your thoughts and ideas for cost savings by emailing them to strategicplan@jhmi.edu. 

Sincerely,

Paul B. Rothman, M.D.
Dean of the Medical Faculty
CEO, Johns Hopkins Medicine

Ronald R. Peterson
President, The Johns Hopkins Hospital and Health System
EVP, Johns Hopkins Medicine