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Welcome everybody. I am Arnold Mil stein, Director of Stanford's Clinical Excellence Research Center, and welcome to this panel discussion of those brave enough to innovate in health services. Innovations in services of any kind are not for the faint of heart. There are several categorical problems. #1, they are rarely, if ever, subject to any intellectual property protections. So you come up with a better round strap. It×39;soften a matter of time before somebody, if it#39’s working, rapidly replicates often with more money than you started with. Secondly, they are notoriously hard to replicate. So you have a service model, it's one thing if it#39’s relatively simple service model that you are trying to get somebody who is on the nightshirt in Motel 6 to operate in certain standardized way, that's one thing trying to manage diverse team of clinicians, some of whom done#39’t regard themselves as anybody's employee is something else. I have assembled today a group of those who are not faint of heart. They have punched forward into the world of health service innovation and, in every case, have had the good fortune of making substantial progress. Innovation is a little difficult or challenging for me total about since most of my life I am about standardization and replication and process improvement these days. But Did give some thought to it. I have always been the operations' person, and actually I was the COO ofHealthSpring, not the CEO, so it was my job to take the brilliant ideas and make them live in clinical practice which I find somewhat more difficult than thinking out the idea. Thus, I subtitle my talk where brilliance gets crushed by reality. I want to talk about three examples of innovation in delivery service and the first one is paradigm shift then about adopting and repurposing and then just some kind of common wisdom or what I call the no-dust solution. I wanted to begin by talking about a delivery system that I ran across in my context of HealthSpring in South Florida in the Miami area called Leon Medical Clinics. And it was very interesting, high-performing organization. As I was around it more, I realized they never talked about any of the things I knew to talk about in health care. They operated differently. The key turned out to be an epiphany that their leader Ben Leon had, and he had been in the business a longtime and knew all about managing cost and turnover time of rooms and all the things we look at. But it came to him, he says that Disney world, that the reason this businessdidn'’t work was because it isn't about managing cost, audit#39’s not about managing care, it's about patient loyalty. And it was just the notion that if he could get patients to be loyal to his organization, he could invest in their health care status, and there was plenty of time to recover that investment cost if he could count on them being there10, 15, 20 years. So that notion then led him to the concept of the patient's experience of that...
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