March 17, 2011 10:00 ET

Provena Health System Extends Partnership With Sg2 for Smart Growth Planning System

Reform-Ready Analytics to Uncover Profitable, Appropriate and Sustainable Growth Opportunities

SKOKIE, IL--(Marketwire - March 17, 2011) - Sg2, a health care analytics company, today announced a multiyear contract renewal with Provena Health System for the Sg2 EDGE Growth Planning System. The agreement includes all of their facilities, which are located throughout Illinois and Indiana. Provena Health has been an Sg2 customer since 2002.

Provena believes successful strategic planning hinges on the ability to accurately anticipate patient volumes -- particularly now with health care reform under way. A future-focused strategic planning solution, the Sg2 EDGE Growth Planning System is a combination of local, disease-based forecasts, patient segmentation analysis, monthly data reports, Sg2 expert-led intelligence and ongoing support and guidance. This comprehensive solution will help Provena pinpoint opportunities for smart growth -- growth that is clinically appropriate, financially favorable and sustainable.

A key component of Provena's business strategy is determining where its patients will access care across the continuum. They will accomplish this through the Sg2 Impact of Change®, a 10-year disease-based demand forecast that projects patient volume by MS-DRG, disease, patient type and local service area for both inpatient and outpatient settings. By integrating Provena's patient-level data with Sg2 proprietary impact factors -- including population, payment, readmissions, health care reform legislation and potentially avoidable admissions -- the forecast provides a complete picture of future demand, revealing smart growth opportunities.

Provena will also employ the Sg2 Growth Index™, a proprietary scoring system that monitors smart discharges on a monthly basis. This analysis will enable the health system to track the execution of growth strategies at the enterprise, service line and disease levels, so they can stay on target and make course corrections to their plan as needed.

"The Sg2 EDGE Growth System helps Provena monitor essential metrics, including volumes and contribution margin, allowing us to plan in a more clinically meaningful way," says Robert Permut, MD, chief medical officer and senior vice president of strategy at Provena Health. "On a monthly basis, the Growth Index measures the percentage of smart discharges at the disease level--across inpatient and outpatient services, at each of our facilities. This enables us to assess our progress relative to our goals, in all of our local markets."

"As a progressive health system, Provena understands the importance of planning today while prioritizing for tomorrow," says Sg2 Chairman and CEO Michael Sachs. "With the compounding force of health care reform, tighter margins and increased accountability across the care continuum, the EDGE Growth System provides more precise, data-focused strategic planning."

As an EDGE customer, Provena has 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.

About Sg2
Sg2 is a health care analytics 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 Provena Health
Provena Health is a not-for-profit Catholic health system that includes 6 hospitals, 17 long-term care and senior residential facilities, 36 clinics, 5 home health agencies, hospice, private duty and other health-related activities operating in Illinois and Indiana. Sponsored by the Franciscan Sisters of the Sacred Heart, the Servants of the Holy Heart of Mary and the Sisters of Mercy of the Americas, Provena Health ministries provide healing and hope in the spirit of Jesus Christ. Visit to see Provena Health's mission in action!

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