Using Physician Payment to Improve Health System Performance

Similar documents
Making Decisions about Activity Based Financing in Health Care: Payment Mechanisms and Policy Goals

Should we pay family physicians to register unattached patients? The unintended consequences of financial incentives in Quebec s access registries.

Aligning Hospital and Physician P4P The Q-HIP SM /QP-3 SM Model. Rome H. Walker MD February 28, 2008

Hospital Compare Quality Measures: 2008 National and Florida Results for Critical Access Hospitals

Pay-for-Performance: Approaches of Professional Societies

4/10/2013. Learning Objective. Quality-Based Payment Models

Pay-for-Performance. GNYHA Engineering Quality Improvement

Improving Care Transitions

The New World of Value Driven Cardiac Care

paymentbasics The IPPS payment rates are intended to cover the costs that reasonably efficient providers would incur in furnishing highquality

Evidence Based Practice: The benefits and challenges of behavioral health services in primary care settings.

Click to edit Master title style

The Pain or the Gain?

Bundled Episode Payment & Gainsharing Demonstration

Innovative Coordinated Care Delivery

Quality and Health Care Reform: How Do We Proceed?

Preventable Deaths per 100,000 population

The Movement Towards Integrated Funding Models

Value based Purchasing Legislation, Methodology, and Challenges

Assessing Medical Technology- Are We Being Told the Truth. The Case of CPOE. David C Classen M.D., M.S. FCG and University of Utah

2017 LEAPFROG TOP HOSPITALS

Rural-Relevant Quality Measures for Critical Access Hospitals

FINAL RECOMMENDATION REGARDING MODIFYING THE QUALITY- BASED REIMBURSEMENT INITIATIVE AFTER STATE FY 2010

Core Metrics for Better Care, Lower Costs, and Better Health

Consumer Preferences, Hospital Choices, and Demand-side Incentives

Ensuring Your Surgical Service Line is Successful in an ACO Value-Based Purchasing and Bundled Payment Environment

Quality Measurement, Population Health and Payment Reform

Bundled Payments to Align Providers and Increase Value to Patients

Achieving Health Equity After the ACA: Implications for cost, quality and access

Care Redesign: An Essential Feature of Bundled Payment

MCOs Revealed: Strategies for Building Strong Hospital & Referral Relationships

The Alternative Quality Contract (AQC): Improving Quality While Slowing Spending Growth

Commission on a High Performance Health System. North Dakota Site Visit - July 18, 2007

QUALITY IMPROVEMENT. Molina Healthcare has defined the following goals for the QI Program:

DELAWARE FACTBOOK EXECUTIVE SUMMARY

Accountable Care and the Laboratory Value Proposition. Les Duncan Director of Operations Highmark Health - Home and Community Services

Reinventing Health Care: Health System Transformation

BUILDING THE PATIENT-CENTERED HOSPITAL HOME

Volume to Value Transition in the USA

Trends in State Medicaid Programs: Emerging Models and Innovations

1.01 Government Programs: CMS and Pay for Performance: Current Issues. CMS Regional Administrator March 2009

July 2, 2010 Hospital Compare: New ED and Outpatient. Information; Annual Update to Readmission and Mortality Rates

BUILDING BRIDGES: SUCCESSFUL TRANSITIONS FROM HOSPITAL TO HOME FOR OLDER ADULTS

The Future of Healthcare Delivery; Are we ready?

REDUCING READMISSIONS through TRANSITIONS IN CARE

Brave New World: The Effects of Health Reform Legislation on Hospitals. HFMA Annual National Meeting, Las Vegas, Nevada

MEDICARE FFY 2017 PPS PROPOSED RULES OVERVIEW OHA Finance/PFS Webinar Series. May 10, 2016

HIMSS Davies Enterprise Application --- COVER PAGE ---

HEALTH CARE REFORM IN THE U.S.

Business Plan. Department of Health and Wellness

Hospital Inpatient Quality Reporting (IQR) Program

Definitions/Glossary of Terms

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

2017 Oncology Insights

MEDICAID MEDICAL HOMES PAYING ON A PER MEMBER, PER MONTH BASIS. By: Susan Price, Senior Attorney

Moving the Dial on Quality

Strategies to control health care expenditure and increase efficiency : recent developments in the French health care system

Advancing Care Coordination Proposed Rule

Episode Payment Models Final Rule & Analysis

HHW-HIPP0314 (9/13) MDwise Annual IHCP Seminar. Exclusively serving Indiana families since 1994.

UPDATE ON MEANINGFUL USE. HITECH Stimulus Act of 2009: CSC Point of View

HOSPITAL QUALITY MEASURES. Overview of QM s

Advancing Primary Care Delivery

Is HIT a Real Tool for The Success of a Value-Based Program?

Performance Measurement Work Group Meeting 10/18/2017

Disclosures. Platforms for Performance: Clinical Dashboards to Improve Quality and Safety. Learning Objectives

Understanding Risk Adjustment in Medicare Advantage

Emerging Models of Care Delivery Christy Mokrohisky Ex. Dir. of PI & Emerging Models

paymentbasics Defining the inpatient acute care products Medicare buys Under the IPPS, Medicare sets perdischarge

PBGH Response to CMMI Request for Information on Advanced Primary Care Model Concepts

Overuse in Clinical Care: Too Much of a Good Thing? Wendy Everett, ScD President, NEHI. National Quality Forum March 26, 2009

Programs and Procedures for Chronic and High Cost Conditions Related to the Early Retiree Reinsurance Program

Health Indicators: A Review of Reports Currently in Use

JOINT REPLACEMENT & OUTPATIENT BUNDLED PAYMENTS. Chris Bishop, CEO Regent Surgical Health

Trust Key Performance Indicators

Rapid Synthesis. Examining the Effects of Value-based Physician Payment Models. 10 October 2017

4/15/2018. Disclosure of Commercial Interests. Reducing Staff Vacancy in Senior Care Organizations

General information. Hospital type : Acute Care Hospitals. Provides emergency services : Yes. electronically between visits : Yes

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

Ontario s Health-Based Allocation Model through an equity lens

DRAFT Complex and Chronic Care Improvement Program Template. (Not approved by CMS subject to continuing review process)

Aligning Executive, Physician and Staff Compensation with Population Health Goals

Pay for Performance in Health Care: Methods and Approaches

Examples of Measure Selection Criteria From Six Different Programs

Population Health: The Role of the DNP. Linda Dunbar, PhD, RN Vice President, Population Health Johns Hopkins HealthCare

I CSHP 2015 CAROLYN BORNSTEIN

Finding high quality hospitals in Philadelphia.

Value-Based Health Care Delivery: Reimbursement, System Integration, and Growth

offered by the INSTITUT NATIONAL DE SANTÉ PUBLIQUE DU QUÉBEC

August 1, 2012 (202) CMS makes changes to improve quality of care during hospital inpatient stays

Physician Alignment Strategies and Options. June 1, 2011

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

OUTPATIENT JOINT REPLACEMENT & BUNDLED PAYMENTS. Chris Bishop, CEO Regent Surgical Health

HIT Incentives: Issues of Concern to Hospitals in the CMS Proposed Meaningful Use Stage 2 Rule

Total Cost of Care Technical Appendix April 2015

Medicare-Medicaid Payment Incentives and Penalties Summit

RESPITE CARE LEGACY HOSPICE

Homelessness and Urban Sustainability: How will the assistance needed by homeless people be financed?

Patient-Centered Specialty Practice: Building the Medical Neighborhood

2

Transcription:

Using Physician Payment to Improve Health System Performance Erin Strumpf, PhD McGill University Levers of change to act on health system performance workshop Québec Ministère de la Santé et des Services sociaux Seminar on Performance Measurement March 24, 2011

Health System Performance Efficiency value for money Getting the right care to the right patients Health care services whose benefit exceeds their cost This means focusing on Costs and benefits of treatment decisions Quality of care and outcomes Prevention and effective management of chronic conditions Appropriate mix of primary, specialist and tertiary services

Not All Health Care Services Are Created Equal Highly effective and inexpensive innovations Antibiotics, or aspirin and beta blockers for cardiac care More expensive yet effective treatments for appropriate patients Hip and knee replacements, surgical interventions for heart attack patients Gray area treatments with uncertain clinical value ICU days among chronically ill patients Chandra and Skinner, Technology and Expenditure Growth in Health Care 2008

Available Levers and Incentives Other systems use financial incentives targeted at patients Value-based insurance design, co-payments, etc Levers available in the Canadian context largely target providers

Why Focus on Physician Payment? 13% of health care spending on physician services Smaller share than hospitals and drugs, but growing faster Physicians decisions have a large impact on patients outcomes and system efficiency What services to provide Outpatient and inpatient Prescription drugs Referrals to specialists and social services

Fee-for-Service (FFS) Providers are paid a negotiated price for each service provided Rewards volume of services Not value, outcomes, or quality 48% Canadian physicians earn 90%+ of income from FFS* 56% in AB, 30% PEI, 43% in QC Perverse incentives Over-provision of (paid) services Under-provision of (unpaid) tasks Little ability for insurer to control costs or improve efficiency *2007 National Physician Survey

Capitation and Fundholding Providers are paid a fixed amount per year for each patient enrolled in their practice Primary care services without additional payments All medical services without additional payments Rewards keeping patients healthy using a range of services Perverse incentives Selection of healthier patients Excessive use of specialist or hospital care (capitation) Under-provision of services and quality, especially problematic with limited supply of health providers Strong incentives for cost control

Mixed Payment Blending FFS and capitation can provide strong incentives for efficiency while moderating the perverse incentives inherent in each Balance of consideration of costs, benefits, and quality 31% of Canadian physicians QC: mixed compensation for specialists (per diem and pro-rated FFS) ON: mixed payment for GPs in FHNs and FHOs (capitation and FFS/incentives) Evidence of physicians changing their behavior in response*, still need to understand the impacts on patient health outcomes *Dumont et al, Journal of Health Economics 2008; Kantarevic et al, Journal of Health Economics 2011

Pay-for-Performance (P4P) Providers are paid based on desired outcomes: Structure: the resources assembled to deliver care, including personnel, facilities, and materials Process: the completion of specific tasks or recommended treatments Outcome: patients experience and health status Computerized physician order entry (CPOE), ICU staffing, information systems to track chronically ill patients Cervical cancer screening, mammography, immunizations, chronic disease management In-hospital mortality, complication, and readmission rates Rosenthal et al, Health Affairs 2004

Pay-for-Performance (P4P) Can be combined with many other payment systems Perverse incentives Teaching to the test Selection of patients to improve ratings Cost control potential depends on the extent to which rewarded processes and outcomes reduce costs or improve efficiency

Pay for Performance Challenges The details of such a system are not obvious and they do matter* Do incentives apply to individuals or groups? What s the right amount to pay? Which performance measures to use? Do both achievement and improvement get rewarded? Adjustment of measures and payments to moderate perverse incentives Potential for impact is greater in a single-payer environment *Rosenthal et al, JAMA 2007

Challenges to Using Physician Payment to Improve Health System Performance Political barriers to change Data to measure impacts on ultimate outcomes of interest Physician behavior and utilization patterns are not sufficient to inform questions about system efficiency We have to measure quality of care and health outcomes