Geisinger s Bundled Payments Experience for Better Clinical Integration to Drive Quality to Lower Cost

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Geisinger s Bundled Payments Experience for Better Clinical Integration to Drive Quality to Lower Cost Thomas Graf, MD Chief Medical Officer Population Health and Longitudinal Care Service Lines

Let us bear in mind that the most important individual after all is the patient. Our paramount thought must be to provide him means by which he can have skilled diagnostic and therapeutic service in as complete form as may be indicated in a given case, in the shortest possible time consistent with thoroughness, and at the least cost to him. Dr. Foss HL Foss, MD 11/4/1950 2

Geisinger An Integrated Health Service Organization Provider Facilities Managed Care Companies Geisinger Medical Center Danville Campus includes Hospital for Advanced Medicine, Janet Weis Children s Hospital, Women s Health Pavilion, Level I Trauma Center, Ambulatory Surgery Center Geisinger Shamokin Community Hospital Geisinger-Bloomsburg Hospital Geisinger Wyoming Valley Medical Center with Heart Hospital, Henry Cancer Center, and Level II Trauma Center Geisinger South Wilkes-Barre campus with Urgent Care, Ambulatory Surgery Center and Inpatient Rehabilitation Geisinger Community Medical Center with specialized medical & surgical services, including Level II Trauma and comprehensive cardiac & orthopedic services Marworth Alcohol & Chemical Trtmt Center Mountain View Care Center Bloomsburg Health Care Center >72K admissions/obs & SORUs 1,593 licensed inpatient beds Physician Practice Group Multispecialty group ~1,000 physicians ~520 advanced practitioner FTEs 65 primary & specialty clinic sites (37 Community Practice Sites) Freestanding outpatient surgery center > 2.1 million clinic outpatient visits ~360 resident & fellow FTEs ~400,000 members (including ~63,000 Medicare Advantage members, and 100,000 Medicaid Advantage members) Diversified products ~30,000 contracted providers/facilities 43 PA counties PA Medicaid initiative Out of state TPA contracts Note: Numerical references based on fiscal 2012 budget plus impact of GSACH, GCMC and GBH acquisitions. 3

Geisinger Health System coverage area Revised 6-28-12. Geisinger PR & Marketing Department 4

Geisinger Patient-Centered Continuum of Care Community-Based Care Specialty Outreach ( Face-to-face & Telemedicine) Ambulatory Care & Surgery Center Acute Care Tertiary/Quaternary Medical Center Destination Medicine eicu Urgent Care Center Multi- Specialty Clinic E-Visit MyGeisinger After-Hours Care Center Retail Clinic Specialty Center, e.g. Cancer or Sleep Community Practice Site Post-Acute & Transitional Care Outpatient Rehab Inpatient Rehab Adult Health Program & Day Center Imaging Center Retail Pharmacy Lab Outreach Site Work Site Clinic Wellness Home Care Hospice ProvenHealth Navigator Not for reuse or distribution 5 without permission

Higher Cost Associated with Lower Quality Baicker K, Chandra A. Health Affairs Web Exclusive, April 7, 2004: W4 184-97. 6

ProvenCare Acute Geisinger Health System programs to deliver improved quality and value for a defined set of health care services: 1. Document appropriateness of care. 2. Establish evidence or consensus-based best practices. 3. Reliably deliver these by redesign of complex clinical systems by embedding the behaviors into everyday patient flow using the electronic health record when able. 4. Activate patients and families, engaging them in the care processes. 5. Provide a packaged price for the episode of care. 6. The Warranty transfers financial risk for medical complications to Geisinger.

Appropriateness? 8

Establishment of Best Practice Established Guideline team Start with established national guidelines Surgeons review each element for appropriateness Validation Translation to 40 verifiable, actionable behaviors with clear definitions Developed unanimity and buy-in

Key Process Redesign Principles Eliminate any care steps that do not add value Automate Any steps that can be managed electronically and accelerate other team members work Delegate work that must be done to appropriately trained non-physician staff when possible. Incorporate electronic work flows and tools into standard practice to eliminate variation Activate and engage the patient and family

ProvenCare & the Electronic Medical Record (EMR)

ProvenCare CABG Process Flow Clinic Pre-op OR Post-op Return Clinic Carotid Eval Beta Vascular Consult Blockade Inf.MI/RV Clopidogrel Clopidogrel Warfarin Warfarin Beta Blockade Smoking Cessation Antibiotics Glycemic Control IABP use Atherosclerotic Aortas Cardioplegia Arterial Conduits Antibiotics Glycemic Control Beta Blockade ASA Therapy Afib prevention Lipid management Ant.MI/WMA Smoking Cessation Beta Blockade ASA Therapy Lipid management Cardiac Rehab Smoking Cessation

Reliability 40 best practice elements x 715 patients = 28,600 opportunities 37 missed best practice elements in 24 patients 37 / 28,600 = 0.13% elements missed (715-24) / 715 = 96.6% of all patients had ALL elements delivered 14

Clinical Outcomes: Pre vs. Post ProvenCare protocols Before ProvenCare N = 132 After ProvenCare N = 687 % Improvement In-hospital mortality 1.5 % 0.4 % 73 % Patients with any complication (STS) 38 % 34 % 10 % Atrial fibrillation 24 % 20 % 16 % Permanent stroke 1.5 % 1.2 % 24 % Prolonged ventilation 5.3 % 5.2 % 4 % Re-intubation 2.3 % 1.6 % 30 % Intra-op blood products used 24 % 12 % 48 % Re-operation for bleeding 3.8 % 2.4 % 37 % Deep sternal wound infection 0.8 % 0.2 % 80 % Post-op mean LOS 5.2 d 5.0 d 4 % 15

Financial Results: Base Line (FY2006) Look Back (FY2010) Variance Length of stay 7.60 6.28 (1.32) -18% Contribution margin / case + 23% Insurer: Paid out 4.8% less per case for CAB with ProvenCare 16 16 28 to 36% less for CAB at Geisinger than with other providers

High Value Care Creates a High Value Chain Patients get improved outcomes fewer complications, lower cost, earlier release from hospital Employer gets better outcomes healthier employees, lower premiums Geisinger Health Plan gets better outcomes higher quality scores lower cost more members Geisinger clinical enterprise gets better outcomes better quality higher contribution margin lower length of stay

ProvenCare Portfolio Contracted w/ Bundled Payment ProvenCare Coronary Artery Bypass (CAB) ProvenCare Percutaneous Coronary Intervention (PCI) ProvenCare Perinatal ProvenCare Bariatric Surgery ProvenCare Thoracic Lung In Clinical Phase or Development ProvenCare Fragility Hip Fracture ProvenCare Heart Failure ProvenCare COPD ProvenCare Epilepsy ProvenCare Spine ProvenCare Total Hip Arthroplasty ProvenCare Total Knee Arthroplasty

ProvenCare Summary We have implemented a provider driven program to improve the outcome of acute surgical and high cost care, improved financial performance and increased value to payer and patient by: assuring appropriateness of care delivered, redesigning care processes to reliably deliver verifiable elements of care based on evidence-based best practices, eliminating unwarranted variation, while engaging the patient and family as partners in their care, maintaining the ability to add/subtract/modify component parts as consensus or scientific evidence changes, and preserving patient centered and individualized care and fundamentally altering the reimbursement scheme

Center for Medicare & Medicaid Innovations (CMMI) Established by the Patient Protection and Affordable Care Act (PPACA) Mission: To help transform Medicare, Medicaid, and the Children's Health Insurance Program (CHIP) through improvements in the health care system, thereby ensuring better health care, better health, and reduced costs for beneficiaries, and ultimately enhancing the health care system for all Americans. 2 0

CMMI Bundled Payment Project Overview Aligning incentives through bundled payments for services across a single episode of care is one way to encourage providers to work together to coordinate patient care resulting in better outcomes Providers were invited to apply to this project to help test and develop the best models for bundled payments; 4 models were available to choose from GMC and GWV selected Model 2: Retrospective Acute Care Hospital Stay plus Post-Acute Care Demonstration Project spans (3) years starting late spring / early summer 2013 2 1

CMS Payment Structure CMS sets a target payment amount for a defined episode of care Participants in the initiative would be paid for their services under the regular Medicare FFS system At the end of the episode, the total payments would be compared to the target price (set at a 2% discount) If > target price: hospital pays CMS (refunds payments above the target) If < target price: CMS pays hospital additional funds up to the target price These savings are divided between hospitals and physicians Quality metrics to maintain the program integrity 2 2

Geisinger has Two Roles : Facilitator Convener and Awardee Convener Geisinger Clinic is acting as a Facilitator Convener and has developed a Bundled Payment Collaborative Learning Network (BPCLN) for its convener group. 2 3

ProvenHealth Navigator Geisinger s Advanced Medical Home Model Primary care redesign is the foundation of population health management Patient Centered Primary Care Integrated Population Management Physician led team-delivered care Population focused delivery with segmentation and proactive care delivery by comprehensive team working at top of license Enhanced access, services, patient Enhanced patient & family education & engagement Chronic disease & preventive care optimized with Health Information Technology & EHR Population identification, segmentation and risk stratification of panel members driving primary care team work Automated interventions for care Medical Neighborhood Micro-delivery referral systems Physician profiling 360 care systems SNF, ED, hospitals, HH, etc Outcome Driven Performance Management Patient satisfaction Clinician satisfaction All-or-none bundled chronic disease metrics Preventive services metrics Value Based Reimbursement Fee-for-service with P4P payments for quality outcomes for 20-30% of total compensation for PCPs and specialists Physician and practice transformation stipends Payments distributed on measured Quality performance

Transitions of Care Pt contact within 24-48 hrs post discharge Telephonic outreach Medication reconciliation Ensure safe transition post discharge with appropriate services in place Home Health DME Safe to be in their home? Facilitate post hospital PCP & CM appt within 3-5 days Close follow-up for 30 days

50 45 40 35 30 25 20 15 10 5 0 44 Readmissions impact 47 46 47 44 41 42 41 34 34 30 31 2006 2007 2008 2009 2010 2011 PHN Non-PHN 44 Current PHN Sites 26

PHN Results for Medicare (Am J Manag Care. 2010;16(8):607-614) 27

Cumulative percent difference in spending attributable to PHN 0% -2% -4% -6% -8% 95% Confidence Interval Median Estimate 95% Confidence Interval -10% -12% Q1 2005 Q3 2005 Q1 2006 Q3 2006 Q1 2007 Q3 2007 Q1 2008 Q3 2008 Q1 2009 Q3 2009 Cumulative percent difference in spending (Pre-Rx Allowed PMPM $) attributable to PHN in the first 21 PHN clinics for calendar years 2005-2009. Dotted lines represent 95% confidence interval. P = < 0.003 28

Health Information Exchange Community Connections Primary Care Physician EMR Labs Orders and Results Independent Health Facility Imaging Long-term Care Physical Therapy Community Connections Master Patient Index Document Registry Document Repository Other HIE Patient Personal Health Records Payers Medicaid/ Medicare Private Pharmacy eprescribing Medication History Specialty Practice EMR ereferral Academic Medical Center Community Hospital Government Quality and Efficiency Public Health Copyright 2012 Keystone Health Information Exchange 29

Care Transitions Home Clinic Hospital Elderly Transition Medications Home Health Care? Can I safely care for myself?? Do I have caregiver at home?? Can I manage and afford my treatment?? Do I understand my disease(s) and treatment(s)? Skilled Nursing Facility

Transfer In During stay ProvenHealth Transitions Bundle Transfer Out Post Transfer Readmission Risk Score Early notification of physician and care team MyGeisinger (patient portal) Universal Authorization Pharmacy Med Rec (High Risk-within 24-48hrs) Address end of life issues Identify Primary physician Identify Care Team Schedule PCP F/U One discharge record discharge instructions with Teach-Back Discharge TIME-OUT Phone Call Office within 7 days Completed summary within 24 hrs Discharge Time-Out Safe for launch Status=Support Labs & vital signs Clinical Status adherence Med Rec Scripts & Access Medications MD CM Follow Up visit Scheduled Pt adherence RN Transportation and DME Disharge Instructions/Plan with teach-back

New admissions seen within 1 working day Readmission reduce or maintain readmission rate Use Health Assessment Tool annually Primary Care Physician follow up within 7 days from discharge Close coordination with offices Initial admission Transition to home

Initial evaluation within 24 hours, physician visit within 5 days of admission. Follow closely while at Skilled Nursing Facility ie 1-2 times a week for rehabilitation. Complex medical needs.

Early Results for Nursing Homes Look Promising Nursing Home Baseline Readmissions PY 1 Readmissions Reduction Nursing Home A 34% 18.5% - 45.5% Nursing Home B 18.5% 14.5% - 21.6% Nursing Home C 27% 9% - 66.6% Nursing Home D 44% 33% - 25% Nursing Home E 42.5% 31% - 27% Nursing Home F 27.5% 24% - 12.7%

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