August 16, 2011 10:11 ET

Erlanger Health System Selects Sg2's Growth and Value Solutions

Analytics and Intelligence Support Integrated System of CARE Vision

SKOKIE, IL--(Marketwire - Aug 16, 2011) - Sg2, a health care intelligence and information services company, announced a multiyear contract with Erlanger Health System, located in Chattanooga, TN, for the EDGE Growth Planning System and INSIGHT Clinical Performance Management System. Comprised of 5 campuses, Erlanger Health System serves patients from 50 counties spanning 4 states. To facilitate success in today's market, Erlanger is committed to putting a comprehensive System of CARE in place that maximizes clinical and operational effectiveness.

To address changing market dynamics including population, epidemiology, readmissions and health care reform, Erlanger Health System will utilize Sg2 EDGE, a strategic planning solution that delivers patient segmentation analysis, monthly data reports, Sg2 expert-led intelligence and ongoing support and guidance. In particular, the Impact of Change®, a 10-year disease-based localized forecast, will project patient volume by MS-DRG, disease-based Sg2 CARE Families, patient type and service area for both inpatient and outpatient settings. By identifying how demand for services will change across the care continuum over the next decade, Erlanger will be able to determine opportunities for smart growth -- growth that is clinically appropriate, financially favorable and sustainable.

As the industry moves from a volume- to value-driven model, it is especially important to measure clinical performance. INSIGHT benchmarks performance against peer hospitals and identifies specific areas of improvement to help mitigate financial risk and enhance outcomes. Specifically, INSIGHT's Sg2 Value Index™, a comparative score, can evaluate and quantify Erlanger's level of performance across inpatient and outpatient care sites. Derived by tracking key metrics -- including potentially avoidable admissions, length of stay, cost per case and 30-day readmissions -- the Sg2 Value Index can help Erlanger Health System set meaningful performance improvement goals and monitor changes at the enterprise, service line, disease and physician levels.

"Sg2's strategic thinking is parallel with Erlanger's vision of creating a comprehensive, high-performance System of CARE to support proficient, quality care," says Joe Winick, senior vice president of strategic planning at Erlanger Health System. "Sg2 is an extension of our staff and a valuable resource; their insightful perspectives are always relevant to what is happening in the market."

Sg2 President Steve Lefar says, "Erlanger has embraced the System of CARE methodology and understands the need for a patient-centric foundation for success -- particularly in the accountability era. Through Sg2's strategic counsel, education, analytics and intelligence, we are partnering with their team to improve clinical outcomes, manage costs and enhance value across the care continuum."

As an EDGE and INSIGHT client, Erlanger Health System will have access to a portfolio of resources, including Sg2 University courses, Web seminars, on-site leadership discussions, clinical and strategic publications, expert opinions and networking opportunities. These offerings provide relevant information and thought leadership to support ongoing business initiatives.

CARE = Clinical Alignment and Resource Effectiveness.

About Sg2
Sg2 is a health care intelligence and information services company. Our data-driven systems, business intelligence and educational programs deliver growth and clinical performance improvement solutions across the care continuum. Sg2 works with more than 1,200 hospitals and health care organizations in the US and around the globe. For more information, visit

About Erlanger Health System
Erlanger is a nonprofit, academic teaching center affiliated with the University of Tennessee College of Medicine. Erlanger is also a Level I trauma center for adults and the only provider of tertiary care services for the citizens of an entire 4-state region, encompassing southeast Tennessee, north Georgia, north Alabama and western North Carolina. With a history that dates back more than a century, Erlanger is recognized as one of the nation's finest public hospitals and a leader in health care.

Each year, more than a quarter of a million people are treated by the team of health care professionals who are part of Erlanger.

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