19 May People Analytics Firm Aims To Improve Care While Reducing Labor Turnover
MedicalResearch.com Interview with:
Mr. Mike Rosenbaum
Founder and CEO
MedicalResearch.com editor’s note: As part of an ongoing series on changes in the health care landscape, we interviewed Mr. Mike Rosenbaum, founder of Pegged Software. Pegged Software uses an advanced “analytics engine to selecting job candidates based on the actual determinants of high performance”, specifically in the health care field. The Pegged team “serves a broad set of healthcare organizations, applying modern technology and data tools to workforce construction and talent identification”.
MedicalResearch.com: Can you tell us a little about yourself? How did you get interested in this field?
Mr. Rosenbaum: I was on a path to become an academic, and as a fellow at Harvard I was interested in, and doing research about, and writing on topics related to the application of data to the most subjective areas of human endeavor. My interest in the application of predictive analytics to talent grew out of that work. I initially started a business that applied these concepts to the software engineering space, and in 2009 I met an executive at a hospital who explained to me the issue they were facing and asked if I could help. We ended up making a copy of the same technology we used in the software engineering space and putting it in a new company, which we called Pegged Software, and built that technology specifically for the healthcare and hospital space. We ran the technology in that hospital and several others for about two and a half years, and in that time our best deployment reduced turnover by 77% and our worst reduced turnover by 45%. So in late 2012 we started building out the team, and today we are deployed into over 400 healthcare facilities and have a median impact of a turnover reduction of 38%.
MedicalResearch.com: What is the mission of Pegged Software? How can people analytics improve health care institutions’ bottom line as well as patient care and satisfaction?
Mr. Rosenbaum: A huge portion of the total cost base of a healthcare institution, and of a healthcare institution’s ability to deliver quality care and outcomes to patients, is based on people. And yet there has been limited innovation in the way we choose and deploy people, given the dramatic importance of those decisions. We are using technologies many of which were originally developed for the marketing industry—technologies designed to predict a consumer’s likelihood of clicking on an advertisement or purchasing a product—but applying them to hiring and talent decisions to predict outcomes associated with those personnel decisions. By predicting the likelihood an employee will turn over, or the likelihood an employee will have a positive impact on an HCAHP score, or the likelihood an employee will make a medical error or provide care that results in a patient’s readmission within 30 days, people analytics can generate massive economic savings and drive dramatic improvements in patient care and satisfaction.
MedicalResearch.com: What should readers take away from your interview? Will people analytics change the way hospitals hire in the future? How is big data going to make a difference in how hospitals are run in the future?
Mr. Rosenbaum: Hospitals are under siege from an economic perspective, and yet the dramatic shifts in the healthcare industry create an opportunity to introduce innovations that were originally developed for other industries. Hospitals can in fact do something about turnover, quality patient care, and consistency of engaged staff delivering quality and reducing mistakes.
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Note: Content is Not intended as medical advice. Please consult your health care provider regarding your specific medical condition and questions.