The Importance of Quality Measurement in a Bundled Payment Environment. Woody Eisenberg, MD Senior Vice President, PQA

Similar documents
Reinventing Health Care: Health System Transformation

Redesigning Post-Acute Care: Value Based Payment Models

Getting Started in a Medicare Shared Savings Program Accountable Care Organization

Moving the Dial on Quality

Models of Accountable Care

Health System Transformation. Discussion

Bundled Payments. AMGA September 25, 2013 AGENDA. Who Are We. Our Business Challenge. Episode Process. Experience

Future of Patient Safety and Healthcare Quality

7/7/17. Value and Quality in Health Care. Kevin Shah, MD MBA. Overview of Quality. Define. Measure. Improve

Quality Measures and Federal Policy: Increasingly Important and A Work in Progress. American Health Quality Association Policy Forum Washington, D.C.

Accelerating the Impact of Performance Measures: Role of Core Measures

Volume to Value Transition in the USA

Bundled Payments Physician Engagement Issues

State Leadership for Health Care Reform

CMS in the 21 st Century

23 rd Annual Health Sciences Tax Conference

Summary and Analysis of CMS Proposed and Final Rules versus AAOS Comments: Comprehensive Care for Joint Replacement Model (CJR)

Paying for Outcomes not Performance

HEALTH CARE REFORM IN THE U.S.

WELCOME. Kate Gainer, PharmD Executive Vice President and CEO Iowa Pharmacy Association

Healthcare Reimbursement Change VBP -The Future is Now

Bundled Payments to Align Providers and Increase Value to Patients

VALUE BASED ORTHOPEDIC CARE

Exhibit 1. Medicare Shared Savings Program: Year 1 Performance of Participating Accountable Care Organizations (2013)

ACOs: California Style

Product and Network Innovation: Strategies to Achieve Triple Aim Success. Patrick Courneya, MD Medical Director, HealthPartners October 31, 2013

HOME DIALYSIS REIMBURSEMENT AND POLICY. Tonya L. Saffer, MPH Senior Health Policy Director National Kidney Foundation

Patient-Centered Medical Home 101: General Overview

Is HIT a Real Tool for The Success of a Value-Based Program?

Banner Health Friday, February 20, 2015

The Pain or the Gain?

Bundled Episode Payment & Gainsharing Demonstration

Future Proofing Healthcare: Who Knows?

Creating a Patient-Centered Payment System to Support Higher-Quality, More Affordable Health Care. Harold D. Miller

Comparison of Bundled Payment Models. Model 1 Model 2 Model 3 Model 4. hospitals, physicians, and post-acute care where

Episode Payment Models Final Rule & Analysis

Medicare Physician Payment Reform:

Physician Compensation in an Era of New Reimbursement Models

Assignment of Medicare Fee-for-Service Beneficiaries

Pay-for-Performance. GNYHA Engineering Quality Improvement

Wound Care Reimbursement. Things Are A-Changing!

Medicare, Managed Care & Emerging Trends

Thought Leadership Series White Paper The Journey to Population Health and Risk

SNC BRIEF. Safety Net Clinics of Greater Kansas City EXECUTIVE SUMMARY CHALLENGES FACING SAFETY NET PROVIDERS TOP ISSUES:

Alternative Payment Models and Health IT

Quality, Cost and Business Intelligence in Healthcare

A strategy for building a value-based care program

THE REIMBURSEMENT SHIFT: PREPARING YOUR PRACTICE FOR PATIENT-CENTERED PAYMENT REFORM. November 20, 2015

Explaining the Value to Payers

Health Information Technology

Person-Centered Accountable Care

Benchmark Data Sources

3/19/2013. Medicare Spending Per Beneficiary: The New Link Between Acute and Post Acute Providers

Payment Reform Strategies. Ann Thomas Burnett BlueCross BlueShield of South Carolina

Health Care Evolution

Post-Acute Care Alignment Strategy Management & Operations Track Tuesday, July 29, 4:45 5:45 pm

Updates from CMS: Value-Based Purchasing, ACOs, and Other Initiatives The Seventh National Pay for Performance Summit March 20, 2012

Value based care: A system overhaul

1. Measures within the program measure set are NQF-endorsed or meet the requirements for expedited review

1.01 Government Programs: CMS and Pay for Performance: Current Issues. CMS Regional Administrator March 2009

Kate Goodrich, MD MHS Director, Quality Measurement and Health Assessment Group, CMS

CPC+ CHANGE PACKAGE January 2017

Innovative Coordinated Care Delivery

Summary of U.S. Senate Finance Committee Health Reform Bill

The Role of Pharmacy in Alternative Payment Models

The Center for Medicare & Medicaid Innovations: Programs & Initiatives

PHCA Webinar January 30, Latsha Davis & McKenna, P.C. Kimber L. Latsha, Esq.

The New World of Value Driven Cardiac Care

CMS Priorities, MACRA and The Quality Payment Program

Critical Access Hospitals and Cost-Based Reimbursement

Comprehensive Care for Joint Replacement (CJR) Readiness Kit

Health System Transformation, CMS Priorities, and the Medicare Access and CHIP Reauthorization Act

Swapping, Kickbacks, Fair Market Value: Risks for a Post-Acute Provider

Emerging Models of Care Delivery Christy Mokrohisky Ex. Dir. of PI & Emerging Models

TRANSITIONS of CARE. Francis A. Komara, D.O. Michigan State University College of Osteopathic Medicine

Questions and Answers on the CMS Comprehensive Care for Joint Replacement Model

Using Data for Proactive Patient Population Management

PBGH Response to CMMI Request for Information on Advanced Primary Care Model Concepts

New Opportunities for Case Management Leadership in our Changing Environment

Medicare-Medicaid Payment Incentives and Penalties Summit

Outcomes Measurement in Long-Term Care (LTC)

QUALITY PAYMENT PROGRAM

Critical Access Hospital Quality

Accountable Care and the Laboratory Value Proposition. Les Duncan Director of Operations Highmark Health - Home and Community Services

Disclosures. Platforms for Performance: Clinical Dashboards to Improve Quality and Safety. Learning Objectives

1. Current Reimbursement and Care Delivery Structures

Healthcare Reform Hospital Perspective

Lessons Learned in Care Management. Meghan Sheridan, RD, CDE Ohio Association of Community Health Centers 2017 Annual Conference

MACRA for Critical Access Hospitals. Tuesday, July 26, 2016 Webinar

CMS Value Based Purchasing: The Wave of the Future

MEDICARE COMPREHENSIVE CARE FOR JOINT REPLACEMENT MODEL (CCJR) Preparing for Risk-Based Outcomes of Bundled Care 8/12/2015.

Geisinger s Bundled Payments Experience for Better Clinical Integration to Drive Quality to Lower Cost

Statement for the Record. American College of Physicians. Hearing before the House Energy & Commerce Subcommittee on Health

MassMedic Healthcare and Payment Reform: Impact on Value Demonstration

Post Acute Continuum Lessons Learned from Geisinger s ProvenHealth Navigator

THE ALPHABET SOUP OF MEDICAL PAYMENTS: WHAT IS MACRA, VBP AND MORE! Lisa Scheppers MD FACP Margo Ferguson MT MSOM

Quality Measurement at the Interface of Health Care and Population Health

Examples of Measure Selection Criteria From Six Different Programs

3/16/2016. Swapping, Kickbacks, Fair Market Value: Risks for a Post-Acute Provider. AKS designed to prevent improper referrals, which can lead to:

UPDATE ON MEANINGFUL USE. HITECH Stimulus Act of 2009: CSC Point of View

Transcription:

The Importance of Quality Measurement in a Bundled Payment Environment Woody Eisenberg, MD Senior Vice President, PQA

BUNDLED PAYMENTS FOR CARE IMPROVEMENT INITIATIVES Episode Services included in the bundle Model 1 Model 2 Model 3 Model 4 All acute patients, all DRGs All Part A services paid as part of the MS-DRG payment Selected DRGs, hospital plus postacute period All non-hospice Part A and B services during the initial inpatient stay, post-acute period and readmissions Selected DRGs, post-acute period only All non-hospice Part A and B services during the postacute period and readmissions Selected DRGs, hospital plus readmissions All Part nonhospice A and B services (including the hospital and physician) during initial inpatient stay and readmissions Payment Retrospective Retrospective Retrospective Prospective Quality Measures????

Implementing Quality Measurement The bundled care approaches to improving value do not currently work by providing payments based on assessed value using performance measurements. Bundled payment methods require robust quality measurement both to guard against potential adverse effects of bundled payment, such as stinting on care or avoiding sicker patients, and to provide tools for quality improvement and pay-for-performance. 7

Medicare s Payment Strategy For ESRD Embraces Bundled Payment and P4P To Cut Costs Date Payment Initiative Result 1972 Medicare institutes FFS coverage for dialysis, drugs, labs, ancillary services 1983-1989 Composite rate services: nursing, dietary, clinical, equipment and supplies, social services, and certain laboratory tests and drugs Volume, intensity and cost of services spiral spectacularly over 2 decades Continued increases in costs 1991 FFS extended to erythropoietins Use increases dramatically $3.1B in 2007 2007 FDA issues warning regarding health risks for use of erythropoietins 2011 Composite rate services Separately billable (Part B) injectables ESRD-related laboratory tests Selected ESRD Part D drugs(erythropoietins) Use declines 2009-2011 2012 bundled payment rate reduced by up to 2 percent for facilities that do not achieve or make progress toward specified

Performance Measures in the Final ESRD Pay-for-Performance rule Percentage of Medicare patients with: average hemoglobin levels of less than 10 grams per deciliter; average hemoglobin levels of greater than 12 grams per deciliter; and average post-dialysis urea reduction ratios of greater than 65 percent. Result: most dialysis units today meet these quality measures and the use of erythropoietin has declined

Challenges to the Successful Diffusion of the ACO Model and Approaches to Overcoming Them (Fisher, NEJM 2011) Challenge Providing timely and useful data Overcoming transition costs Gaining consumer support Learning what works; using that knowledge to inform policy and practice Clarifying the path forward Approach Payers provide ACOs with patient-level data to support care management. Quality measures used for accountability are also useful for care improvement. Use quality-related payments to support needed ACO investments. Provide up-front funding options for provider groups that need them. Adopt performance measures that are more meaningful to consumers. Support consumer choice and allow consumers to share savings as well. Develop and test multipayer or all-payer ACOs where possible. Track and evaluate both public and private ACO implementation. Create meaningful alternatives to FFS Measure effect on overall quality and cost in all payment reforms

How do you build quality measures? NQF Evaluation Criteria Importance High impact Opportunity for improvement / gap in care Evidence to support measure focus Scientific Acceptability Reliability Validity Usability Meaningful and understandable Public reporting/quality improvement Feasibility Data are available and retrievable without undue burden Unintended consequences Related or competing measures Harmonization

Measure Set for evolving models of care

Complimentary Medication Use Measures

Three condition-level framework questions for measure development 1. Is the condition chronic in nature, or is it an acute hospital-based condition? 2. Are there medical care quality measures relating to this condition that are likely to be impacted by pharmaceutical use, and are these quality measures being mandated by payers? 3. How large a role do pharmaceuticals play in the cost of treating the condition? What is their share of the overall costs, and to what extent are medical cost offsets possible from appropriate pharmaceutical use?

Two Chronic Condition Examples Condition Heart failure Rheumatoid Arthritis Conditi on Type Chronic, Hospital Rx Focus Outpatient Rx Impact on Quality? Receiving B-blocker Rx; % of patients requiring re-hosp Chronic Outpatient Receiving Rx; Functional Status Quality measure in CMS bundle? Yes; Rx written Rx Share of cost? Low Cost offset from Rxs? Impact rehospitaliz ation No High Unknown

Why Pharmacists Should be included in bundled care quality measurement Most bundled care products involve medications for chronic conditions Assessment of medication effectiveness and efficiency is key Pharmacists are the key professionals for: Performing comprehensive therapy reviews of prescribed and self-care medications Resolving medication-related problems optimizing complex regimens Monitoring adherence recommending cost-effective therapies Fulfilling medication use performance measures 1. Smith, et. al. HEALTH AFFAIRS 29, NO. 5 (2010): 906 913

PROMETHEUS*: a performance-based bundled payment programs Assigns evidence-based case reimbursement rates (ECRs) to common conditions A single ECR covers all inpatient and outpatient care associated with a given condition A quality score ties outcomes, treatment complications, and patient satisfaction to bundled reimbursement - ensures that providers are held financially accountable for inappropriate care and patient dissatisfaction - results may be reported back to providers for use in quality improvement and may be used to add performance-based bonuses or penalties to the bundled payment amounts. - incentives can account for as much as 10% to 20% of the total bundled payment - publicly reported provider rankings based on quality and patient satisfaction scores *Provider payment Reform for Outcomes Margins Evidence Transparency Hassle-reduction Excellence Understandability and Sustainability

Challenges Implementing the PROMETHEUS Bundle Model Implementation Challenge Defining Bundles Defining payment model Implementing Quality Measurement Determining Accountability Engaging Providers Delivery Redesign Pilot Site Experience ECR defined based on own experience Chicken (care re-engineer and quality measures) or egg (payment) first? EHR crucial, but implementation of electronic measures is time and resource intensive How to determine accountability and payment; leakage of patients beyond their system Frontline Physicians still skeptical Where do bundles fit in with FFS, ACOs, PCMH?

Geisinger s ProvenCare Physicians agree to follow 40 preoperative, perioperative, and postoperative treatment guidelines in exchange for a flat rate of reimbursement Quality Improvement Indicators (as opposed to Performance Measures) monitor guideline adherence - Process measures - Internal quality improvement indicators for rapid cycle improvement - Not publicly reported Performance Measure tied to reimbursement

ProvenCare Components Patient-centricity Appropriate care Evidence/consensus-based best practices Highly reliable care Optimized work flows Explicit accountabilities Packaged pricing Performance-based reimbursement "Warranty (patient satisfaction)

Proven Care Benchmarks (selected benchmarks for CV surgery) Preadmission documentation Operative documentation Post-Operative patient documentation Discharge documentation - Discharge medications (e.g., beta-blocker) - Discharge medication: aspirin - Discharge medication: statin Post-Discharge documentation - Patient correctly taking beta-blocker? - Patient correctly taking aspirin? - Patient correctly taking statin? - Patient correctly administering anticoagulant?

Conclusions With the rapidly changing health care environment, payers and policy makers are increasingly interested in payment models that reward quality and patient safety In order to achieve quality and cost goals, accountable systems of care need to consider medication management and might formally include Pharmacists on the care team Pharmacists will need to demonstrate the value they add to accountable care systems A core set of pharmacy quality measures can be built to compliment existing clinical quality measures, with an eye toward expanding this as gaps are identified

BUNDLED PAYMENTS FOR CARE IMPROVEMENT INITIATIVE Episode Services included in the bundle Model 1 Model 2 Model 3 Model 4 All acute patients, all DRGs All Part A services paid as part of the MS-DRG payment Selected DRGs, hospital plus postacute period All non-hospice Part A and B services during the initial inpatient stay, post-acute period and readmissions Selected DRGs, post-acute period only All non-hospice Part A and B services during the postacute period and readmissions Selected DRGs, hospital plus readmissions All Part nonhospice A and B services (including the hospital and physician) during initial inpatient stay and readmissions Payment Retrospective Retrospective Retrospective Prospective Quality Measures TBD TBD TBD TBD

Questions? Contact info: Woody Eisenberg Weisenberg@PQAalliance.org 973-534-0887