Physician Engagement

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1 Pathways for Successful Accountable Care Organizations: Physician Engagement Thomas Kloos, MD Jim Barr, MD Atlantic ACO & Optimus Healthcare Partners ACO Helping providers Care Better for their patients. Helping patients Care Better for themselves. Helping people Care Better for each other.

2 Topics: Optimus and Atlantic ACO s Physician Engagement Models Performance Specialists Hospitals

3 Health Care Delivery Quality and Experience of Care Lack of evidence-based, comprehensive, coordinated care Lack of emphasis on prevention and healthy behaviors Health insurance affordability Chronic disease impact will increase Dysfunctional FFS Reimbursement System Lack of Physician/Provider Satisfaction & Engagement Lack of Patient Satisfaction & Activation

4 The Triple Aim Better care for individuals. Better health for populations. Reducing per-capita costs. Helping 4 providers Care Better for their patients. Helping patients Care Better for themselves. Helping people Care Better for each other.

5 Atlantic & Optimus Healthcare Partners ACO s

6 ACO Relationships

7 MSSP 2014 Preliminary Results 75% 0f 353 ACO s in PY2 did not achieve shared savings. 97 ACO s earned bonus of 422M on 833M of shared savings. More experienced ACO s tended to perform better Overall ratio of ACO s achieving savings similar to 2013 Pioneers: 11 paid bonus of 83M, 5 paid back 8M Helping physicians Care Better for their patients. Helping patients Care Better for themselves. Helping people Care Better for each other.

8 214 ACO s completed outcomes reporting nationally NJ ACO rankings in national results: Optimus 52 Hackensack 72 Advocare 81 Virtua 89 Atlantic ACO 102 Central Jersey 114 Meridian 119 Atlantic Care 128 ACO Health 130 Barnabas Health MSSP Quality Results for NJ AACO scored 50.8 points % overall, a 7.4% increase from 2013 OHP scored points % overall, a 7.5% increase from 2013 Helping physicians Care Better for their patients. Helping patients Care Better for themselves. Helping people Care Better for each other.

9 2014 New Jersey ACO MSSP Participant Performance ACO Doing Business As (DBA) or Legal Business Name (LBN) States Where Beneficiaries Reside Agreement Start Date Total Assigned Beneficiarie s Expenditures as % of Total Benchmark Generated Savings Earned Shared Savings Payments Quality Score Optimus Healthcare Partners, LLC New Jersey 04/01/ , % 10,017,766 4,440, % ACO Health Partners, LLC NJ, PA, FL 01/01/ , % 6,476,300 2,715, % Hackensack Alliance ACO NJ, NY 04/01/ , % 6,464,895 2,832, % Meridian AACO, LLC New Jersey 01/01/ , % % RWJ Partners LLC New Jersey 01/01/2014 8,456.7% - P4R Central Jersey ACO LLC New Jersey 01/01/ ,014.63% % LHS Health Network, LLC NJ, PA 01/01/ ,375.45% - P4R NEPA ACO Company, LLC New Jersey 01/01/2014 6,972.31% - P4R Partners In Care ACO, Inc. New Jersey 01/01/2014 6,843.26% - P4R Barnabas Health ACO-North, LLC New Jersey 07/01/ , % % JFK Population Health Company New Jersey 01/01/2014 9, % - P4R HNMC Hospital/Physician ACO New Jersey 01/01/2013 8, % % Atlantic ACO NJ PA 04/01/ , % % NJ Physicians ACO New Jersey 01/01/ , % - P4R Advocare Well Network New Jersey 01/01/ , % % Balance ACO NJ, NY 07/01/2012 8, % % VirtuaCare New Jersey 01/01/ , % % AtlantiCare Health Solutions, Inc. New Jersey 01/01/ , % %

10 What is a Value Based Contract? ACO s are in Value Based Contracts The ACO s do not negotiate fee for service rates with CMS or commercial payers ACO s are paid additional dollars based on a value equation Value = Quality/Cost Cost is our performance against our benchmark and market trend Quality is how we do against national averages on quality measures. Helping physicians Care Better for their patients. Helping patients Care Better for themselves. Helping people Care Better for each other.

11 Physician Engagement: The Time Problem Based on various analysis (for 2,500 patients): Time needed for chronic illness care = 10.6 hours per day Time needed for preventive care = 7.4 hours per day Time needed for acute care = 4.6 hours per day

12 Structure & Process Population Management Workflow Support

13 Quality and safety Patient-Centered Medical Home Model Personal provider Whole-person orientation Provider-directed team Office ACO Clinical Champions PCP & Spec: Population Management Activities Enhanced access ACO Coordinated Care: Complex Care Coordinators, COE, Community

14 Atlantic & Optimus ACO Services Data Aggregation/Management (CMS, payers, labs, EMR) Risk Stratification o o o Wellness access, patient engagement Rising Risk evidence-based care, care coordination High Risk complex care coordination, care transitions, readmission prevention, COE, PAC Quality Management enterprise-wide Patient Registry Cost Management analytics, efficiency indexes, innovation Provider Engagement & Practice Transformation Provider Performance Management (transparency, accountability) High Performance Network Development & Integration Community & Patient Activation

15 Population Risk Stratification Whole Person: risk stratify using risk factors, not just diseases Data Data - Data Analytics, Reports - Performance Metrics Tools & Interventions - Barriers - Incentives Physician Engagement & Patient Engagement Top 5% High Risk ACO Complex Care Coordinators, COE, Plan Case Managers 60-80% 15-35% (20% will become high risk each year) Rising Risk Low Risk ACO Population Care Managers, Practice Clinical Champions, PCMH model, Specialists Patient Portals, PHR, Apps

16 Data Sources & Aggregation Data Sources EMR & Paper Patient Charts Practice Management Systems Hospital (ADT s, lab, clinical) Claims, Lab, Pharmacy data Surveys, HRA s Data Aggregation Population Manager Risk Manager Lab, Pharma, Vendor Reports Payer Analytics

17 Team-Based Care: Staff Roles (PCC) VIP Management High & Rising Risk Identification Proactive Patient Care Plans Gaps in Care ER Management Care Transitions Medication Reconciliations Follow-up Visits Quality Reporting

18 > 50 points 50% of pmpm ACO 2015 Incentive Program > 65 points 75% of pmpm > 80 points 100% of pmpm MINIMUM REQUIREMENTS: 1) Quality data reporting 2) Communication with ACO (phone, text, s) Quality IT Transformation Improvement Engagement Identification and management of high risk, rising risk & vulnerable patients within your practice 20 points Use of Cortext, Relay Health/NJ Health Connect, and McKesson Population Manager 20 points Population Management Office Roles, Responsibilities & Workflows 15 points Office Performance Improvement Process & Outcomes: Plan-Do-Study-Act (PDSA) 20 points Citizenship & Integration 25 points

19 PMPM Per Primary Care Physician Sample ACO Financial Proforma Practice Attribution Assumptions **CONFIDENTIAL** Practice Potential Actual Potential Actual # Patients 60% Maximum Annual Paid Annual Paid Medicare % CMS PMPM Amount Amount Amount Amount Cigna 100 4% Performance Improvement PMPM Horizon % Shared Savings Horizon MA 25 1% Aetna FI 100 4% Cigna Aetna SI 200 8% Performance Improvement PMPM United 200 8% Horizon Others 1,000 40% Performance Improvement PMPM 2,500 Horizon Medicare Advantage PMPM Shared Savings Aetna Fully-Insured PIIP PMPM Self-Insured PIIP PMPM Shared Savings FI & SI United Performance Improvement PMPM Shared Savings Potential 2014 Actual 2014 Potential 2015 Actual 2015 **CONFIDENTIAL** Total PMPM Payments= Total Shared Savings= TOTAL 2014 TOTAL 2015

20 Shared Savings Distribution 30% ACO (operations and investment) 70% ACO Participants 5% Hospitals 95% Physicians o o 30% Specialists by episode volume 70% Primary Care Physicians 25% by attribution 25% by practice quality rating 50% by utilization performance & trend

21 Specialists PCMH-Neighbor Guidelines Centers of Excellence Clinical Integration (referral management) Shared Savings Distributions Bundled Payments / Episodes of Care

22 Reports Secure Access Full Transparency Performance Management Framework

23

24 ACO Provider Performance Efficiency Index

25 ACO Provider Performance KPI Atlantic ACO PCP - Allowed PMPM Period 4: January 1, December 31, 2014 (4th Qtr, 2014) Data Sharing Members Only Period 2 Average # Members Risk Score Total Cost PMPM Total Prof PMPM Period 3 Period 4 Period 2 Period 3 AACO (Weighted Averages) 30,541 35,896 41, Period 4 Period Period Period Period Period Period Period Facility PMPM Inpatient Period Milliman Benchmarks - Moderately Well Managed Milliman Benchmarks - Well Managed Practice Name Average # Members Risk Score Total Cost PMPM Total Prof PMPM Period Facility PMPM Inpatient Practice A Practice B , ,230 1,198 1,043 1,207 1, ,088 1,057 1,029 1,101 1, ,

26 ACO Provider Performance Integration

27 ACO Specialist Integration Detail Cardiologist A B C D E F G H

28 Episode Efficiency Episodes by Provider Case Mix Efficiency Index Specialty: Cardiovascular Disease PROVIDER # EPISODES AMT ALLOWED AMT CM EI EI STAT IMPACT ALLOWED/EPI SIGNIF A 1,744 1,020, Y 82,714 B 1, , N (52,349) C 1,678 1,008, Y 113,600 D 1, , N (3,546) E 1, , N 24,994 F 1, , N (35,648) G 1, , Y 66,526 H 1, , Y 48,212

29 Performance Management Framework If performance level is: <50% 50-59% 60-69% 70-79% 80-84% 85-89% >90% Improvement Needed By Next Reporting Period = 40% 15% 10% 6% 3% 0% 0% Examples: Base Compliance 9 mos 12 mos 18 mos 24 mos 30 mos 36 mos Practice "A" 50% 58% 66% 73% 77% 82% 84% Practice "B" 25% 35% 49% 69% 75% 80% >85% Practice "C" 80% 82% 85% 85% 85% 85% 85% Your Practice enter value calculate

30 Alignment & Collaboration Hospitals Payers Employers Unions IT Pharma Labs Medical Device / Vendors

31 Barriers Capitalization of PCMH and ACO models FFS vs Unfamiliar Compensation Model IT, Data and Analytics Predictive Modeling Management & Leadership Culture

32 Care Better Helping physicians Care Better for their patients Helping patients Care Better for themselves Helping people Care Better for each other

33 Thank You Q & A

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