Leading health system shares their proven process for new technology adoption

Every decision is made with the patient in mind at The Cleveland Clinic. This holds especially true when it comes to adopting new technologies. With the rapid development of medical devices, robotics and artificial intelligence, top organizations have found it imperative to establish a comprehensive approach for new product consideration.

Making sure the best products are sourced at the best price results in higher quality and better outcomes while lowering the cost to serve. That is where true value in healthcare is achieved. (See Figure 1.)

Figure 1. Value Equation

Technology adoption - Value Equation

Graphic Used with permission from John Pracyk, MD. 2008.

Key points

  • Embrace innovation
  • Determining the best products for your organization requires a strategic process
  • Always start with the patient in mind
  • A true value equation includes both clinical outcomes and cost to serve

Components of a structured evaluation process

The Cleveland Clinic’s structured process for evaluating new products requires significant physician involvement and a thorough review. Following a strategic process allows the organization to both embrace innovation and increase efficiency.

This process has evolved from a less formal approach to a more standardized system that prioritizes clinical value and cost effectiveness through a balanced committee of decision-makers. Below are some of the critical success factors embedded into their process that drive value for this industry-leading organization.

Understanding clinical value and comprehensive cost

The Clinic prioritizes patient care while maintaining a balance between clinical value and cost-effectiveness. Understanding the current procedure costs, ensuring transparency and gaining wider visibility around the full cost of products are all important components of the process. Every element that impacts procedural value needs to be reviewed and included as products are evaluated.

Empowering the right stakeholders

The new product committee includes diverse stakeholders such as physician and administrative leaders, and supply chain experts to facilitate a balanced perspective. To ensure a comprehensive analysis, other participants often include members from clinical programs, finance, revenue cycle, contracting, clinical engineering and suppliers.

“The catalyst for the group was initially to pursue standardization. But there will always be a desire to use products outside of that and hence the committee was needed,” explained David Gurd, Head of Pediatric Spinal Deformity Surgery, Orthopedic Medical Director for Supply Chain Management and Chair for the New Product Committee. “The composition of our committee enables optimal results, with everyone’s perspectives represented.”

As the process became more efficient, so did the workload. The addition of dedicated personnel for managing new product requests has accelerated the speed and effectiveness of the process. The committee now includes clinical staff, including a chair, a service line leader, the service line specific supply chain medical director and surgical operations. Depending on the initiative, the team may also include analysts, sourcing and contracting personnel and specialized service line leadership based on the product under consideration.

Engaging physician sponsorship and consistent evaluations

Each new product request must be sponsored by a physician who justifies the need, providing clinical support for the adoption. Any physician can bring forward a new technology to the committee; however, only employed physicians are permitted to vote on approval or denial of new products.

Monthly meetings and real-time evaluations improve visibility and efficiency for the team. These components of the adoption process ensure timely and effective decision-making with the established core criteria resulting in consistent evaluation. While meetings were initially in-person, the process has evolved to a largely virtual one, improving efficiency.

“The physician sponsor has to submit a new product through a portal,” explained Dr. Gurd. “They come to a committee meeting with a presentation and state their case to the group. This ensures there is full physician support from the sponsor and streamlines the quantity of requests to the ones they are most committed to.”

Special emphasis was placed on alignment between supply chain, physicians and executive administration. A clear and unified message of process compliance was communicated with the new product committee.

Another critical element to consider when evaluating new technology is reimbursement and coverage of new devices. "Sometimes there seems to be a disconnect in communication between the suppliers and the physicians,” said Dr. Gurd. “These new procedures need device prior authorization. CPTs may be covered but the devices may not; whether it's in hospital or ASCs."

Conclusion

Organizations looking to establish their own process can assess their supply chain and sourcing process maturity to help determine their best path forward; and then be prepared to adapt and evolve. Even with a firmly established and experienced process, change will still occur. A thorough and careful assessment of current systems and structures, while understanding the full organizational impact should guide your strategy.

To hear more from Dr. Gurd and the new product team, use this form to request access to the full Excelerate on demand webinar.