Optimizing Post-Acute Care Services in Population …...facilitates the flow and analysis of...

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Optimizing Post-Acute Care Services in Population Health April 3, 2013

Transcript of Optimizing Post-Acute Care Services in Population …...facilitates the flow and analysis of...

Optimizing Post-Acute Care Services in Population Health April 3, 2013

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PROPRIETARY & CONFIDENTIAL – © 2012 PREMIER INC.

Key objectives !  Provide background on population health and its impact

on PAC providers !  Discuss capabilities required / associated with post-acute

care coordination !  Share case studies and examples

Contents !  Background !  Post acute care (PAC) costs and utilization !  Strategic considerations !  PAC assessment tool

Table of contents

Population Health Background

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“Americans always do the right thing, after they have tried everything else”

– Winston Churchill

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Integration & new payment models Deliver continuous improvement in clinical cost and quality

Population Management •  Population analytics •  Care management •  Financial modeling and

management •  Legal •  Physician integration

and leadership •  Covered lives

High Value Episodes •  DRG and episode

targeting •  Care models •  Gainsharing •  Data analytics •  Cost management •  Physician integration

High Performing Hospitals •  Cost management •  Waste elimination •  Best outcomes in quality,

safety •  Satisfied patients •  Physician alignment •  Growth strategies

Proliferation of solutions and uncertainty around successful models of the future heightens risk; Replicate those strategies and operations that are already successful.

MOVEMENT TO INTEGRATED CARE, NEW PAYMENT MODELS & RISK

Bundled payment

Shared savings

Value-based purchasing: HACs, quality, efficiency Global payments

Reimbursement cuts Medical home

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Medicare Bundled Payment Initiative Over 500

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!  CMS has begun it’s “no risk” period and preparing agreements for this initiative

!  Model 1, a retrospective model across all MS-DRGs, is expected to begin in April

!  Models 2 – 4 are expected to begin operating in July • Model 2 – acute care hospital stay plus 30+ days post acute care

with retrospective reconciliation • Model 3 – post acute care only with retrospective reconciliation • Model 4 – acute care hospital stay only with prospective payment

CMMI’s Bundled Payments for Care Improvement Initiative

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Medicare ACOs across the country

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NJ

DE MD

WA

IL

LA

AR

MO

IA

MN

KS

NE

SD

ND MT

WY

CO

NM

ID

UT

AZ

NV

CA

OR

MA

RI CT

SC

NC

VA WV

PA

VT

NH

ME

FL

GA AL MS

TN

KY

MI

OH IN

DC

MO

NY

TX

OK

NATIONWIDE GROWTH

WI

Medicare ACO’s 20+ 10-19 5-10 2-4 1 0

HI

AK

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!  254 Medicare ACO’s in 43 states • First ACOs (10 organizations) part of the PGP demonstration

project beginning in 2006 (sunset 12/31/12)

!  32 CMMI “Pioneer” participants, program began 1/1/2012 • Roughly 30% physician organization-led

!  Medicare Shared Savings Program •  4/1/2012: 27 ACOs selected to participate

» Majority of organizations physician-led •  7/01/2012: 89 ACOs selected to participate •  1/1/2013: 106 ACOs selected to participate

Growing number of Medicare ACOs

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Complete view of accountable care

ACO CEO

COO CFO CMO CNO CQO

Payer Partners

People Centered Foundation will ensure that the first principle for

accountable care design and ongoing operations is to enable all people within the AC community to meet their needs and desires for

good health.

Health Home redesigns primary care to create a new PCP model

that provides people centric care as well as care guidance to the

practice population.

Payer Partnerships - focused on the framework necessary for the network

to develop and maintain mutually advantageous relationships with AC

payer partners (plans and employers).

AC Leadership addresses the strategic leadership and operational infrastructure

necessary to support a successful network that is organized around

Triple Aim goals.

Population Health Data Management facilitates the flow and analysis of

clinical, financial, and patient related data and information across all components of

accountable care delivery system.

High Value Network delivers provider networks that will

optimize care delivery within and across the continuum and

ensure that care is coordinated.

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The High Value Network will deliver provider networks that will optimize care delivery within and across the continuum and ensure that care is coordinated.

High Value Network

Key Attributes: •  There is a wide range of clinical providers and

facilities supporting primary care practices •  Care models across the health system define how

care is consistently delivered to patients •  How and when patients move between sites of

care is actively managed and supported •  The entire health system is focused on improving

the health and costs of the population it serves

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Post Acute Spectrum

Key ACO Attributes: •  Person-Centered Foundation •  High-Value PAC Network •  Payer Partnerships •  Leadership •  Post-Acute Care Coordination •  Population Health Data Management

The Post Acute Spectrum serves as a step down from the intense acute hospital services and a partner in management of chronic conditions.

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!  Has your organization identified your accountable care partner(s)?

!  Have you assessed your capabilities relative to managing a population?

!  For those that have, have you taken those results to accountable care networks?

Context setting questions

PAC costs and utilization

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Payment Models

Physician Outpatient Hospital and

ASCs

Inpatient Acute Care

Long Term Acute Care

Inpatient Rehab

SNFs Home Health Care

RBRVS   APC   MS-­‐DRG   MS-­‐DRG   RICs   RUGs   HHRGs  

VBP  modifier  plan  published  on  11/1/11  

 Implement  in  FY2013  PFS  

P4R  in  FY2013;    VBP  

implementaJon  plan  submiKed  to  

Congress  on  4/18/11  

VBP  commenced  10/1/12  

P4R  in  FY14:  VBP  test  pilot  by  1/1/16  

VBP  test  pilot  by  1/1/2016  

VBP  impl.  plan  sent  to  Congress  6/15/13  

VBP  impl.    plan  to  Congress  overdue  (10/1/11  deadline)  

Accountable Care Organizations

Trac

k Tw

o Tr

ack

One

Value Based Purchasing across payment silos

Post-Acute Care Episode Bundling

Acute Care Bundling

Medical Home

Acute and Post-Acute Care Episode Bundling

Will Congress speed up VBP and create national Bundling Program in CY 2013?

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Medicare spend on post acute care

Managed care spending is not included in this chart. Source: CMS, Office of the Actuary (Healthcare Spending and the Medicare Program MEDPAC, June, 2012)

26.6

32.6 34.337.5

42.1 43.5

48.651.9

55.758.0

63.5

12.114.8 15.0 16.7

18.6 19.622.4 24.2 25.8 27.0

31.8

8.09.6 10.1 10.8 12.6 13.0 15.4 16.9 18.8 19.4 19.6

4.5 5.7 6.2 6.4 6.5 6.3 6.1 6.0 6.0 6.3 6.7

2.0 2.5 3.0 3.6 4.4 4.6 4.7 4.8 5.1 5.3 5.40.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$  in  billions

Medicare  Spending  on  FFS  Post-­‐Acute  Care  2001-­‐2011All  post-­‐acute  care

Skilled  nursing  facilities

Home  health  agencies

Inpatient  rehabilitation  hospitals

Long-­‐term  care  hospitals

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Summary of ACO expenditures

Home health alone could generate over 3x the savings as inpatient expenses

NOTE: Client example; costs not severity adjusted

Expense for ACO Assigned Beneficiaries

All MSSP ACOs

Impact of 5% Cost

Reduction

Impact of Reaching

MSSP Average

Total $11,494 $9,824 $7,308,138 $21,236,584

ERSD $69,541 $65,029 $740,612 $961,103 Inpatient $3,550 $3,200 $2,257,328 $4,458,411

Skilled Nursing $1,088 $891 $692,058 $2,609,422

Home Health $1,664 $527 $1,012,427 $14,462,779

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MSSP results of first year #  of  beneficiaries

1st  27 375,000Next  88 1,200,000Total 1,575,000

1/1/2011  -­‐  12/31/2011 1/1/2012  -­‐  12/31/2012 ∆All  ACOs All  ACOs %  Improvement

Total  Expenditures  per  Assigned  Beneficiary  Status2,  4

Total   9,832 9,895 -­‐0.64%

Component  Expenditures  per  Assigned  Beneficiary3

Inpatient4 3,305 3,236 2.08%      Indirect  Medical  Education  (IME)4 135 131 3.52%      Disproportionate  Share  Hospital  (DSH)4 310 315 -­‐1.69%Skilled  Nursing  Facility   867 732 15.61%Institutional  (Hospital)  Outpatient   1,449 1,597 -­‐10.21%Part  B  Physician/Supplier   3,454 3,253 5.82%Home  Health   484 538 -­‐11.11%Durable  Medical  Equipment   317 309 2.53%Hospice   196 228 -­‐16.33%

Transition  of  Care/Care  Coordination  Utilization30-­‐Day  All-­‐Cause  Readmissions  Per  1,000  Discharges5 158 147 6.96%30-­‐Day  Post-­‐Discharge  Provider  Visits  Per  1,000  Discharges 785 780 0.64%

Additional  Utilization  Rates    (Per  1,000  Person  Years)Hospitalizations6 378 340 10.15%Emergency  Department  Visits 672 662 1.44%      Emergency  Department  Visits  That  Lead  To  Hospitalizations 250 226 9.70%Computed  Tomography  (CT)  Events 639 643 -­‐0.67%Magnetic  Resonance  Imaging  (MRI)  Events 303 259 14.67%Primary  Care  Service  Visits7      With  a  Primary  Care  Physician8 4,609 4,144 10.09%With  a  Specialist  Physician9 4,766 4,222 11.42%With  a  Nurse  Practitioner/Physician's  Assistant/Clinical  Nurse  Specialist10 553 648 -­‐17.11%With  a  FQHC  /  RHC11 47 36 24.10%

Ambulance  Events 855 694 18.81%

Medicare  Shared  Savings  ProgramBenchmark  Period  Aggregate  Expenditure/Utilization  Trend  Report

All  ACO  -­‐  comparison  of  2011  and  2012  expenditures  and  utilization  statistics

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Post  Acute  Care  -­‐  1-­‐30  Days  after  Discharge

Cost  Categories   Hospital Total  HRC Hospital Total  HRCNationwide  Average

Well-­‐Managed  Benchmark Hospital Total  HRC

Part  AInpatient  Readmissions  -­‐  Facil ity  ***  $796  $1,110  8.3%    11.9%    9.5%    6.2%    $9,590  $9,330Acute  Inpatient  Rehab  -­‐  Facil ity  $634  $308  4.2%    1.8%    2.0%    1.1%    $15,089  $17,087Long  Term  Acute  Care  (LTAC)  -­‐  Facil ity  $0  $57  0.0%    0.2%    1.1%    0.9%    $0  $28,400Skilled  Nursing  Facil ity  -­‐  Facil ity  $3,201  $3,120  25.0%    26.8%    18.6%    10.8%    $12,802  $11,641Home  care  **  $1,278  $1,034  62.5%    45.7%    34.5%    30.2%    $2,044  $2,263

Part  BInpatient  Readmissions  -­‐  Professional  $110  $130  8.3%    11.9%    9.5%    6.2%    $1,325  $1,094Acute  Inpatient  Rehab  -­‐  Professional  $3  $7  4.2%    1.8%    2.0%    1.1%    $68  $369Long  Term  Acute  Care  (LTAC)  -­‐  Professional  $0  $2  0.0%    0.2%    1.1%    0.9%    $0  $1,035Skilled  Nursing  Facil ity  -­‐  Professional  $16  $44  25.0%    26.8%    18.6%    10.8%    $62  $164OP  rehab  $0  $0  0.0%    0.2%   -­‐ -­‐  $0  $130Part  B  drugs  $0  $3  0.0%    2.0%   -­‐ -­‐  $0  $172Other  outpatient  facil ity  (lab,  radiology,  etc)  $6  $27  8.3%    12.3%   -­‐ -­‐  $77  $220Other  outpatient  professional  $8  $29  12.5%    20.3%   -­‐ -­‐  $63  $142Other  outpatient  (including  DME)  $7  $33  4.2%    5.2%   -­‐ -­‐  $159  $643

Total  Post  Acute  Care  -­‐  Part  A  and  B  $6,057  $5,904

 Average  Allowed  Cost  per  Patient*

%  of  Anchor  DRG  Admissions  with  Some  Util ization  in  Category

Average  Allowed  Cost  per  Service  for  those  

with  a  Claim  for  Service

Episode of care utilization of post acute services MS-DRG 330 - Major small & large bowel procedures w CC

Strategic considerations

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!   Conduct an inventory of PAC providers in the community and assess their performance?

•  How to assess performance? The most appropriate site for info is www.medicaregov.org - nursing home compare. Includes staffing, 3 years of regulatory results, quality measures, bed size, ownership, LOS, historical RUGS data.

•  PAC capabilities assessment tool

!   Narrow the list to high performers to approach

!   Decide how to partner with PAC providers going forward •  Hospitals and health systems that are developing bundled payments,

accountable care and other population health management strategies will have to determine how to align with PAC providers.

•  Three choices that are currently available include owning, outsourcing or joint venturing.

Strategic considerations – from the ACO perspective

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!   Knowledge and understanding of industry trends •  What do we need to learn and how will we learn it?

!   Knowledge of the market(s) / environmental scan (external) •  Referral patterns and utilization of post-acute care •  Market data Review •  Physician practice strategies/ hospital & physician alignment •  Payer strategies •  How fast is the market moving towards integrated care •  Continuum strategies •  Competitor intelligence •  What are potential collaborators in the market doing

!   Internal assessment •  PAC assessment Tool •  Culture •  Fluidity / ability to change •  Capacity for new service development / innovative care delivery

approaches

Strategic considerations – from the PAC perspective

PAC assessment tool

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Attributes of a post acute partner (1)

Minimum Requirements Ideal Requirements Post Acute Continuum

Single service Source for full continuum, from skilled nursing to palliative care

Access for Qualified Patients

Admits <10% of a hospital’s post acute patients

Guarantees for access & placement of 100% of patients in need

Location Within the hospital’s service area Locations close to population clusters

Clinical Quality Scores

Quality scores similar to local averages

Better scores than other local providers and in the top quartile nationally

Service Quality

Similar to other local providers Demonstrably better than local providers

Patient Satisfaction

Scores close to local average scores

Better than acute provider’s satisfaction scores

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Attributes of a post acute partner (2)

Minimum Requirements Ideal Requirements Case Management

Manages cost and quality control for services offered

Participates in management across episode of care

Patient Compliance

None Innovative systems to help track and manage compliance

EHR Ability to receive and transmit basic patient information

Provides cost and care information in a manner that allows for analysis

Medical Champions

Passive Medical Directors Physicians helping to drive improvement

Vision Targets for the cost and quality of service provided

Concept of the future and action to plan to achieve it with the help of its partners

Leadership Can competently manage the services being provided

Can help anticipate future needs and respond in an appropriate manner

Cost Proportionate to above measures

Value added

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Post acute care coordination models

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!   Population health management, whether it be through an ACO or an episode of care, is expected to connect groups of providers across the care continuum that are willing and able to take responsibility for improving the health status, efficiency and experience of care for a defined population.

!   The Post-Acute Care (PAC) Capabilities Framework is intended to provide organizations with a tool to assess a PAC provider’s current level of performance and readiness as it relates to the implementation of population health management principles.

!   It can be used to inform acute care providers who are developing ACOs or bundled payments with information regarding which PAC providers should be considered for partnerships and/or preferred provider status.

PAC Capabilities Framework: Overview

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!   The assessment is meant to be used by a number of different audiences.

•  Provider systems that are developing accountable care organizations and the network to serve that population can use this tool to assess potential PAC partners they might want to have as a part of the full continuum of care.

•  PAC providers that are not currently associated with an accountable care network can assess their capabilities and take the results to large provider systems to point out that they would be a good partner in the accountable care network.

•  PAC providers that are part of a PAC system or stand-alone providers.

PAC readiness assessment

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PAC core capabilities (1)

Core Capabilities Example Capabilities

Example Operating Activities

Person-Centered Foundation Patient and caregivers at the center, honoring preferences, coordination, education, patient satisfaction scores, service, etc.

Involve people in decisions that affect their health care

Individualized Care Plans, Navigation/Coordination, Advanced Care Planning

High-Value PAC Network Source of full PAC continuum, access, coordination, transitions, and partnerships/affiliations

Full PAC continuum, Transitions of Care across care settings

Skilled to Palliative Care, Measurements for readmissions and evaluative improvement systems in place

Payer Partnerships Focused on the framework necessary to develop and maintain mutually beneficial relationships with payers; ability and/or willingness to perform under a variety of reimbursement structures

Value Based Purchasing

Willingness to work with a variety of reimbursement models and takes accountability for outcomes

Leadership Vision and strategy evident; corporate infrastructure, retention, partnerships /alliances, and culture

Vision and Strategic Planning

Evidence that strategic planning occurs; leadership involvement in creating alignment with ACO initiatives

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PAC core capabilities (2)

Core Capabilities Example Capabilities

Example Operating Activities

Post-Acute Care Coordination Use of evidence based medicine and clinical pathways, care transitions and coordination interventions, ability to accept medically complex patients, guaranteed access, medical champions, and in alignment with 33 quality indicators (Medicare Shared Savings Program)

Delivery of High Quality Post Acute Care

Medication Management, Chronic Disease Management, Use of Care Path Programs

Population Health Data Management Able to analyze clinical, financial and patient information; data exchange among providers

Data Analysis and Exchange

Capture & Analyze data across multiple sources and exchange data across the care continuum

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Post Acute (Home Health) Capabilities Framework: Sample Subset

POST  ACUTE  CARE  CAPABILITIES  FRAMEWORK:    Home  Health

PAC  Component Capability Operating  Activity Description  of  Operating  Activity  to  help  score  status

High  Value  PAC  Network

II.A.  Provides  full  PAC  continuum

II.A.1.System  has  full  PAC  continuum,  from  skilled  care  to  palliative  care

Baseline:    Single  Service  Credentialed,  Partnerships  with  other  PAC  providers.    Partner:  provides  most  services    Driver:  Source  for  full  continuum

High  Value  PAC  Network

II.B.1.  Admission  Capabilities The  HHA  has  a  written  process  for  accepting  patients  that  is  based  on  its  ability  to  provide  the  care,  treatment  or  services  required.    Admission  capabilities  have  been  assessed,  and  the  organization  puts  the  necessary  resources,  oversight  and  staff  development  processes  in  place  to  enable  them  to  receive  and  care  for  all  levels  of  acuity  appropriate  for  a  home  care  setting.

High  Value  PAC  Network

II.B.2.  Within  the  hospital’s  service  area

Locations  close  to  ACO's  population  and/or  related  affiliated  clinics  and  service  providers.    24/7  coverage  

High  Value  PAC  Network

II.C.1.  Identifies  and  partners  with  ancillary  care  providers

Outsources/contracts  for  ancillary  services  such  as  lab;  x-­‐ray;  podiatry;  rehabilitative  therapies.    Selection  standards  for  screening  and  performance  of  ancillary  providers  are  identified  and  followed  -­‐  including  but  not  limited  to  their  involvement  in  the  IDT  plan  of  care.    Selection  process  includes  an  evaluation  of  willingness  to  share  efforts  and  responsibility  for  reduction  of  readmissions  and  quality  outcomes  for  patients.

High  Value  PAC  Network

II.C.2.  Identifies  partners  essential  to  success  in  reducing  readmission  rates/ER  visits

HHA  initiates/participates  in  a  collaborative  effort  with  hospitals  and  other  PAC  providers  to  reduce  hospital  readmission  rates  and  ER  visits.    Metrics  and  best  practices  are  studied.  Shared  processes  and  work  flows  are  analyzed  and  improved  (e.g..  Method  with  which  patient  information  is  shared  during  transitions  in  care).    The  culture  established  is  one  of  shared  responsibility.

II.B.  Access

II.  C.  PAC  collaborates  to  facilitate  high-­‐

quality  partnerships

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Capabilities Framework: Demonstration of Scoring System

POST  ACUTE  CARE  CAPABILITIES  FRAMEWORK:    Skilled  Nursing  Facility  (SNF)

PAC  Component Capability Operating  Activity Score Weight

Total  Score  Per  

"Operational  Activity"

Total  Score  Per  Capability

Percent  of  Implementation  per  Capability

Total  Score  per  

Component

Percent  of  Implementation  per  Component

Post  Acute  Care  Coordination

V.A.9  .  Infection  Control

0.8 0.0

PHDM VI.A.  Support  Data  Analysis

VI.A.1.    Capture  and  analyze  data  from  multiple  sources

0.8 0.0

0.0 0%

PHDM VI.B.  Data  ExchangeVI.B.1.  Data  exchange  across  care  continuum

0.8 0.00.0 0%

PHDM VI.C.  Support  Clinical  Practice

VI.  C.1.  Clinical    Record  Platform

0.8 0.0

0.0 0%

V.A.  Deliver  High  Quality  Post  Acute  

Care0.0 0% 0.0 0%

0.0 0%

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Brent Hardaway Vice President, Population Health Management

Premier healthcare alliance Telephone: 512-657-2225

Email: [email protected]

Lori Peterson Collaborative Consulting

Telephone: 866.332.3923 Email: [email protected]

 

Contact information

Appendix