Cathy Schoen. The Commonwealth Fund Grantmakers In Health Webinar October 3, 2012

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Innovating Care for Chronically Ill Patients Cathy Schoen Senior Vice President The Commonwealth Fund www.commonwealthfund.org cs@cmwf.org Grantmakers In Health Webinar October 3, 2012

Chronically Ill: Opportunities and Challenges to Achieving Better Outcomes at Lower Costs Complex-chronically ill account for a high proportion of national spending Care needs span health care system Diverse population p groups: risk groups Cared for by multiple clinicians, sites of care Need for patient-centered care teams Potential to improve outcomes and lower costs Teams and information systems More integrated systems with accountability Affordable Care Act has elements to build on Rich opportunities for foundation support 2

Chronically Ill Complex and Expensive: Care Often Spans Multiple Providers and Sites of Care 3 Estimated 30% of National Spending Total $635 Billion Spending on disabled and chronically ill, 2010 $116.9 B $110.4 B $407.4 B Federal State Private Duals Medicare: $164.2B Non-dual Medicare with 5+ Chronic Conditions: $145.3B Medicaid Duals: $140.3B Medicaid Non-dual Disabled: $116.5B Employer Coverage: $68.4B Source: Urban Institute Estimates. J. Holahan, C. Schoen, S. McMorrow, The Potential Savings from Enhanced Chronic Care Management Policies Urban Institute, November 2011.

Nine Million People Are Covered by Both Medicare and Medicaid: 10% of Total Population = 38% Total Spending 4 Dual Eligibles 9 Million Medicare 34 Million Disabled: 3.4 Elderly 5.5 Medicaid 49 Million Total Medicare Beneficiaries, 2007: Total Medicaid id Beneficiaries, i i 2007: 43 million 58 million Source: Kaiser Family Foundation analysis of Medicare Current Beneficiary Survey, 2007, and Urban Institute estimates based on data from the 2007 MSIS and CMS Form 64.

Focusing on High-Cost Patients 5 10% of patients account for 64% of costs Distribution of health expenditures for the U.S. population, 2008-09 1% 5% 10% 22% Focus efforts on patients with highest costs including frail 49% elderly and disabled Population-based payment Annual Mean Expenditure Threshold $90,061 50% $35,829 64% $23,992 New teams and care management focused U.S. population Health expenditures on highest-risk patients Across sites of care Source: D. Blumenthal, The Performance Improvement Imperative, The Commonwealth Fund, 2012. Chart drawn from S. Cohen and W. Yu, The Concentration and Persistence in the Level of Health Expenditures over Time: Estimates for the U.S. Population, 2008-2009, (Washington: AHRQ, January 2011). 97% $232

Keys to Rapid Progress 6 Teams, Workforce, and Care-System Redesign Information Systems Payment Reform: Value

Teams and System Innovation Plus Payment Reform Key to Better Outcomes and Lower Costs Teams that span sites of care, with accountability Multiple models; including community shared teams Care from multi-disciplinary i li teams; cross-training i Time and skills for high risk patients Multiple access points: e-mail/web, phone, tele-health Information systems to communicate, inform, guide Registries, telehealth, electronic records, communication Feedback information from payers/claims Payment Patient-centered t t health homes : pay for team Move away from visits alone: pay for value More bundled payments: accountability for transitions Multi-payer coherence and aligned incentives 7

Accessible Patient-Centered Primary Care Foundation Teams Connected to Care System

Multiple Models Exist: Opportunity to Spread and Learn 9 Community Care of North Carolina

Examples of Cost and Quality Outcomes: High Cost Care, Primary Care Teams and Care Systems Geisinger i Health System (Pennsylvania) 18% reduction in all-cause hospital admissions; 36% lower readmissions 7% total medical cost savings Mass General High-Cost Medicare Chronic Care Demo (Massachusetts) 20% lower hospital admissions; 25% lower ED use Mortality-decline: 16% compared to 20% in control group 7% net savings annual Guided Care - Geriatric Patients (Baltimore, Maryland-Washington, DC, area) Among patients in an integrated care delivery system: 47% reduction in skilled-nursing facility admissions 52% reduction in skilled-nursing facility days Group Health Cooperative of Puget Sound (Seattle, Washington) 29% reduction in ER visits; 11% reduction ambulatory sensitive admissions Health Partners (Minnesota) 29% decrease ED visits; 24% decrease hospital admissions Intermountain Healthcare (Utah) Lower mortality; 10% relative reduction in hospitalization Highest $ savings for high-risk patients 10

Vermont: Shared Resources Community Teams 11 Specialty Care & Disease Management Programs Hospitals Medical Home A foundation of medical homes and community health teams that can support coordinated care and linkages with a broad range of services Social, Economic, & Community Services Mental Health & Substance Abuse Programs Healthier Living Workshops Community Health Team Nurse Coordinator Social Workers Nutrition Specialists Community Health Workers MCAID Care Coordinators Public Health Specialist Public Health Programs & Services Health IT Framework Evaluation Framework Medical Home Medical Home Medical Home Multi Insurer Payment Reform that supports a foundation of medical homes and community health teams A health information infrastructure that includes EMRs, hospital data sources, a health information exchange network, and a centralized registry An evaluation infrastructure that uses routinely collected data to support services, guide quality improvement, and determine program impact

Redesigning Care and Skills: A Team Effort 12 Who they are: Mature community members who are well-trained and certified in medical care (CNA or CMA) Where they are or being considered: 13 states, including Texas, where Scott & White Healthcare is hiring 16,000 Grande Aides What they do: Provide simple primary care or transitional/chronic care via phone or in-home visit, under nurse supervision Free up physicians and nurses Reduce congestion in clinics and ERs New roles, training, protocols Two pilot tests suggest the Grand-Aides could have: Averted 62% of walk-in visits at an urban clinic site Eliminated 74% of visits at a semi-rural ER site Saved Medicaid $158 to $183 per visit avoided Source: A. Garson et al., A New Corps of Trained Grande-Aides Has the Potential to Extend Reach of Primary Care Workforce and Save Money, Health Affairs, May 2012. THE COMMONWEALTH FUND

Social, Economic Health Risk: Health Care Cost Hotspots t in Camden, NJ 13 New clinics located in buildings where high-utilizers reside (led by Nurse Practitioners) Outreach teams Medical home based care coordinators Same day scheduling Medicaid ACO eligible for shared savings Source: J. Brenner, presentation to Commonwealth Fund Congressional Retreat, January 2012.

Variation in Asthma Admission Rates 14 within a Single County, Cincinnati 14 James M. Anderson Center for Health Systems Excellence County neighborhoods Robert Kahn Cincinnati Children s Hospital System Presentation April 2012

Electronic Health Records: Meaningful Use High Risk Children, Cincinnati Children s Hospital Benefits Housing Depression Domestic Violence Other MT 513 xxx xxxx 513 xxx xxxx Source: Presentation by R. Kahn Cincinnati Children s HospitalJames M. Anderson Center, April 2012. 15

Long-Stay Nursing Home Residents Hospitalized within a Six-Month Period 16 SOURCE: Commonwealth Fund Local Scorecard on Health System Performance, 2012

INTERACT Collaborative Quality Improvement for Nursing Homes 17 Interventions to Reduce Acute Care Transfers (INTERACT) helps nursinghome staff manage residents health status 17-25% decline in hospital admissions in pilot Spreading to 400+ homes Three strategies: Identify, assess, and manage conditions to prevent hospitalization Document and communicate critical information Improve advance care planning and develop palliative care plans Source: J. G. Ouslander, G. Lamb, R. Tappen et al., "Interventions to Reduce Hospitalizations from Nursing Homes: Evaluation of the INTERACT II Collaborative Quality Improvement Project," Journal of the American Geriatrics Society, April 2011.

Visiting Nurse Service New York Health Plans Patient-Centered Care Teams for High-Cost Chronically Ill Medicare and dmedicaid id Special Needs and Long Term Care Interdisciplinary teams; home and community care; transition care Care and assist with navigating complex health care systems Patient-centered: targets and customizes interventions Strong health information technology and EHR; Support team Positive results Improved primary care access; high quality and patient ratings Reduce hospital admissions, readmissions, ER use (17 to 27%) Links primary, specialist and long term care Patient and family preferences 18 Summary of presentation by Carol Raphael, Pres and CEO, NY Visiting Nurse Assn., 6/2011

Tele-Health and Electronic Communication: Access and Teams 19 Veteran s Administration: serving 31,000 frail at home; aim to serve 92,000 by 2012 High patient-ratings; Link to care teams home visits 40 percent reduction in bed-days (nursing home and hospital) by 2010 compared to start U. Tennessee Memphis: Remote specialist consultations with patients, local clinicians. Center serves 3 state region Reduce heart failure admission and readmissions by 80% real-time diabetic retinopathy (digital) report results Primary care to Specialist e-consultations and referral Mayo, SF General, Group Health Puget Sound At the beginning of learning the potential as tool to innovate

Affordable Care Act: Strategic Policies to Build On Payment and Care Systems Enhanced primary care and medical home Medicaid Health Home for chronically ill Bundled payment: hospital/subacute 30 days Community based transition program: complex chronic Accountable Care Organizations and Shared Savings Innovation Center and Pilots/Demonstrations Chronic disease teams for high risk beneficiaries Care systems for dually eligible and disabled In-home care for high-need Medicare/Medicaid patients Medicare authorized to join state initiatives Workforce, technical assistance; information exchange New tool box need to use strategically 20

Opportunities for Foundations to Make a Difference Collaboratives to share and learn Teams learn from each other Workforce cross-training Multi-community actions 21 Diverse population: target areas Mental health, disabled, frail, multiple chronic Long term care, home and transitions, homebound Accountability: vulnerable due to health and income Requires robust data-systems t and benchmarks Strong criteria for care systems eligible for new payment AND exit provisions if fail to perform Patient and family voice

Further Reading and Resources 22 The Performance Improvement Imperative...for Chronically Ill Patients, Commonwealth Fund 2012 The Potential Savings from Enhanced Chronic Care Management Policies, Urban Institute, 2011 Rising to the Challenge: Scorecard on Local Health System Performance, Commonwealth Fund, 2012 Raising Expectations: State Scorecard on Long Term Services and Support, AARP/SCAN, Commonwealth Fund, 2011 For case studies, ACA, and other information visit the Fund s website the Fund s For more information, visit the Fund s web site at www.commonwealthfund.org