Health System Funding Reform: Aligning Levers and Incentives to Achieve Excellent Care for All

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Health Quality Branch Health System Funding Reform: Aligning Levers and Incentives to Achieve Excellent Care for All Ontario Long-Term Care Association Quality Forum June 12, 2013 Miin Alikhan Director, Health Quality Branch Negotiations and Accountability Management Division Ministry of Health and Long-Term Care

Ontario s Action Plan for Health Care set the course for accelerated transformation across sectors and organizational levels Quality Regime Increased Access Keeping Ontarians Healthy Cancer Risk Profile Integration Efforts Smoke-Free Ontario Person Centred Healthy Kids Redefine LTCH Home & Self- Managed Care Senior s Strategy Specialized Clinics Vision: To make Ontario to healthiest place in North America to grow up and grow old Enablers/Levers: Electronic Health Records Health Human Resources Applied Learning Strategy Capital Clinical leadership Communication Measurement Incentives Faster Access to Family Care Right Care, Right Place, Right Time 2

The Excellent Care for All Act provided a unified commitment to a shared vision The people of Ontario and their Government: Believe that the patient experience and the support of patients and their caregivers to realize their best health is a critical element of ensuring the future of our health care system Share a vision for a Province where excellent health care services are available to all Ontarians, where professions work together, and where patients are confident that their health care system is providing them with excellent health care Recognize that a high quality health care system is one that is accessible, appropriate, effective, efficient, equitable, integrated, patient centred, population health focussed, and safe Believe that quality is the goal of everyone involved in delivering health care in Ontario 3

What does Excellent Care for All really mean? Providers Patients The right person, in the right place at the right time receiving the best evidence-based care the first time every time, at the right cost A professional pursuit of quality care based on evidence and what s good for our patients as a common goal for all providers Policy-makers Foundational elements to enable and focus the system Patients are front and centre Harmonization between funding, policies, and accountability Value = Quality/Cost 4

Aligning key tactics bundled under the features of high performing systems to enable the field in achieving the visions enshrined in Ontario s Action Plan and Excellent Care for All Act Set the Direction & Priorities Excellent Care for All Strategy Ontario s Action Plan for Healthcare Build Capacity for Improvement Health Quality Ontario Applied Learning Strategy Strategic Partnerships Strong Clinical Engagement Align Levers and Incentives Quality Improvement Plans Public Reporting Quality Alignment to Health System Funding Reform Today s Focus Source: High Performing Healthcare Systems: Delivering Quality By Design: by R Baker, A MacIntosh-Murray, C Porcellato, L Dionne, K Stelmacovich and K Born. 5

Quality Improvement Plans 6

Quality Improvement Plans (QIPs) as a bridge to support the quality journey Vehicle to harmonize dialogue Platform to build on quality improvement Collective responsibility, owned by the provider Cornerstone of the Excellent Care For All Act Opportunities for the QIP Promote shared accountability for transitions in care Measure patient/client outcomes with a focus on improved care Align provincial with organizational priorities for improvement 7

The journey so far ECFAA Implementation Working Group develops common QIP template for hospitals, based on 4 priority areas (Safety, effectiveness, access, patient-centred) 2010 2011 Transformational priorities added to hospital QIP, aligning with primary care QIP 2012 Action Plan June: ECFAA comes into force. All hospitals required to develop a QIP by Apr. 2011 2013 Integrated added to hospital QIP template as a priority area Exploring opportunities to build from foundation of Residents First to apply quality agenda more broadly in LTC 2014 Interprofessional primary care organizations develop QIPs focusing on Access, Integration, Patient Centredness Creating a culture of transparency and accountability for quality across the care continuum 8

Quality Alignment to Health System Funding Reform 9

The objectives of Health System Funding Reform (HSFR) Promote quality, value and efficiency Better reflect needs of the community Promote fairer allocation of health care dollars Optimize health care investments for improved patient outcomes sustainably Adopt and learn from approaches used in other jurisdictions 10

We have started with the hospital sector 11

What does HSFR mean in the hospital sectors? Global Funding Health System Funding Reform Health Service Providers (e.g. Community Care Access Centres, Hospitals) 12

What are the components of HSFR in hospitals? 1. Health Based Allocation Model (HBAM) Inform funding allocations to health service providers Management tool to assist with health system service planning 2. Quality-Based Procedures (QBP) Price x volume - evidence based clinical pathways ensure quality standards Opportunity for process improvements, clinical re-design, improved outcomes, and enhanced experience Pre-HSFR Current QBP Full Implementation Global Funding HBAM Global Funding QBP Global Funding HBAM 13

QBPs: An evidence and quality-based framework has identified those with potential to both improve quality outcomes and reduce costs 14

QBPs: A staged approach to development and implementation Phase 1 - Clinical Foundation Phase 2 Development of Best Practice Price Key Advisors Phase 3 - Implementation Clinical Experts Clinical Experts and Technical Advisory Clinical Experts & Stakeholders (i.e. LHINs, HSPs etc.) Clinical Engagement/ Knowledge Transfer Alignment with quality levers such as Quality Improvement Plans etc. 15

QBPs: Clinical Expert Advisory Groups established to guide the development of best practices for QBPs Existing Health System Funding Strategy Governance Agency Partners Cancer Care Ontario Cardiac Care Network Health Quality Ontario Clinical Expert Advisory Groups Chronic Kidney Disease Vascular (Non-Cardiac) Cataracts Primary Unilateral Knee Replacement QBPs Chemotherapy Systemic Treatment GI Endoscopy Primary Unilateral Hip Replacement Chronic Obstructive Pulmonary Disease Stroke Congestive Heart Failure Legend : FY 2012/13 QBPs FY 2013/14 QBPs 16

QBPs: Clinical Expert Advisory Group tasks and deliverables Define the patient group (QBP) Refine inclusion and exclusion criteria for the QBP Use data to review utilization Develop clinical best practices for each defined QBP including transition to the community Identify better practice providers Create Clinical Handbooks including populating the QBP framework and publishing better practice providers Provide advice on evaluation metrics including quality indicators to support ongoing quality improvement Assist in the knowledge transfer process (e.g. sector engagement) Note: For functional/ population-based QBPs, work is underway by ICES to assess data on cost utilization and size of patient cohorts 17

however, the vision for HSFR includes also the long-term care and community sector 18

What would HSFR mean in the LTC sector? Funding methodology and approach has not yet been established, but will be developed in the context of overall HSFR and the LTC sector funding strategy in order to introduce funding incentives that will link directly to quality Non- Acuity 2013/14 Acuity- Adjusted End State Enhanced integration to address alternate level of care and other related system pressures Promote better utilization of existing LTCH resources Provide incentives to improve quality of care and resident experience 19

Thus, there are four concurrent streams of work Quality Based Procedures (QBPs) Streams of work 1 Diagnosis-based Episodic / Short Term 2 Diagnosis-based 3 Functional/ 4 Cross-Sectoral Focus Population-based Quality Outcomes Overlay Sector Focus Inpatient Only + Inpatient > Outpatient Inpatient < Outpatient Inpatient << Outpatient All Description Acute episode with limited post-acute rehab E.g. Hip and Knee Replacement Acute episode + Transition to Community E.g. COPD Optimizing management of health and function E.g. Frail elderly Price X Volume X Outcome Policy Options linkage Early Implementation In Development Nascent 20

Functional / Population-based QBPs: A Quality in Community Care Reference Table (QCCRT) has been established Co-chaired by CEO of Toronto Central LHIN and CEO of OACCAC Mandate of the QCCRT is to provide expert, field-driven advice in order to inform: policy direction on ECFAA expansion/quality Improvement Plans and Quality Based Funding in the Community and specialized segments sector engagement strategies for input patient engagement strategies for input implementation approach o o A Community QBP Task Group has also been established. OLTCA is represented at both tables. Change Management Committee HSFR Steering Committee S. Fitzpatrick, D. Young Quality in Community Care Reference Table C. Orridge, D. Burns Executive Committee D. Young, S. Fitzpatrick, C. Brown, V. Srinivasan Technical Advisory Committee C. Hoy and K. Empey QIP Task Group (TBD) Community QBP Task Group QBP Clinical Expert Advisory Groups PBF Technical Working Groups 21

Functional / Population-Based QBPs: Three cohorts and cross-cutting characteristics have been identified by QCCRT QCCRT has met to discuss potential cohorts for QBP pathway development and funding Based on a preliminary assessment of available data and population characteristics, three cohorts with set of three cross-cutting characteristics have been identified Medically Complex Children Complex Adults Frail Elderly Wound Prevention and Management Pain Management Behavioural / Mental Health / Psycho-Social Vulnerability 22

Functional / Population-Based QBPs: Next steps Define cohorts & Gather Evidence Define Outcomes Gather and Develop Pathways Identify/ advise on policy approach & recommendations 1. Confirm cohort definitions, size and scope and comparative outcomes for each. Current Focus 2. Define desired outcomes for each cohort 3. Identify existing evidence-informed pathways or best practices associated with each cohort, or clearly identify gaps where no current pathways exist. 4. Advise pathway development where none currently exist. 5. Identify the available policy levers to incent uptake of evidence-informed pathways / reduce outcome variation, e.g. : Funding mechanisms Quality Improvement Plans (QIPs) Expanded public reporting 6. Inform and advise on the development of policy recommendations 23

This is a journey excellence has NO limit. For more information: Email: HSF@ontario.ca Phone: 416-327-8379 www.health.gov.on.ca; www.ontario.ca/excellentcare For providers and health care professionals Excellent Care For All www.health.gov.on.ca/en/ms/ecfa/pro/ HSFR tp://www.health.gov.on.ca/en/ms/ecfa/pro/initiatives/funding.aspx Password protected website: www.hsimi.on.ca 24