Academic LDI on Innovation
Mark S Sothmann
Leadership Development InstituteNovember 16, 2012
What’s Happened Nationally
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Presidential Election
Raised the Debt Ceiling
Downgraded Credit Rating
Threat of Sequestration and the Fiscal Cliff
Supreme Court Upholding of Health Care
Reform
• Implementation of the Health Care Reform
Implications
• Health Care Funding and Impact on the Academic
Health Center
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Reduced provider reimbursements
Scope of practice debates
Health system restructuring
Decreased availability of funding for colleges of medicine
More reliance on interprofessional clinical teams
Federal Funding of Research
Caps on Tuition
State Appropriations
Unavoidable Costs
Challenge- Leading Innovation
• The development of new values that meet
new needs.
• Different from invention which is the creation
of a novel idea
• Different from improvement which refers to
the same thing made better
Innovation- New Values and New
Needs
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Education
Research
Clinical Care
Funds Flow as a New Decision-Making System
The Innovative University- Changing
the DNA of Higher Education
“Fundamental change is coming to higher
education. It is at the confluence of
unsustainable cost/revenues in the traditional
model with new approaches to deliver more
affordable high quality education. The result
will be greater innovation than we have seen
in more than a century”
Clayton M Christensen & Henry Irving
“We are indeed cautiously optimistic that
traditional institutions can change elements of
their business models. Some are doing it via
separate, independent units, but others are
creating innovation teams within the main
organization.”
Disruptive Innovation
• Disruptive Innovation- an innovation that
creates a new market by applying a different
set of values, which ultimately (and
unexpectantly) overtakes the existing market
– Wikipedia (community edited, online) and
Encyclopaedia Britannica (traditional edited,
bound)
The University of Virginia Debacle
• Online Learning as a disruptive innovation
– Ambient Research Institute: 2009- 44% of university
students taking some or all courses online. By 2014 will
increase to 80%
– Less than 50% of public universities offer online courses
• Open Courses
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OpenCulture www.openculture.com/freeonlinecourses
OpenCourseWare
Coursera
EdX
Class2Go
Khan Academy
EdX
• December 2011- MITx
• February 2012- 6.002x (circuits & electronics
course) debuts with 20 MIT students
• March 2012- 6.002x debuts worldwide with
154,000 students from 160 countries
• May 2012- MIT, Harvard, UC-Berkley,
University of Texas form EdX with $30M
investment from each
Potential Impact
• University-Industry Partnerships
• Philanthropy
• Worldwide Certificates of Completion from
prestigious universities
“There’s no way to argue that my learning
experience with top professors from across the
country is going to be worse than anyone else’s
learning experience. Then its up to the
employers.”
MUSC Online Course/Degree
Programs
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146 credit-granting online courses
405 web based students enrolled
9 different degree granting programs
Online degrees delivered nationally and
internationally
• What does Open Course mean for MUSC??
Innovation and New Values /New
Needs in Research Funding
Federal
Corporate
2004
75%
13% ($23M)
2008
72%
16% ($33M)
2012
66%
20% ($48M)
Invention Disclosures, Patents,
Start-ups
Disclosures
Patent App.
Start-Ups
2006
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2009
45
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2012
71
6
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Drug Discovery Building
 112,000 sq. ft.
 Small animal imaging
 High throughput
drug screening
 $62 M cost
8/9/2012
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Bioengineering Building
 100,000 sq. ft.
 HQ for SC Bioengineering
Alliance
 Regenerative Medicine:
Tissue engineering
 Biomedical Imaging,
Genomics
 $59 M cost
8/9/2012
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Positioning for the Future
• Office of Industry Partnerships
• Center for Innovation and Entrepreneurship
• Center for Biomedical Informatics Research
Innovation- University Policies
• Conflict of Interest
– Institutional Conflict of Interest
– NIH regulations on conflict of interest
– Physicians Payment Sunshine Act
• Strategic Initiatives Policies
– Industry Partnerships
– Startup Companies
• Tenure and Promotion
Faculty Senate Statement on Tenure
and Promotion
“Faculty should be evaluated and recognized for
work in the traditional areas of teaching,
research/scholarship, and service. Within this
framework, faculty should be encouraged to
participate in interprofessional activities,
innovative and entrepreneurial activities,
promoting the use of technology, and
engagement in global activities. These activities
should be looked upon favorably by APT
committees but not seen as additional
requirements for tenure and promotion”
Innovation: Interprofessional Clinical
Initiatives
• MUSC Interprofessional clinical
• University of Pittsburgh Medical Center Office
of Advanced Practice Providers
• Mandates of the Affordable Care Act
– Additional 30 million people insured
– Rewards health care at lower cost but same
quality
• 25% Physician shortage nationally by 2015
Regulators and Payers Want Change
• National health insurance regulations and
advanced practice providers
• Third party insurance increasingly recognize
advanced practice providers
• Health care executive leadership
• Institute of Medicine recommendations
Innovation- Funds Flow as a Decision
Making System
• New communication networks to 1) grow
revenue 2)control costs and 3) define
prioritized services
• Different conversations, 1) within academic
units, 2) between academic and
administrative units, and 3) within
administrative units
Thank You!!