Yale-New Haven Health's Four-Point Value Strategy

Christopher Cheney, August 7, 2017

The health system's approach to delivering value to patients realizing cost-efficiency gains from consolidation, cost-cutting, and the deployment of a new performance-measurement methodology.

Stephen Allegretto
Stephen Allegretto

The leadership team at Yale-New Haven Health System, which operates four hospital campuses in Connecticut, is striving to make value a core cultural element of the organization.

At the first annual National Symposium on Value Innovation at Yale, last year, YNHHS President and CEO Marna Borgstrom, MPH, said the health system's leadership is committed to generating value for patients as opposed to emphasizing cost-cutting alone.

"It's not about what we can do, or what we need. It's about generating value for our patients," she said. She described the effort as a "quest for unparalleled value."

YNHHS's value-based care strategy has four primary elements.

1. Quality and Patient Safety

On the quality and patient safety side of the value equation, YNHHS has adopted several initiatives over the past five years such as the development of clinical rapid response teams and the deployment of predictive analytics in clinical settings that have contributed to significant gains in patient outcomes.

At YNHHS's St. Raphael Campus, those actions are associated with a 30% mortality rate reduction.

In September 2012, YNHHS acquired the former Hospital of Saint Raphael, a struggling safety-net hospital in New Haven located about a quarter mile from the Yale-New Haven Hospital campus. The deal created a 1,541-bed, dual-campus hospital in the heart of the city.

2. Cost-Efficiency Gains from Consolidation

Largely through consolidation of clinical services and achieving economies of scale linked to the Saint Raphael acquisition, YNHHS was able to reduce annual costs by about $200 million, according to Richard D'Aquila, executive vice president of YNHHS and president of Yale-New Haven Hospital.

Christopher Cheney

Christopher Cheney is the senior finance editor at HealthLeaders Media.

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