CLINICALLY INTEGRATED NETWORK -CIN
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2 CLINICALLY INTEGRATED NETWORK -CIN
3 INDUSTRY OVERVIEW Various Forces Moving the Industry Toward Value-Based Reimbursements (VBRs) and Care Delivery Accelerated Migration from Strict Fee-For-Service to Fee-For-Performance Reimbursement Providers Are Incentivized to Establish Care Delivery Models that Promote High Quality, Efficient Care Major Payers Committed to Support this Movement, with CMS Leading the Charge: Introduction of MACRA (MIPS / APMs) Indicative of this Goal Bundled Payment Programs (BPCI, CJR) Currently On Hold but Likely to Proceed Large, Self-Insured Employers Likely to Emerge as a New Market for Healthcare Services
4 PRIVATE ENTITY RESPONSES TO SHIFTING LANDSCAPE Many Provider Groups Desiring to Remain Independent Yet Successfully Compete with Hospital Counterparts are Considering Clinically Integrated Network ( CIN ) Development CIN Development Creates Opportunity for ASCs to Capitalize on Benefits of Integration Joint Contracting, Group Purchasing, Shared Marketing and Expanded Market Access Further Opportunities in Ophthalmology Arena Present: Sharing of Best Practices Clinical / Financial First to Market for Anticipated VBRs, such as Cataract Bundles Shared Costs for IT Infrastructure EMR, Data Reporting, Cost Accounting
5 OUR CURRENT MEMBERSHIP Albany Regional Eye Surgery Center (Albany County, NY) Ambulatory Surgery Center of Greater New York (Bronx County, NY) Brooklyn Eye Surgery Center (Kings County, NY) Eye Surgery Center of Westchester (Westchester County, NY) Island Eye Surgicenter (Nassau County, NY) Long Island Ambulatory Surgery Center (Suffolk County, NY) Mackool Eye Institute (Queens County, NY) Ocean County Eye Surgery Center (Ocean County, NJ) Somerset Eye Institute, P.C. (Somerset County, NJ)
6 EXECUTIVE SUMMARY The Vision Center Network of America, LLC (VCNA) The First Clinically Integrated ASC Network (CIN) in the US Operationalized in March 2016 Nine (9) Founding Members GOALS: Reduce ASC Expenses Create Negotiating Advantages with Payors Advance Quality of Services
7 BACKGROUND AND OVERVIEW CHRONOLOGY OF CREATION Concept Creation of ASC CIN, November 2013 Retention of Coker Group to Assess Feasibility, September 2014 Legal Consideration of Anti-Trust and Regulatory Issues Pro-Competitive Nature Assessment of Potential ASC Members Operational and Economic Factors Coker Conclusions and Business Plan: CIN Approach Would Significantly Benefit Patients and ASCs Unanimous Approval to Operationalize, September 2015
8 BACKGROUND AND OVERVIEW Clinical Integration Enhances Efforts to Deliver Consistent/Excellent Care with Reduced Costs Capturing the Efficiencies and Economies of Scale Five Major Purchasers of VCNA s Services: Government Payers Self-Insured Employers Other ACOs/CINs/IPAs Commercial Health Plans Hospitals and Hospital Center
9 SHORT-TERM GOALS AND OBJECTIVES Maintain the Identity of Each Member Center as a Private, Independent Facility that Clinically Integrates to Improve Quality and Cost Efficiency Establish an Infrastructure of Clinical and Administrative Management Leaders Create IT Infrastructure Include a Care Process Design System (CPDS) Developed by Coker Group that Improves the Patient Experience and Outcomes and Reduces Per Capita Cost of Care
10 LONG-TERM GOALS AND OBJECTIVES Formation of an Entity That Can Respond to All Payors (Including Medicare and Medicaid) in Anticipation of Likely Shift from Fee-For- Service to Fee-For-Value Negotiate with Hospitals, Health Care Systems and Physician-Led CINs from a Position of Strength Establish a Group Purchasing Organization (GPO) and other Member Benefits Expand Business Model Outside the Current VCNA Geographic Area
11 GOVERNANCE AND OPERATIONS Board of Managers: Two Representatives from Each ASC Member Executive Committee ( EC ): Management Control Subject-Specific Subcommittees: Implement Strategy and Operations: Report to EC
12 EXECUTIVE COMMITTEE Jerome Levy, MD - President and Chairman of the Board Robert Nelson, PA-C - Vice President Glenn debrueys - Chief Executive Officer Richard Mackool, MD - Chief Medical Officer Neil Levinbook, Esq. - Treasurer and Engaged Chief Operating Officer Brian Wnorowski, MD - Vice President (Data Management) Mark Lebowitz, MD - Secretary
13 CLINICAL AND FINANCIAL OPERATIONS Identify and Eradicate Waste and Inefficiency in Member Health Care Services Apply Time-Driven, Activity-Based, Cost Accounting & LEAN Process Mapping Tools, Focusing on Financial and Employee Efficiency and the Delivery of Value to Patients Clinicians Become Decision-Makers but with Benchmarking Within and Among ASC Members Reporting of Meaningful Outcomes and Process Metrics at Three Levels: 1) VCNA 2) ASC 3) Surgeon/Provider
14 LEGAL COMPLIANCE Retention of Outside Counsel, Preferably a Healthcare Law Firm, such as Garfunkel Wild. Absolutely Necessary to Ensure Compliance with Anti-Trust, Stark, Anti- Kickback and Other Statutes and Regulations. A CIN must be Pro-Competitive FTC Safe Harbor Requirements for Joint Fee Negotiations: Providers either 1) Share Significant Financial Risks or (2) Clinically Integrate
15 INFORMATION TECHNOLOGY & CLINICAL INFORMATICS Qualify as a Legal CIN Dedicated Electronic Platform Analyze Per Case Expenses Track Quality Measures Report those Measures Back to Members and Benchmark Against Other Surgeons and Centers Support Care Process Design System (CPDS) Systematic Approach to Re-Tool Care Delivery Process Application of Reliable Tools and Techniques to Drive Continuous Improvement Multi-Disciplinary Team-Based Approach to Advance Value Proposition
16 INFORMATION TECHNOLOGY
17 INFORMATION TECHNOLOGY
18 Those who cannot remember the past, are condemned to repeat it. George Santayana Philosopher A bundled cataract surgery contract was awarded by Oxford Health in 1996 Oxford Health Bundled Cataract Surgery Contract Global Rate Included Surgeon, Facility & Anesthesia Fee Global Rate Included 10 Cataract Surgery-Related Retina Complications Bundling these Components produced Savings for the Insurance Companies and their Subscribers
19 VCNA PURCHASING GROUP VCNA Purchasing Group Developed to Obtain Highly Competitive Rates for ASC Supplies & Products Benefit to ASC Bottom Line (Approx. 75,000 Procedures/Annum) VCNA Purchasing Group Leadership: Over 100 Years of Supply Chain Management & Vast Relationship Network Improved Purchasing Power, Risk Mitigation & Improved Ability to Thrive Under FFV Written Legal Opinion: One of Many Steps Taken to Protect VCNA Purchasing Group; Qualifies as Protected Entity under Safe Harbor and Complies with Anti- Trust & Anti-Kickback Statutes Favorable Agreements for Malpractice Insurance and Merchant Processing Services
20 VCNA PURCHASING GROUP PARTNERS /AMO Offers a full line of Intraocular Lenses (IOL)* including multiple product offerings that feature breakthrough technologies and address a wide range of visionrelated conditions; *monofocal, multifocal, Toric, Tecnis Symfony, and IOL insertion systems. A full service distributor and manufacturer offering unique services to ASCs. Combine ASC spend with thousands of other contract customers to access more high-quality, national brand products at aggressive pricing thru HPG. Reimagining the entire process for how supplies are ordered, received, and paid for and engineered a better way for ambulatory surgery centers and physician offices to manage the supply chain, realizing lower costs and improving efficiency. Provides surgery center members with significant savings and attentive customer support. Through this program, ASCs are able to access pricing that is usually reserved for the largest hospitals in the country. VCNA members will have access to contracts portfolio, which includes industry-best pricing and incentives. An FDA-Registered and State-Licensed, 503A and 503B, Outsourcing Facility providing service to Hospital Pharmacies, Outpatient Surgery Centers, Physician Offices, and Patients. Offers a full complement of sterile and non-sterile admixtures. Credit card processing that offers innovative healthcare payment solutions and healthcare payment systems, including proprietary Practice Management BRIDGE. Offers health care payors and providers a powerful combination of service and results-oriented strategy to help them meet their business goals, overcome challenges, and improve performance. A U.S. manufacturer of high quality, cost effective instrument processing products and services; including containers, case carts, chemistry, and software.
21 For More Information About VCNA, Please Contact Us At: Vision Center Network of America, LLC Attn: Neil Levinbook, Esq. Chief Operating Officer 77 Arkay Drive, Suite C1 Hauppauge, NY (631)
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