Global Experts Converge on Big Data, DRG, Value-Based Healthcare, and Lean Hospital Operations at HIA International Summit
Recently, the Global Hospital Lean Operations Forum and the 2nd HIA Big Data International Summit, co-hosted by Neusoft Wanghai and Sinopharm-Reed Exhibitions, were held in Qingdao, Shandong Province. Leading global healthcare experts, scholars from top Chinese universities and research institutions, hospital operations managers, and industry leaders gathered to engage in in-depth discussions on big data, Diagnosis-Related Groups (DRG), value-based healthcare, and lean hospital operations management under the context of healthcare reform.
The summit comprised one main forum and two parallel forums. Forum speakers delivered presentations on three themes: “Value-Based Healthcare and Lean Operations,” “DRG-Led Lean Transformation,” and “Data-Driven Value-Based Healthcare.”VCBeat has compiled the guests' insightful perspectives.
Prior to the conference, Jin Xiaotao, former Deputy Director of the National Health and Family Planning Commission and President of the Chinese Society for Health Informatics and Medical Big Data, clarified the relationship among lean operations, value-based healthcare, and health and medical big data, stating thatValue-based healthcare is the goal, lean operations are the guarantee, and health big data is the core.The ultimate realization of value-based healthcare also relies on the benefits generated by lean operations and big data in health and medical care.
Du Shuwei, Executive Vice President of the Chinese Society of Pharmaceutical Accounting and Vice President of the Finance and Accounting Branch of the Chinese Health Economics Association, stated, “Whether for healthcare enterprises or medical institutions, only by adhering to lean thinking—creating as much value as possible with minimal resource input, delivering products and services in a timely manner—can they meet the requirements of China’s development.”
“Value-based healthcare is about delivering high-quality medical services.”William A. Haseltine, Chairman of the Organizing Committee of the China-US Health Summit, Professor at Harvard University, and Lifetime Counselor of the New York Academy of Sciences, defined value-based healthcare from three perspectives: safety, quality, and patient satisfaction. He also put forward three recommendations on how to deliver high-quality medical services: healthcare centers must ensure that every patient has the right to access high-quality medical care; management should focus on talent development; and physicians should engage in basic research to improve the standard of medical services.
Liu Jiren, Chairman and CEO of Neusoft Group, delivered a speech from the perspective of the art and engineering of healthcare. Why discuss the art and engineering of medicine? Liu Jiren believes thatWithout the art of medicine, there would be no progress in medical science; without engineering, there would be no sustainable development of the healthcare industry.
“The path from art to engineering requires leveraging new technologies to address the ‘pain points’ of the healthcare industry. The engineering of medicine will be data-driven, use connectivity as a bridge, and apply artificial intelligence for innovative applications, thereby creating value for patients and medical institutions and establishing new models and ecosystems of medical services,” said Liu Jiren. He noted that during this engineering transformation, payers will control expenditures through various means, hospitals will transition from fee-for-service to value-based or outcome-based payment models, and the era when hospitals could generate revenue simply by having patients is coming to an end.
Professor Guo Qiyong, Dean of the Neusoft Wanghai Product and Data Research Institute, delivered a speech titled “Introduction to the 2019 Hospital Operations Analysis Report: Data-Driven Lean Operations and Value-Based Healthcare.” Professor Guo emphasized that,The world faces a contradiction between the foundations of healthcare and economic development, particularly in China, which has a large population.
Changes in healthcare payment methods are akin to a butterfly effect, necessitating adaptations from all stakeholders and institutions involved—ranging from the broader healthcare system and insurance companies to individual physicians, nurses, and patients. The reform of payment models, primarily driven by Diagnosis-Related Groups (DRGs), has propelled transformation within the healthcare system, fostering synergy among hospitals, medical insurance entities, and the government to create value-based healthcare. Meanwhile, Guo Qiyong, Dean of the Neusoft Wanghai Product and Data Research Institute, unveiled the introductory highlights of the “2019 Hospital Operations Analysis Report” at the conference, offering attendees an exclusive preview of its compelling insights.
At this parallel forum, three industry experts engaged in in-depth academic exchange and experience sharing on how to facilitate the standardization of DRG information, achieve refined performance-based cost accounting, and leverage DRG to advance lean operations in modern hospitals.
Shao Xiaojun, a Visiting Researcher at the Health Development Research Center of the National Health Commission and a Visiting Professor at Shanghai University of Medicine & Health Sciences, analyzed the developmental trajectory of Diagnosis-Related Groups (DRG) from an international perspective, providing references for China to draw on advanced foreign experience and implement DRG reforms in the future. Liu Hong, President of Qingdao Haici Medical Group, used specific case studies to analyze the hospital’s precise performance appraisal system supported by informatization, demonstrating thatImplementing Performance Management via Information Technology Platforms Is a Key Approach for Hospitals to Enhance Management StandardsLiu Hong stated, “Information technology support plays a crucial role in the operation of performance appraisal. In terms of IT support, we have consistently adhered to three principles: standardization, data sharing, and security.”
As the final speaker at this parallel forum, Li Jianjun, Chief Accountant of Henan Provincial People’s Hospital, first discussed changes in the current healthcare environment and policies. He then shared insights into the role of Diagnosis-Related Groups (DRG) in hospital financial management, focusing on aspects such as hospital resource operations.
At the second parallel forum, industry experts from China and abroad engaged in in-depth dialogue, exploring the integration of emerging technologies such as big data and artificial intelligence into healthcare and management. They analyzed innovative pathways and models for medical services and provided comprehensive insights into big data-driven value-based healthcare.
Deng Shaoping, President of Sichuan Provincial People’s Hospital, focused on smart healthcare and, drawing from his own practical experience, analyzed the significant role of hospital digital strategies in driving the development of smart healthcare from three perspectives: how to understand it, how to perceive it, and how to accelerate its advancement. Deng Shaoping believes that smart healthcare can deliver benefits in three key areas: reducing costs, assisting in diagnosis, and addressing the shortage and uneven distribution of medical resources.To accelerate the development of smart healthcare, reform and innovation are indispensable, particularly advancements in science and technology as well as talent cultivation.”
Shao Jianbo, President of Wuhan Children’s Hospital, used three examples—AlphaGo, transfer learning, and artificial lungs—to demonstrate the practical capabilities of AI in healthcare. Drawing on his own experience, he also shared insights into the positive role AI plays in supporting clinical decision-making and enhancing standardization in clinical practice.
How to Integrate AI Pathways with DRG? Shao Jianbo Also Provided an Outlook on the Future of DRG, Expressing the Hope That Technology Companies Will Leverage Early Standardized AI Diagnostics to Transform DRG from a Mere Payment System into a Comprehensive Healthcare Service System.
The digitalization of healthcare is the most critical component of digital transformation in the medical industry.Ms. Holly Rimmasch, Chief Clinical Officer at Health Catalyst, a publicly traded U.S. company specializing in healthcare big data, discussed value-based healthcare from a different perspective. Mr. Wu Wenxin, Chief Technology Officer (CTO) of the Industry Solutions Group at Intel China, explored current data services and value-based healthcare delivery from the standpoint of underlying technologies. Mr. Wu summarized, “As business operations shift from process-oriented healthcare to digital healthcare, providing value-driven healthcare services requires careful consideration of which technologies to employ for data processing.”
Su Xiaoqing, President of Pingxiang People’s Hospital in Jiangxi Province, the final speaker, shared his hospital’s experience in establishing a tiered diagnosis and treatment system characterized by initial consultations at primary care facilities, two-way referrals, separate management of acute and chronic conditions, and coordinated care between upper- and lower-level institutions, with diabetes pathway management serving as the linking mechanism. His presentation provided effective practices and methods for enhancing primary healthcare service capacity, facilitating the downward flow of high-quality medical resources, and tangibly improving the standard of basic medical and health services.