2018 cardiovascular state of the union - advisory · 2) episode payment models. 3) department of...
TRANSCRIPT
2018 Cardiovascular
State of the UnionFebruary 14 2018
Cardiovascular Roundtable
Megan Tooley
Practice Manager
tooleymadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
5
Cardiovascular Roundtable
How We Help Our Partner CV Programs
The Cardiovascular Roundtable provides CV leaders with unlimited
access to a deep repository of market data benchmarks case studies
best practices and industry knowledge
Develop Market-Leading
Strategy
Accelerate Performance
Improvement
Enhance Team Capacity
and Effectiveness
bull National meetings
webconferences
bull Facilitated professional
networking
bull Educational intensives and
tutorials
bull On-demand expert consultation
bull Financial operational
analytical tools
bull Survey-based benchmarking
reports
bull Best practice publications
implementation toolkits
bull Customized expert guidance
bull Market reports
bull Strategic planning toolkits
bull Volume estimators
forecasters
bull Real-time news and analysis
Source Cardiovascular Roundtable research and analysis
Institutions with Cardiovascular
Roundtable membershipTo learn more email us at
cardiovascularadvisorycom1300+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP6
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
7
What a Year Itrsquos Been
2017 a Roller Coaster Year in Health Care Policy
Source Cardiovascular Roundtable research and analysis
1) American Health Care Act of 2017 Better Care Reconciliation Act Obamacare Repeal and Reconciliation Act
2) Episode Payment Models
3) Department of Health and Human Services
January 20
President Trump sworn in makes
health care top priority on Day 1
bull July 25-28 Senate votes down
AHCA BCRA ORRA1
bull September 26 Senate cancels
vote on Cassidy-Graham
Key Milestones in 2017 Health Care Agenda
New President of
the United States
Attempts to Repeal
Replace the ACA Begin
Mandatory Cardiac
Bundles Cancelled
November 30
CMS cancels mandatory
CABG AMI EPMs2
New HHS3
Secretary
November 13
Alex Azar nominated for HHS
Secretary following resignation
of Tom Price
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
8
Raising Questions About the Future of Risk
Despite Uncertainty Payment Reform Likely to Remain in Some Form
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal
September 19 2017 wwwwsjcom Cardiovascular Roundtable interviews and analysis
1) Centers for Medicare and Medicaid Innovation
2) Medicare Access and CHIP Re-Authorization Act
Key Questions from CV Leaders
How will the new administration
impact MACRA2 implementation
Will the new administration migrate
away from payment transformation
How will CMS prioritize value-based
initiatives moving forward
What is the future of CMMI1 and care
transformation programs (eg ACOs)
Many Reasons to Bet on the Future of
Payment and Care Delivery Reform
Strong bipartisan support for the
concept of payment reform
Near-unanimous bipartisan
support for MACRA legislation
CMS Administrator Seema Verma
has confirmed continued support
for value-based care
Current administration committed
to testing new models to deliver and
pay for health care through CMMI
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
5
Cardiovascular Roundtable
How We Help Our Partner CV Programs
The Cardiovascular Roundtable provides CV leaders with unlimited
access to a deep repository of market data benchmarks case studies
best practices and industry knowledge
Develop Market-Leading
Strategy
Accelerate Performance
Improvement
Enhance Team Capacity
and Effectiveness
bull National meetings
webconferences
bull Facilitated professional
networking
bull Educational intensives and
tutorials
bull On-demand expert consultation
bull Financial operational
analytical tools
bull Survey-based benchmarking
reports
bull Best practice publications
implementation toolkits
bull Customized expert guidance
bull Market reports
bull Strategic planning toolkits
bull Volume estimators
forecasters
bull Real-time news and analysis
Source Cardiovascular Roundtable research and analysis
Institutions with Cardiovascular
Roundtable membershipTo learn more email us at
cardiovascularadvisorycom1300+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP6
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
7
What a Year Itrsquos Been
2017 a Roller Coaster Year in Health Care Policy
Source Cardiovascular Roundtable research and analysis
1) American Health Care Act of 2017 Better Care Reconciliation Act Obamacare Repeal and Reconciliation Act
2) Episode Payment Models
3) Department of Health and Human Services
January 20
President Trump sworn in makes
health care top priority on Day 1
bull July 25-28 Senate votes down
AHCA BCRA ORRA1
bull September 26 Senate cancels
vote on Cassidy-Graham
Key Milestones in 2017 Health Care Agenda
New President of
the United States
Attempts to Repeal
Replace the ACA Begin
Mandatory Cardiac
Bundles Cancelled
November 30
CMS cancels mandatory
CABG AMI EPMs2
New HHS3
Secretary
November 13
Alex Azar nominated for HHS
Secretary following resignation
of Tom Price
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
8
Raising Questions About the Future of Risk
Despite Uncertainty Payment Reform Likely to Remain in Some Form
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal
September 19 2017 wwwwsjcom Cardiovascular Roundtable interviews and analysis
1) Centers for Medicare and Medicaid Innovation
2) Medicare Access and CHIP Re-Authorization Act
Key Questions from CV Leaders
How will the new administration
impact MACRA2 implementation
Will the new administration migrate
away from payment transformation
How will CMS prioritize value-based
initiatives moving forward
What is the future of CMMI1 and care
transformation programs (eg ACOs)
Many Reasons to Bet on the Future of
Payment and Care Delivery Reform
Strong bipartisan support for the
concept of payment reform
Near-unanimous bipartisan
support for MACRA legislation
CMS Administrator Seema Verma
has confirmed continued support
for value-based care
Current administration committed
to testing new models to deliver and
pay for health care through CMMI
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP6
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
7
What a Year Itrsquos Been
2017 a Roller Coaster Year in Health Care Policy
Source Cardiovascular Roundtable research and analysis
1) American Health Care Act of 2017 Better Care Reconciliation Act Obamacare Repeal and Reconciliation Act
2) Episode Payment Models
3) Department of Health and Human Services
January 20
President Trump sworn in makes
health care top priority on Day 1
bull July 25-28 Senate votes down
AHCA BCRA ORRA1
bull September 26 Senate cancels
vote on Cassidy-Graham
Key Milestones in 2017 Health Care Agenda
New President of
the United States
Attempts to Repeal
Replace the ACA Begin
Mandatory Cardiac
Bundles Cancelled
November 30
CMS cancels mandatory
CABG AMI EPMs2
New HHS3
Secretary
November 13
Alex Azar nominated for HHS
Secretary following resignation
of Tom Price
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
8
Raising Questions About the Future of Risk
Despite Uncertainty Payment Reform Likely to Remain in Some Form
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal
September 19 2017 wwwwsjcom Cardiovascular Roundtable interviews and analysis
1) Centers for Medicare and Medicaid Innovation
2) Medicare Access and CHIP Re-Authorization Act
Key Questions from CV Leaders
How will the new administration
impact MACRA2 implementation
Will the new administration migrate
away from payment transformation
How will CMS prioritize value-based
initiatives moving forward
What is the future of CMMI1 and care
transformation programs (eg ACOs)
Many Reasons to Bet on the Future of
Payment and Care Delivery Reform
Strong bipartisan support for the
concept of payment reform
Near-unanimous bipartisan
support for MACRA legislation
CMS Administrator Seema Verma
has confirmed continued support
for value-based care
Current administration committed
to testing new models to deliver and
pay for health care through CMMI
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
7
What a Year Itrsquos Been
2017 a Roller Coaster Year in Health Care Policy
Source Cardiovascular Roundtable research and analysis
1) American Health Care Act of 2017 Better Care Reconciliation Act Obamacare Repeal and Reconciliation Act
2) Episode Payment Models
3) Department of Health and Human Services
January 20
President Trump sworn in makes
health care top priority on Day 1
bull July 25-28 Senate votes down
AHCA BCRA ORRA1
bull September 26 Senate cancels
vote on Cassidy-Graham
Key Milestones in 2017 Health Care Agenda
New President of
the United States
Attempts to Repeal
Replace the ACA Begin
Mandatory Cardiac
Bundles Cancelled
November 30
CMS cancels mandatory
CABG AMI EPMs2
New HHS3
Secretary
November 13
Alex Azar nominated for HHS
Secretary following resignation
of Tom Price
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
8
Raising Questions About the Future of Risk
Despite Uncertainty Payment Reform Likely to Remain in Some Form
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal
September 19 2017 wwwwsjcom Cardiovascular Roundtable interviews and analysis
1) Centers for Medicare and Medicaid Innovation
2) Medicare Access and CHIP Re-Authorization Act
Key Questions from CV Leaders
How will the new administration
impact MACRA2 implementation
Will the new administration migrate
away from payment transformation
How will CMS prioritize value-based
initiatives moving forward
What is the future of CMMI1 and care
transformation programs (eg ACOs)
Many Reasons to Bet on the Future of
Payment and Care Delivery Reform
Strong bipartisan support for the
concept of payment reform
Near-unanimous bipartisan
support for MACRA legislation
CMS Administrator Seema Verma
has confirmed continued support
for value-based care
Current administration committed
to testing new models to deliver and
pay for health care through CMMI
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
8
Raising Questions About the Future of Risk
Despite Uncertainty Payment Reform Likely to Remain in Some Form
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal
September 19 2017 wwwwsjcom Cardiovascular Roundtable interviews and analysis
1) Centers for Medicare and Medicaid Innovation
2) Medicare Access and CHIP Re-Authorization Act
Key Questions from CV Leaders
How will the new administration
impact MACRA2 implementation
Will the new administration migrate
away from payment transformation
How will CMS prioritize value-based
initiatives moving forward
What is the future of CMMI1 and care
transformation programs (eg ACOs)
Many Reasons to Bet on the Future of
Payment and Care Delivery Reform
Strong bipartisan support for the
concept of payment reform
Near-unanimous bipartisan
support for MACRA legislation
CMS Administrator Seema Verma
has confirmed continued support
for value-based care
Current administration committed
to testing new models to deliver and
pay for health care through CMMI
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
9
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitals should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP10
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
11
Guess Whatrsquos Not Getting Repealed
Even If ACA Repealed Majority of Obama-Era Cuts Would Have Remained
1 Margin pressure will only intensify for CV
Source CBO ldquoBudgetary and Economic Effects of Repealing the Affordable Care Actrdquo June 2015 CBO ldquoLetter to the
Honorable John Boehner Providing an Estimate for HR 6079 The Repeal of Obamacare Actrdquo July 24 2012 CBO
ldquoCost Estimate and Supplemental Analyses for HR 2 the Medicare Access and CHIP Reauthorization Act of 2015
Budget of the United States Government (Proposed) FY 2016 Cardiovascular Roundtable research and analysis
1) Calculation includes ACA Inpatient Prospective Payment System Update
Adjustments ACA Disproportionate Share Hospital payment cuts MACRA
Inpatient Prospective Payment System update adjustments
ldquoProductivityrdquo Adjustments and Other Cuts to Reimbursement1
2017 2018 2019 2020 2021 2022 2023 2024 2025
($32B)
($48B)($60B)
($71B)($82B)
($94B)($103B)
($116B)
($143B)
60
Significantly Impacting Margins
Percent of hospitals projected to
have negative margins by 2025
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
12
C-Suite Feeling the Cost Burden
Beginning to Trickle Down to CV Leaders
Source Boston Globe ldquoPartners Health Care cutting $600 million in costsrdquo May 12 2017 Modern Healthcare
ldquoAdvocate Health Care plans $200 million in cutsrdquo May 4 2017 Chicago Tribune ldquoEdward-Elmhurst Health
cutting $50 millionrdquo October 5 2017 Modern Healthcare ldquoDetroit Medical Center to reduce workforce to cut
$17 million in expensesrdquo November 30 2016 Cardiovascular Roundtable research and analysis
Partners HealthCare cutting $600M in costs
May 12 2017
Jim Skogsbergh CEO
ADVOCATE HEALTH CARE
Our existing cost structure is not
sustainablehellipWe believe the
transformation required to solve this
problem will take months if not years
Failing to take steps now will turn a
financial challenge into a financial
crisismdashsomething none of us wants
Detroit Medical Center to reduce
workforce to cut $17 million in expenses
November 30 2016
Edward-Elmhurst Health cutting $50 million
10052017
Advocate Health Care plans
$200 million in cuts
May 4 2017
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
13
CV Reimbursement Not What It Used to Be
Payment Updates Requiring Greater Efficiency
Source CMS Cardiovascular Roundtable research and analysis
1) Inpatient payments are final FY 2018 rates outpatient and physician fee schedule are proposed CY 2018
2) Unadjusted national average change values are provided for comparison purposes but direct comparisons
are difficult due to consolidation and restructuring of APCs
0516
CardiacServices
VascularServices
CV Medicare Payment Changes
2018 Versus 20171
INPATIENT OUTPATIENTPHYSICIAN FEE
SCHEDULE
Access a complete list of 2018 payment
updates on the online resource page
Cardiology
Cardiac
Surgery
Vascular
Surgery
Select CV Services
APC DescriptionPercent
Change2
5524 Level 4 Imaging
without
Contrast (eg
transthoracic
eco)
83
5212 Level 2 EP
Procedures
(eg ablation
of AV node)
62-20 -20 -20
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
14
CV Costs Increasingly Under the Microscope
Key Market Trends Shaping the Economics of CV Care
Source Cardiovascular Roundtable research and analysis
1) Bundled Payments for Care Improvement Initiative
2) Hospital Value-Based Purchasing Hospital Inpatient Quality Reporting Merit-Based Incentive Payment System
Reimbursement Pressures
bull Payment updates not keeping
pace with increasing costs
bull MACRA holding physician
payments steady
bull Readmission reduction program
bull BPCI1 voluntary risk-based
payment models
bull New VBP IQR MIPS2 episodic
cost measures
Pay-for-Performance Programs
Scrutinizing Episodic Cost
Shifting Demand to Less
Profitable Services
bull Softening acute procedural
volumes (eg CABG PCI)
bull Shift to outpatient medical care
with lower margins
Cost-Sensitive Patients
and Referring Providers
bull Patients facing greater
out-of-pocket costs
bull Increasing price transparency
bull Referring providers
increasingly accountable for
costs under MACRA ACOs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
15
No Relief in Sight
CV Demographics Increasing Cost of Care Moving Forward
Source American Heart Association ldquoCardiovascular Disease A Costly Burden for Americamdash
Projections Through 2035rdquo (2017) Cardiovascular Roundtable research and analysis
Cost of CV Disease in United States
Drivers Impacting the Rising Cost of CV Care Delivery
Increase in
staffing costs
Investment in more
complex expensive
technologies
Increasingly
chronic comorbid
patient population
2016
$555 billion
2035
$11 trillion
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
16
Carving Out a Role in Institution Efforts
Clear Opportunity for CV to Support Targeted Cost Reduction Initiatives
Source Cardiovascular Roundtable research and analysis
Savings
Potential
Difficulty
HighLow
Low
High
bull Reallocate acute care services
across system
bull Rightsize excess inpatient capacity
Minimize
Unwarranted
Care Variation
Restructure Fixed
Cost amp Assets
Reduce Labor and
Supply Costs
bull Develop a
foundation for
implementing
care standards
bull Eliminate quality
shortfalls that
increase cost
per case
bull Update labor staffing models
bull Ensure value of supply
contracting arrangements
Focus of C-Suite
health system
executives
More within
CVrsquos realm
of control
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
17
ROUNDTABLE RESOURCESStrategies for Success
CV Guideline
Compendium
Building the High-Value
CV Care Team
Playbook for Reducing
CV Care Variation
Practicing Top-of-
License CV Care
Build long-term strategies to reduce
programs costs not just focusing on
quick wins
Build a lean provider team across settings
and services that engages each team
member in high-value care tasks
Develop care standards for areas where
care variation is contributing to high clinical
and operational costs and poor outcomes
Prioritize CV Cost
Reduction 1
Ensure Top-of-License
Care Delivery2
Reduce Variation
in Care Delivery3
Source Cardiovascular Roundtable interviews and analysis
Playbook for CV
Episodic Cost
Management
CV Margin
Management
Resource Center
(coming soon)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
18
Outmigration of CV Services Marches On
Inpatient Volumes Declining as Outpatient Takes a Greater Share
2 CV is not just increasingly an outpatient business but an ambulatory business
Source Cardiovascular Roundtable research and analysis
CV Five-Year Growth Projections by Sub-Service Line
National All-Payer 2016-2021
20 20 19
10
(3) (4)(6)
(8)
(12) (13)
(19)
OutpatientMedicalVascular
OutpatientCardiac EP
OutpatientVascular
Cath
OutpatientMedical
Cardiology
Inpatient
Arterial
Disease
Inpatient
Cardiac
Surgery
Inpatient
Cardiac
Cath
Outpatient
Cardiac
Cath
Inpatient
Medical
Cardiology
Inpatient
Other
Vascular
Inpatient
Cardiac EP
Get Custom Forecasts for Your Market
Access the CV Market Estimator for five
year forecasts for CV services in your market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
19
Many Factors Driving CV ldquoOutrdquo
Outpatient Shift Unlikely to Abate Given Changing Dynamics
Source Cardiovascular Roundtable research and analysis
1) Recovery audit contractor
Greater Risk for
Total Cost
Shifting services contributes to
lower total cost helps reduce
readmissions by enhancing
cross-continuum care
Market Forces Favoring Outpatient Shift of CV Services
Regulatory
Scrutiny
RAC1 audits Two-Midnight
Rule penalize for unnecessary
inpatient admissions
Need for Hospital
Efficiency
Triaging low-risk patients
to lower acuity settings
alleviates capacity constraints
Payer
Steerage
Lower-cost settings help retain
patients steered by insurers to
alternate providers
Consumer
Demands
Offering accessible care settings
shorter wait times attracts patient
and physician consumers
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
20
Site-Neutral Payments Shaking Up Outpatient Strategy
Already Seeing Significant Cuts to Payment Rate for Off-Campus Sites
Source Centers for Medicare and Medicaid Services
CMSgov Cardiovascular Roundtable interviews and analysis
1) Medicare Physician Fee Schedule
2) Hospital Outpatient Prospective Payment System
Access our cheat sheet on site neutral
payments on the online resource page
Hospital Sites Meeting
Three Criteriahellip
hellipReceive Less than Half of
Previous Payment in 2018
Reimbursed for all services on
site-specific MPFS1 rate set at
40 of HOPPS2 payment down
from 50 in 2017
Hospital-owned designated as
ldquooff-campus provider-based sitesrdquo
Located more than 250 yards
from hospitalrsquos campus
Acquired opened or built
after November 1 2015
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
21
Not the Last Wersquoll See of Payment Levelling
Keeping Services in HOPD1 Acquiring Practices No Longer a Sure Bet
Source Cardiovascular Roundtable research and analysis
1) Hospital outpatient department
2) Facilities relocated for extraordinary events eg natural disasters public safety events etc may continue billing on HOPPS
1
Site acquisition
Facility relocation2
Office expansion
Practice acquisition no longer
guarantees higher reimbursement
Future Implication
Sites Can Lose Ability to
Bill on HOPPS in Three Ways
2
CMS exploring a full
transition of impacted
sites to MPFS claims
In 2019 claims data from
impacted sites will be used
to help determine new rates
CMS may expand payment
levelling to additional sites
including those grandfathered in
Future Implication
Further Payment Reductions
Are on the Horizon
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
22
Tomorrowrsquos Ambulatory Strategy Looks Beyond HOPD
Long-Term Priorities Require Service Placement Outside of Hospital
Source ldquoImaging Program Expands to Include Level of Care Reviews FAQrdquo Anthem
Blue Cross Blue Shield May 2017 Cardiovascular Roundtable research and analysis
Lower copays
for patients
Payment rate
differential less
significant than
in the past
Community practice
more accessible to
patients providers
More attractive to
payers who are
steering patients to
lower-cost providers
Benefits of Shifting Select Services
to Physician Practice Setting Case in Point
Anthem to Deny Some
On-Campus Imaging Services
bull Select Anthem insurance plans
conducting level-of-care reviews
for imaging exams
bull Will deny authorizations for
HOPD CT MRI exams not
requiring in-hospital testing
bull Ordering provider will be
given list of alternative
freestanding imaging facilities
Is Echo Next
For more information on Anthemrsquos
payment denials read our blog
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
23
CV Ambulatory StrategymdashNot in Name Only
CV Leaders Must Expand Focus Beyond Their Four Walls
Source 2014 Cardiovascular Roundtable CV Organizational and Leadership
Structure Survey Cardiovascular Roundtable research and analysis
1) Of respondents to 2014 Cardiovascular Roundtable member benchmarking survey
CV Involvement in Ambulatory Care
Creates Efficiencies for Program System
Principled resource
service allocation
Streamlined business
leadership functions
Unified cross-continuum
clinical strategy greater
coordination
Mutual accountability to
shared goals between
CV program and system
Yet CV Leaders Often Without
Ambulatory Oversight1
39 CV programs with direct
purview over CV
physician offices
65 CV programs with direct
purview over outpatient
CV clinics
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
24
ROUNDTABLE RESOURCESStrategies for Success
Evaluate the financial implications of
site-neutral payments and adjust future
service placement strategy
Increase oversight of outpatient care sites
and align goals to improve coordination
across the continuum of CV care
Improve patient access to cost-effective
CV care in the community and connect
them to the hospital for necessary services
Understand the Impact
of Site-Neutral Payments1
Align CV Inpatient and
Ambulatory Strategy2
Enhance Outpatient
Presence3
Source Cardiovascular Roundtable interviews and analysis
Site-Neutral Payments
Cheat Sheet
Develop an Effective
Reporting Structure
Support Operational
Integration Across
CV Practices
Guide for Assembling
the Accessible CV
Network
Blueprint for CV
Growth in a
Transitioning Market
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
25
Payment Reform Accelerates with MACRA
With MACRA1 Underway 2017 a Pivotal Year for Value-Based Care
3 MACRA is changing physician payment as well as how hospitals should align with physicians
Source CMS Cardiovascular Roundtable research and analysis
1) Medicare Access and CHIP Reauthorization Act of 2015
2) Medicare Incentive Payment System
3) Advanced Alternative Payment Model
4) Episode payment models
A Brief History of MACRA
92ndash8 2015 Senate vote
in favor of MACRA
2015Congress passes MACRA1
to overhaul flawed sustainable
growth rate (SGR)
2017First performance year tying
physician payment to risk
will impact 2019 payment
Access our cheat sheet on MACRA
on the online resource page
What CV Leaders Need to Know
Key strategies to maximize
performance under MIPS
Implications of each physician
payment trackmdashMIPS2 versus APM3
The future of APMs for CV following
cancellation of cardiac EPMs4
How MACRA will impact
physician hospital alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
26
Payment Reform Accelerates with MACRA (Cont)
Source CMS Merit-Based Incentive Payment System (MIPS) and Alternative Payment
Model (APM) Incentive under the Physician Fee Schedule and Criteria for Physician-Focused
Payment Models October 14 2016 Cardiovascular Roundtable research and analysis
MACRA in Brief
bull Legislation passed in April 2015 ending the Sustainable Growth Rate (SGR) formula which
threatened significant physician payment cuts for 13 years
bull Final rule released in October 2016 with program starting January 1 2017
bull Implements the Quality Payment Program (QPP) consisting of two new Medicare payment
tracks that eligible clinicians will fall into Merit-Based Incentive Payment System (MIPS) and
Advanced Alternative Payment Models (APMs)
bull Holds physician payment updates relatively flat for 2016 onward with payment
bonusespenalties applied based on track and performance
bull Providers are required to participate in MACRA if they
ndash Bill Medicare more than $90000 per year or provide care for more than 200 Medicare patients
a year AND
ndash Are a physician PA NP clinical nurse specialist or certified RN anesthetist
bull Represents a significant move to increase pay-for-performance and risk models for physicians
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
27
Breaking Down the Two Tracks
Both Tracks Putting Payment at Risk
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo June 20 2017 Cardiovascular Roundtable research and analysis
1) Providers can only earn as much in bonuses as the MIPS track collects in penalties
2) In addition to any bonuses or penalties from the payment models themselves
Merit-Based Incentive Payment
System (MIPS)
Advanced Alternative Payment
Models (APMs)
The majority of providers will fall into
this track
83-90
10-17
Of clinicians are expected
to qualify for MIPS track
Of clinicians are expected
to qualify for APM track
There will be winners and losers
As MIPS is a revenue-neutral program
some providers will receive a bonus and
some will pay a penalty
2020 5 2021 7 2022 9
Providers can make or lose up to1
2019 4
It is difficult to qualifymdashespecially for
CV after cardiac EPM cancellation
There is big appeal to participate
Providers in this track will receive a 5
annual lump-sum bonus2 in 2019-2024 and
a higher annual payment update in 2026+
Deciding to participate is frequently
out of CVrsquos control
With no CV-specific APMs remaining
providers must participate in another eligible
payment model (eg downside ACO)
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
28
Work Smarter Not Just Harder on Quality
Strategies to Maximize Performance in the Quality Category Under MIPS
Source CMS ldquoMedicare Program Merit-Based Incentive Payment System (MIPS) and Alternative
Payment Model (APM) Incentive Under the Physician Fee Schedule and Criteria for Physician-
Focused Payment Modelsrdquo Oct 14 2016 qppcmsgov Advisory Board interviews and analysis
1) Physician Quality Reporting System
bull Track list of metrics
over the year
bull Aim to improve
performance across
all metrics
Improve
Program
Performance
Measure
Against
Benchmarks
Identify
Highest
Performers
Create Target
List of CV
Metrics
bull Identify eligible
measures previously
reported in PQRS1
bull Review list of
MIPS metrics to
identify additional
measures to report
bull Evaluate results to
determine highest
performing measures
bull Compare performance
to publically available
benchmarks on select
quality metrics
(eg registries
Hospital Compare)
Starting
2018Full-year reporting required
for all submission methods
Tips for Success
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
29
Doubling Down on Cost
Tying Physician Payment to Episodic Cost Metrics
1) 2018 MACRA QPP Final Rule
Category Weighting Under MIPS
60 5030
2525
25
1515
15
1030
2017 2018 2019+
Source CMS ldquoMedicare Program CY 2018 Updates to the Quality Payment
Programrdquo November 2 2017 Cardiovascular Roundtable research and analysis
Quality Advancing Care Information
Improvement Activities Cost
By Performance Measurement Year1 Cost Metrics
1
2
3
Total per capita cost
Medicare spend
per beneficiary
May include condition-specific
episode-based measures as
early as performance year 2019
CMS has been evaluating
bull Acute inpatient conditions
(eg AMI chest pain)
bull Chronic conditions
(eg AF HF)
bull Procedural episode groups
(eg CABG ICD implant)
Ensure Patients are Attributed to a PCP
bull Attribution for total per capita cost is based on
patientrsquos utilization of primary care
bull Specialists can reduce the likelihood of attribution
by encouraging patients to visit their PCP
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
30
APMs Not Primed for CV
Majority of Existing Qualifying Models Out of CV Leadersrsquo Control
Source CMS ldquo2018 Updates to the Quality Payment Programrdquo (2017) HHS
ldquoSecretaryrsquos Response to the ACS-Brandeis Advanced APMrdquo September 7 2017
available at wwwinnovationgov Cardiovascular Roundtable research and analysis
But New APMs on the Horizon
May Be Positive Signs for CV
BPCI Advanced
Voluntary risk-based
payment models for select
CV conditions services
beginning October 1 2018
Medicare Advantage
Becomes eligible for APM track
starting in 2019 performance year
Private Payer Models
Example ACS-Brandeis APM
Includes CABG valve surgery
and HF recently approved for
limited testing
Responsible entity can be a group
of physicians rather than a hospital
Even providers selected for cardiac
EPMs may have had difficulty meeting
the thresholds to qualify for APM track
bull Receive 25 of Medicare
payments through APM (50 for
2019 performance year) or
bull See 20 of Medicare
patients through APM (35 for
2019 performance year)
Majority of APMs centered around
primary care (eg ACOs)
Even if participating in an APM
programs still have to meet high
payment volume thresholds
Limitations of APM Models for CV
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
31
An Environment Ripe for Partnership
MACRA Will Drivemdashand RequiremdashHospital-Physician Alignment
Source Medical Group Management Association 2017 Cost and
Revenue Survey Cardiovascular Roundtable research and analysis
$15128IT operating expenses
per FTE physician at a
physician-owned CV practice
Improve performance under MIPS
Offload reporting burden
Stabilize practice economics
Case in Point IT Expense
Think Strategically About Alignment
Hospitals employing physicians
will be accountable for physician
performance under MIPS
Programs may restructure physician
incentive models to incorporate metrics
impacting performance under MACRA
Physicians Will Increasingly Look to
Employment TohellipHealth Systems Shouldhellip
Consider opportunities to scale
physician network to support new
or existing risk contracts
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
32
ROUNDTABLE RESOURCESStrategies for Success
Design Effective
CV Physician
Compensation Models
Educate physicians and CV leaders on
the implications of MACRA and how to
be successful
Be selective in employing physicians as
hospitals will be financially accountable
for employed physician performance
under MIPS
Structure physician compensation
models to include metrics that align with
those you are at-risk for under MACRA
Learn More
About MACRA1
Carefully Evaluate Your
Physician Alignment Strategy 2
Redesign Incentives to Align
with New Metrics of Success3
Source Cardiovascular Roundtable interviews and analysis
MACRA
Cheat Sheet
MACRA How the
2018 Quality
Payment Program
Final Rule Impacts
Providers
MIPS measures
picklist at
qppcmsgov
Advancing CV Hospital-
Specialist Alignment
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
33
Primary Care at Center of Population Health Efforts
Seeing Continued Interest in ACOs but CV Often Left On the Sidelines
4 As referring providers become more accountable for population health CV will be expected to play a bigger role
Source CMS available at datacmsgov Advisory Board ldquoWhere the ACOs arerdquo
available at advisorycom Cardiovascular Roundtable interviews and analysis
220
353 404
474 525
2013 2014 2015 2016 2017
Yet CV Leaders Rarely
Involved in ACO Decisions
ACO Participation Continues to Grow
Total ACO Participants by Performance Year
VP Heart amp Vascular Services
Large Hospital in the Midwest
Our physicians are assigned to
an ACO on the contract but
as far as our involvement
Irsquod say minimal at bestrdquo
Director of CV Services
AMC in the Northeast
Wersquove received a global view
and know the goals of the
ACO but we havenrsquot quite
formulated our strategies to
function as one in CVrdquo
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
34
Risks of Non-Action Too Great to Ignore
Accountable PCPs1 Changing Referral Patterns to CV Specialists
Source Cardiovascular Roundtable research and analysis
1) Primary care providers
2) Pseudonym
3) Aortic stenosis
Potential Consequences for CV
Due to Care Redesign Initiatives
ACO PCPs hesitant to
refer patients for high-
cost specialty services
Patients referred later in
disease progression with
more acute needs
CV program locked out of
referral network if not
demonstrating high-value care
An Extreme Example Curie Hospital2
bull Large CV program with robust
structural heart program
bull Hospital-employed PCPs joined ACO
started referring fewer valve patients
due to fear patients would receive
expensive treatments (eg TAVR)
bull Structural heart program sees volume
decline threatens stability
bull Patients with AS3 referred too late in
disease progression
PCPs Acting as Gatekeeper for
High-End CV Care
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
35
Positioning CV to Succeed Under Care Redesign
Programs Must Demonstrate Value to Secure Continued Referrals
Source Cardiovascular Roundtable research and analysis
Secure Referrer
Trust
Strengthen referring
physician alignment
by demonstrating
positive outcomes and
appropriate utilization
Improve Patient
Access
Ensure timely
convenient referrals
and appointments in
accessible care
settings
Provide Quality
Care at Low Cost
Deliver high-quality
low-cost care to
demonstrate high-
value CV care delivery
Imperatives for Success Under Care Redesign Initiatives
Market to Providers
Based on Value
Emphasize quality of
care appropriate
utilization and cost
reduction efforts to
attract referring PCPs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
36
A New Role for CV in Population Health
Million Hearts Initiative Puts Primary Prevention in the Spotlight
Source CMS ldquoMillion Heartsrdquo httpsinnovationcmsgov ldquoMillion Hearts Meaningful Progress
2012-2016rdquo Ritchey M et al ldquoMillion Hearts Description of the National Surveillance and Modeling
Methodology Used to Monitor the Number of CV Events Prevented During 2012-2016rdquo J Am Heart
Assoc 6 no 5 (2017) e006021 Cardiovascular Roundtable research and analysis
1) Defined as heart attacks strokes and other CVD-related ED encounter or
hospitalization with a primary ICD9 or death code Million Hearts estimation
2) Cardiovascular disease
3) Transient ischemic attack
500KCV events1 prevented
between 2012 and 2016
bull CMS initiative launched in 2011
bull Goal to prevent one million
heart attacks and strokes
bull Provides guidance on CV
primary prevention efforts
Million Hearts Initiative
33MMedicare fee-for-service
beneficiaries
20KHealth care
practitioners
Expected Program Reach by 2021
bull Million Hearts CVD2 Risk Reduction Model
launched in 2016
bull 516 organizations selected to participate
bull Participants receive a stipend for managing
patients at high-risk of CVD who have not
yet had a heart attack stroke or TIA3
New Model Tying Payment to Prevention
Successfully Preventing
CV Events
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
37
A New Role for CV in Population Health (Cont)
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgovl ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS Cardiovascular Roundtable research and analysis
1) Centers for Disease Control and Prevention
Million Heartsreg
bull CMS CDC1 initiative launched in 2011 goal to prevent 1 million heart attacks and strokes
through clinical- and community-based strategies through ABCS approach
ndash Aspirin for high-risk patients Blood pressure control Cholesterol level management
Smoking cessation
ndash Preliminary results through 2016 show risk reductions
bull Million Hearts Risk Reduction Model CMMI pilot established in 2016 including over 500
participating practices clinicians and health systems
ndash First model tying payment to CV risk reduction incentivizing primary prevention of CVD
bull Million Hearts 2022 reinforces emphasis on CV risk reduction goals through 3 aims
ndash Focus on at-risk populations
ndash Optimize care
ndash Keep people healthy
bull Million Hearts 2022 also sets goal to increase cardiac rehab participation from 20 to 70
ndash Expected effects in first year of 70 utilization 12000 lives saved 87000 hospitalizations
prevented
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
38
Expanding the Focus to Secondary Prevention
Cardiac Rehab Front and Center in Million Hearts 2022
Source ldquoMillion Heartsrdquo CMS httpsinnovationcmsgov ldquoMillion Heartsrdquo HHS httpsmillionheartshhsgov
ldquoMillion Hearts Meaningful Progress 2012-2016rdquo HHS ldquoMillion Hearts 2022rdquo HHS Ades PA et al ldquoIncreasing
Cardiac Rehabilitation Participation From 20 to 70 A Road Map From the Million Hearts Cardiac Rehabilitation
Collaborativerdquo Mayo Clin Proc 92 no 2 (2017) 234-242 Cardiovascular Roundtable research and analysis
Million Hearts 2022 Sets
Ambitious Cardiac Rehab Goal
20
70
Current cardiac
rehab utilization
Million Hearts
goal for cardiac
rehab utilization
Increase appropriate enrollment
Increase patient attendance
Optimize program efficiency
Strategies to Increase Cardiac
Rehab Utilization
Read more from Million Hearts to
learn targeted effective strategies to
increase cardiac rehab utilization
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
39
Cardiac Rehab Getting More Attention
Expansion to Secondary Prevention Not Just a Focus in Million Hearts
Source Keteyian S ldquoDoing Away with Outdated Dogma in Cardiac Rehabilitationrdquo AACVPR 2017 Workshop ldquoMedicare Program
Cancellation of Advancing Care Coordination through Episode Payment and Cardiac Rehabilitation Incentive Payment Models
Changes to Comprehensive Care for Joint Replacement Payment Modelrdquo CMS Cardiovascular Roundtable research and analysis
1) Heart failure with preserved ejection fraction
INCREASED SUPPORT
EXPANDED COVERAGE
Cardiac rehab covered
by CMS for expanded
conditions (eg HFrEF1)
New CMS determination covers
exercise therapy for patients
with peripheral artery disease
Some commercial payers
now reimburse
home-based rehab
Cardiac rehab and exercise
training is a Class 1A
recommendation
CMS considering new voluntary
payment model after
cancellation of Cardiac Rehab
Incentive Payment Model
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
40
Redefining CVrsquos ldquoBest in Classrdquo
New Comprehensive Accreditations Mandate Population Health Focus
Source ldquoFacts about Comprehensive Cardiac Center Certificationrdquo The Joint Commission available at
wwwjointcommissionorg ldquoCardiovascular Center of Excellence Program Overview and Eligibility v13rdquo
American Heart Association available at wwwheartorg Cardiovascular Roundtable intervies and analysis
Population Health a Requirement
of Both Accreditations
Use of a national registry
or data tool to monitor
data measure outcomes
CV risk factor identification
and disease prevention
Access to cardiac rehab
services secondary
prevention education
Focus on streamlined timely
patient transitions between
referrers and CV specialists
Two New Accreditations Available
for Comprehensive CV Programs
Cardiovascular Center of Excellence
Comprehensive Cardiac
Center Certification
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
41
ROUNDTABLE RESOURCESStrategies for Success
Enhancing CV
Specialist Partnerships
with Primary Care
Give PCPs guidance and tools to help
them identify and refer CV patients
earlier in disease progression
Develop profitable effective cardiac
PAD and pulmonary rehab and make
sure patients are referred and attend
Tailor cross-continuum care management
services to patients based on risk
Help PCPs Identify
CV Patients1
Increase Utilization of CV
Rehab Programs2
Improve Care Management
for High-Risk Patients3
Source Cardiovascular Roundtable interviews and analysis
CV Referral
Guideline
Compendium
Tactics for Sustainable
Pulmonary Rehab
Program Development
Blueprint for CV
Care Management
How to Optimize
Your Cardiac
Rehab Program
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
42
The Risemdashand Fallmdashof Mandatory Cardiac Bundles
CMS Cancels Mandatory Cardiac EPMs Before They Begin
5 The shift to risk is not abatingmdashmore CV payment will be tied to cross-continuum cost and quality in the future
Source CMS Cardiovascular Roundtable research and analysis
1) Center for Medicare and Medicaid Innovation
bull New administration opposes
mandatory payment pilots
bull CMMI cancels EPMs
bull CMS indicated plan to develop new
voluntary bundled payment model(s)
for 2018 building on BPCI
and designed to meet APM criteria
July 2016
Cardiac Episode Payment Model (EPM) Timeline
December 2016 November 2017March 2017 May 2017
bull CMMI1 announces first mandatory
cardiac episode payment models
bull Retrospective 90-day bundles
for AMI and CABG
bull Hospitals responsible party for
entire care episode
Proposed Rule
released
Final Rule released
98 selected markets
announced
Start date delayed
from July 1 2017
to October 1 2017
Start date
further delayed to
January 1 2018
CMS finalizes
proposal to cancel
EPMs
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
43
(Voluntary) Bundles are Back
Source Cardiovascular Roundtable research and analysis
1) Convener participant brings together multiple downstream episode initiators coordinates participation
and bears and apportions risk non-conveners only bear financial risk on their own behalf
2) Provider must have 50 of Medicare fee-for-service payments or 35 of patients through Advanced
APMs to qualify in performance year 2019
Retrospective 90-day bundles
Acute care hospitals and physician group
practices are eligible episode initiators either as
convener or non-convener participants1
Qualifies as an Advanced Alternative Payment
Model for MACRA participants may be eligible for the
APM bonus if they meet paymentpatient thresholds2
Downside risk begins day 1 unlike BPCI 10 there
will not be a phase-in period for risk
Applicants do not have to select episodes until August
2018 and can see target prices before joining
January 11 2018
Application portal opens
March 12 2018
Applications due must name
all episode initiators
May 2018
CMS provides target
prices to applicants
June 2018
CMS releases
Participation Agreements
August 2018
Participation Agreements due to
CMS must select clinical episodes
Providers Must Act Quickly
YEAR 1 BEGINS 10118
1
2
3
4
5
Five Things to Know
About BPCI Advanced
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
44
Bundles Shift Outpatient
Providers Can Select CV Outpatient Episodes in BPCI Advanced
Source CMS Cardiovascular Roundtable research and analysis
bull Acute myocardial infarction (AMI)
bull Cardiac arrhythmia
bull Cardiac defibrillator
bull Cardiac valve
bull Congestive heart failure (CHF)
bull Coronary artery bypass graft (CABG)
bull Pacemaker
bull Percutaneous coronary
intervention (PCI)
bull Stroke
CV Clinical Episodes Included in BPCI Advanced
bull Cardiac defibrillator
bull PCI
Inpatient Outpatient
This is the first time
outpatient episodes are
included in CMS bundled
payment models (eg
BPCI EPMs)
Learn More About BPCI Advanced Watch our recent on-demand
webconference on the new model
BPCI Advanced Everything You
Need to Know
Your Questions About BPCI
AdvancedmdashAnswered
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
45
More Risk on the Table Than Ever Before
Mandate for Managing Long-Term Costs Extends Beyond EPM Rule
Source Verma S ldquoMedicare and Medicaid Need Innovationrdquo The Wall Street Journal September 19
2017 wwwwsjcom Burwell SM ldquoProgress Towards Achieving Better Care Smarter Spending Healthier
Peoplerdquo HHS January 26 2015 wwwhhsgov Cardiovascular Roundtable research and analysis
1) Inpatient Quality Reporting
2) Value-Based Purchasing Program
Medicare Fee-for-Service Initiatives Emphasizing Value
bull Cost category 30 of
MIPS score in 2019 bull AMI HF excess days in
acute care (IQR1 2018)
bull AMI HF 30-day episodic
payment (VBP2 2021)
Alternative
Payment
Models
MACRA emphasizing
episodic-cost measures
Episodic value measures added
to pay-for-performance quality
reporting programs eg
New voluntary bundled
payment model ldquoBPCI
Advancedrdquo announced
for 2018
50HHS goal for percent of Medicare payment
in alternative payment models by 2018
CMS Still Pushing Toward Risk
MACRA Pay-for-Performance Bundled Payments
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
46
Private Sector Spurring More Innovation
Risk-Based Payment Models Not Losing Steam for Private Payers
Source Health Care Transformation Task Force ldquoHealth Care Transformation Task Force Urges
Incoming Administration and Congress to Continue Drive for Value-Based Paymentsrdquo December
6 2016 available on wwwhcttforg Cardiovascular Roundtable research and analysis
1) Smarter Management And Resource use for Todayrsquos complex cardiac Care
2) Medicaid-led multi-payer multi-part payment model
Percent of payments to
be tied to risk-based
payment models by 2020
Commitment from Health Care
Transformation Task Force
Sample Private Sector Payment Innovations Impacting CV
The SMARTCare1 program has
proposed a bundled payment
for diagnosis and treatment of
stable ischemic heart disease
Horizon Blue Cross Blue Shield
of New Jerseyrsquos Episodes of
Care program includes HF
and CABG episode payments
Arkansas Health Care
Payment Improvement
Initiative2 includes HF and
CABG episode payments
75
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
47
Medicare Advantage Increasing its Reach
Private Models Testing Payment Innovation in Medicare
Source CMS CBO ldquoMarch 2015 Medicare Baselinerdquo March 9 2015
available at wwwcbogov Cardiovascular Roundtable research and analysis
MA1 Continues to Grow
Enrollment in Millions Percentage
of Total Medicare Population
56M
(13)
168M
(31)
202520152005
300M
40
CMS testing Medicare Advantage
Value-Based Insurance Design (VBID)
Model for enrollees in select states with
defined chronic conditions2
Medicare Advantage will count as
a MACRA APM starting in 2019
performance year
Implications on
CV Programs
More
capitation
Tying more payment
to cost quality
1) Medicare Advantage
2) Including diabetes CHF past stroke hypertension COPD CAD
Focus on closing
care gaps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
48
ROUNDTABLE RESOURCESStrategies for Success
Playbook for CV
Episodic Cost
Management
Identify where you have the greatest
opportunity to reduce costs across the
continuum as both public and private
payers increase scrutiny
Provide high-quality cross-continuum care
to attract patients providers and payers
and reduce unnecessary utilization
1
Improve Quality of Care
2
3
Source Cardiovascular Roundtable interviews and analysis
Playbook for Reducing
CV Care Variation
Learn More About
2018 Medicare Updates
Reduce Episodic
Care Costs
Medicare Payment
Update Final Rule for
Hospital Inpatient
Payments for FY 2018
Medicare Payment
Update Final Rule for
Hospital Outpatient
Payments for CY 2018
CV Readmission
Reduction Toolkits
Understand what metrics your program
will be measured against in Medicare
pay-for-performance programs
Care Coordination
Episode Profiler
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
49
The Perils of Teaching to the Test
Reactive Strategies Not Pathways to Success in an Uncertain Market
Source Cardiovascular Roundtable research and analysis
2010 2016
30-day HF Readmission
Penalties Announced
Response
Mandatory cardiac bundles
cancelled
No-Regrets Priorities
Build an infrastructure to
eliminate unwarranted care
variation implement evidence-
based care standards
Partner across the continuum
to improve outcomes and costs
Prioritize investments based on
the demands of your market
Lower the cost of care delivery
with appropriate staffing
utilization
Old Response to Risk New Plan for Risk
bull Focus on HF
bull Hire HF nurse navigators
bull Focus on 30-days
post-discharge
Mandatory Cardiac
Bundles Announced
Response
bull Redesign physician
incentives to support
CABG AMI outcomes
bull Support PAC providers in
delivering high-quality
care through 90 days
First mandatory cardiac
bundles track CABG AMI
outcomes for 90-days
Planning for an
Uncertain Future
Market Shift Market Shift
2018+
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
50
5 Market Realities Impacting CV Programs
Source Cardiovascular Roundtable research and analysis
1
2
3
4
5
Margin pressure will only intensify for CV
CV is not just increasingly an outpatient business
but an ambulatory business
MACRA is changing physician payment as well as
how hospitalrsquos should align with physicians
As referring providers become more accountable for
population health CV will be expected to play a bigger role
The shift to risk is not abatingmdashmore CV payment will be
tied to cross-continuum cost and quality in the future
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
ROAD MAP51
The Next Wave of Health Care Reform 1
2 5 Market Realities Impacting CV Programs
3 QampA and Next Steps
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom
copy2018 Advisory Board bull All Rights Reserved bull advisorycom bull 35425A
52
More from the Cardiovascular Roundtable
Source Cardiovascular Roundtable research and analysis
CV Market Update
Member Networking Session
Blueprint for CV Growth in a
Transitioning Market
Building the High-Value Care Team
Playbook for Reducing Care Variation
Remaining Sessions
bull March 5-6 | Washington DC
bull March 22-23 | Atlanta GA
bull April 9-10 | Chicago IL
Register at advisorycomcr2017meeting
Latest Research
CV Surgery Planning for
Success in a Changing Market
How to Optimize Your Cardiac
Rehab Program
Develop Your Structural Heart
Program for 2018 and Beyond
2017-18 National Meeting Series
To learn more email us at
cardiovascularadvisorycom