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 MAKINGEVERY 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

BED RMSBED RMS

BUY A HOUSEBUY A HOUSE

Goal

LOCATIONLOCATION TYPETYPEPRICEPRICE SCHOOLSSCHOOLS

HOUSE 2HOUSE 2HOUSE 1HOUSE 1 HOUSE 3HOUSE 3

Objectives (Multiple Levels)

AlternativesData Measurement&Synthesis &Resource Alignment

BATHSBATHS

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 effect of changes in judgments on the overall ranking of decision alternatives

Inconsistency ratio analysis enables the user to test the mathematical 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