wake forest oct 11 2011
DESCRIPTION
To employers the cost of healthcare is now a business issue and this talk is about what one large buyer IBM did to drive transformation via broad coalition with other large employers to form the Patient Centered Medical Home movement and the covenant between buyer and provider away from the garbage we now buy episodic uncoordinated disintegrated care. In the change of convenient conversation we have worked with the Primary care providers to give us coordinated, integrated, accessible and compressive care with a set of principles know as the Patient centered medical home. A Patient Centered Medical Home (PCMH) happens when primary care healers keeping that core healing relationship with their patients step up to become specialists in Family and Community Medicine. The move is to the discipline of leading a team that delivers population health management, patent centered prevention, care that is coordination, comprehensive accessible 24/7 and integrated across a deliver system. PCMH happens when the specialists in Family and Community Medicine wake up every morning and ask the question how will my team improve the health of my community today? All over the world three huge factors are in play that is driving the concept of Patient Centered Medical Home. They are: 1) Cost and demography 2) Information technology and data (information that is actionable will equal a demand for accountability by the payer or buyer of the care) 3) Consumer demand to engage healthcare differently (at least as well as they can their bank- on line) have a question about lab results why not e-mail? But at its core it is a move toward integration of a healing relationship in primary care and population management all at the point of care with the tools to do just that. The Patient-Centered Medical Home (PCMH) lies at the center of the effort to get at population health, integrated and coordinated care. PCMH is where the Primary care healer leads an organization that delivers clinician-led primary care, with comprehensive, accessible, holistic, coordinated, evidence-based coordination and management. In the USA this is now the standard in the US Veterans Administration and the US Military. Also, the health care reform law will likely increase the importance of PCMHs in the USA because under the legislation Accountable Care Organizations (ACOs) will be created in 2012; ACOs are a combination of primary care, hospitals and specialists tied to a defined population and accountable for the quality, outcomes and cost of health care received by that population and the healer relationship based PCMH is the foundation to care that is accountable. One key to the new approach is that many are now willing to pay more for primary care - when primary care takes on more responsibility for improving the patient’s health and coordinating health care. There is a good deal of evidence that this approach results in lower hospitalization rates, lowerTRANSCRIPT
- participant will understand/be able to discuss the important trend of PCMH in health care
- participant will understand/be able explore the rationale and supporting evidence for PCMH
- participant will understand/be able understand the impact on patients, providers and payers
Disclosure: – I am a full time Emplyee of IBM I WILL NOT discuss any pharmaceuticals, medical procedures, or devices I have gratefully had my expenses covered to do some of my talks about PCMH by Merck, and Pfizer.
Course Objectives
Who was the Shooter’s Doctor?
Away from Episodes of Care - FFS
Population management !!
Accountability !!
Animated Short: The Amazing Health Care Arms Race
http://www.publicradio.org/columns/marketplace/business-news-briefs/2011/09/oh-the-jobs-youll-create.html
$10,743
$28,530
+166%
Why Innovate Affordability
Costs continue their upward climb…
…with employers still picking up much of the tab…
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
a- Employer Cost - Employee Payroll Contributions - Employee Out of Pocket Expenses
2001 2009 2019
$4,918
+118%
The Elephant in the room
Slide From Dr Martin Sepulveda
If we truly want to understand costs and where they can be reduced without compromising outcomes, we need to aggregate costs around the patient. (need a place to do that – that is PCMH)
The way care is currently organized leads to redundant administrative costs, unnecessary and expensive delays in diagnosis and treatment, and unproductive time for physicians.
A system integrator a place where data is aggregated, understood and held accountable at the level of the individual patient -- THAT IS PCMH. In fact, cost reduction will often be associated with better outcomes.
The Big Idea: How to Solve the Cost Crisis in Health Careby Robert S. Kaplan and Michael E. Porter Sept 2011 Harvard review
Health care is a business issue, not a benefits issue
Slide From Dr Martin Sepulveda
OUR IBM Patient needs A long-term comprehensive relationship with a Personal Physician empowered
with the right tools and linked to their care team.
The Joint Principles: Patient Centered Medical Home Personal physician - each patient has an ongoing relationship with a personal
physician trained to provide first contact, and continuous and comprehensive care Physician directed medical practice – the personal physician leads a team of
individuals at the practice level who collectively take responsibility for the ongoing care of patients
Whole person orientation – the personal physician is responsible for providing for all the patient’s health care needs or arranging care with other qualified professionals
Care is coordinated and integrated across all elements of the complex healthcare community- coordination is enabled by registries, information technology, and health information exchanges
Quality and safety are hallmarks of the medical home- Evidence-based medicine and clinical decision-support tools guide decision-making; Physicians in the practice accept accountability voluntary engagement in performance measurement and improvementEnhanced access to care is available - systems such as open scheduling, expanded hours, and new communication paths between patients, their personal physician, and practice staff are used
Payment appropriately recognizes the added value provided to patients who have a patient-centered medical home- providers and employers work together to achieve payment reform
9
ACO and the Principles of the PCMH
Whether building a community-wide ACO or a solo primary care practice, adherence to guiding PRINCIPLES provides the foundation. Through the PCMH Joint Principles, we (the buyers and providers) have agreed to change our covenant with one another. The Joint Principles of the PCMH have been agreed on by those who deliver comprehensive care (the primary care providers) and their specialist colleagues. For Accountable Care to achieve its goals, successful organizations will NEED a foundation in these principles.
As a buyer, I want to be assured that the foundation - the principles - are in place: a personal relationship with a healer, improved access, care that is coordinated, integrated, and comprehensive.
PCMH is the patients view from the bottom up The kind of care they want: relationship, accessible, coordinated
From the System view it is ACO
Or, like the Euro tunnel you can start on one side building PCMHAnd the other side ACO, but somewhere you have to meet in the middle, where care is delivered- centered on the needsof the Patient.
2010 2011
Adults (18-64)
ER visits -6.6% -9.9%Primary care sensitive ER Visits -7.0% -11.4%Ambulatory care sensitive Hospitalizations (per 1,000) -11.1% -22.0%
BCBS MA 6% decrees cost (NEJM) BCBS MI 2670 physician (BIG study)
36.3% Drop in hospital days32.2% Drop in ER use -9.6% Total cost (Mayo Zero cost increase) 10.5% Inpatient specialty care costs are down18.9% Ancillary costs down 15.0% Outpatient specialty down
Outcomes of Implementing Patient Centered Medical Home Interventions: A Review of the Evidence from Prospective Evaluation Studies in the US, K. Grumbach & P. Grundy, November 16th 2010
Smarter Healthcare
HEALTH INDUSTRY -- WSJWellPoint's New Hire.What Is Watson?
IBM - Mayo Clinic Establish Medical Imaging Research Center
The Cause? Mostly due to unregulated fee-for-service payments and an over reliance on rescue/specialty care. This is stark evidence that the U.S. health care Industry has been failing us for years “Commonly cited causes for the nation's poor performance are not to blame - it is the failure of the deliver system!!”
- Unaccountable Care Organizations* Peter A. Muennig and Sherry A. Glied Health Affairs Oct. 7, 2010
Dubuque, Iowa
USA 2011NC 2011
Don’t handle your care needs in a BAD MEDICAL NEIGHBORHOOD!!
Unaccountable care, lack of organization, DO NOT GO THERE ALONE !!
Be wise when you pay for care, KNOW WHAT YOU BUY!!
Least Expensive Most Expensive Ogden, UT $2,623 Dubuque, IA $2,719 McAllen TX $2,950
Anderson, IN $7,231
Punta Gorda, FL $7,168
Racine, WI $6,528
Providence $6,367
Naples, FL $6,312
Ocean City, NJ $6,128
Cost of Commercial lives
Community Impact on the Triple Aim
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Date
Impr
ovem
ent
DM LDL <100
DM Self Management Goal
CAD LDL < 100
DM LDL <100Commercial
DM LDL <100 Uninsured
Hospital Readmissions
Patient Satisfaction
Ambulatory Care SensitiveConditions Admissions
Linear (Ambulatory CareSensitive ConditionsAdmissions)
Battle Creek, MI
New study -- health care costs are swallowing up almost all income gains that Americans have made over the past decade. Studies like this show us again and again, why it is so necessary that we look for ways to control costs while still providing quality care.
“growth in healthcare spending sharply reduced the disposable income of Americans while increasing the federal deficit,".
In RI $545 out of employee pockets every month vs .
Dr. Arthur Kellerman, Director of RAND Health Sept 2011
“ We don't have a health care delivery system in this country. We have an expensive plethora of uncoordinated, unlinked, micro systems, each performing in ways that too often create sub-optimal performance, both for the overall health care infrastructure and for individual patients." George Halvorson, from “Healthcare Reform Now
Coordination -- we do NOT know how to play as a team
“We do kidney transplants and dialysis more often than anyone, but we need to, because patients are not given the kind of coordinated primary care that would prevent chronic complications of renal and heart disease from becoming acute.”
George Halvorson (CEO Kaiser) from “Healthcare Reform Now”
PopulationHealth
System Integrator
PatientExperience
The System Integrator
Creates a partnership across the medical
neighborhood Drives PCMH primary
care redesignOffers a utility for
population health and financial management
Per Capita Cost
Productivity
The Quadruple AimReadiness, Experience of Care, Population Health,
Cost
So simple!So much!
If you scan the world for value based healthcare, you will find a common element: a relationship-based team with a project manager! A comprehensivist that can command and control in an accountable system.
Superb Access to Care
Patient Engagement in Care
Clinical Information Systems
Care Coordination
Team Care
Patient Feedback
Publicly Available Information
Defining the Care Centered on Patient
OPM $39 Billion Book with Accountable CarePatient at the Center
24-7 clinician phone response Provide open scheduling. Provide care management and
coordination by specially-trained team members.
Use an EHR with decision support.
Use CPOE for all orders, test tracking, and follow-up.
Medication reconciliation for every visit.
Prescription drug decision support.
Implement e-prescribing.
Pre-visit planning and after-visit follow-up for care management.
Offer patient self-management support.
Provide a visit summary to the patient following each visit.
Maintain a summary-of-care record for patient transitions.
Email consultations. Telephone consultations. The development of care
plans. Performance outcome measures.
Payment reform requires more than one method, you have dials, adjust
them!!!fee for health”
“fee for outcome”
“fee for process” “fee for belonging
“fee for service”
“fee for satisfaction”
11% CMS Shift in payment away from FFS to other dials.
CMS Bundling!! CMS Advanced Primary Care
Wellpoint PCMH, BCBS Hawaii no new FFS $$
CMS Plus most other buyers
HIT Infrastructure: EHRs and Connectivity
Primary Care Capacity: Patient Centered Medical Home
Operational Care Coordination: Embedded RN Coordinator and Health Plan Care Coordination $
Value/ Outcome Measurement: Reporting of Quality, Utilization and Patient Satisfaction Measures
Value-Based Purchasing: Reimbursement Tied to Performance on Value (quality, appropriate utilization and patient satisfaction)
Achieve Supportive Base for ACOs and Bundled Payments with Outcome Measurement and Health Plan Involvement
Trajectory to Value Based Purchasing: Achieving Real Care Coordination and Outcome Measurement
Public Health Prevention
Specialists
PCMH in Action Vermont “Blueprint” model
Community Care TeamNurse Coordinator
Social WorkersDieticians
Community Health WorkersCare Coordinators
Public Health Prevention HEALTH WELLNESS
Hospitals
PCMH
PCMH
Health IT Framework
Global Information Framework
Evaluation Framework
Operations
A Coordinated Health System
1 2 3 4 5$300,000,000
$320,000,000
$340,000,000
$360,000,000
$380,000,000
$400,000,000
$420,000,000
IMPACT OF MEDICAL HOME SAVINGS ACROSS TOTAL POPULATION
YEARS
INC
REM
ENTA
L C
OST
PE
R Y
EAR
Vermont Financial Impact
Avoidable emergency room visits continue downward trend, seven percent better than market. Following evidence-based medicine continues to improve, six percentage points better than market. Medical cost trend is more than seven percentage points better than market.
$9 PMPM cost savings. Diabetes is better controlled, will improve long-term health and lower medical costs.
And Today in NC PCMH practices
The NC Plan
You Developed a better healthcare system for RI starting with Public Private payers Private payers Joined
Strong Primary care is foundational to a high performing healthcare system
Additional resources needed to help primary care manage populations
Learned timely data is essential to success Learned must build better local healthcare
systems (public-private partnership) Physician leadership is critical Improve the quality of the care provided and
cost will come down A risk model is not essential to success- shared
accountability is!
Patientis the center
of theMedical Home
Population Health
Patient-Centered
Care
Refocused Medical TrainingPatient &
Physician Feedback
Advanced IT Systems
Access to Care
Team-Based Healthcare
Delivery
Decision Support Tools
Model adapted from theNNMC Medical Home
Enhancing Health and the Patient Experience
Medical Home Model
Care that is Accountable
PATIENT CENTERED MEDICAL HOME: VHA Patient Aligned Care Team
Replaces episodic care based on illness and patient complaints with coordinated care and a
long term healing relationship
THE PRIMARY CARE TEAM
Reinventing Medicaid findings are Outstanding Oklahoma's patient-centered medical home initiative
has reduced Medicaid costs $29 per patient per year from 2008 to 2010. Moreover, use of evidence-based primary care, including screening for breast and cervical cancer, increased.
The Colorado initiative expanded access to care. Before the initiative, only 20 percent of pediatricians in the state accepted Medicaid; as of 2010, 96 percent and did and at a lower cost to the state.
Vermont, inpatient care use and related per-person per-month costs decreased 21 percent and 22 percent, respectively, from July 2008 to October 2010. ER use and related per-person per-month costs decreased 31 percent and 36 percent, respectively.
Patient Centered Medical Home in Washington in State Acute care spending there was 18 percent below the national average. Inpatient stays per beneficiary were 35 percent below the national average.
Citation -- M. Takach, "Reinventing Medicaid: State Innovations to Qualify and Pay for Patient-Centered Medical Homes Show Promising Results," Health Affairs, July 2011 30(7):1325–34.
The Bottom Line in Medicaid PCMH starting to show an impact in access to care, quality, and cost control.
Patients love to see meaningful information about themselves and it take IT tools to
If you give patients educational materials with their name on it and with their data analyzed in it, they will read it, pour over it and discuss it with you.
If you tear off a generic sheet and give it to them, it often goes in the waste basket. If you give patients an analysis of their health risk AND if you include a “what if” scenario, i.e., what will their health risk be if they make a change; you can prove to them,
“if you the healer make a change, it will make a difference to your patient.”
PCMH is non-political – the right POV for delivery transformation
“We never abandoned advocating newModels of care. We’ve long pushed folksto realize that Delivery reform is the key.”The patient-centered medical home iscore.
“We included the attached chapter on PCMH in our book. and have a new publication on ACOs coming out in January.”
Physician Practice Size
(# of patients) Level 1+ Level 2+ Level 3+< 10,000 $4.68 $5.34 $6.01
10,000 - 20,000 $3.90 $4.45 $5.01> 20,000 $3.51 $4.01 $4.51
PMPM Payment: Commercial Population
Level of PCMH Recognition
43
Tier Major Condition Groups Minutes of Work PMPM PMPM Payment
0 None N/ A N/ A 1 3-Jan 15 $10.14 2 6-Apr 30 $20.27 3 9-Jul 60 $40.54 4 10+ 90 $60.81
44
Payment Model Component PMPM PaymentCare management payments Up to $2.50 PMPMPay-for-performance payments Up to $2.50 PMPM
Payment Model Component PMPM PaymentPractice transformation cost payments (year 1 only)
$1.67 PMPM
Performance bonus (beginning in year 2) Up to $2.38 PMPM (value based on performance)Risk-adjustment Up to $1.67 PMPM (only for practices with above average
patient panel risk profiles; amount varies by practice)
Payment Model Component PMPM PaymentPractice support payments $1.50 PMPM
$0.60 PMPM (ages 0-17)$1.50 PMPM (ages 18-64)$5.00 PMPM (ages 65-74)$7.00 PMPM (ages 75+)
Shared savings Value based on performance
Care management payments
Trends, Reactions, Assumptions in the U.S. Provider consolidation is accelerating Medical Homes are in demand ACO based thinking is evolving and re-
defining partnerships Competitors as well as payers/providers
are merging New places and types of care are on the
increase Quality is required for both processes and
care Consumer health will be the mantra,
engagement is key The “End Game” is not clear but the
industry is engaged