Emerging Issues in Post Acute Care Trends

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1 Emerging Issues in Post Acute Care Trends Lavonne Elston, PT Senior Director of Operations & Strategic Initiatives Skilled Nursing & Rehabilitation Kingston HealthCare Company April 28, 2016

2 Disclosures No Disclosures.

3 Current Health Care Environment Value- Based Payment Technology 2016 Health Care Trends Alternative Payment Models MACRA & IMPACT Population Health

4 President s FY 2017 Budget Proposed spending and revenue changes estimated net effect of $2.9 trillion federal deficit reduction over next 10 years Medicare spending would be reduced by a net $419 billion -Opioid abuse -Medicaid expansion -Cancer Research

5 IMPACT ACT: What is it? The Improving Medicare Post-Acute Care Transformation Act of 2014 or IMPACT Act of 2014 (H.R. 4994). Signed into law October 6, 2014 Intended to change and improve Medicare's post-acute care (PAC) services and how they are reported.

6 IMPACT ACT The Act requires the submission of standardized assessment data by: Long Term Care Hospitals (LTCHs): LCDS Skilled Nursing Facilities (SNFs): MDS Home Health Agencies (HHAs): OASIS Inpatient Rehabilitation Facilities (IRFs): IRF PAI The Act requires that CMS make interoperable standardized patient assessment and quality measures data, and data on resource use and other measures to allow for the exchange of data among PAC and other providers to facilitate coordinated care and improved outcomes.

7 IMPACT ACT: Major Deliverables Standardized Assessment Data across PAC settings will allow for: Comparable information used to evaluate and differentiate between appropriate care settings for and by individuals and their caregivers Continued beneficiary access to the most appropriate setting of care CMS to compare quality across PAC settings (longitudinal data) PAC payment reform (site neutral or bundled payments)

8 IMPACT ACT: Major Deliverables Standardized and Interoperable Assessment Data across PAC settings will: Allow for improvements in hospital and PAC discharge planning and the transfer of health information across the care continuum Support service delivery reform

9 IMPACT ACT Major Deliverables Timeline Use of quality data to inform discharge planning Standardized assessment data required for PAC providers begins CMS & MedPAC Reports on PAC Prospective Payment Standardized quality and resource use measure reporting for PAC Providers begins Study on Hospital Assessment Data

10 PAC Settings: IMPACT Timeline Quality Domains HHA SNF IRF LTCH Functional Status 1/1/2019 Finalized 10/1/2016: Percent of Patients or Residents with an Admission and Discharge Functional Assessment and a Care Plan that Addresses Function (NQF #2631)* Self Care & Mobility Score Skin Integrity Proposed 1/1/2016 (HH), Finalized 10/1/2016 (SNF, IRF, LTCH): Percent of Residents or Patients with Pressure Ulcers that are New or Worsened (Short Stay) (NQF #0678) Medication Reconciliation 1/1/ /1/ /1/ /1/2018 Major Falls 1/1/2019 Finalized 10/1/2016: Percent of Residents Experiencing One of More Falls with Major Injury (Long Stay) (NQF #0674) Patient Preferences 1/1/ /1/ /1/ /1/2018

11 Functional Data by Setting No Standardized Tool LTCH CARE IRF-PAI SNF-MDS HHC- OASIS FLR (No Standardized Tool) Acute Care? Post Acute Care CARE Item Set IMPACT Act: Oct 1, 2018 for SNF, IRF, and LTCH, January 1, 2019 for HHC Out Patient?

12 Standardization: As Is Transitions To Be

13 Interoperability

14 The Data Element Library Database The Data Element Library (DEL) database is in the process of being loaded and will include: PAC assessment data elements and mapped relationships. Content to the Data Element Library database will be updated over time as new and modified standardized data elements, new assessment instrument versions, and new and updated HIT mappings are added. 8

15 Changing Face of Payment Volume of services No tie to outcomes Fee for Service Requires data submission to avoid penalty No benchmarking Pay for Reporting Benchmarking outcomes, quality measures +/neutral/ payment adjustment Value based Payment

16 Value based Payment Transition Timelines Alternative Payment Models 30% of payments tied to alternative payment models by 2016; 50% by the end of 2018 Linking Payment to Outcomes 85% of fee for service payments tied to outcome measures by end of 2016; 90% by end of 2018 The Health Care Transformation Task Force 75% of payments into value based models by January 2020

17 What is defined as Value? Value = Outcomes Cost

18 Value Value for the patient is created by provider s combined efforts over the full cycle of care. The benefits of any one intervention for ultimate outcomes will depend on the effectiveness of other interventions throughout the care cycle. Porter. NEJM 2010

19 Functional Outcomes Degree of health or recovery Functional level achieved Pain level achieved Extent of return to physical activities Ability to return to work Time to recover and time to return to normal activities Time to return to physical activities Time to return to work Sustainability of health or recovery and nature of recurrences Maintained functional level Ability to live independently

20 Alternative Payment Models Not fee for service Accountable care organizations Bundling of services Comprehensive Care Joint Replacement Model

21 CJR: Comprehensive Joint Replacement Comprehensive Joint Replacement is a mandatory bundled payment program to reduce the cost care for hip and knee joint replacement surgeries CMS has Mandated this in 67 Markets, which includes Toledo This bundle includes the inpatient hospital stay, any skilled nursing home days, HHC, OP, through 90 days post surgery

22 What is the goal of the bundle? Millions in cost savings Improved Outcomes

23 Hospitals carry the full risk for CRJ CMS will communicate a target price to each individual hospital in year one. By year five prices will be set regionally 5 Year Phase in for risk or reconciliation Reconciliation Payments will receive a % back of any cost savings Risk will be responsible to pay a % of any stop loss

24 Waivers Can waive the SNF 3 day rule if SNF is rated 3 stars or higher on Nursing Home Compare Can waive incident to rule for physician services to allow clinical staff of a physician to furnish home visits. (only for non HHA covered patients) Telehealth waives originating site requirements so service may be originated in patient s home

25 Episode Cost: Acute Care + 90 Days Post Discharge Pre Acute Care/Inpatient Post Acute Care Post IRF SNF Home Health OP Low variation, minimal cost savings opportunities High variation, significant cost savings opportunities

26 Key Metrics Re-Hospitalization Rates Length of Stay CMS 5 Star Rating

27 Best in Class Metrics RTH costs an average of $20,000 Lowest cost center, focused care, reduced LOS

28 5 Star Quality Rating System Changes April CMS will start posting 6 new quality measures (QMs) (Only applies to Medicare A residents) % short stay residents d/c to community (Claims based) % short stay residents who have had ER visit (Claims based) % short stay residents re-hospitalized in 30 days (Claims based) % short stay residents who improved in function (MDS) % long stay residents whose ability to move I worsened (MDS) % long stay residents who received antianxiety or hypnotic med (MDS)

29 Why This Matters New Payment Demands New Systems of Care Many Sites Many Teams Standardized Exchange of Data Elements for Patient Care Within, between and across sites and team (e.g., to support care coordination) Re-use for Quality Measurement Within sites, transitions between sites, coordination across entire episodes of care Re-use for Public Health Reporting Re-use to Generate System Intelligence so the System can Learn 31

30 Focus on Value Impact on Care Delivery Patients may pass through care settings faster Patients will need certain skills or abilities to transition to the next care setting Each care setting does not have to provide services to meet every possible need

31 Episode Based Care Care Path Utilization: Following best practices Care Coordination: Working seamlessly together Connected Care: Providing care in appropriate venue Clinical Teams, Patient, & Family Engagement

32 Right Patient, Right Setting, Right Care Right Patient: Increased use of function and outcomes to identify which patients go where and when. Effective Placement: A Persistent Challenge Right Setting: Move patient to lowest cost setting: discharge planning on or before admission, patient and caregiver education Right Care: Evidence based, effective treatment, timely care of clinical needs. Rehospitalization in first 1-2 days may indicate too soon hospital discharge, later in post acute stay may indicate symptoms not managed timely.

33 Communication and Collaboration Communicate with previous care setting in order to begin where they left off Collaborate with the next care setting to know what the patient will need Determine the transition plan within the first few days Assess health literacy of patient/family Identify subtle functional declines early Follow up with patient after transitioning from this setting

34 Seamless Transitions Changing to VBP Means Changing Communications Requires effective communication between sites To create safer transitions of care for those with the most complex issues To improved coordination of care across all sites with a shared care plan These new connections will rely on the electronic exchange of standardized and interoperable information

35 Care Transition Determine: What the patient needs to be able to do in the transition environment What environmental or structural challenges exist in the transition environment What adaptations to the transition environment need to be made; what adaptations to tasks must be made to allow transition How much and what type of caregiver support is available How much and what type patient and caregiver training is required Document the above findings

36 CMS Quality Strategy Better Care Healthier People Smarter Spending

37 THANK YOU

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