Breaking Silos to unleash innovation

Healthcare innovation strategy has become a critical focus for hospitals and health systems seeking to improve patient care while navigating financial pressures. At University Hospitals in Cleveland, Ohio, Chief Strategy, Innovation and Marketing Officer David Sylvan is leading efforts to integrate innovation with overall business strategy. His unique background in finance and venture capital offers valuable insights for healthcare leaders looking to drive meaningful change.

The Evolution of Healthcare Innovation Strategy

Historically, many health systems approached innovation as a siloed function, separate from core business strategy. However, this approach is no longer sustainable in today's challenging healthcare environment. As Sylvan explains, "The error that many of us made previously was thinking about innovation in its own bucket, thinking about strategy in its own bucket, and occasionally the two intersected or bisected."

Today, leading organizations like University Hospitals are working to ensure alignment between innovation, strategy, and care delivery models. This integrated approach is driven by several factors:

• Financial pressures requiring greater efficiency and value creation
• The imperative to improve patient outcomes and experience
• The need to optimize capital deployment and resource allocation

By aligning innovation and strategy, health systems can avoid duplicative efforts and ensure initiatives support overarching organizational goals. As Sylvan notes, "No one has the bandwidth - either intellectual or mind share, resourcing or capital - to run the risk of not being aligned across all of these spectrums."

Challenges in Healthcare Technology Integration

While new technologies offer immense potential to transform care delivery, many health systems struggle with implementation and adoption. Sylvan highlights several common pitfalls:

• Relying on technology alone to drive change, without addressing underlying processes and behaviors
• Failing to gain buy-in from end users during selection and implementation
• Disrupting clinical workflows without a clear value proposition

To overcome these challenges, Sylvan advocates for a user-centered approach: "We spend a lot of time relentlessly understanding problems...through engagement. Once we understand your problems - clinician or administrator - we can then reverse engineer where there might be potential solutions."

This problem-first methodology helps ensure new technologies address real pain points and deliver tangible value. It also increases the likelihood of adoption by involving end users throughout the process.

Data-Driven Healthcare Strategy and Marketing

A key element of University Hospitals' approach is integrating strategy, innovation, and marketing through a common foundation of data and insights. As Sylvan explains, "What we've chosen to do is find the commonality between strategy, innovation, and marketing - and that's data and insights."

This data-driven approach allows for:

• More precise targeting of marketing efforts
• Better understanding of patient needs and preferences
• Identification of opportunities to optimize care delivery and resource allocation

By breaking down silos between these functions, University Hospitals can ensure marketing efforts align with strategic priorities and leverage innovative capabilities . This integrated model represents a shift from traditional healthcare marketing focused primarily on brand awareness and patient acquisition.

Strategic Partnerships and Healthcare Industry Collaboration

Another key aspect of University Hospitals' innovation strategy is forging strategic partnerships, both within and outside of healthcare. Sylvan emphasizes the value of diverse perspectives: "We don't underestimate anyone. Yes, healthcare is very complex and complicated, but so too are other industries, and knowledge is fungible."

Some examples of University Hospitals' collaborative approach include:

• Joint ventures with other health systems to expand capabilities and reach
• Partnerships with technology companies for co-design and development
• A recent Space Act agreement with NASA to explore healthcare applications of space technology

These partnerships allow University Hospitals to leverage external expertise and resources to accelerate innovation. They also provide opportunities to commercialize internally developed technologies and intellectual property.

Healthcare Venture Capital and Commercialization

University Hospitals has established a dedicated venture capital and commercialization arm, University Hospitals Ventures. This platform serves multiple strategic purposes:

• Identifying and investing in promising healthcare startups
• Commercializing internally developed intellectual property
• Facilitating proof-of-concept testing and clinical trials for new technologies

Sylvan describes the venture approach: "We look at hundreds of early-stage companies a year... We start with the problems, we find potential technologies to bump up against those, and then we effectuate the proof of concepts or the pilots or the clinical trials to determine if, in fact, we can get to a positive outcome."

This model allows University Hospitals to balance financial returns with solving real healthcare problems. It also provides a pipeline of innovative solutions that can be rapidly deployed across the health system.

Patient-Centered Innovation and Leadership Transformation

While driving innovation, University Hospitals remains focused on its core mission of patient care. Sylvan stresses the importance of maintaining this "true north" orientation: "Once you have a mantra around mission and the purpose that you're here to serve and solve, and you make sure you inculcate the institution with that ethos, you attract like-minded folks who have this desire to be part of a mission focus."

This patient-centered approach extends to leadership development. Sylvan advocates for diverse perspectives in healthcare leadership, including individuals from outside the industry. He believes this diversity of thought and experience can help overcome the "group think" that often stifles innovation in healthcare.

Key elements of this leadership transformation include:

• Cultivating a growth mindset and willingness to learn
• Embracing vulnerability and authenticity
• Balancing traditional healthcare expertise with fresh perspectives

The Future of Healthcare Innovation Strategy

As healthcare continues to evolve, innovation strategy will play an increasingly vital role in organizational success. Based on University Hospitals' experience, several key principles emerge for healthcare leaders:

• Integrate innovation with overall business strategy and operations
• Adopt a problem-first approach to technology selection and implementation
• Leverage data and insights across strategy, innovation, and marketing functions
• Pursue diverse partnerships to access new capabilities and perspectives
• Establish mechanisms to identify, invest in, and commercialize promising innovations
• Maintain a patient-centered focus while driving organizational change

By embracing these principles, health systems can position themselves to thrive in an increasingly complex and competitive healthcare landscape. As Sylvan concludes, "I think what motivates me to be highly engaged and busy is I learn something from someone every single day. When that stops, it's probably time to think about doing something else, but clearly, I'm nowhere near the end of that road."

FAQ (Frequently Asked Questions)

How can hospitals overcome resistance to working with non-healthcare organizations?

Hospitals can overcome this resistance by focusing on common ground and shared objectives. It's important to recognize that while healthcare is complex, other industries also have valuable expertise to offer. By bringing clinical knowledge to the table while allowing partners to contribute their specialized skills, hospitals can create mutually beneficial collaborations that drive innovation.

What role does marketing play in healthcare innovation strategy?

Marketing plays a crucial role in healthcare innovation strategy by providing valuable data and insights on patient needs and preferences. By integrating marketing with strategy and innovation functions, health systems can ensure their efforts are aligned with market demands and effectively communicated to stakeholders. Marketing also helps amplify the impact of successful innovations across the organization.

How can healthcare leaders balance innovation with maintaining quality patient care?

Healthcare leaders can balance innovation and quality patient care by maintaining a strong focus on their organization's core mission and values. It's important to evaluate all innovation initiatives through the lens of patient impact and to involve clinicians and patients in the design and implementation process. By aligning innovation efforts with patient-centered goals, health systems can drive meaningful improvements in care quality and outcomes.

What are the key elements of a successful healthcare venture capital strategy?

A successful healthcare venture capital strategy should start with a clear understanding of organizational problems and priorities. Key elements include a systematic process for evaluating potential investments, mechanisms for piloting and validating new technologies, and a balance between financial returns and solving real healthcare challenges. It's also important to leverage internal clinical expertise in assessing and implementing new innovations.

How can health systems attract and retain innovative talent?

Health systems can attract innovative talent by cultivating a culture that values diverse perspectives and embraces continuous learning. This may involve looking beyond traditional healthcare backgrounds to bring in expertise from other industries. Providing opportunities for meaningful impact, professional growth, and collaboration with external partners can help retain top talent. It's also important to demonstrate a genuine commitment to innovation at the leadership level.