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ACO Congress Oct 25, 2010 Los Angeles, CA Patient Centered Medical Home and Accountable Care Organizations Health Information Technology David K. Nace MD, Medical Director, McKesson Corporation Co-Chair, Center for ehealth, Patient Centered Primary Care Collaborative

Healthcare Reform Tools to Rebuild and Restructure Health Care

The Vicious Cycle The interconnected nature of health IT, payment reform, and care delivery Lack of health IT cripples the ability to move to new payment methods that reward providers for health, care quality, and care efficiency, utilizing data supplied by health IT Lack of a business case for care delivery innovation cripples demand among providers for health IT as an enabler of key care innovations Lack of payment reform cripples the business case for innovations that improve health, care quality, and care efficiency

Reform initiatives aim to promote alignment of incentives between payers and providers Effective January 1, 2011, provides states the option of enrolling Medicaid beneficiaries with chronic conditions into a patient centered medical home Beginning no later than January 1, 2012, allows providers organized as accountable care organizations ( ACOs ) that voluntarily meet quality thresholds to share in the cost savings they achieve for the Medicare program From January 2012-2016, establishes a demonstration project in up to eight states to study the use of bundled payments for hospital and physician services under Medicaid

Accountable Care Organizations 5

HIT-Enabled Health Reform HITECH & Meaningful Use - an iterative approach 2009 2011 2013 2015 HIT-Enabled Health Reform HITECH Policies Data capture and share data Advanced care processes Improved Outcomes Nation-wide regional extension program to assist primary care providers achieving meaningful use of HIT 6

Center for e-health Information Adoption and Exchange Meaningful Connections (April 2009) Identifies health IT as a critical platform of the PCMH. Conceptualizes health IT as an e-platform and set of tools. Health IT functional priorities to support a PCMH. Critical capabilities to engage consumers with health IT. Explores the current use of health IT by primary care physicians. It is apparent that many EMR s do not have HIT capabilities which are critical to patient centric care or medical home activities such as quality improvement activates

PCMH Adoption of EHRs Significant Challenges Reported Poor cross-system communications and response times Costly implementations and interfaces Failure to support role-based access, teamwork, and shared decision making Huge challenges in managing medication lists, problem lists, and care plans across HIT platforms Inefficiencies caused by non-integrated, bolt- on, and silo d applications and databases Failure to meaningfully engage the consumer 2,3 2 Bates, DW, Bitton A. The Future Of Health Information Technology In The Patient-Centered Medical Home, Health Affairs, 29, no. 4. 3 Fernandopulle R, Patel N. How The Electronic Health Record Did Not Measure Up To The Demands Of Our Medical Home Practice Health Affairs, 29, no. 4 (2010): 622-628

Health Information Technology The Need for Transformation A foundational shift in Health Information Technology (HIT) must occur in order to drive widespread adoption of the Patient Centered Medical Home (PCMH) model, and support the Accountable Care Organization (ACO)

The Nature of the Problem Anchoring the EHR in the traditional visit based care delivery model limits the potential of the medical home to generate paradigm shifting care delivery transformation and positive outcomes 1 1 Zayas-Caban,T., Finkelstein,J., Kotharim, P.,.Quinn, M., Nace, D. Cyberinfrastructure for the Patient Centered Medical Home : Current and Future Landscape (in press)

Health Information Technology Enabling Practice Transformation HIT as an enabler of Access, Care Coordination and Payment Reform To support PCMH (practice) and ACO (enterprise) practice transformation, an interconnected HIT network with key capabilities acts to optimize engagement, coordinate care, and implement of value based payments

Capabilities of HIT Enabling Access Secure Messaging Telephonic / Cellular (routing, texting, twitter, etc.) Same Day / Convenience Scheduling Access to Team Members Remote Monitoring PHR / EHR Access (Patient-centric Record) Access to Care Plan (Shared) Patient / Family Feedback to Practice (QI) Patient Engagement Tools

Capabilities of HIT Enabling Coordination of Care Reminders / Outreach Team Coordination Referral Management Diagnostics Results Management Care Transitions Management Holistic Care Coordination (360 degree) Case / Condition Management Care Plan / Medication Adherence Shared Decision support Tools

Capabilities of HIT Enabling Payment Reform Tracking of Non-FFS Activities Quality and Efficiency Measurement Pay for Performance Reporting Integrated Clinical / Practice Management Information Gain Sharing Contribution Tracking Episode of Care Tracking Risk and Acuity Measurement Predictive Modeling Comparative Effectiveness Analytics

Transformation Value Creation Four Essential Factors Expanded Access Care Coordination Dedicated Care Managers Payment Reform Value, not Volume Health Information Technology Clinical and Financial Data for Population Health Management Transparency on Movable Performance Metrics Care Transitions Care Plan Adherence Experience of care 1 Daniel Fields, Elizabeth Leshen, and Kavita Patel; Driving Quality Gains And Cost Savings Through Adoption Of Medical Homes, Health Affairs, May 2010; 29(5): 819-826

PCMH Practice Transformation Technology Support for Practices Access Patient Portal Asynchronous or RT Communication Data and Information Facilitate Data Flow and Access Data Analysis, QI, Reporting Registry Function Monitoring, Tracking, Gaps in Care, Guidelines Care Coordination Services Regional Care Coordination Programs Community Health Extension Services 24x7 Nurse Lines Patient Engagement Educational Content and Tools Multimedia, Interactive, Social Media Experience of Care Surveys, Feedback Loops

Accountable Care Organizations New IT Capabilities Required Internal External Integration of owned provider ecosystem (hospital, employed physicians, outpatient services, long-term care, rehab, home health, outside labs, etc) Clinical, administrative and workflow systems Care management capabilities Integration of affiliated provider ecosystem (affiliated physicians, labs, outpatient facilities, rehab, home health, etc) Clinical and workflow systems Contracting and payment systems Data to manage -patient-specific information Care management tools clinical and financial integrated into workflow Analytics for performance management Clinical + administrative systems capabilities Direct to state exchange and employer capabilities Data integration clinical and administrative Analytics and performance reporting clinical and administrative Consumer tools (multimodal communication) Improve throughput and cost per episode Clinical and workflow tools that deliver care management Early avoidance of patient safety issues that will impact quality and potential financial exposure Health plan capabilities Data integration Clinical, administrative and workflow integration Transactional automation

ACO Technology Needs Understanding and Using the Data is Foundational

Hudson Valley Project Achieving Care Coordination and Outcome Measurement

We ve been here before but we think it s different this time Healthcare costs as a percentage of GDP is dramatically higher than in the 90 s and is projected to increase Government is driving reform with both the carrot (financial incentives) and the stick (reimbursement pressure) Technology availability, adoption, and cost make it feasible and increase the chance of success

What is needed to ensure success A standard and consistent set of aligned performance metrics for tracking and monitoring the success of PCMH and ACO transformation projects Performance metrics to assess key ACO / PCMH components Public / Private alignment of payment reform initiatives Accreditation organizations (NCQA, URAQ, Joint Commission, etc.) aligning standards with the requirements for PCMH, HITECH, and ACO s PCMH-specific criteria embedded in the EHR certification and Meaningful Use critieria

Summary A workable primary care model is essential the patient centered medical home! Principles of population health management are core to PCMH and ACO activities Health Information Technology is a critical foundation of the PCMH and ACO Incentive alignment is essential to reforming the system 22

Summary Health information technology has enormous potential to improve primary care, and plays a pivotal role in implementing both the PCMH (micro) and ACO (macro) models In order to promote development of an HIT infrastructure that unlocks the potential of technology in transforming the quality, efficiency, and safety of clinical care, HIT will have to address multiple barriers on several levels

Questions

Meaningful Connections Capabilities and Functionalities Foundational to the PCMH Measure Ability to measure and report on processes of care. Collaborate Ability for team members to communicate among themselves. Team access to information during the process of care delivery.

Group Health Cooperative American Journal of Managed Care, Sept. 2009 1 Patient Centered Medical Home v. HIT enabled PC clinics Initial Implementation of advanced HIT alone was problematic PCMH transformation in one clinic - decrease panel, longer visits, dedicated time to PCMH activities, MI trained staff, co-located team members, morning huddles, patient care plan access, ER and hospital follow-up, etc. Despite significant investment, all costs were recouped within the first year 29% decrease in ER visits 11 % decrease in hospitalizations 6 % decreased office visit, with increased use of secure e-mail, telephone, etc. Patients received better care and were more satisfied! 1 Reid, Robert J. et al, Am Journal of Managed Care, vol.15, no.5, p.71-87, 2009

ACO s and PCMH : Moving Toward a More Accountable Coordinated System Cooperating in new efforts to better coordinate care Patient Centered Medical Homes Community health teams HIT PCMH ---- ACO Improving health outcomes Working with innovative reimbursement structures Bundled payments Expanded pay-for- Quality Readmission incentives Outlier reductions Prevention (primary and secondary) Chronic disease management Patient engagement and education Data transparency 27