Advanced Medical
Devices, Inc.
Advanced
Decision
Modeling, LLC
OPTIMIZED STRATEGIC AND OPERATIONAL
DECISION MAKING
© 2012 Advanced Decision Modeling LLC. All Rights Reserved.
CONFIDENTIAL, TRADE SECRETS OF ADVANCED DECISION MODELING, LLC
INTRODUCTION
THE ADVANCED DECISION MODELING SYSTEM
ADM MODELS ENHANCE STRATEGIC DECISION MAKING:

Hospitals, Health Systems and Academic Medical Centers

Private Medical Practices

Clinical Research Centers

Technology Transfer Centers

Life Science Private Equity Funds
(VC and LBO)
THE ADVANCED DECISION MODELING SYSTEM
HEALTH CARE AND LIFE SCIENCE DECISION MAKERS NEED HELP

Hospitals, Health Systems, Academic Medical Centers and Private Practice
Groups need help making rationale decisions:








Evaluating provider performance and quality
Setting effective provider compensation paradigms
Recruiting primary care and specialist physicians and groups
Performing practice valuations and acquisitions
Developing and managing Accountable Care Organizations (ACO),
Pay for Performance (P4P) protocols
Making effective resource allocation and HR decisions
Managing the business aspects of medical practice
Physicians and Patients need help making rationale decisions:




Treatment selection
Hospital and provider selection
Health insurance product selection
Using the evidence based literature in medical practice
CURRENT APPLICATIONS
HEALTH SYSTEM AND PRACTICE MANAGEMENT

Physician Productivity Assessment

Physician Performance Improvement and Quality Measurement

Provider Compensation Decisions and Negotiation

Provider Recruitment Planning

Practice Valuation and Acquisition Analysis

Resource Allocation Decisions
CHALLENGE

Health care decisions are complex

Decision makers must understand and synthesize:



Sophisticated and oftentimes ambiguous internal and
external information
Preferences, concerns and experience on key decision
criteria and objectives
The complexity of the process is magnified by the need
to make tradeoffs among competing objectives
ADVANCED DECISION MODELING, LLC MODELS



Built on the Expert Choice™ Platform
(Expert Choice, Inc. Arlington, Virginia)
Provides the optimal system for strategic decision making
in the health care delivery spaces
Based on the Analytical Hierarchy Process (AHP)
mathematical method developed at the Wharton School of
Business for use in strategic decision making
STRATEGIC DECISION MAKING
EVERY DAY EXAMPLES OF THE NEED FOR
PROCESS IMPROVEMENT

Balancing your checkbook

Managing your investments

Buying a house

Process Improvement tools in everyday life:


Quicken
Microsoft Money
GOAL


Synthesize:

Factual Data

Qualitative Judgments and Intangible Factors
Produce efficient, rational decisions that
tolerate uncertainty and minimize bias
MODEL STRUCTURE




The models are constructed by defining the goal and structuring a
non-linear
The decision is de-composed into objectives and
sub-objectives
Each level of the model reflects a redefinition of problem elements
with increasing specificity
Decisions are reduced to component elements that are readily
organized and analyzed
AHP MODEL STRUCTURE
Goal
BUY A HOUSE
Objectives
(Multiple Levels)
PRICE
LOCATION
TYPE
HOUSE 1
Data Measurement
&
Synthesis &
Resource Alignment
SCHOOLS
HOUSE 2
Alternatives
BED RMS
HOUSE 3
BATHS
MODEL STRUCTURE

The models lead the user through a series of judgments on the objectives
and sub-objectives

The judgment process is generally based on the relative importance or
preference that the user ascribes to objectives and sub-objectives

Judgments are made utilizing the pairwise comparison method whereby
individual decision factors are compared as isolated elements related to a
common parent

RATIO SCALE ANALYSIS

Judgments can be made verbally, numerically or graphically

Expert Choice derives Ratio Scale Priorities by calculating the principle right
eigenvector of the reciprocal matrix of pairwise judgments

From multiple pairwise comparisons, the user’s experience and intuition are
synthesized with objective data to yield effective strategic decisions
MODEL STRUCTURE

Graphical sensitivity analysis enables the user to adjust priorities to see the

Inconsistency ratio analysis enables the user to test the mathematical
effect of changes in judgments on the overall ranking of decision
alternatives
accuracy of judgments within the model to identify and correct:




Clerical errors in entering judgments
Lack of concentration
Inappropriate use of extremes
Resource alignment allows the user to optimize resource allocation,
organizational performance and capital budgeting strategies
Advanced Medical
Devices, Inc.
Advanced
Decision
Modeling, LLC
PLATFORM
DEMONSTRATION
ORTHOPEDIC SURGERY PROTOTYPE
MODEL
PHYSICIAN PERFORMANCE ASSESSMENT
AND RESOURCE ALLOCATION
DEMONSTRATION
(Click to view)
END