Health Care: In Transition to Clinical Performance Risk Implications for Physicians

Similar documents
Critical Access Hospitals and Cost-Based Reimbursement

Thought Leadership Series White Paper The Journey to Population Health and Risk

Leveraging Health Care IT Investment

Succeeding in a New Era of Health Care Delivery

Bundled Payments. AMGA September 25, 2013 AGENDA. Who Are We. Our Business Challenge. Episode Process. Experience

Accountable Care and Governance Challenges Under the Affordable Care Act

THE ALPHABET SOUP OF MEDICAL PAYMENTS: WHAT IS MACRA, VBP AND MORE! Lisa Scheppers MD FACP Margo Ferguson MT MSOM

Health Care Evolution

Future Proofing Healthcare: Who Knows?

Exhibit 1. Medicare Shared Savings Program: Year 1 Performance of Participating Accountable Care Organizations (2013)

Guide to Population Health Management

Examining the Differences Between Commercial and Medicare ACO Models

The Future of Healthcare Credit Analysis - Seven Emerging Ratios

Advocate Physician Partners approach to Population Health

Transitioning to a Value-Based Accountable Health System Preparing for the New Business Model. The New Accountable Care Business Model

7/7/17. Value and Quality in Health Care. Kevin Shah, MD MBA. Overview of Quality. Define. Measure. Improve

WHITE PAPER. The Shift to Value-Based Care: 9 Steps to Readiness.

The Role of Pharmacy in Alternative Payment Models

Delivery System Reform The ACA and Beyond: Challenges Strategies Successes Failures Future

Healthcare Reimbursement Change VBP -The Future is Now

Partnering with Public Health Departments in Managed Care. THIS AREA CAN BE LEFT BLANK or ADD A PICTURE

Katherine Schneider, MD, MPhil Senior Vice President, Health Engagement July 29, 2011

Where We re Heading in Health Care. Grace Terrell, MD Founder & Strategist CHESS

Health Reform and IRFs

Alternative Managed Care Reimbursement Models

Connected Care Partners

THE NEW IMPERATIVE: WHY HEALTHCARE ORGANIZATIONS ARE SEEKING TRANSFORMATIONAL CHANGE AND HOW THEY CAN ACHIEVE IT

Payer Perspectives On Value-based Contracting

Long term commitment to a new vision. Medical Director February 9, 2011

POPULATION HEALTH PLAYBOOK. Mark Wendling, MD Executive Director LVPHO/Valley Preferred 1

Quality Circles. Nursing as a Revenue Center NDNQI

MassMedic Healthcare and Payment Reform: Impact on Value Demonstration

3/19/2013. Medicare Spending Per Beneficiary: The New Link Between Acute and Post Acute Providers

5D QAPI from an Operational Approach. Christine M. Osterberg RN BSN Senior Nursing Consultant Pathway Health Pathway Health 2013

Shifting from Volume to Value-based Healthcare. November 2014 Briefing

UC HEALTH. 8/15/16 Working Document

Value based care: A system overhaul

Paying for Value and Aligning with Other Purchasers

A Practical Approach Toward Accountable Care and Risk-Based Contracting: Design to Implementation

Value Based Care in LTC: The Quality Connection- Phase 2

Roadmap to accountable care: The chicken or the egg technology investment or clinical process improvement?

Future of Patient Safety and Healthcare Quality

The Accountable Care Organization Specific Objectives

Models of Accountable Care


Implementing Medicaid Value-Based Purchasing Initiatives with Federally Qualified Health Centers

HEALTH CARE REFORM IN THE U.S.

The Digital Transformation Of Healthcare. Warner Thomas, President & CEO Ochsner Health System

Payment Reform Strategies. Ann Thomas Burnett BlueCross BlueShield of South Carolina

My Agenda. The Healthcare World of The Quality, Safety and Value Revolutions: Why Transforming Healthcare is No Longer Elective

Next Generation Physician Compensation Design in a Schizophrenic Payer Environment

A strategy for building a value-based care program

Digital Disruption meets Indian Healthcare-the role of IT in the transformation of the Indian healthcare system

Big Data NLP for improved healthcare outcomes

Using Data for Proactive Patient Population Management

Health System Transformation. Discussion

Draft Covered California Delivery Reform Contract Provisions Comments Welcome and Encouraged

Data-Driven Strategy for New Payment Models. Objectives. Common Acronyms

Alternative Payment Models for Behavioral Health Kim Cox VP, Provider Network

The Quality, Safety, and Value Revolutions:

Sample Exam Case Studies/Questions

DRIVING VALUE-BASED POST-ACUTE COLLABORATIVE SOLUTIONS. Amy Hancock, CEO Presented to: CPERI April 16, 2018

Executive Summary. Leadership Toolkit for Redefining the H: Engaging Trustees and Communities

Person-Centered Accountable Care

Health Policy Update 2017: The Evolution of Physician Payment. Declarations. Agenda 10/11/2017. Revised

Reinventing Health Care: Health System Transformation

We are the ONLY Academic Optometric Center in New York

Jumpstarting population health management

The Physician s Perspective

THIRD WAVE. Over the last 20 years, we have observed two GETTING READY FOR THE OF PHYSICIAN-HOSPITAL INTEGRATION

Centers for Medicare & Medicaid Services: Innovation Center New Direction

Post-Acute Care Alignment Strategy Management & Operations Track Tuesday, July 29, 4:45 5:45 pm

Re: Rewarding Provider Performance: Aligning Incentives in Medicare

Is Audiology effected by the Changes or will it be?

Saint Francis Care and Cigna CAC Meeting the Triple Aim Together

Medicare Physician Payment Reform:

Tomorrow s Healthcare: Better Quality, More Affordable, More Accessible

Adopting Accountable Care An Implementation Guide for Physician Practices

Innovative Business Activities in Health Care with Commercial Partners

Value-Based Payments 101: Moving from Volume to Value in Behavioral Health Care

Value-Based Care Contracting and Legal Issues

Presentation Objectives

NYS Value Based Payments (VBP):

Establishing A Successful Telehealth Business Model in Australia

Building a Multi-System Clinically Integrated Network

National ACO Summit. Third Annual. June 6 8, Follow us on Twitter and use #ACOsummit.

Quality Improvement in the Advent of Population Health Management WHITE PAPER

WHITE PAPER. Taking Meaningful Use to the Next Level: What You Need to Know about the MACRA Advancing Care Information Component

Roadmap for Transforming America s Health Care System

Using Quality Data to Market to Referral Sources BUSINESS OF HEALTHCARE

A Brave New World: Lessons Learned From Healthcare Reform. Brandy Shumaker, MBA, LPTA, LNHA Regional Vice President HealthPRO/Heritage

Describe the process for implementing an OP CDI program

-- Leadership, Resilience & Choice -- Generating Better Health, Better Care at Lower Cost

Alternative Payment Models and Health IT

REDESIGNING HEALTH CARE FROM THE BOTTOM UP INSTEAD OF FROM THE TOP DOWN

Developing Community-Based Pediatric Health Services By Tackling Financials First

May 1, 2017 MAY 1, 2017

HOME IS THE HUB. An Initiative to Accelerate Progress to Reduce Readmissions in Virginia Deep Dive: Post-Acute Care Strategies May 17, 2017

Improving Systems of Care for Children and Youth with Special Health Care Needs

New Strategies in Value Based Care

Transcription:

Health Care: In Transition to Clinical Performance Risk Implications for Physicians April 2012 John Hensing, MD, FACP EVP, Chief Medical Officer Banner Health

Today s Agenda Three Historical Phases of American Health Care Evolution and Innovation in Another Industry Where We Find Ourselves Today The Era of Accountability Industry s Response Payor Hospitals Physicians

Three Phases of Clinical Progress in the Modern Era* 1. Understanding and Classifying Disease 2. Defining Treatments 3. Designing Organized Care Delivery * David Cutler, Otto Eckstein Professor of Applied Economics Harvard University

First issue of the International Classification of Diseases ICD-1 Classifying Disease 1900 For causes of death (191) Residential Medical Office, Otego, NY 1900

Defining Treatments 1950 Advent of truly effective therapies: Vaccines for childhood illnesses including polio Significant use of penicillin New drugs for glaucoma, arthritis First organ transplant Colorado physician, Life Magazine, 1948

A response to: Designing Care Delivery 1999 Cost growth Safety recognition of patient injuries Growing patient expectations for coordination of care Complexity - 19 th Century payment and delivery models for 21 st Century care/complexity Leading to two directional choices: Cost revolution so, do we Addresses only the first challenge (cost) value? Challenging without organized resources Value revolution or, do we cost as primary response?

Evolution, Efficiency, Innovation in Another Industry

US population - 76 million Food costs occupied greater than 50% of many working class families incomes More than 500,000 food stores (specialty shops) in the USA Meat from a butcher Vegetables from a vegetable stand, etc. 1900 in America

1910 - Along comes A & P John and George Hartford and the economy store Standard stores Selling branded products Owned warehouses and trucks 9,000 stores by 1923 Safeway, Kroger not far behind Chain stores market share 4% (1919) to 29% (1932)

1920 s Creative Destruction At least 100,000 small shops go out of business Scale mimicked by independents Cooperative associations Price advantage shrinks All competing on the basis of scale

1935 1950 Innovation Environmental factors Autos/transportation, industrialization Refrigerators, radio advertising Michael Cullen at Kroger Huge store, cash only, no customer delivery Outskirts of town King-Kullen Self-service Shopping carts 20% of net incomes goes to advertising 1935 1982 400,000 stores, 380 supermarkets 160,000 stores, 27,000 supermarkets 3% market share 74% market share

1980 s and Today Club stores Costco 1983, Sam s 1983 Superettes Whole Foods 1978, Trader Joe s 1966 Scanning bar codes, Logistics, Walmart 30,000 products per store by 1990 Today Average store 50,000 square feet 45,000 products Food averages 6% of a family s disposable income

Key Lessons 1. Both Quality and Efficiency are essential for success 2. Scale is a common and copied tool for efficiency 3. Environmental Factors facilitate market evolution -- Information technology, purchaser expectations will undoubtedly accelerate the pace of change in health care 4. Innovation and Creative Destruction are sparks to the next steps in our journey to Industry Leadership

Where Are We in Healthcare Now? The current economic trends in health care are unsustainable The US can t afford the current rate of cost growth The past decade of cost growth has wiped out the real income gains for an average US family (Health Affairs 30, No 9, 2011) Premium rate reviews; cost shifting is reaching limits The provider payment methodology is changing Transparency is forcing aggregate clinical accountability The advent of consumerism and evolving technologies are major forces for change The competitive environment is dynamic and potentially disruptive to all payors, providers, patients

Source: Fischbeck, Paul. US-Europe Comparisons of Health Risk for Specific Gender-Age Groups. Carnegie Mellon University; September, 2009.

The Current System Healthy Person Continued Health Strategies : Acute & Post-acute Cost Mgmt Bundled Pricing, Case rates Co-management Arrangements for acute care episodes Performance Penalty Avoidance Chronic Disease PCP Specialist Care Mgmt. Etc. Successful Management Acute Episode Hospital Care Specialty Care Invasive Care Etc. Post Acute Care Rehab Skilled Nursing Home Health Etc.

The Evolution to Population Health Management Healthy Person Continued Health Chronic Disease Successful Management Strategies: Understanding global costs Disease Management Community Care Networks Cross-continuum EMR HIE Team-based delivery System Design PCP Specialist Care Mgmt. Etc. Acute Episode Hospital Care Specialty Care Invasive Care Etc. Post Acute Care Rehab Skilled Nursing Home Health Etc.

CMS (ACA) Quality Related Payment Initiatives The Early Efforts for Payment Reform 1. Value-Based Purchasing (VBP) Program (process adherence, patient satisfaction) 2. Medicare Shared Savings Program (via an Accountable Care Organization ACO ) * 3. National Pilot Program on Payment Bundling * 4. Hospital Readmission Reduction Program 5. Payment Adjustment for Conditions Acquired in Hospitals * Opportunity for Shared Savings

From: Services to Outcomes New Environment From: Relative Simplicity to Complexity From: Episodic Interventions to Accountable Health Management Key Strategies for Provider Organizations: 1) Create collaborations and organized care models for improved outcomes 2) Invest in value-based infrastructure and information 3) Embrace measurement and transparency 4) Clinically transform implement consensus-based and evidencebased care models and practices across the continuum 5) Acquire and develop clinical leadership

Payor Responses Leverage current strengths: Integrated information and risk assumption, Capital resources,medical management competencies (Population Health) Several Options: Create delivery/provider arms Develop medical management products and services to assist provider organizations Promote innovative products and benefit designs (e.g. narrow networks, patient engagement) Develop innovative provider incentives

Hospital/Health System Responses Develop Coordinated Care Models with focus on one stop to meet patient expectations Organize Risk Assumption vehicles/networks Enhance Medical Management competencies Invest in Information Systems and Analytic strengths Bottom line: Accountable Care Reliable, safe, efficient & appropriate care to address outcome risk Need for aligned skillful clinicians as a critical element of delivery, knowledge and leadership? End of stand alone hospital? (57% are in systems today*)

Physician Responses Needs: Maslow s Hierarchy Physiologic Needs Security Needs Social Needs Esteem Needs Self-actualization Needs Their needs will be met as they become an essential element in organized care models. Their values will heavily influence their choices: clinical integrity, the importance of science, sense of fairness and the honoring of ethical principles.

Percentages of U.S. Physician Practices Owned by Physicians and by Hospitals, 2002 2008. Kocher R, Sahni NR. N Engl J Med 2011;364:1790-1793.

Percentages of Active U.S. Primary Care Physicians (PCPs) and Specialist Physicians Employed by Hospitals, 2000 2012, MGMA Data. Kocher R, Sahni NR. N Engl J Med 2011;364:1790-1793.

As patients accumulate more, and more complex, medical conditions, their care will require greater coordination, greater use of clinical data, and collaborative provider teams which integrated delivery systems are best positioned to deliver. In the long run, any pricing distortions derived from market power and friction associated with changing the role and behaviors of physicians are likely to dissipate and be outweighed by improved productivity, outcomes, and patient experiences, and more efficient health care markets may translate into lower prices over time. Hospitals' Race to Employ Physicians The Logic behind a Money-Losing Proposition Robert Kocher, M.D., and Nikhil R. Sahni, B.S. N Engl J Med 2011; 364:1790-1793, May 12, 2011

The greatest danger in times of turbulence is not the turbulence, it is to meet the turbulence with yesterday s logic. Peter Drucker