Efficiency

Information management

Life Healthcare has invested significantly in the latest information technology and systems to enable analysis of complex utilisation data, particularly in view of our alternative reimbursement models (ARMs). In a market place driven by technology, we view information management as a key aspect of sustainability and operational efficiency.

Project Impilo

Project Impilo is a major, phased development of an updated hospital information system for our group, and is replacing the iMeds system. The project comprises five modules, namely patient admissions, case management, billing, credit management and infection control. It is expected that the final module will be implemented by 2013.

Impilo will equip our hospitals with patient centric information management capability, and will enhance the convergence and presentation of data from various providers in the healthcare system. We are already deriving benefits from this system.

The patient admissions module was successfully implemented in all Life Healthcare hospitals during 2010. This system enables a quicker and more efficient admissions process for the benefit of patients, doctors and staff. It offers:

The development of the case management module is complete and will provide hospital case managers with an effective tool offering benefits including:

By December 2010 the case management module will have been piloted at two of our hospitals and the roll-out started for the remaining hospitals, with completion expected in early 2011.

Business efficiency drives

Management and staff are committed to improving business efficiencies and reducing costs without compromising our quality of care.

Business efficiencies, which enabled innovative pricing and marketing strategies, have also contributed to our growth in patient numbers. We changed our business model to offer a variety of preferred provider network products, in order to enhance affordability and increase access to a broader section of the population.

Meticulous attention to working in the most effective and efficient manner has focused on administrative, operational and broader efficiencies across information management, financial process restructuring, operating theatre management, appropriate medication, drug regimens and usage, stock classification, formulary management, staffing models, and the judicious management of overheads and assets.

At Life Esidimeni, Kabusha – a quality and facility improvement project – continued throughout the year. Isidima, an outcomes measurement and operational clinical risk management system, was presented to the Gauteng Department of Health and was well received. In 2011, this system, covering detailed admission, rehabilitation goal planning, discharge planning and clinical risk management processes relevant to mental health rehabilitation interventions, will be extended throughout our long term mental health facilities in Gauteng, the Eastern Cape and Mpumalanga.

Alternative reimbursement model (ARM)

Payments for Life Healthcare’s services are primarily from private medical insurers and tariffs are agreed with them on an annual basis. Life Healthcare’s investment in information systems enables analysis of complex utilisation data particularly in respect of the pricing of our services. We have introduced an ARM model which commits the Group to managing and containing costs, and passing on a portion of the savings from such cost containment to the medical schemes. ADSs a result of our product offering the Group has a preferred network status with many private medical insurers. The preferred network products we offer are now firmly entrenched and we expect this to grow in the future.

Cost of sales projects

Cost of sales is an integral part of our business efficiency drive. To maximise opportunities for product cost management, a multi-functional project team was established in 2009. The team’s strategy has ensured the alignment of Life Healthcare business units to commercial business goals. Effective product management is vital in order to sustain any healthcare business in the current economic environment.

Our doctors’ commitment to the project has played a critical role in ensuring the Group’s ability to manage product conversion. As a result, Life Healthcare has improved the differential between revenue and cost per PPD, which has impacted positively on our contribution margin. The Group’s commitment to sustainable healthcare has resulted in a growth in our preferred network status with private medical insurers.

Detailed analysis enables management to benchmark against other similar hospitals, disciplines, procedures and doctors in the Group.

Additional projects

To enhance efficiencies, we have implemented a management tool that assists in work scheduling, work patterns and variable pay. This has improved governance and reduced administration by improving accuracy and rigour in managing employees’ leave and absenteeism, entrenching pay rules and practices, and automating nursing agency billing.