The SoonerCare Health Management Program

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The SoonerCare Health Management Program National Medicaid Congress June 13, 2011 Washington, DC Dr. Michael Herndon Oklahoma Health Care Authority Mike Speight Iowa Foundation for Medical Care

Why did Oklahoma develop the HMP? To improve the quality of healthcare for Oklahomans Diabetes deaths* ranked 48 th Stroke deaths* ranked 48 th Heart disease deaths* ranked 49 th *Number of deaths due to disease per 100,000 United States Department of Health and Human Services (US DHHS), Centers for Disease Control and Prevention (CDC), National Center for Health Statistics (NCHS), Compressed Mortality File (CMF) compiled from 2005, Series 20 No. 2K, 2008. Accessed 3/24/2008 via the CDC WONDER On-line Database. 2

Medicaid Reform Act of 2006 Mandated by the Oklahoma Legislature in House Bill 2842 to improve quality of care and reduce the cost of care for those with chronic conditions. 3

SoonerCare Health Management Program OHCA contracted out services for administering the HMP through a competitive bid process Iowa Foundation for Medical Care (IFMC) was selected Program launched Feb. 1, 2008 4

Wagner EH. Chronic disease management: what will it take to improve care for chronic illness? Eff. Clin Pract. 1998;1:2-4 5

SoonerCare HMP Dual Armed Approach Arm 1 Focuses on the high risk patients Arm 2 Focuses on assisting providers (physicians) Nurse Care Management Practice Facilitation 6

Nurse Care Management Identification of target population predictive modeling Member engagement Health Risk Assessment & screening Individualized care plans Involvement of PCP 7

Nurse Care Management Self Management support - education - community resources - coordination with other providers - involvement of PCP Tier 1 and Tier 2 8

Practice Facilitation: Objectives Improve the quality of care provided Make it easier to do quality care Improve office efficiency 9

7 Core Functions of Practice Facilitators 1. Develop a practice team with well defined roles 2. Assist provider in making their encounter with the patient productive and efficient 3. Empower team members with the utilization of standing orders and educational tools 4. Implement a user friendly and functional information system. 5. Create a new culture within the practice focused on quality, process redesign, and performance measurement 6. Implement appropriate incentives: financial and nonfinancial 7. Make the quality thing to do, the routine thing to do 10

Additional Practice Facilitator Roles Provide practical help Help staff use Information Technology Help improve delivery rates of preventive health services Help improve practice processes and patient care outcomes Help develop the role of other staff members Provide professional education to staff Facilitate system level improvements Teach about quality improvement (PDSA cycle) 11

SoonerCare HMP Lessons Learned Top Ten 12

SoonerCare HMP Dual Armed Approach Arm 1 Focuses on the high risk patients Arm 2 Focuses on assisting providers (physicians) Nurse Care Management Practice Facilitation 13

Lesson 1 In the current standard care delivery model, it is next to impossible to effectively manage chronically ill patients and employ preventive healthcare strategies. Inadequate reimbursement Inadequate staff (FTE and Skill) Inadequate conceptualization 14

Lesson 2 Case Management and Care Management Strategies Should Ideally be Practiced Based Enhances Provider Involvement Insures Care Manager is Performing Job Eliminates Communication Barriers Enhances Patient Engagement 15

Lesson 3 Data Management is critical, yet underutilized for a variety of reasons. Time Capacity- No EMR or Registry availability Skill Set of Clinicians and Staff Knowledge Money 16

Lesson 4 Providers generally lack the skill set necessary to effectively manage all aspects of a medical practice Business Management Human Resources Customer Service Quality Improvement Principles Time Management 17

Lesson 5 Staff turnover is frequent and a major barrier to QI initiatives Reduces sustainability Requires retraining by facilitation Impacts patient trust Less continuity of care 18

Lesson 6 Provider involvement is important, but Provider leadership is critical in quality improvement strategies. Provider must set the tone for process and quality improvement strategies, and insure expectations are met. Providers need Leadership Training 19

Lesson 7 Practices largely view public payers as Foe not Friend We place requirements upon them (EMR, claims submission accuracy, Prior Approvals, etc.) We tell them what we will cover and what we won t cover We audit 20

Lesson 8 Collaboration is needed among payers, medical associations other public and private entities that influence provider care delivery Providers are often confused and frustrated by different standards, requirements, strategies, and initiatives. 21

Lesson 9 Providers are generally open and receptive to payer s assistance with QI and Process Improvement initiatives How providers are approached is important 22

Lesson 10 Provider Financial Incentives have a small impact on practice participation 23

SoonerCare Health Management Program Results Additional slides including bar graphs, pie charts, and tables are attached for review. 24

Practice Facilitation Results Cost Savings $6.45 million 2/1/2008 (inception)-6/30/2010 95% of practices facilitated would recommend PF to another practice. 25

Nurse Care Management Results NCM is expensive to deliver Aggregate deficit of $1.3 million 2/1/2008 (inception)-6/30/2010 Savings is offset by administrative expense during the intervention 26

Nurse Care Management Cont. After the NCM intervention is when savings are realized ( impact of Self-Management) The intervention appears to promote sustained results The first year of patient engagement will not produce savings 27

Take Home Message Our practice based quality of care initiative has been more productive then our traditional nurse care management initiative in the first two and a half years of program. 28

Methodology of Evaluation Difficult- No control groups Options 1) Trend line Analysis 2) Predictive Modeling 3) Comparison Groups 29

Methodology Chosen Predictive Modeling With an open eye to Trend Line Analysis 30

Editorial Future Care Delivery Redesign Models should consider the increased expectations placed upon providers and include support to meet such expectations, including education, instruction and FTE. Paying providers more to redesign care delivery without showing them how will likely be ineffective. 31

Thank You 32

Additional Slides for Review 33

Inpatient Hospital Days per 1,000-Tier 1 34

Emergency Department Visits per 1,000- Tier 1 35

Inpatient Hospital Day per 1,000- Tier 1 36

Emergency Department Visits per 1,000- Tier 2 37

Total PMPM Expenditures- Tier 1 38

Total PMPM Expenditures 39

Nurse Care Management PMPM Administrative Cost Tier Group PMPM Indirect Admin PMPM IFMC FEE Total PMPM Admin Tier 1 $ 52.42 $179.15 $231.57 Tier 2 $13.07 $45.14 $58.21 40

Nurse Care Management PMPM Cost Effectiveness Test- Tier 1 41

Nurse Care Management PMPM Cost Effectiveness Test- Tier 2 42

Aggregate Cost Effectiveness Test Tier Group Member Months Engaged Period PMPM Savings/ (Deficit) Aggregate Savings/(Deficit) Member Months Post Engagement PMPM Savings/ (Deficit) Total Aggregate Aggregate Savings/(Deficit) Savings/(Deficit) Tier 1 18,594 ($190) ($3,530,202) 9,172 $111 $1,019,034 ($2,511,167) Tier 2 74,607 ($55) ($4,079,948) 35,835 $147 $5,282,770 $1,202,822 Total 93,201 ($82) ($7,610,150) 45,007 $140 $6,301,804 ($1,308,346) 43

Forecast versus Actual PMPM Expenditures: All Patients 44

Practice Facilitation PMPM Cost Effectiveness Test $700 $600 $8 $500 $400 $300 $595 $612 $200 $100 $ Actual MEDai Forecast Medical PF Admin 45

Forecast versus Actual PMPM Medical Expenditures: Expenditures by fiscal year of Provider Initiation, All Member Months Post-Initiation 46

Members Selected for Potential Engagement Enrollment Group Clients Selected Clients Engaged Percent Engaged Tier 1 6,385 2,125 33.3% Tier 2 28,243 8,556 30.3% Tiers 1 &2 34,628 10,681 30.8% 47

Most Important Change Made by Practice Use/incorporate flowsheets and forms provided by Practice Facilitator or created through CareMeasures 8% Provide patients with more information and education on the care and management of chronic diseases 6% Use of CareMeasures 10% Increased staff involvement with chronic care work ups 8% Conduct more thoroughly/more frequent foot and eye exams on diabetic patients 19% Identify tests and exams to manage chronic diseases 10% Increased attention and diligence 23% Improved documentation 16% 48

Reasons for Participating in Practice Facilitation Other 18% Continuing education 9% Improve care management and outcomes of patients with chronic conditions 34% Increase income 5% Reduce costs 8% Receive assistance in redesigning practice workflows 17% Obtain information on patient utilization and costs 9% 49

Percentage of Practices That Found CareMeasures to be a Useful Tool No 12% N/A 7% Yes 81% 50

Practice More Effective in Managing Patients with Chronic Condition Not sure/ too soon to tell 3% N/A 2% No 8% Yes 87% 51

Satisfaction with Practice Facilitation Experience Somewhat Dissatisfied 4% Somewhat Satisfied 28% Very Satisfied 68% 52

Would Recommend Practice Facilitation to Other Physicians No 7% Yes 93% 53

Follow-Up Survey: Overall Satisfaction with Nurse Care Manager Somewhat Satisfied 6% Somewhat Dissatisfied 1% Very Dissatisfied 2% Very Satisfied 91% 54

Follow-Up Survey: Overall Satisfaction with Nurse Care Manager Somewhat Dissatisfied <1% Somewhat Satisfied 8% Very Dissatisfied 1% Unsure/N/A 1% Very Satisfied 90% 55