RURAL HEALTH CHALLENGES TECHNOLOGY AND THE REMEDIAL PROSPECTS OF AZALEA HEALTH LEADERS SUMMIT 2016
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1 RURAL HEALTH CHALLENGES AND THE REMEDIAL PROSPECTS OF TECHNOLOGY AZALEA HEALTH LEADERS SUMMIT 2016
2 RURAL IS DIFFERENT NOT WORSE Rural areas score higher than urban areas on appropriate provision of preventive services related to breast exams, family history of cancer, flu immunization... Hospitals in rural area have significantly higher ratings on HCAHPS measures than those located in urban areas Rural hospitals match urban hospitals on performance at a lower price Stats courtesy of Alan Morgan, CEO of National Rural Health Association Sample rural GA hospital versus statewide averages (HCAHPS): Pain control: 86% satisfied vs. 71% state average Physician communication: 95% satisfied vs. 83% state average 82% gave hospital a score of 9 or 10 vs. 71% state average
3 WHAT S AILING RURAL HEALTHCARE? Half of Americans live in the red counties, half live in the orange counties dadaviz.com
4 WHAT S AILING RURAL HEALTHCARE? More likely to report fair to poor health Rural counties 19.5% Urban counties 15.6% Higher obesity rates: Rural counties 27.4% vs. urban counties 23.9% Stats courtesy of National Rural Health Association More chronic disease: Sample rural hospital vs. GA state averages: 26% higher cardiovascular disease mortality 16% higher cancer mortality 1/5 of Americans live in rural areas, but 1/10 of physicians practice there (The Atlantic, Aug. 28, 2014)
5 WHAT S AILING RURAL HEALTHCARE? Recent legislation including the Affordable Care Act has placed many burdens on hospitals Medicare / Medicaid reimbursements cuts E.g. sequestration Current and looming disproportionate share cuts Quality-oriented penalties (e.g. readmissions) CBO projects 10.4% decline in Medicare reimbursement by 2020 Even among newly insured, higher deductibles have led to increased uncompensated care One half of all non-elderly, non-poor households do not have enough liquid assets to meet deductibles over $2,500 Increased compliance costs Source: Kaiser Family Foundation IF U.S. COSTS OF COMPLYING WITH HEALTHCARE REGULATIONS ($1.863 TRILLION) WERE A COUNTRY, IT WOULD BE THE WORLD S 10TH LARGEST ECONOMY!
6 WHAT S AILING RURAL HEALTHCARE? MEDICAID EXPANSION WAS INTENDED TO OFFSET ACA S CUTS: MORE PAYING PATIENTS, LESS UNCOMPENSATED CARE. BUT... U.S. Supreme Court made expansion optional 23 states, including Georgia, have declined Georgia s Medicaid program remains closed off to all childless adults, and parents making more than 40% of federal poverty level ($8,000 annually = too wealthy for Medicaid)
7 CONSEQUENCES OF CLOSURE ACCESS TO CARE Increased travel time to nearest hospital costly during emergencies Travel limitations for poor and elderly populations Pungo Hospital, Bellhaven, NC Closed in 2014; 20,000 people now in counties without ER Six days after closing, 48-year-old woman died of heart attack waiting for helicopter If someone has a stroke, and we can t get a CT on them to administer treatment, or if they have trauma and they can t get fluid replacements, they re going to die. - Belhaven physician Mark Beamer Sources: Kaiser Health News, Charlotte Observer
8 CONSEQUENCES OF CLOSURE North Georgia Medical Center, Ellijay, GA Closed in 2016 ACCESS TO CARE [Physician s offices] have been treated like an emergency room We have people walking in with open knees requiring stitching, and people are coming in weak and fragile and passing out in the waiting room. Source: Times Courier
9 CONSEQUENCES OF CLOSURE ACCESS TO CARE
10 CONSEQUENCES OF CLOSURE Three years after a rural hospital community closes, it costs about $1000 in per capita income On average, 14% of total employment in rural areas is attributed to the health sector. One rural physician generates an average of 23 jobs in the local economy ECONOMIC IMPACT Sources: National Rural Health Association; Rural Health Works; Mark Holmes, UNC Professor
11 CONSEQUENCES OF CLOSURE Hancock Memorial Hospital, Sparta, GA Closed in 2001 ECONOMIC IMPACT When [trying] to recruit a new industrial employer, one of the first things they ask is, Do you have a hospital? Hancock County Commission Chair Sistie Hudson Source: When Rural Hospitals Close, Towns Struggle to Stay Open Marketplace, 2014
12 TECHNOLOGY AS A REMEDY? Inpatient- Centered Care Tech- Driven Care Outpatient -Centered Care Past à Presentà Future
13 WHY TELEHEALTH S TIME IS HERE E-visits increased by 400% between 2012 and still rising Rural communities dwindling -- telemedicine can extend access to specialty services to underserved areas Rise of direct-to-consumer health puts increased pressure on institutional providers to maintain market share Technological advancements make telemedicine more affordable than ever Shift to value-based care places greater emphasis on routine, convenient, preventive care 1 Deloitte,
14 WHY TELEHEALTH S TIME IS HERE What Op8ons Consumers Would Select for Middle- of- the- Night Care 21% Video Visits 44% 24 Hour Nurse Line Online Symptom Checker 17% Ambulance 9% [PERCENTAGE] [PERCENTAGE] Other ER Source: Kaufman Hall & Associates
15 TELEHEALTH AND POPULATION HEALTH Atlanta Journal-Constitution Forbes Becker s Hospital Review Modern Healthcare Regarding per-patient-per-month reimbursement under CPC+ model, practices might offer telemedicine visits or simply provide longer office visits for patients with complex needs.
16 TECHNOLOGY AS A REMEDY Traditional Hub-and-Spoke Access Model Specialty services w/out MD travel Increased services at rural spoke keeping patients in their communities Life-saving emergency care without lengthy patient travel Coordinated care for superior quality HUB SPOKE Continuous care reducing ER visits and readmissions Shared reimbursement for live two-way care Transfers of cases not clinically appropriate for spoke PR and marketing advantages
17 TECHNOLOGY AS A REMEDY School- or Employer-Based Population Health Model Greater access to care relieves travel burdens and work absences for employees and parents Keeps student and employee populations healthier Allows on-site staff to provide more varied, meaningful care HEALTH SYSTEM Encourages patients to receive routine care where otherwise avoided (e.g. due to high deductibles) Reduces unnecessary ER visits and readmissions Developing relationships with families PR and marketing advantages
18 TECHNOLOGY AS A REMEDY Consumerism/mHealth Model Development of direct-to-patient health apps Offer as premium service to self-pay patients Contract with commercial payers to include e-visits in plans Some health providers are white-labeling mobile health services to better reach their patient populations (e.g. Piedmont Hospital)
19 TECHNOLOGY AS A REMEDY Home-Health Model Remote patient monitoring and follow-up Reduced readmissions Optimal efficiency and quality Telemedicine-equipped ambulances Reduced unnecessary ER visits Lives saved in remote areas Physician-Led Models Standalone specialty practices Concierge Medicine Back-up to urgent care centers, rural clinics Back-up to hospital emergency rooms, ICUs (e.g. telepsychiatry) Mercy Virtual Care Center in Chesterfield, MO, launched in fall of 2015, featuring more than 300 providers serving 38 hospitals in areas such as stroke care and ICU monitoring. Since launching, Mercy claims to have sent home 1,000 ICU patients who otherwise would have been expected to die, and saved $40 million. Photo and story via U.S. News and World Report
20 REIMBURSEMENT PRIVATE PAY GEORGIA TELEMEDICINE ACT OF 2005 ( PARITY LAW ) O.C.G.A every health benefit policy that is issued, amended, or renewed shall include payment for services that are covered under such health benefit policy and are appropriately provided through telemedicine...and generally accepted health care practices and standards prevailing in the applicable professional community at the time the services were provided.
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