With the formation of the West Penn Allegheny Health System (WPAHS) in 1999, the coming together of six independent hospitals into a single Health System created many opportunities for Human Capital Management. Faced with challenges from both a financial and service delivery perspective, the newly aligned Health System had to quickly become a state of the art delivery system to remain competitive. In so doing, Human Resources had to develop a strategy to harvest the power of its Human Capital across the Health System. Some of the opportunities for Human Capital Management are listed below:

• Outdated Human Capital Management technology
• Inconsistent Human Resources policies across the Health System
• Inconsistent Human Resources operating procedures across the Health System
• Inconsistent data tracking and reporting
• Paper and time intensive processes

With the goal of becoming both the Employer of Choice in Western Pennsylvania, Human Resources was tasked with identifying and implementing a Human Capital Management system that would provide a solid base to enable the achievement of that goal.

The first strategic step was to identify, evaluate, and purchase technology that would enable the Health System to develop a true Human Capital Management strategy across the Health System. WPAHS formed a committee consisting of key Human Resources, Payroll, IS, and Operations staff to evaluate software vendors that could potentially provide the required “out of the box” solutions to implement this strategy. Initially, four such vendors were formally evaluated:

• Lawson
• SAP
• People Soft
• UltiPro

Upon a complete review and analysis, Lawson was selected as the vendor of choice. With a strong focus and commitment to healthcare, Lawson proved to be best suited to meet the strategic needs of the Health System at the most efficient cost.

At this same time, the Health System was attempting to balance the needs of back office support functions with those of front line service providers. Unfortunately, the request for funding of the Lawson system was put on hold.

Shortly thereafter, West Penn Allegheny Health System appointed a new Vice President of Human Resources. The need to move forward with technology to support the goal of becoming the Employer of Choice in Western Pennsylvania was again brought to the surface. This time, Lawson software was to be evaluated against the two then-current providers – ADP and GEAC.

It was at this point that WPAHS realized the need for external support. WPAHS engaged ISH, Inc. to help build a business case to support the purchase of the appropriate technology. Through several strategic sessions and site visits, a plan was prepared and submitted for approval to purchase Lawson. The request was successful!

The next step was for WPAHS and ISH to develop an IT Enabled Human Capital Management Strategy in the form of a blueprint through a process ISH calls Discovery. It was led by ISH and WPAHS and supported by Lawson Software. This approach was taken to ensure the creation and implementation of a Human Capital Management strategy that would redesign the way WPAHS conducted business in order to fulfill the strategic mission of Human Resources. The objective was to not end up with only a technical software implementation project. The blueprint became the roadmap for benefits realization. It outlined a service and data model for the full spectrum of HR and Payroll services and operations. The blueprint contained a set of balanced scorecards. These scorecards had specific performance indicators and business metrics to record, track, and measure outcomes during and after implementation. In addition, the blueprint included a rollout strategy for deploying software, standardization, workflow optimization, process redesign, education and development, cost reduction, and reporting across WPAHS.

ISH and WPAHS completed the Discovery “Blueprint” in 2002, which outlined the Benefits Realization associated with integrated technology applications and best practices. ISH then provided project management, application and technical resources, and leadership for a successful Phase I implementation. This has been realized by the Health System operationally and financially in areas such as Benefits, Payroll, Budgeting, and Position Control, as well as improved data integrity and business intelligence. Some specific measurable improvements include:

• Planned reduction of human resource databases from over 20 to 1
• Consistent data structure, coding, and processes across the Health System
• Integrated human resource/payroll/recruiting system
• Access to accurate real-time data
• Capability to future date transactions for a more organized work flow
• Integration between applicant system and human resource application, thereby eliminating non-value added duplicate data entry tasks
• Position control and budgeting implemented to ensure FTE requisition budgeting and position data defaults to the employee record

With Phase 1 of its multi-year Human Capital Management strategy complete, WPAHS moved forward with the next phases of the future state model. This model is transforming the way WPAHS manages

Human Resources by utilizing Global, Industry, Client, and Software “Best Practices”. The goal is to position WPAHS as the employer of choice in Western Pennsylvania.

Examples of the future state Human Resource Best Practices include:

• Automated/electronic versus manual processes, such as email notifications, staff transfers, applicant tracking, and recruitment
• Increased standard operating practices in areas such as paid time off, overtime pay, and health and benefits administration
• Improved resource management with standard positions throughout the Health System
• Electronic job requisition process with automated process flow and smart alerts
• Increased efficiency with labor management with access to real-time information at the manager’s desktops
• Implementation of paperless open enrollment process
• Empower employees through online access to change address, beneficiaries, tax withholdings and view pay information

ISH continues to work effectively with staff and management at WPAHS to complete Phase II of the initiative through 2004. The enhancements in Phase II will further utilize technology and the process redesign from Phase I to deliver information and account access to employees using kiosks throughout the Health System. Managers will have information available through their web portal from benefits open enrollment to paycheck and leave balance review. Recruitment and applicant management tools will also be available through portal applications.

In rolling out the kiosks, West Penn Allegheny came up with a novel idea to offset the hardware costs for the kiosks. The Health System went to its business partners like ISH and Lawson to have them sponsor individual kiosks. By having sponsors, WPAHS was able to purchase state of the art kiosks that were professionally made and incorporated some of the latest technology. The new kiosks are designed such that for an employee to access their information, they have to be standing on a pressure pad in front of the kiosk. As soon as that employee steps off the pad, the screen automatically and immediately resets and signs the employee off the system. This eliminates the risk that personal information could remain on the screen and be seen by another employee.

West Penn Allegheny Health System’s Human Resource philosophy of long-term success requires commitment to maintaining a workforce dedicated to service excellence. Achieving this is clearly evident in its initiative to integrate Lawson Software with operational improvements by utilizing ISH expertise and leadership.

History of the West Penn Allegheny Health System

In 1998, the imminent bankruptcy of the Allegheny Health, Education, and Research Foundation (AHERF) made headlines in Pittsburgh and across the nation. While not included in the Chapter 11 filing of its parent, the AHERF hospitals in Western Pennsylvania – Allegheny General Hospital, Allegheny Valley Hospital, Canonsburg General Hospital, and Forbes Regional Hospital – were nonetheless impacted greatly by this situation.

Shortly after the announcement of the AHERF bankruptcy, heath care leaders in Western Pennsylvania expressed concern with the possible erosion of competition in the market and the negative impact that this would have on its residents. As a result, one area health care system stepped forward to prevent this from happening and to preserve choice in health care for the region.

In the summer of 1999, The Western Pennsylvania Health Care System, consisting of The Western Pennsylvania Hospital and Suburban General Hospital, entered into a management agreement to run the four AHERF hospitals located in the Pittsburgh area. As a result, the Hospital Alliance of Western Pennsylvania (HAWP) was formed and became the first step leading to the creation of the West Penn Allegheny Health System.

Through hard work, dedication, and the support of other organizations, August 2000 saw the official formation of the West Penn Allegheny Health System. The Health System now consists of two tertiary, acute care hospitals – Allegheny General Hospital and The Western Pennsylvania Hospital – and four community-based, acute care hospitals – Alle-Kiski Medical Center (formerly Allegheny Valley Hospital), Canonsburg General Hospital, Forbes Regional Hospital, and Suburban General Hospital. In addition, the Health System operates general and specialty Physician Practices and a research organization. In total, the Health System employee 13,000 people and is the fourth largest employer in the Pittsburgh area. Today, the hospitals of the West Penn Allegheny Health System have improved their financial position by over $100 million from 1999 and will show a profit for the fiscal year ended in June 2004.

The system now admits more than 80,000 patients, logs over 170,000 emergency visits, and delivers 6,000 newborns each year. Combined, the West Penn Allegheny Health System hospitals are among the leaders in percentages of total surgeries, cardiac surgeries, neurosurgeries, and cardiac catheterizations performed throughout the region.

About ISH
Since 1989 ISH has been a leading provider of strategic, operational, and IT business planning and implementation professional services for Healthcare. ISH focuses on Business, Perioperative, and Clinical Operations and Information Systems. They have partnered with some of the largest facilities in the country, and their people are respected professionals and thought leaders from throughout the Healthcare field.

Prepared by:

Tim Helzlsouer
Director Human Resource Systems
West Penn Allegheny Health System

Kathleen Gubser
Director of Human Resource Operations
West Penn Allegheny Health System

Ron Waetzman
Vice President Human Resources
West Penn Allegheny Health System

Gregory Ashe
Engagement Manager
ISH, Inc.

Crawford Hammett, CPA, CITP
Vice President
ISH, Inc.