Children s Mercy Pediatric Care Network (CMPCN) Bob Finuf, Vice President & PCN Executive Director Tim Johnson, D.O.

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Transcription:

Children s Mercy Pediatric Care Network (CMPCN) an Integrated Pediatric Network (IPN) Bob Finuf, Vice President & PCN Executive Director Tim Johnson, D.O., Medical Director

Topics Children's Mercy s Scope of Services History of Ownership of a Medicaid MCO Why Develop an Integrated Pediatric Network? Overview of Children s Mercy Pediatric Care Network Community Provider Value Proposition Lessons Learned 2

Children s Mercy Hospitals & Clinics Kansas City Size and Scope 391 400+ Inpatient beds Employed Pediatric specialists and subspecialists 6,000+ Employees 3

Size and Scope 15,000+ 480,000+ 70% 85% Admissions annually Outpatient, ER, and Urgent Care visits annually Inpatient Pediatric market share in the region 4

Community Provider 1 5 51% 75+ 400+ Only Pediatric Trauma Center between St. Louis and Denver Locations in the KC Metro Area Medicaid as a percentage of annual patient revenue Medical residents employed by Children s Mercy each year Medical students who annually rotate through Children s Mercy 5

Industry Leader 1 st 1 st 1 Human Genome Center within a Children s Hospital Hospital in Kansas or Missouri (and just the third Children s Hospital nationwide) to achieve Magnet Designation for excellence in nursing Largest Pediatric Clinical Pharmacology program in North America 10 out of 10 Pediatric specialties at Children s Mercy ranked by US News & World Report 6

CMH s Service Area Extends Over a Broad Regional Geography ton ham ego sss eman rd Clark Phillips Rooks Ellis 4+ hrs Hays Rush Paw nee Edw ards Kiow a Comanche Smith Osborne Russell Barton Great Bend Stafford Pratt Barber Children's Mercy Hospital or Major Ambulatory Location Children's Mercy Specialty Outreach Location KANSAS Jew ell Mitchell Lincoln Ellsworth Rice Kingman Hutchinson Reno Harper Republic Cloud Ottawa S alina Saline McPherson McPherson 3 hrs Harv ey Sedgwick 20 miles Wichita Sumner Washington Clay Riley M anhattan tan Geary Junction City Dickinson Marion Butler Cowley Marshall Morris Pottawatomie Chase Wabaunsee Primary Service Area (18 counties) Secondary Service Area (50 counties) Outreach Areas (43 counties) Ly on Emporia Greenwood Elk Chautauqua Nemaha Jackson 1 hr Topeka Shawnee Osage Coffey Woodson Wilson Brow n Montgomery Atchison 120 mile radius Holt Doniphan Atchison Jefferson Leav enw orth 50 min Lawrence Douglas Franklin Anderson Allen Nodaway M aryville Andrew St. Joseph Buchanan Platte Wy andotte Johnson Miami Linn Bourbon Neosho Crawford Pittsburg Parsons Cherokee Labette Worth Gentry DeKalb 1 hr Clinton Clay Jackson Cass Bates Vernon Nevada Barton Carytow n Jasper Harrison Dav iess Caldwell Joplin 2.5 hrs Newton McDonald Ray Lafay ette Johnson Henry Law rence MISSOURI Grundy Trenton Clinton St. Clair Cedar Dade Barry Mercer Chillicothe Liv ingston Carroll Polk Saline Marshall Pettis S edalia Benton Hickory Putnam Linn Chariton Dallas Christian Cooper Morgan Greene Webster 3 hrs Springfield Stone Sulliv an Taney Schuy ler Adair Macon How ard Randolph Moniteau Cole Miller Lake Ozark Osage Beach Camden Lebanon Laclede Boone 2 hrs Columbia Wright Douglas Ozark Scotland Knox Shelby Pulaski Monroe Audrain Callaway Osage Maries Texas How ell Clark Lew is Phelps Marion Ralls Montgomery Gasconade Crawford Dent Shannon Oregon Pike Warren Linc St St. Louis 4 hrs From CMH Franklin Wa Rey no Ca x hrs Drive time to CMH Main 7

Children s Mercy Hospitals & Clinics Kansas City History with Medicaid Managed Care Children s Mercy & Truman Medical Center formed Family Health Partners (FHP), a Medicaid managed care organization (MCO) in 1996 Children s Mercy acquired Truman s interest in FHP in 2002 By 2011 FHP was serving 210,000 Medicaid recipients (Adults and Children) in Missouri and Kansas In anticipation of health care reform and the changing landscape in Medicaid managed care, Children s Mercy sold FHP to Coventry Health Care January 1, 2012 8

Children s Mercy Hospitals & Clinics Kansas City History with Medicaid Managed Care cont. As part of the FHP transaction Children s Mercy retained key infrastructure components from FHP. Simultaneous with the sale of FHP on January 1, 2012 Children s Mercy formed Children s Mercy Pediatric Care Network (CMPCN), a new Pediatric ACO like organization to function as an Integrated Pediatric Network. CMPCN entered into a global capitation agreement with Coventry Health Care and their Medicaid MCO subsidiaries in Missouri and Kansas January 1, 2012 for 112,000 Medicaid eligible children in the KC Metro area. 9

Why Sell the Medicaid MCO and Develop CMPCN? The future viability of owning a Medicaid MCO was uncertain The current payment model is unsustainable (fee for service is in Hospice) Care is fragmented Poor cost/outcome ratio vs. the world 10

Why Sell the Medicaid MCO and Develop CMPCN cont Pediatric practices are under resourced and overburdened with administration A model for real and sustainable communitybased population health is needed The care delivery and payment models need to be aligned and CMPCN provides a vehicle to accomplish that while focusing on Pediatrics 11

Health Care Spending as a Percentage of GDP, 1980 2009 Percent 18 16 14 12 10 8 6 4 2 US NETH FR GER DEN CAN SWIZ NZ SWE UK NOR AUS JPN 0 1980 1984 1988 1992 1996 2000 2004 2008 GDP refers to gross domestic product. Source: OECD Health Data 2011 (June 2011). 12

Current State Build n Fill 13

Right Time Future Incentives Aligned to do the Right Thing Preventative Care Chronic Disease Management Right Care Coordinated Evidence Based Appropriate Intensity Right Setting Patient Centered Medical Home Convenient and Timely (home, school, technology enabled) 14 Acute & Specialty Care when Needed

How Do We Get From Here to There? 15

16

Assumptions Better care does not have to result in higher cost in the aggregate, but it may (and should) result in higher costs within components of care. Providers will face steadily increasing pressure to be accountable for the cost of care (take cost out) while maintaining and increasing the quality of care. The care delivery model and the payment model must be fundamentally redesigned simultaneously to achieve meaningful improvement in quality and cost. The government will not provide the solution, but the government may very well provide the motivation to find the solution. 17

Assumptions cont The only person that likes change is a wet baby. Change is hard, and it requires hard work, innovation, and diligence to produce meaningful change. We must believe, and go all in. We need an ongoing vehicle to continue to control our space. 18

Children s Mercy Pediatric Care Network s Mission To improve the health and well being of children through an integrated pediatric network in the greater Kansas City area that is value based, community focused, patient centric, and accountable for the quality and cost of care. 19

20

Current Patient Inclusion: KS 21 yo and under MO 20 yo and under Enrolled with participating Medicaid MCO Patient s PCP is located in one of the included counties Patient Selected PCP Auto assigned PCP Future Patient Inclusion: 21 20 yo and under Live in PCN Service Area Attributed to a sponsoring organization (employer, private or public payer)

Current CMH Revenue Sources 5 17 CMPCN MC MCO 40 12 MC FFS Self Pay Commercial 5 21 Other 22 22

CMPCN: How Does It Work? Is accountable for the quality and cost of care for a defined pediatric population through a global prospective payment model. Global capitation is paid on a percent of premium basis (pass through of actuarially determined medical expense). Global capitation includes percent of administrative premium for delegated functions. 23

How Does it Work? CMPCN: Provides resources to the community based providers for the patient centered medical home. Compensates providers based on level of engagement and outcomes. Reduces the barriers of traditional medical management and utilization review. Exports Children s Mercy resources and expertise into the community. 24

What We Do Improve health care delivery by offering: Simplified administration and reduced fragmentation, including standardized claim submission requirements, payment policies, and credentialing processes. Better population based clinical tools and medical home support tools such as Health Information Technology and aggregated data for the pediatric population in the Kansas City area. Payment system reform: value based payment, opportunities for at risk contracting, sharing savings, and other creative payment models. Delegated health plan administration, including medical management, provider credentialing, and disease management programs. 25

Data Driven 26

Using Data to Provide Care 27

Children s Mercy Pediatric Care Network (CMPCN) Medicaid Managed Care Administrative Services Shared Services CMPCN/Health Plans CMPCN Shared Services are performed separately by CMPCN and Health Plans but not necessarily with the same allocation of resources by each. Credentialing Financial Reporting Government Relations HIT Platform Patient Outreach and Prevention Provider Relations and Contracting Website Design and Maintenance Appeals (first level for network providers) Care Management (high use / high cost) Data Analytics Disease Management (Asthma, Diabetes) HEDIS Data Collection Support Medical Home Support Payer Contracting/Relations Payment Model Determination Prescription Drug Management (if applicable) Prior Authorization Performance Reporting and Analysis Utilization Management 24 Hour Nurse Advice Line Health Plans Appeals (except first level for network providers) Benefits Administration Claims Administration Community & Member Outreach Compliance Customer Service HEDIS Data Collection & Reporting Enrollment Marketing Non Medical Services (transportation, dental) Pharmacy Benefits Management Services Pharmacy Network Quality Improvement State Contracts Underwriting 28

Children s Mercy Pediatric Care Network (CMPCN) Provider Flow of Funds/Data 29

CMPCN Services Current Provider Value Proposition Intermediary with MCOs for streamlined communication Standardized Payment Model FFS (70%) Medical Home Admin Cap (15%) Incentive Based Cap (15%) Standardized Medical Management Non Redundant Credentialing Process 30

Provider Value Proposition cont CMPCN Services cont.. Current cont.. Liaison for all things CMH Office Based CPGs CMH Concierge MOC Quality Improvement Medical Home Resourcing Data Exchange Patient outreach and intervention 31

Provider Value Proposition cont CMPCN Services cont Future Shared Risk/Savings Payments Relaxed Medical Management Office Quality Resources Use of CMH Resources like HR Business Office Support HIT Services Web hosting, content and tools Health Information Exchange 32

Provider Value Proposition cont Provider Engagement Obligations Appropriate use of Acute and Specialty Settings Address Gaps in Care Address Access to Care Medical Home Collaboration Disease and Case Management Collaboration Provide Data to PCN 33

Lessons Learned You need a strong physician leader that can passionately articulate the vision. You need expertise in risk assumption and coordinating care. Market position matters and you must be willing to use it. You need an adequate level of infrastructure to assume delegated functions. 34

Lessons Learned Senior leadership must hold firm to the strategic objective in the face of opposition which will surely come. Disruptive innovation often produces real or perceived winners and losers. All stakeholders will need to reexamine their role in the health care ecosystem. An innovation s initial form is rarely it s final form. 35

Contact Bob Finuf: bfinuf@cmpcn.org Tim Johnson: tjohnson@cmpcn.org 36