C American Journal of Transplantation Wiley Periodicals Inc. Copyright 2012 The American Society of Transplantation and the American Society of Transplant Surgeons doi: 10.1111/j.1600-6143.2012.04189.x Personal Viewpoint Transplant Organizational Structures: Viewpoints From Established Centers M. Abouljouda,b, *, G. Klintmalmc and S. Whitehoused a Henry Ford Transplant Institute, Detroit, MI Division of Transplant and Hepatobiliary Surgery, Henry Ford Hospital, Detroit, MI c Baylor Simmons Regional Transplant Institute, Dallas, TX d Office of Clinical Quality and Safety, Henry Ford Health System, Detroit, MI *Corresponding author: Marwan Abouljoud, maboulj5@hfhs.org b This personal viewpoint report summarizes the responses of a survey targeting established transplant programs with a structured framework, such as center, institute, or department, and stability of leadership to assure valuable experiential observations. The 18-item survey was sent to 20 US institutions that met inclusion criteria. The response rate was 100%. Seventeen institutions had a distinct transplant governance structure. A majority of respondents perceived that their type of transplant structure was associated with enhanced recognition within their institution (85%), improved regulatory compliance (85%), transplant volume growth (75%), improved quality outcomes (75%) and increased funding for transplantrelated research (75%). The prevailing themes in respondents’ remarks were the perceived need for autonomy of the transplant entity, alignment among services and finances and alignment of authority with responsibility. Many respondents suggested that a dialogue be opened about effective transplant infrastructure that overcomes the boundaries of traditional academic department silos. Key words: Institutes, centers service lines, transplant Abbreviations: CEO, Chief Executive Officer; CFO, Chief Financial Officer; COO, Chief Operating Officer. Received 26 October 2011, revised 25 May 2012 and accepted for publication 02 June 2012 35 organ transplant programs at 15 top-performing transplant centers; their selection criteria were based on high volume, high growth, low graft failure and low mortality. The Collaborative’s study served to establish best practices in an effort to increase transplant volumes by 50% over 5 years (2). Common factors for transplant growth were identified as institutional commitment, dedicated transplant teams, patient- and family-centered care, aggressive evidence-based clinical practice and sound finances (2). It is our opinion that the level of institutional commitment toward integrated transplant services accounts for a significant component of the variation seen in transplant organizational structures. We developed a survey for established transplant centers in the United States to assess experiences and perceptions regarding the nature of transplant structures. We summarize the opinions and experiences revealed in the survey responses and express our perspectives on forming integrated transplant structures. Our aim is to provide a springboard for a national dialogue on how to improve operational frameworks of transplant entities that allows for stable functions and sustainable growth. Opinion Survey Summary Using Kaneku and Terasaki’s annual transplant program list (3) and our personal knowledge of the field, we identified institutions with a stable multiorgan transplant structure and presence in the US market for at least 5 years. Stable transplant structure was defined as same physician (medical or surgical) transplant director for at least 5 years and steady or growing volume of transplants. Twenty institutions met these criteria. The 18-item survey included multiple choice and open-ended questions with opportunity for comments (Appendix). The survey was delivered to the 20 transplant R (Palo Alto, CA, USA) in directors using SurveyMonkey October 2010. Responses were blinded. Survey response was 100%, and all questions were answered by every respondent. The following responses correlate with the questions of the survey. Introduction The United States had nearly 250 transplant centers in 2011, although variation continues to exist in transplant organizational structures, volumes and outcomes (1). The Transplant Growth and Management Collaborative studied Transplant structure nomenclature Of the 20 institutions, 9 have transplant centers, 8 transplant institutes, 1 transplant department, 1 transplant service line and 1 transplant center with an organspecific institute. Abouljoud et al. Perceived differences between the center and institute Seven respondents perceived no difference between a transplant center and transplant institute, one said not applicable, one said not sure. Of the nine respondents who perceived a difference, most identified the institute structure as more autonomous: “one corporate/business structure”, “greater level of commitment/scope”, “more financial autonomy and authority”, “independent structure from department of medicine and department of surgery”. The transplant center was perceived as “many corporations coming together”, “collaborative”, “a hospital entity”, “more virtual”, as well as “perceived by the public as a more comprehensive set-up”. Stark Law as issues will vary depending on the employment model and specific contractual arrangements within the institution.) Types of transplants Twenty institutions provided liver and pancreas transplants, 18 provided kidney, 14 heart, 12 lung, 6 small intestine and 6 bone marrow/stem cell transplants. Reporting structure Respondents noted that several types of physicians report to them: abdominal transplant surgeons (common to 90% of respondents), hepatologists (70%), nephrologists (65%), thoracic transplant surgeons (40%), cardiologists (40%), pulmonologists (40%) and other (40%). “Other” was varied and included transplant infectious disease specialists, transplant psychiatrists, transplant intensivists, cardiac surgeons, as well as midlevel providers, pharmacists, researchers and administrative staff. Four respondents noted that their reporting structure was “loose”, “matrix”, or partial. Of reporting structures for the transplant directors, 40% report to the board of trustees/directors, 40% report to CEO/other chief executive, 35% report to the medical school dean and 20% report to the chair of surgery. Several respondents noted that a matrix reporting existed, such as Board of Directors and Dean or CEO and chair of surgery. Perceived benefits attributed to transplant structure Of 18 respondents who listed at least one benefit, types of benefits perceived included “recognized status within the institution”, “unified approach in working with the hospital and medical school”, “better alignment with the hospital administration”, “academic growth”, “one unified reporting structure”, “integrated budgeting”, “effective multidisciplinary care delivery”, “integrated practice information”, “core support groups”, “one-stop shopping”, “better control and management of contracting”, “better research integration”, “more resource allocation” and “better marketing”. One respondent said “maybe” benefits included marketing and enhanced resources. One respondent “cannot see any advantage of the current system since it creates many conflicts of interest among departments/sections”. Perceived key factors to success Institutional leadership support (45% [9/20]) and transplant financial strength (45%) were the two most common factors noted by respondents to be critical in the formation and success of the transplant enterprise. Other factors mentioned included aggressive contracting, strong customer service marketing and outreach, quality improvement, clinical outcomes and research. Challenges to overcome When starting the transplant enterprise and/or continuing today, the more common challenges reported by respondents included overcoming boundaries/“politics” and achieving/maintaining autonomy (55% [11/20]), and financial issues/competition for resources (45%). Other issues mentioned included contracting, marketing, outreach, competition, research and Stark Law. (Fairly complex, in general the Stark Law prohibits physician self-referral of patients to an entity that the same physician has a financial relationship with. In our opinion, each transplant entity ought to engage health law counsel in matters related to Relation of transplant enterprise formation to improvements For survey items on how the formation of the transplant structure related to specific benefits, responses were favorable in all categories: transplant growth (75%), improved quality monitoring/outcomes (75%), improved regulatory compliance (85%), positive impact on transplant research (75%) and increased recognition within the institution (85%). Capital/staffing resources Source(s) for allocation of resources noted by respondents were the transplant entity (80%), hospital (80%), department of surgery (10%), or other (20%), which was noted to include a foundation, university, executive-level committee and/or a mix of these. Governance structure Most (85%) respondents reported having a governance structure for the transplant enterprise, most commonly governance by committee (i.e. board of directors, executive committee, advisory board, institute board, steering committee). Committees comprised institutional executives (CEO, dean, chancellor), department chairs (medicine, surgery), operational and/or financial executives (COO, CFO), as well as transplant directors, transplant program leaders, administrators, etc. Profit-sharing model related to transplant outcome measures Only 30% of respondents reported having a profit-sharing model with the institution and/or transplant outcome measures. A total of 15% explained they did not have a profitsharing model but had some type of financial bonus or incentive system. American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x Transplant Structures Change for improvement When asked what to do differently to improve operations, 40% (8/20) cited their preference for a freestanding or independent, autonomous structure. Control of finances and new positions, alignment of payment and accountabilities and improved allocation of discretionary funds were examples cited. Seven respondents reported that they would do nothing differently. Personal Reflections This opinion survey of 20 established transplant centers presents leaders’ views on their transplant organizational structure. Academic medical centers have been instituting multidisciplinary care primarily using the horizontal clinical integration model in which department structures remain intact (4–7), and few examples of transplant departments exist in the United States. Of our survey respondents, one identified the structure as “a department [that] is a service line [with] all hospital, ancillary and professional revenue and cost under one business plan’ and another identified the structure as a service line. Although institutes and centers were the majority, one transplant center also had an organ-specific transplant institute. Nomenclature alone cannot distinguish horizontal, vertical, or mixed types of structures, and we did not provide definitions for program, department, center, institute, or service line. Nevertheless, that 40% of respondents cited the preference for increased organizational independence/autonomy suggests that complete integration does not exist among all of the established entities surveyed. Clearly, transplant organizational structure remains a topic of interest for discussion and an opportunity for further improvement. We elected to survey only established transplant entities in the United States with at least 5 years of the same physician transplant director as a means to identify obstacles to and benefits from developing and maintaining such entities. Most survey respondents felt that formation of their transplant structure was associated, in their opinion, with improved regulatory compliance (17/20), improved stature within the institution (17/20), growth in transplant volumes (15/20), improved quality monitoring (15/20) and increased research support (15/20). In our own experience, we have found that disease-specific transplant programs do not always benefit equally from a more integrated structure. Perhaps benefit may be a function of alignment and coordination between the transplant entity and divisional/department leaders and certainly their ability to recruit and retain talented staff. Furthermore, the need for additional resources is only part of the challenge in smaller programs that do not command economies of scale. Matching the resource needs with a collaborative engagement of the organization in terms of effective and focused recruitment and accountabilities to outcomes is critical. We believe that it is generally poorly understood that while a transplant program depends on physicians for American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x guidance and management, who in turn report to division and department chiefs, the accountabilities for center outcomes and finance as well as majority of resources relate to the institution/hospital and its leadership. This duality ought to be reconciled for better alignment and greater chances at success. In its most specialized and differentiated state, transplantation falls within the silos of traditional divisions and departments. The clinical and operational imperatives of transplantation have shown that significant coordination and collaboration are necessary and critical to success. In between the single specialty (least integrated) and service line (presumably most integrated) structure lies a spectrum of structures, such as the creation of service integrators (program managers), formation of teams and matrix frameworks (Figure 1) (8). Transplant integration may present a challenge to lead up and down the hierarchy and across silos. Integration in incremental steps has been suggested as a more amenable strategy to institutions (9). The initiation of change in an institution leading to the formation of an integrated transplant structure/entity requires substantial effort and leadership with engagement of all stakeholders. In our opinion, for matrix or horizontal type structures, leadership engagement and relationship building is a continued effort, as the transplant structure elements with its historical benefits may not be evident to newcomers to the organization; such individuals were not involved in the original deliberations and discovery, do not possess institutional memory, and may come with “new” ideas of how things ought to run and potentially dismantle work previously done, leading to serious dysfunctions and adverse outcomes. As one survey respondent stated, “Every time a division chief or chair changes, same problems [occur] all over again with buy-ins”. In our perspective, the issues that specialty division chiefs face with recruitment and affiliations of their transplant staff are not to be underestimated. A heart failure cardiologist may perceive a duality between affiliation with a heart failure program, a transplant program/institute, or both. This matrix may apply to other subspecialists as well. Therefore, collaborations, alignment and integration efforts should take these issues into consideration and not present divisions and specialists with conflicting dualities that cannot be reconciled. As a process for change, Kotter (10) outlined eight steps: establishing a sense of purpose and urgency for needed change, forming a powerful and guiding coalition, creating a vision, communicating the vision, empowering others to act, planning for short-term wins, consolidating improvements and introducing more change and institutionalizing new approaches. Kotter’s report on change management would be a valuable read for any leader in the transplant enterprise where change is a recurring theme. At the core of introducing change is the leadership talent required from physicians and administrators alike. In parallel with Abouljoud et al. Figure 1: Continuum of the organization structure toward service line integration. (Adapted with permission from Ref. 8.) institutional commitment, probably the single most important factor for the successful formation of an integrated medical and administrative transplant center, institute, or service line is a leader who has developed and maintained the respect and trust of all stakeholders. The physician leader must be clinically accomplished to achieve respect from the departments and administration. The process of selecting leaders is sometimes faulty. This has been outlined by Epstein and Bard (11), who studied the process of leader selection in service lines. They stated that directives given to service-line leaders were often misaligned with institutional strategic goals, resulting in the inability to obtain proper resources as well as poor execution. Leaders were frequently entrenched in matrix structures that thwarted their ability to secure resources, manage budgets, hire and promote staff and set enforceable quality and productivity expectations. This resulted in a scenario of responsibility without authority, which makes leaders much less effective (11). Responsibility without authority may explain some crises within transplant programs that have failed after an initial period of success. In our opinion, leaders needed to be granted significant organizational currency to succeed in their roles. In addition, leaders frequently would benefit from formal leadership training. The lack of leadership training has been recognized by the American Society of Transplant Surgeons, which is being addressed with a primer in leadership held yearly in collaboration with the Kellogg School of Management (12). We find the insight shared by survey respondents valuable for further discussion at a national level. “Politics” was a common challenge cited: “we still do not have complete physician buy-in from [the department] of Medicine”; “opposition from departments”; “animosity and lack of trust between medical and surgical leaders”; “silo mentality”. As one respondent shared: “I was surprised with how divisive formation of an Institute can be and how rewarding it can be as well. This effort requires a high level of astute leadership and statesmanship to succeed. It is continuous maintenance. I still believe that transplant is hospital based and chairs of departments need to finally accept this fact”. The academic medical center’s traditional use of the authoritative department structure often presents barriers to the development of integrated multidisciplinary patientfocused care. Specifically, awarding medical, administrative and financial authority to a transplant entity that is not a department or freestanding business unit, in our opinion, appears to threaten other institutional leaders, which may be the greatest challenge for a new organizational model. Nevertheless, such barriers can become steps in the process toward change by understanding an institution’s culture and assimilating top-level leadership in the journey toward change. Engaging departmental leaders in critical decision making and a transparent process may serve to encourage participation from all parties. Transplant medicine by nature is multidisciplinary and will call upon our skills for collaboration, cooperation and continued focus on patient-centered care and program success. Institutional commitment to the formation of a more vertically integrated transplantation service, such as a transplant department, usually requires bold executive/committee decisions for integration. This should be based on clinical excellence and care coordination, service line financial metrics, funding for dedicated transplant personnel and other resources, and active participation of the institution’s executive, financial, clinical, operational and administrative leaders to implement the integrated transplant entity successfully. As one respondent stated: “Challenges now are the same as any department, financial mostly—contracts, competition from other centers, reimbursement decreases, salary American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x Transplant Structures increases, institutional overhead, competing hospital priorities”. This discourse is limited by including only our perspectives and the opinions from leaders of established transplant programs. Affiliations included medical school, group practice and private practice, which may add dynamics not addressed by the survey. There may be confounding variables and simultaneous initiatives leading to success; thus, complete attribution of success to transplant integration efforts may be limited. For many transplant structures currently in operation, we leaders ought to face such challenges with both the responsibility and the authority to affect positive change. Acknowledgments M.A. is supported by the Benson Ford Endowment in Transplantation. Disclosure The manuscript was not prepared in any part by a commercial organization. Conflict of Interest The authors of this manuscript have no conflicts of interest to disclose as described by the American Journal of Transplantation. References 1. Organ Procurement and Transplant Network. Transplant Center Members. Available at: http://optn.transplant.hrsa.gov/members. Accessed May 24, 2012. 2. HRSA Transplant Center Growth and Management Collaborative: Best Practices Evaluation. Final Report. Rockville, MD: Health Resources and Services Administration, Healthcare Systems Bureau, Division of Transplantation. Available at: ftp://ftp.hrsa.gov/organdonor/transplantctrgrowth_and_mangmtco llaborbestpracticesreport.pdf. Accessed May 24, 2012. 3. Kaneku H, Teraski PI. Clinical Transplants. Los Angeles: Terasaki Foundation Laboratory, 2010. 4. Howard RJ, Kaplan B. The time is now: Formation of true transplant centers. Am J Transplant 2008; 8: 2225–2229. 5. Levin SA, Saxton JWF, Johns MME. Developing integrated clinical programs: It’s what academic health centers should do better than anyone. So why don’t they? Acad Med 2008; 83: 59–65. 6. Barrett DJ. The evolving organizational structure of academic health centers: The case of the University of Florida. Acad Med 2008; 83: 804–808. 7. Onaca N, Golstein RM, Levy MF, Klintmalm GB. Baylor Regional Transplant Institute: An update on liver, kidney, and pancreas transplantation. Proc (Bayl Univ Med Cent) 2003; 16: 297–301. 8. Charns MP, Young GJ. Organization design and coordination. In Shortell and Kaluzny’s Healthcare Management: Organization, Design, and Behavior (6th ed.). Clifton Park, NY: Delmar Publishing, 2010, pp. 64–90. American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x 9. Axelrod DA, Lentine K, Salvaggio P, Schnitzler M. The promise and pitfalls of transplant centers. Am J Transplant 2008; 8: 2179–2180. 10. Kotter JP. Leading change: Why transformation efforts fail. HBR 2007; January:1–9. 11. Epstein AL, Bard MA. Selecting physician leaders for clinical service lines: Critical success factors. Acad Med 2008; 83: 226–234. 12. American Society of Transplant Surgeons. ASTS leadership development program. Available at: http://www.asts.org/Meetings/ LeadershipDevProgram.aspx. Accessed May 24, 2012. Appendix Transplant Survey Questions 1. Is your Transplant Program designated as a: • Transplant Center • Transplant Institute • Transplant Department • Other (please describe) 2. Does your Institution consider there is a difference between a Center and an Institute designation? Please describe. 3. The following organs are included in your Transplant entity (check all that apply): • Liver • Kidney • Pancreas • Small Intestine • Heart • Lung • Bone Marrow/Stem Cell 4. List experienced/perceived benefits attributed to your Transplant structure. 5. Please list key factors and/or steps that you feel were/are critical to the formation and success of the transplant enterprise in your Institution. 6. List challenges you had to overcome when starting your Transplant Center/Institute, and/or continue to face now. 7. Did the formation of a Center/Institute support/spur transplant growth at your institution? • Yes • No 8. Did the formation of a Center/Institute improve quality monitoring/outcome? • Yes • No 9. Did the formation of a Transplant Center/Institute improve regulatory compliance? • Yes • No 10. Did the formation of a Transplant Center/Institute have a positive impact on transplant research (funding, trials, and publications)? • Yes • No 11. Did the formation of a Transplant Center have a positive impact on the recognition/standing within the Institution? • Yes • No 12. As Director of your Transplant Center/Institute, do any of the following report to you? Please check all that apply. • Abdominal Transplant Surgeons • Thoracic Transplant Surgeons Abouljoud et al. 13. 14. 15. 16. 17. 18. • Nephrologists • Hepatologists • Cardiologists • Pulmonologists • Other (please specify) As Director of your Transplant Center/Institute, do you report to any of the following? (check all that apply) • Chair of Surgery • Dean of Medical School • Board of Trustees/Directors • Other When resources are required (staffing, capital), would they be allocated from: • Transplant Center/Institute • Department of Surgery • Hospital • Other Do you have a Transplant Center/Institute Governance structure: • Yes • No Do you have a profit sharing model with the Institution from transplant revenue and/or transplant outcome measures? • Yes • No • Other What would you do differently if you could change things for better operations? Additional comments/opinions. Selection of Respondent Comments On “Institute versus Center”: • • • • • • • • • • An institute should be under one corporate/business structure. A center may be many corporations coming together to deliver an integrated product. Although “center” is a warmer, more welcoming name, “institution” connotes a greater level of commitment and expertise, and a broader scope. Institute implies more financial autonomy and authority over the personnel. Institute has its governing structure, while Center is collaborative. However, Transplant Center does have its own budget and administration. At our institution an institute has formal participation from multiple schools (Medicine, Nursing, Public Health, the College). An institute connotes something larger than a center, but no definite definition what that is. Institute is a separate financial entity and has autonomy over departments in recruiting, hiring and firing. Our institute is a partnership between university and hospital. An institute is an independent structure from either the department of surgery or medicine, the structure and infrastructure are directly budgeted by the hospital, and the director reports directly to the Dean/CEO of the health care system. Transplant Center is a hospital entity which is run by the faculty from the medical school. Initially [institute] was seen as a designation of a more comprehensive set up. Today it is more what is the public perception—we are going to change to a Center designation after focus groups of professionals and lay people. • Institution feels Institute is more encompassing and suggests formation of a working unique and that Center is more virtual. On “perceived benefits of structure”: • • • • • • • • • • • • • • • • Shared resources and expertise. Contracting benefits. All hospital, ancillary and professional revenue and cost under one business plan. Expanded healthcare services throughout hospital. Survival strategy for hospital competing with newer community hospitals. Financial marketing/PR/reputation. Increased level of ancillary services within hospital (lab, ICU, OR, billing, EMR, radiology). Unified approach in working with the hospital, med school. It has created better alignment with the hospital administration. Allows point accountability and leadership over all organ transplant systems to share best practices and support across the enterprise. Our center allows each physician to continue to be an academic and clinical member of their respective departments (i.e. Medicine, Surgery, etc.) yet fiscally be supported without retribution by the center and not be a cost burden to their department. Core support groups, such as biostats, informatics, coordinator support, contracting, quality ancillary personnel (social workers, case managers, etc). Academic growth. Effective multidisciplinary care delivery, integrated budgeting, better faculty time management, effective resource allocation from the hospital, better research integration. Separate cost center, with ability to incentivize surgeons, nephrologists, hepatologists, internists, PAs, clinical nurse specialists . . . great team attitude between surgeons and medical specialists since they are part of the same organizational program. Shared interest in marketing and coordinated patient care, since sink or swim together . . . . Have high ratings by surgery residents on service, provide medical teaching for medical fellows that they couldn’t afford otherwise. Made it much easier to negotiate with hospitals for support as a cohesive program. All specialties involved housed in one area with one unified reporting structure. All specialists report to Transplant only. For example, Transplant surgeons report to Chair of Transplant, not Chair of Surgery. All data, both costs and reimbursement analyzed in Department. Also use integrated practice information which tracks all costs and revenue by patient. Therefore capture the true picture of Transplant impact. Protection of program from supporting less productive services; ability to reinvest in transplant program; retaining surgeons. Revenue sharing and autonomy transcending academic structure. Cost-efficient, effective communication with the referring medical community, successful contract negotiation, educational benefits for participants, successful cross organ NIH center grants. American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x Transplant Structures • Marketing (maybe); enhanced institutional resources (maybe). • UNOS and CMS compliance, contracting. • It is a complex system where physicians and surgeons have their academic appointments from their corresponding departments while they are working in the Transplant Center. I cannot see any advantage of the current system since it creates many conflict of interest among departments/sections in regards to revenue share, power struggle, philosophy and culture. • One stop-shopping with multidisciplinary team. • Recognized status within the institution, more than just a division, now on par with a department. • More resource allocation. Better control and management of contracting. Better marketing. Presence at the “table” where major decisions are made. Growth of activities. More administrative support. On “What would you do differently to improve operations:” • Laws prevent us from being more efficient. Duplication of services on hospital vs professional side could be improved if laws allowed us. • Increase our independence from hospital governance system more, such that operations are not hindered by red tape of various approval committees within the hospital settings (position control, for example). • Independent transplant Institute governing all staff working for it. American Journal of Transplantation doi: 10.1111/j.1600-6143.2012.04189.x • • • • • • • • • • • Align authority with responsibility, have more financial autonomy. We would do better if we had some discretionary funds for research and clinical needs that we could independently direct rather than only institutionally. Also, more independent control over marketing for transplant and outreach. Allocate discretionary funds. Profit sharing isn’t quite the right term, but we do want to expand our financial integration with the Health System. We have a reasonable model, but it needs to continue to evolve. We are working on creating a virtual hospital where reporting is up through the transplant program and not matrixed through other parts of the system. Form a separate business entity within the institution. Not sure . . . we have a complicated system with many “side deals” already in place. These exist within the Department of Surgery and Department of Medicine, and these compete (and potential support) faculty in both Departments. Be a Transplant Department. Development of “department of transplantation”. Include all organs. Become a free-standing department with buy-in from medical team who can make it or break it. Assure payment and accountabilities are aligned. Assure incentives for transplant focus on relevant outcomes.