Health Care Reform: Two Challenges to the Primary Care Sector

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    Excellent Healthcare in Every Neighborhood.

    All rights reserved. PCDC 2009

    National Health Reform:The Primary Care Imperatives andStrategies for Addressing Them

    Presentation to the Center for Family andCommunity Medicine

    Columbia University Medical Center

    Ronda Kotelchuck, Executive DirectorPrimary Care Development Corporation

    Thursday, January 21, 2010

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    1. Introduction: The Problems

    2. Health Care Reform: The Primary Care Agenda

    3. Primary Care Expansion

    4. Primary Care Transformation

    A. Practice Redesign

    B. Health Information Technology

    1. Lessons and Reflections

    Overview

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    1. Introduction: The Problems

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    Rising Cost and the Role of Chronic Illness

    The rising cost of health care is unsustainable

    Cost is driven by the rising rate of chronic illness. It:

    Is the single largest cause of morbidity and mortality Is the single largest driver of cost (accounts for 75% of all health

    expenses)

    Has the heaviest impact on low income communities

    Will grow more severe as population ages

    Chronic illness is overwhelmingly preventable or primarycare manageable. Prevention and management requirea robust model of primary care.

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    Primary Care Today:

    Insufficient and Poorly Organized

    Primary care capacity is insufficient:

    60 million Americans lack access to primary care

    Half of primary care doctors plan to reduce or end their practices

    Only 20 percent of medical students plan to practice primary care

    U.S. is expected to need 46,000 primary care doctors by 2025

    Most primary care is poorly organized and still practiced in anoutdated mode. It is:

    Reactive and episodic Subject to long waits and delays

    Uncoordinated

    Inefficient

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    Study: US Lags Behind other Countries

    in Key Primary Care Indicators

    Commonwealth Fund study of 11 countries (November 2009) Australia, Canada, France, Germany, Italy, Netherlands, New

    Zealand, Norway, Sweden, UK, US US 10th out of 11 in use of Electronic Medical Records (46% - ahead of Canada) 10th of 11 in use of care teams (ahead of France)

    Last in access to after-hours care

    Least likely to have financial incentives for clinical outcomes

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    2. Health Care ReformThe Primary Care Agenda

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    Health Reform Will Drive the Need for Expanded

    Primary Care Capacity

    Expanded insurance coverage will put millions of newcustomers into the healthcare market

    Physician shortages will increase by 25% and workload by29% over the next 15 years.

    The Massachusetts experience:

    97% coverage

    Patients wait months for appointments

    40% of family physicians are not accepting new patients

    Record use of ER for non-emergencies

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    Rising Costs Will Drive the Need to Transform the

    Model of Primary Care

    Growing evidence shows that primary care is effective in reducing costs,improving health outcomes and eliminating disparities

    Employers, insurers and policymakers are looking to primary care as thenew paradigm.

    A new model of care is necessary, however, to achieve theseobjectives.

    Innovations in practice have been afoot for years (practice redesign,

    evidence-based clinical protocols, etc.) Now these are integrated into the concept of the Patient-CenteredMedical Home (PCMH)

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    PCDC: Offering Strategies for Primary Care

    Expansion and Transformation

    Non-profit organization founded in 1993 to address lack ofprimary care access in underserved communities

    Premier public-private partnership focused on needs ofsafety net providers - community health centers, hospitals,special needs providers

    Three areas of expertise Capital Financing

    Performance Improvement

    Policy

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    3. PCDC:

    Strategies for ExpandingPrimary Care Expansion

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    PCDC Primary Care Expansion StrategyProblem:

    Lack of capital constrains growth of long-standing, dedicated providers ofcare to the underserved; further hampered by credit crisis

    Strategy: Use public funds to leverage private investment

    Provide favorable-term loans to catalyze construction of new, expandedand renovated sites, modernized facilities

    Provide:

    Technical assistance for facility development

    Provide strong oversight to ensure successful project completion andlong-term sustainability

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    Results Total investments of $245 million

    for 78 capital projects in New YorkState

    Created capacity for 550,000 newpatients/1.7M visits annually

    Leverage more than 5:1private:public investment

    Cornerstone of local economic

    development: 2,200 permanentjobs created; 4,400 withcommunity multipliers

    Facilities operating successfully,no defaults

    PCDC CapitalProjects (partial list)

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    Joseph P. Addabbo Family Health Center Queens, NY

    Before After $9.4 million for 22,000 SF new facility;

    increased patient visits by 40%

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    Callen-Lorde Community Health Center Chelsea

    Before

    After$9.3 million for relocation & expansionIncreased patient visits from 8,000 to

    48,000 annually

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    Reflections on Capital Strategy for Expansion

    Partnership among stakeholders is key

    Creates a permanent community infrastructure

    Relative ease of raising capital Builds a baseline of knowledge and relationships that provide great

    foundation stones for other initiatives (e.g., transformation; policy)

    Technical assistance is critical for organizations that have littleexperience or internal capacity for undertaking a complex, expensive,

    risky process Offers a replicable model to address the capacity crisis that will follownational health reform

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    4. PCDC:

    Strategies for Transforming thePrimary Care Model

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    The Need for Transformation Origin: Initial focus on financial strength of borrowers New realization: Poor work processes

    Cause much capacity to go unused Become important barrier to access

    Result in inefficiency and waste Undermine financial strength Demoralize staff and patients.

    Hallmarks of poorly organized processes: Long waits for appointments; lengthy cycle times; low productivity; high no-shows;

    staff-focused (rather than patient-focused) processes; poor customer service

    Discovery of the gap between what is possible and what is. Whats possible? Care that is safe, effective, patient-centered, timely, efficient

    and equitable (six Aims of the IOMs Crossing the Quality Chasm)

    The promise of a new primary care model: the medical home

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    A Vision of Transformation:

    The Patient-Centered Medical Home

    The medical home concept: Continuity Well organized (efficient) practice

    Easy access: Same day appointments, 24/7 telephone access, alternative access Responsibility for health outcomes Panel management Care coordination across settings Decision support Incorporation of evidence based practice (prevention, treatment, management)

    Patient /family engagement

    Formalization and the growth of a movement: Principles agreed to by major professional associations NCQA standards, measures, system of recognition

    The promise: Better health outcomes, reduced disparities;lower health care cost

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    A Vision of Beyond the Medical Home:Integrated Delivery Systems/Accountable CareOrganizations

    Vertically integrated, comprehensive services Responsible for total care of a population

    Use of value-based payment (bundled or global payments)which:

    Rewards quality and outcomes Achieves savings

    Examples: Kaiser, Mayo, Geisinger, Intermountain

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    Strategies for Transformation:

    PCDC Performance Improvement Programs

    1. Medical Home Recognition Assist providers to achieve NCQArecognition and transformation (also 2 programs below)

    2. Practice Redesign Improve access and efficiency by eliminatingwait times--both for appointments and during the visitincreasingthrough-put (productivity), improving patient and staff satisfaction andincreasing revenues.

    3. HIT Implementation and Meaningful Use Adopt and integratetechnology to improve quality, coordinate and manage care, engagepatients and improve patient-provider communication.

    4. Other PCDC Performance Improvement Programs:

    Attracting and Retaining Patients

    Increasing Revenue

    Primary Care Emergency Preparedness

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    Performance Improvement

    PCDC Approach

    Focus on:

    System Design Implementation Measurable Results Staff Organized as Care

    Teams Building Client Capability

    Sustainability

    Use of:

    Change Teams Change Concepts & Tactics Coaching and Training Collaborative Learning Project Management Frameworks for Improvement

    Model for Improvement (IHI) Chronic Care Model (Ed

    Wagner) Medical Home Model

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    A. Practice Redesign

    The Issues: Patient visits often average 2 to 3+ hours (for 15 minutes of actual face-time). Patients often wait 3-6 weeks for an appointment; instead go to the ER No shows run as high as 50-60%; providers overbook to make up Organizations operate well below capacity (25-35%) Redesign process is complex, resource-intensive, challenging for self-implementation

    Program Results: Trained 219 teams No show rates decrease by nearly 70% Appointment backlogs drop from an average of 21 to 0-5 days Providers able to hold 4-8 same-day appointments in daily schedule Cycle time reduced to an average of 51 minutes (50%+ reduction)

    Provider productivity increase of 33% Improved patient and staff satisfaction

    .

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    B. Implementation and Meaningful Use of HIT

    The Issues: Difficult, expensive, risky process Organizations with little experience or internal capacity, few resources Excessive, vendor-generated information; little ability to evaluate

    The Program:TA for all stages of HIT adoption (38 teams) HIT vendor selection and contracting (23 teams) Planning and readiness (11 teams)

    Internal capacity: team building, staff training, project management Design (workflow, decision support) Budgeting

    Implementation and go-live (6 teams) Effective use (Assure meaningful use compliance)

    Data reporting (Quality, compliance, panel management) (2 teams) Health information exchange (6 teams)

    Remediation (1 team)

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    The Challenge of the Next Five Years

    2 simultaneous, highly-interrelated, time-limited initiatives

    Both improve care, provide financial incentives NCQA medical home recognition: NYS Medicaid Incentive Pool

    FFS: $5.50/$11.25/$16.75 per visit for Levels 1/2/3 Managed Care: $2/$4/$6 pmpm for Levels 1/2/3

    Level I phased out after December 2012

    HIT meaningful use compliance

    Medicaid: Up to $63,750 over 6 years

    Medicare: Up to $48,000; penalties beginning in 2015

    Both are complex, expensive, a challenge for self-implementation Current focus on PCDC programdevelopment

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    5. Lessons & Reflections

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    5. Reflections: The Nature of Organizational Change The under-appreciation of implementation

    People know what needs to be changed. They lack knowledge of how tochange

    Transforming the model of primary care requires major, thorough-goingorganizational and cultural change.

    Myths:

    It can been done fast and cheap

    Its a project. Once done, we can move on to other things.

    It can be delegated from the top The importance of technical assistance, willingness to invest in the change

    process

    The under-appreciation of everyday operations

    Practice redesign, HIT as preconditions for clinical improvements, quality

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    Reflections on Safety Net Settings Private practice

    Strong on continuity, access and efficiency

    Isolation raises concerns about quality, coordination

    Setting is simpler, change is easier

    Small size, spare resources pose a challenge to implementing HIT, PCMH Community Health Centers

    Continuity, access, efficiency not assured

    FQHCs offer robust model, many PCMH functions, experience in qualityimprovement

    Special Needs Providers

    Already offer a care home, instinctually understand medical home

    Hospital OPDs

    Broad scope of service available (specialties, ancillaries)

    Continuity, access, efficiency present challenge in teaching environment

    Primary care is not the institutional focus or priority

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    Reflections: PCDC as a Model for Expanding and

    Transforming Primary Care

    Leverages private investment for small investment of public resources;availability of capital (relative to expense)

    Produces measurable, sustainable outcomes, able to reach scale;

    builds lasting community infrastructure; delivers important communitydevelopment benefits Works across wide range of provider types (community health centers,

    hospitals, private practitioners) Is adaptable to localities, states, foundations Offers excellent platform upon which to build additional programs and

    services Value of an organization dedicated solely to primary care Builds a strong community of interest in the success of primary care.

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    Contact

    Ronda Kotelchuck

    Executive DirectorPrimary Care Development Corporation

    Phone: (212) 437-3917

    E-Mail: [email protected]: www.pcdcny.org

    mailto:[email protected]:[email protected]