Objectives. Assisted Living. O 2 : Opportunities & Outcomes in Assisted Living. Presented by: Chief Clinical Officer

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O 2 : Opportunities & Outcomes in Assisted Living Presented by: Leigh Ann Frick, PT, MBA Chief Clinical Officer Melissa Moffitt, MS, CCC-SLP Senior Vice President of Senior Living Objectives Identify the importance of developing a strategic framework to provide a unique discharge option for post-acute care providers. Identify quality care and outcomes measures that impact success and sustainability; use of care capabilities form, care coordination meetings, scorecards and IT solutions to survive and thrive in the midst of reform. Identify quality partners among network of care providers, how to coordinate successful care transitions between hospitals, assisted living, home health and skilled nursing (implementing CARE Tool and other resources). Identify opportunities for specialized program implementation as a niche to differentiate your community from competitors, while meeting an unmet care need identified by referring hospital(s). Assisted Living Defined: Assisted Living is a program that promotes resident self-direction and participation in decisions that emphasize choice, dignity, privacy, individuality, independence and homelike surroundings. Oregon Care Philosophy 1

The Evolution of Assisted Living First ALF Opened 1986-24 Hour Staffing Model (personal & health related services) Transition of Models Traditional Hospitality Housing Healthcare 1995- Founding of Person Centered Living Approach 2000 80s 90s 33,500 ALFs Nationwide Corporations entered the Market Memory Care focus initiated 2010 Shift from Assisted Living to Senior Living Significant shift seen in higher acuity Increased presence of Memory Care product Today Expanded Level of Services Services provided as a standard LTC Policies provide AL coverage in 45 states PAC Discharge Option Out with the old Acute Care (Hospital) Short Term Home Health Outpatient CMS Triple Aim 2

In with the new (Healthcare Reform) Acute Care (Hospital) Short Term Home Health Outpatient Assisted Living Community Opportunities Discharge destination no longer a given; Payer no longer precludes AL as an option, ACO/Bundles etc. want least expensive option with best clinical capabilities and outcomes Demonstrate quality and outcomes; can get a seat at the table to be a preferred provider PAC discharge option CJR and Bundled Payment Comprehensive Care Initiatives Industry knowledge Thinking outside the BOX! examples Developing a Strategic Framework 3

What are you trying to accomplish? Provide a new post acute care discharge option for hospitals Improve census Increase clinical capabilities Develop or strengthen collaborative partnerships Offer niche programs Develop a new revenue stream Framework Development Find a differentiator Build a network of collaborative partners Know your referral sources Identify a strong Home Health partner Identify a strong partner Know and understand your outcomes What are you marketing? Thoughts to Consider What are your competitors selling? What do your referral sources need? What can you feasibly provide within regulatory requirements? Where do you have strong relationships you can leverage? 4

Developing and Expanding Collaborative Partnerships Understanding Clinical Capabilities What can you do? What do you do well? What could you expand or improve? What could you eliminate? Hospital Partnerships Short Term Hospital Assisted Living Community Hospice Home Health Seat at the table C-level if possible Need analysis; solution oriented Clinical capabilities solution 5

Short Term Partnerships Short Term Hospital Assisted Living Community Hospice Home Health Seat at the table C-level if possible Need analysis; solution oriented Clinical capabilities solution Home Health Partnerships Short Term Hospital Assisted Living Community Hospice Home Health Continuity of care Communicate understanding of serving resident first; Part A vs. Part B benefits Environmental focus Hospice Partnerships Short Term Hospital Assisted Living Community Hospice Home Health Distinct group of individuals May still have rehab needs Quality of life Unrelated dx/condition Communication and assessment is critical 6

Outcomes: Measuring your Success What are outcomes? Autonomy Cost containment Patient satisfaction Transfer to LTC Outcomes Categories Financial Clinical Demographic Quality Assurance 7

Who wants/needs outcomes? Patients Doctors Family members Administrators Executive Directors Corporate Hospitals/referral sources CMS Clinicians Congress Payers Marketing department Improving Medicare Post-Acute Care Transformation Act (IMPACT Act) This is being compared to OBRA 87 and the BBA 97 as far as significance in the PAC marketplace. It was introduced June 26, 2014 and signed by President Obama on October 6, 2014 in Congressional time that is FAST! Three components: Reporting of standardized patient assessments (data) Reporting of additional Quality Measures Report Resource Use Measures Standardized Data Why standardize data across PAC settings? Enable Congress and CMS to compare services across PAC settings Complexity Outcomes Costs As a predicate for PAC payment reform. CMS concern - the different types of PAC providers frequently provide similar services to similar patients, but payment can vary significantly. Each silo s patient assessment tool uses different definitions, scales, time periods, and method of assessment. Standardization may enable policymakers to develop a payment system that cuts across all PAC settings. 8

Quality Measures SNFs, IRFs, LTCHs must begin reporting on quality measures by October 1, 2016, and by January 2017 for HHAs. At a minimum, must contain the following quality domains: Functional status and changes in function Skin integrity and changes in skin integrity Medication reconciliation Incidence of major falls Patient preferences Resource Use Measures By October 1, 2016, Secretary shall specify resource use reporting requirements. Medicare spending per beneficiary Discharge to community/los Hospitalization rates of potentially preventable readmissions Using your data effectively: Score Cards 9

Outcomes: More than Re-hospitalization Rate! The set expectations are re-hospitalization rates by diagnosis, quality measure based scorecards and a 24 hour a day intake. The new areas to focus Percent of patients discharging home Percentage home care referrals Average length of stay by diagnosis for all settings Therapy intensity (minutes/week) and cost Functional Changes Control group/peer benchmarking/national standards Cost/episode by diagnostic group Use of evidenced based guidelines and protocols Case Studies Florida Assisted Living Community 100 Bed AL in desirable market 5 New AL constructions within 3 miles of community Census Challenged (74% occupancy) Recommendations: Developed Clinical Care Capabilities List Completed Market Analysis of Acute Care Opportunities Scheduled Meeting with hospitals Upstream partnerships with hospitals: Leverage specialty program as a model for clinical excellence and efficiency Provide assistance in clinical programming and care transitions to assist with decreasing hospital LOS and re-hospitalization penalties Downstream partnership with home health and community groups to excel in care transitions considering up to 90 day episode 10

Proven Success Proven Functional Outcomes Home Health Partnership with 4.5* Provider Increased revenue Re-hospitalization rate decreased from 26% to 3.5% Census increased to 92% (18% increase) South Carolina Assisted Living Community 120 Bed AL in desirable market Strong reputation in the community Consistently 100% occupied Recommendation: Develop an Niche Program to market for outpatient services Must have Brand Recognition within the facility, community and among referral sources. Requires dedicated Resources Dedicated staff, training, technology Proven Clinical Competence/Excellent Outcomes Data and outcomes prove the program is success (clinical, QA and financial) Proven Success Year over year increase Patients: Baseline 0 patients Year 1: 10 patients Year 2: 27 patients Year 3: 69 patients Transitioned to full time residents Year 1: 1 resident (10% transition) Year 2: 5 residents (19% transition) Year 3: 14 residents (20% transition) ALF noted a 6% increase in referrals from physician groups to community 11

Summary and Next Steps Understand the Opportunities Develop a Strategic Framework Develop and Expand Partnerships Track Outcomes to Measure Success Understand your Outcomes Q&A Contact Information Leigh Ann Frick, PT, MBA lfrick@heritage-healthcare.com Melissa Moffitt, MS, CCC-SLP mmoffitt@heritage-healthcare.com 12