Blue Cross Blue Shield of Michigan Advancing to the Next Generation of Value Based Pay for Performance

Similar documents
Private Sector Cost Containment Strategies

Launch PCMH Program. Organized Systems of Care (OSCs) Launch of PGIP based on Chronic Care Model. Risk-based Reimbursement

Moving from Fee-for-Service to Fee-for-Value: Blue Cross Blue Shield of Michigan s Value Partnership Programs

Presentation to: IHA NATIONAL PAY FOR PERFORMANCE SUMMIT March 25, 2014

Blue Cross Blue Shield of Michigan. Organized Systems of Care

BCBSM Physician Group Incentive Program

2016 Blue Cross Blue Shield of Michigan Commercial PPO/Marketplace Quality Improvement Program Description

Topics for Today s Discussion

Blue Cross Physician Choice PPO Provider FAQ 8/1/17

BCBSM Physician Group Incentive Program. Patient-Centered Medical Home and Patient-Centered Medical Home-Neighbor

Michigan Primary Care Transformation (MiPCT) Project Frequently Asked Questions

The Michigan Primary Care Transformation (MiPCT) Project. PGIP Meeting Update March 09, 2012

ACOs: California Style

Innovative Reimbursement Models Value-Based Insurance Design and the Medical Home En Route to an ACO Model

Using Data for Proactive Patient Population Management

CPC+ CHANGE PACKAGE January 2017

Physician Group Incentive Program Program Updates

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

Clinical Integration and P4P: Using Pay for Performance to Build Clinical Integration within a Physician-Hospital IPA

Specialty Payment Model Opportunities Assessment and Design

Patient Engagement in the Population Health Management Era

Payment Strategies: A Comparison of Episodic and Population-based Payment Reform

2015 Annual Convention

IHA National Pay for Performance Summit March 25, 2014 Gregg Stefanek, DO Family Practice Physician

W. Douglas Weaver, MD, MACC. American College of Cardiology SENATE FINANCE COMMITTEE

Re: Medicare Program; Medicare Shared Savings Program: Accountable Care Organizations, Proposed rule.

Medicaid Payment Reform at Scale: The New York State Roadmap

Health System Transformation. Discussion

The Patient Centered Medical Home: 2011 Status and Needs Study

Our Response to Health Reform: Collaborative Initiatives for Success

Strategic Alignment in Health Care

ESSENTIAL STRATEGIES IN MEDI-CAL PAYMENT REFORM. Richard Popper, Director, Medicaid & Duals Strategy August 3, 2017

Succeeding with Accountable Care Organizations

CIGNA Collaborative Accountable Care

BCBSM Physician Group Incentive Program. Patient-Centered Medical Home and Patient-Centered Medical Home-Neighbor

Provider-Delivered Care Management Frequently Asked Questions Revised March 2018

PCPCC s Strategic Plan, Aligning & Engaging our Stakeholders to Drive Health System Transformation

Future of Patient Safety and Healthcare Quality

The Alternative Quality Contract (AQC): Improving Quality While Slowing Spending Growth

Enhancing Specialty and Primary Care Communication May 2016

A strategy for building a value-based care program

Arkansas Blue Cross and Blue Shield Patient Centered Medical Home Provider Manual

Transitioning to a Value-Based Accountable Health System Preparing for the New Business Model. The New Accountable Care Business Model

Arkansas Blue Cross and Blue Shield Patient Centered Medical Home Provider Manual

Reinventing Health Care: Health System Transformation

All ACO materials are available at What are my network and plan design options?

Implementing Patient-Centered Medical Home Pilot Projects:

Saint Francis Care and Cigna CAC Meeting the Triple Aim Together

Medicare Shared Savings ACOs: One Organization s Lessons Learned. Gregory A. Spencer MD FACP Chief Medical Officer Crystal Run Healthcare LLP

The Long and Winding Road-map: From Waiver Services to VBP and Other Stops Along the Way

Patient Centered Medical Home. History of PCMH concept. What does a PCMH look like? 10/1/2013. What is a Patient Centered Medical Home (PCMH)?

VALUE BASED ORTHOPEDIC CARE

Accountable Care Organizations American Osteopathic Association Health Policy Day September 23, 2011

New York State s Ambitious DSRIP Program

The Impact of Primary Care Practice Transformation on Cost, Quality, and Utilization

A Practical Approach Toward Accountable Care and Risk-Based Contracting: Design to Implementation

Moving the Dial on Quality

TRANSFORMING HEALTHCARE DELIVERY A Pathway to Affordable, High-Quality Care in America

ACO Practice Transformation Program

Re: Rewarding Provider Performance: Aligning Incentives in Medicare

2014 Patient Centered Medical Home (PCMH) Recognition

Advancing Primary Care Delivery

2018 Collaborative Quality Initiative Fact Sheet

BCBSM Physician Group Incentive Program. Patient-Centered Medical Home and Patient-Centered Medical Home-Neighbor

Improving Care and Lowering Costs: The Use of Clinical Data by Medicaid Managed Care Organizations. April 26, 2018

Healthcare Reimbursement Change VBP -The Future is Now

Post Acute Continuum Lessons Learned from Geisinger s ProvenHealth Navigator

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

Employer Breakout Session Payment Change in Ohio: What it Means for Employers

SVS QUALITY AND PERFORMANCE MEASURES COMMITTEE (QPMC) New Member Orientation

A legacy of primary care support underscores Priority Health s leadership in accountable care

The Michigan Primary Care Transformation (MiPCT) Project: An Overview. Medicaid Health Plan- MiPCT Coordination Meeting

Mission Health Care Network. April 2017

Cultural Transformation and the Road to an ACO Lee Sacks, M.D. CEO Mark Shields, M.D., MBA Senior Medical Director

Transformational Payment Reform: How will FQHC s survive?

The New York State Value-Based Payment (VBP) Roadmap. Primary Care Providers March 27, 2018

MACRA & Implications for Telemedicine. June 20, 2016

Disclaimer This webinar may be recorded. This webinar presents a sampling of best practices and overviews, generalities, and some laws.

Physician Assistant Reimbursement: Hot Topics

Transitions of Care: Primary Care Perspective. Patrick Noonan, DO

Aetna Better Health of Illinois

The New Frontier: Value- Based Payment Models

Payer Perspectives On Value-based Contracting

Intro to Global Budgeting

Michigan s Vision for Health Information Technology and Exchange

Gateway to Practitioner Excellence GPE 2017 Medicaid & Medicare

Adopting Accountable Care An Implementation Guide for Physician Practices

Connected Care Partners

The Michigan Primary Care Transformation (MiPCT) Project

POPULATION HEALTH PLAYBOOK. Mark Wendling, MD Executive Director LVPHO/Valley Preferred 1

2017/2018. KPN Health, Inc. Quality Payment Program Solutions Guide. KPN Health, Inc. A CMS Qualified Clinical Data Registry (QCDR) KPN Health, Inc.

UPMC Health Plan. Value Based Insurance Design (VBID) Spark Your Health

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

National ACO Summit. Third Annual. June 6 8, Follow us on Twitter and use #ACOsummit.

Medicare Physician Payment Reform:

The New World of Value Driven Cardiac Care

The influx of newly insured Californians through

Technical Overview of HCIP/CCIP

Challenges and Opportunities for Improving Health and Healthcare in Ohio through Technology

Care Redesign: An Essential Feature of Bundled Payment

Transcription:

Blue Cross Blue Shield of Michigan Advancing to the Next Generation of Value Based Pay for Performance Physician Group Incentive Program, Patient Centered Medical Homes, and Moving From Fee for Service to Fee for Value Presentation to: Integrated Healthcare Association 7th National Pay for Performance Summit Thomas Leyden, MBA Director, Value Partnerships Blue Cross Blue Shield of Michigan tleyden@bcbsm.com

Overarching Principles Health care is local: natural communities of caregivers taking responsibility for creating systems serving community need Build community first; don t rush to payment solutions Organized Systems of Care (OSC)/Accountable Care Organizations (ACO) must be grounded in self-defined communities, not third party defined communities Harness intrinsic motivation of providers by ceding control: Purpose, autonomy and mastery must drive system development and performance, not short term gain Incentives, or payment reform, separate from community, and explicit purpose, will not succeed

What is Value Partnerships? BCBSM s innovative, quality-based approach to: Partnering for value with physicians, physician organizations (POs) and hospitals Rewarding the transformation of health care Working with the majority of the acute care hospitals in the state and nearly 15,000 primary care and specialty physicians Collaborating and sharing data to enhance clinical quality, decrease complications, manage costs, eliminate errors and improve health outcomes

BCBSM Value Partnerships Philosophy

BCBSM s Value Partnerships Program Physicians Physician Group Incentive Program 33 Initiatives aimed at Capability Building, Improving Quality of Care Delivery, and Appropriate Utilization of Services Types of Initiatives Include: Improvement Capacity Condition-Focused Service-Focused Core-Clinical Process- Focused Clinical Information Technology-Focused 12 PGIP initiatives address development of PCMH capabilities Hospital Collaborative Quality Initiatives BCBSM Cardiovascular Consortium Percutaneous Coronary Intervention and Peripheral Vascular Intervention CQIs Michigan Society of Thoracic & Cardiovascular Surgeons Quality Collaborative Michigan Bariatric Surgery Collaborative Michigan Breast Oncology Quality Initiative Advanced Cardiac Imaging Consortium Michigan Surgical Quality Collaborative Peri-Operative Outcomes Initiative Hospital Medicine Safety Collaborative Michigan Trauma Quality Improvement Program Michigan Arthroplasty Registry Collaborative for Quality Improvement (1Q12) Michigan Radiation Oncology Quality Collaborative (1Q12) Hospitals Hospital P4P Incentive Program P4P program consists of Quality Measures CQIs Quality Indicators Efficiency Measures Cost-per-Case Hospital per member per month trends Michigan Health & Hospital Association: Keystone Center for Patient Safety & Quality BCBSA Best of Blue Awards 2006 - PGIP and CQIs 2010 PCMH (also received BlueWorks the premiere BCBSA award) 2011 MSQC, MBSC and MOQC (also received BlueWorks Awards for MSQC and MBSC)

PGIP: Catalyzing Health System Transformation in Partnership with Providers 2004 2005 2006 2007 2008 2009 2010 2011 2012 PGIP Chronic Care Model PCMH Primary care transformation OSCs Organized Systems of Care Transform care processes to effectively manage chronic conditions Build registry and reporting capabilities to manage populations of patients Achieve savings in specified areas Reward physicians for improved performance and efficiency Share savings Build PCMH infrastructure Strengthen doctor-patient relationship Support s and their team s ability to effectively manage care Coordinate care across the continuum for a defined patient population Establish linkages with community services Support establishment of systems of care that assume responsibility and accountability for managing a defined population of patients across all locations of care Expand PGIP to include specialists involved in chronic care Implement PCMH and quality/use initiatives Continue to increase number of initiatives Continue to add new specialties to PGIP Extend providerdelivered care management with links to BCBSM for customer reporting statewide

PGIP At 5,000 Feet PGIP incentivizes providers to alter the delivery of care by encouraging responsible and proactive physician behavior, ultimately driving better health outcomes and financial impact. BCBSM provides the financing, tools and support so physicians can engage in specific initiatives that change the way healthcare is delivered... and drive meaningful impacts for our customers and our members. Efficient Utilization of Resources BCBSM/Provider Partnership PGIP Initiatives Delivery of Care Improved Quality of Care Enhanced Member Experience 7

PGIP: Health Plan Role Convene and catalyze; not engineer and control Provide resources and structure reimbursement to reward infrastructure development and process transformation Reward quality and cost results (improvement and optimal performance) at the population level Share data at organization, practice unit/office and physician level Leave management of individual patient care to practices and of physician practices to PO

PGIP: PO Role Collaborate on crafting future vision Collaborate on implementation PGIP quarterly meetings Common interest groups Regional learning collaboratives Animate physician members Develop and deploy new systems of care Work with organization members to examine and optimize performance

PGIP: Shared Vision POs take responsibility for developing systems of care Shared information systems Shared processes of care Shared accountability for population level performance Organizing concepts Lack of a system is the root cause: structure incentives to catalyze system development and system performance Patient Centered Medical Home Model Systems designed to respond to patients and community s needs

PGIP: Key Statistics 14, 778 Physicians (6,686 Primary Care and 8,092 Specialists) 40 physician organizations, representing over 100 physician groups statewide 4,190 physician practices (most 1-3 physicians) Roughly 1.8 million members and 5 million citizens impacted by PGIP physicians A PGIP presence in 81 of Michigan s 83 counties 33 PGIP initiatives $100 M annual reward pool

PGIP Key Program Results Generic Prescribing Rate has risen from 38 percent in 2004 to 74 percent in 2011 PCMH practices demonstrate lower rates of hospitalization, radiology utilization and lower ED visits Direct Radiology savings were $24M in 2010 BCBSM has a 2.2% cost trend for 12 months for PPO business ending 3rd quarter 2011 with negative professional cost trend for that quarter 12

Patient Centered Medical Home (PCMH) With the PCMH model, the primary care physician leads a professional health care team that tracks and monitors the patient s overall health, working collaboratively to ensure a patient s health care needs are being met, from lifestyle and nutrition counseling to testing and monitoring health outcomes. In 2011, of the nearly 1,000 practices that were nominated for PCMH designation, 776 practices throughout the state were designated, representing more than 2,500 primary care physicians

PCMH Initiatives In 2007, the Joint Principles of the PCMH were released by four primary care physician societies American Academy of Family Physicians, American Academy of Pediatrics, American College of Physicians, and American Osteopathic Association. Principles have since been endorsed by 19 additional physician organizations, including American Medical Association, among others In 2008 and 2009, BCBSM developed 12 PGIP initiatives designed to help Michigan and specialty practices develop the capabilities associated with the Joint Principles. BCBSM s PGIP PCMH Initiatives Extended Access Individual Care Mgt Patient Provider Partnership Patient Registry Performance Reporting Test Tracking Coordination of Care Linkage to Community Svcs Patient Web Portal Preventive Services Self-Management Support Specialist Referral Process

BCBSM Approach to PCMH Model developed in Collaboration with PGIP Providers PGIP PCMH Initiatives Opportunity for PGIP POs to participate in 12 PCMH-focused PGIP Initiatives that support implementation of 129 specific PCMH capabilities Targeted assistance offered through collaboratively developed Interpretive Guidelines All s and Specialists in PGIP may participate More than 5,500 s are currently working on implementing PCMH capabilities Incentives for the obtainment of PCMH capabilities POs work on Initiatives to achieve practice transformation. PGIP PCMH Designation Program Opportunity for PGIP Practice Units to be PCMH- designated by BCBSM and rewarded for additional time and resources required (started in July 2009) Only s are eligible to participate Additional reward monies available via increased E&M fees: Office visits 99201 99215 Preventive 99381 99397 Increase office visit fees to PCMHdesignated practices (+10%) New codes for care management and selfmanagement support (in person and telephonic) payable to PGIP physicians: supports multi-disciplinary, team based care/care management Increase office visit fees for offices in PCMH-designated practices in POs with optimal population level cost performance (+10%)

Eligibility Requirements for PCMH Designation Program 1. Physician offices nominated by their PGIP PO 2. Commendable performance on quality/use/efficiency measures (adult and pediatric) Quality: Evidence Based Care and Preventive measures Use: ED use for primary care treatable conditions and high-tech and low-tech radiology rates Efficiency: Generic Dispensing Rate and trend 3. Critical mass of PCMH capabilities in place Self-reported data validated through site visits Practice Units that achieve PCMH Designation continue to participate in PCMH Initiatives and are expected to demonstrate ongoing progress towards fully implementing PCMH domains of function

BCBSM PCMH Nomination PGIP Phys Org B PGIP Phys Org A PC-MH Nominee PC-MH Nominee PC-MH Nominee PC-MH Nominee PC-MH Nominee PC-MH Nominee PGIP Phys Org C Non PGIP Physicians

BCBSM PCMH Designation PGIP Phys Org B PGIP Phys Org A PC-MH PC-MH PC-MH Nominee PC-MH PC-MH Nominee PC-MH Nominee PGIP Phys Org C Non PGIP Physicians

PCMH: Key Statistics Patient Centered Medical Home program includes: Approximately 5,600 primary care physicians working towards implementing PCMH capabilities Almost 2,000 specialists working towards implementing PCMH capabilities Number of participating providers increases each year 2011 BCBSM PCMH Designation includes: Over 2,500 primary care physicians and specialists in more than 770 practice units Over $25M in annual E&M uplifts for PCMH designated providers

PCMH Designation Continues to Expand Across Michigan

PGIP PCMH Infrastructure in 2011 Percent of PCMH Capabilities Fully in Place by Initiative for Designated and Not Designated Practice Units in 2011 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Patient Provider Partnership Patient Registry Performance Reporting Individual Care Management Extended Access Test Results Tracking Preventive Services Linkage to Community Services Self Management Support Patient Web Portal Coordination of Care Specialist Referral Process *For the "not designated" cohort, only PCMH Designation eligible practice units were included in the analysis **SOURCE: 2011 PCMH Scenarios Tool Designated Not Designated

PCMH Capabilities in Place Among those practices that were designated as patient-centered medical homes in 2011: Over 95% of PCMH-designated primary care physicians have: 24 hour phone access to a clinical decision-maker Patients who are fully informed about after-hours care options Medication review & management for all chronic patients A system in place for tracking abnormal test results Over 90% of PCMH-designated primary care physicians have: Primary prevention program to reduce patient risk of disease and injury Patient registry with evidence-based care guidelines Written procedure and staff training in place for referring patients to specialists

Performance of PCMH Designated Practices Continues to Improve as Program Expands Metric PCMH Designees Compared to non-pcmh Practices Jan.- Dec. 2010 Year 2 Designation* 2010 Designated Physicians 2010 Attributed BCBSM Members Jan.- Dec. 2011 Year 3 Designation 2011 Designated Physicians 2011 Attributed BCBSM Members Adults (18-64) 1,836 physicians 650,000 2,614 physicians 820,000 774 practices 502 practices Emergency department visits (per 1,000) -6.6% -9.9% Primary care sensitive emergency department visits (per 1,000) -7.0% -11.4% Ambulatory care sensitive inpatient discharges (per 1,000) -11.1% -22% High tech radiology services (per 1,000) -6.3% -7.5% High tech radiology standard cost PMPM -3.0% -4.9% Low tech radiology services (per 1,000) -5.9% -4.8% Low tech radiology standard cost PMPM -5.9% -5.0% Generic dispensing rate 3.3% 3.8% Despite adding 42% more physicians in 2011, there were significant increases in differentiation between PCMH and non designated physicians *Year 2 Designation: July 2010 - June 2011 Year 3 Designation: July 2011 - June 2012

Moving towards Fee For Value Infrastructure 100 % - Payment 0 % - Pay for PCMH/OSC Infrastructure Development Pay for Performance (tied to savings from decreased use and improved quality) Capacity to Manage Population Level Quality, Efficiency and Outcomes Current State David Share and Bharath Mamathambika, Blue Cross Blue Shield of Michigan Future State

David Share and Bharath Mamathambika, Blue Cross Blue Shield of Michigan PGIP s Movement Towards Fee For Value Infrastructure Current State Selected e-rx Single disease registry Intermediate State Care managers Physician perf. reports All e-rx Multiple disease registry Future State Facility/Dr. clinical integration EHR Secure provider portal Care mgt. system Dr./Facility perf. reports and specialist e-rx All patient registry 100 % - Pay for PCMH/OSC Infrastructure Development Pay for Resource Development Payment 0 % - Pay for Performance (tied to savings from decreased use) Capacity to Manage Population Level Quality, Efficiency and Outcomes Generic use Evidence based quality Preventable ED use Readmission PMPM pharmacy cost Evidence based quality Tx procedure use Dx procedure use Patient experience of care Preventable ED use All inpatient use PMPM pharmacy cost Evidence based quality

Lessons Learned Health care is local: Intrinsic motivation catalyzes doing the most possible; extrinsic motivation the least necessary The problem is a fragmented system: focus reimbursement on catalyzing system transformation and population level results, not narrow P4P goals Best accomplished with frame of reference on Physician Organizations/OSCs not individual providers Population level accountability: improves accuracy of measurement; discourages cherry picking of patients and providers

Lessons Learned All payment methods have inherent risks: e.g., fee for service-over use; global payment-under use; episode payment- episode volume An incentive system must be driven by explicit purpose: BCBSM s is Improved population wellbeing at lower cost Moving from volume to value from procedure-based care to relationship-based care for both s and specialists Fee for Value: retains granular detail on diagnosis and service provision; no expensive system overhaul; enhanced population level performance

Lessons Learned Making a substantial portion of FFV reimbursement dependent on system development and performance can move the needle on cost and quality Collaboration among providers is essential: align incentives for s, specialists and facilities so they create clinically integrated systems which best serve the community, rather than compete for declining resources through technology wars Savings will come from moderating procedure, ED and inpatient use; right-sizing facility capacity is necessary and requires a glide path for facilities

Conclusion 2,552 designated physicians 776 practices ~ 820,000 members 7.5% Lower rate of high-tech radiology usage Patient- Centered Medical Home Observed differences 11.4% Lower rate of primary caresensitive emergency department visits 4.8% Lower rate of low-tech radiology usage 22.0% Lower rate of ambulatory care- sensitive inpatient discharges 9.9% Lower rate of emergency department visits

Contact Information Tom Leyden, MBA Director Value Partnerships Program Blue Cross Blue Shield of Michigan 600 E. Lafayette Blvd Detroit, MI 48226-2998 tleyden@bcbsm.com