CREATING A VIRTUOUS CYCLE - ehcca.com · FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA...

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CREATING A VIRTUOUS CYCLE: DESIGNING NETWORKS TO MITIGATE NO-VALUE CARE FROM FEE FOR SERVICE AND CREATE VALUE-BASED WINS FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA Positive Disruption

Transcript of CREATING A VIRTUOUS CYCLE - ehcca.com · FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA...

Page 1: CREATING A VIRTUOUS CYCLE - ehcca.com · FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA Value Proposition: Designing and Curating a Pay -for-Value Ready Network Moderator:

CREATINGAVIRTUOUSCYCLE:DESIGNINGNETWORKSTOMITIGATENO-VALUECAREFROMFEEFORSERVICEANDCREATEVALUE-BASEDWINSFORBOTHPAYERSANDPROVIDERSUSINGCMSBENCHMARKDATA

PositiveDisruption

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OWNINGRISKISTOUGH,BUTIT’SWHERETHEACTION’SAT

Onceuponatimeplans hadlargegroupcommercialpopulationswithyearsofconsistency andproviderssimply deliveredservices forafee.ButgovernmentprogramslikeMedicareAdvantage,Marketplace/ExchangeandMedicaid, havepopulations changingeveryyear,oreveneverymonthandprovidersmanagingapopulation's healthovertime.

Changingpopulations anddynamic paymentmodelsmaymakeittoughtopredictandachievememberoutcomesinafinancially sustainablewaypreciselywhenprovidersaregettinginthegametotakeonrisk.

Public healthdataareproviding solid casestudies ofachievingmemberhealthandhappiness withsustainable financialmodels forallplayersinthisnewgame.

Ifyouaremanagingrisk,considering takingonrisk, orinvestinginorproviding productsorservicestoanyonebearingrisk, campoutinthesesessions tolearnhowtousepublicdataandinternalresourcesto:

§ Effectivelyleverageanalytic approachestomanagerisk

§ Accuratelyassess risksandprojectcosts

§ Effectivelyalignprovidersandincentivizecaredelivery

Page 3: CREATING A VIRTUOUS CYCLE - ehcca.com · FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA Value Proposition: Designing and Curating a Pay -for-Value Ready Network Moderator:

CREATINGAVIRTUOUSCYCLE:DESIGNINGNETWORKSTOMITIGATENO-VALUECAREFROMFEEFORSERVICEANDCREATEVALUE-BASEDWINSFORBOTHPAYERSANDPROVIDERSUSINGCMSBENCHMARKDATA

ValueProposition: DesigningandCuratingaPay-for-ValueReadyNetwork

Moderator:JoshuaRosenthal,Co-FounderandChiefScientificOfficeratRowdMap,Inc.

Panelists:JonathanBlum,ExecutiveVicePresidentatCareFirstBlueCrossBlueShield andFormerPrincipalDeputyAdministratoratCentersforMedicareandMedicaidServices;AliKhan,MedicalOfficeratCareMore,anAnthemCompany;SteveOndra,ChiefMedicalOfficeratHealthCareServiceCorporation(BlueCrossandBlueShieldplansinIllinois,Montana,NewMexico,OklahomaandTexas)andSeniorPolicyAdvisorforHealthAffairsattheDepartmentofVeteransAffairsinWashington,DC

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No-ValueCare(30%)

NecessaryUtilization(70%)

CareThatDoesn’tProduceBetterOutcomes$850BillionUnnecessarySpendin2014

(InstituteofMedicine)

No-ValueCare:.30/Each$IsWasted

“It’sgenerallyagreedthatabout30percentofwhatwespendonhealthcareisunnecessary.Ifweeliminatetheunneededcare,therearemorethanenoughresourcesinoursystemtocovereverybody.”

-Dr.ElliottFisher,DartmouthInstitutefor

HealthPolicy

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No-ValueCare:CMSIsPayingonIt

2016 World Economic ForumAnnual Meeting in Switzerland

Ontracktosunset50%ofFFS

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No-ValueCare:SuccessDefinedbyIt

“During its first year, the Pioneer ACO program was associated with modest reductions in low-value services, with greater reductions for organizations providing more low-value care. Accountable care organization–like risk contracts may be able to discourage use of low-value services even without specifying services to target.”

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“Millions of people are receiving drugs that aren’t helping them, operations that aren’t going to make

them better, and scans and tests that do nothing beneficial for them, and often cause harm.”

Dr. Atul Gawande, Professor, Department of Health Policy and Management at the Harvard School of Public Health & the Department of Surgery at Harvard Medical School.

No-ValueCare:MediaIsReportingonIt

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"It'snosecretthatpatientsoftenundergounnecessaryproceduresthatcanbedangerousandcostly."Throughourcollaboration withRowdMap,weareprovidingpatientswithmeaningful informationabouttheseno- orlow-valuetreatments,allowingthemtomakebetter,moreinformeddecisionsabouttheirdoctors,hospitalsandmedicalcare.”

No-ValueCare:ConsumersDemandIt

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No-ValueCare:Doc.s FocusonIt

Over70SpecialtySocieties

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No-ValueCare:MarketDemandsIt

“TheTaskForcerecommendsthatCMSconsidertheadditionofsuchinformationintobaseline/benchmarkcalculations.”

“Wesuggestthatentitiesstructuringcaremanagementprograms…monitortheextenttowhichtheparticipatingprovidersaredeliveringlow- orno-valuecare.”

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No-ValueCare:DecadesofResearchonIt

Theestimated30%ofmedicalexpensethatgoestono-valuecare.

Unnecessary spending drivesbilling inafee-for-serveeconomicmodel, butsuccessinpay-for-valuecomesfrommanagingandmitigatingthesepocketsofvariation.

Variation:UnwarrantedorUnexplained?Everyphysicianhasauniquefingerprint

EconomicDrillDown:ExampleUtilizationReviewandActuarialUnitCostAnalysisagainstCareIntensityCurveacrossTotalBasketofCare

Variationacrossgeographiesandwithinpracticesacrossphysicians.“Physician-Level PracticeVariation:WhoYouSeeIsWhatYouGet”BrianPowers,SachinJain,DavidCutler,&ZiadObermeyerHealthAffairs,09.23.15

Definitions,researchandgeocodingbyHospitalReferralRegionalavailableviatheDartmouthAtlasforUnwarrantedVariation:www.dartmouthatlas.org

NB:Unwarranted variationrefers topractice patterns, which holdupacrosspopulations butpricing variationmayalsobeunwarranted andmarkedfluctuatesacrossinsuranceproduct andlinesandgeography.“ThePriceAin’t Right.”Cooper, Craig, GaynorandVanReenen, 2015.

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No-ValueCare:CMSOpensDataonIt

MedicareDocGraphReferralfile(PatientflowsbetweenPCPS,specialists,hospitalsandpostacutecenters)

DartmouthAtlasofHealthCare&Choosing Wisely(Decadesofresearchanddataonunwarrantedvariationbyconditionandgeographytokeepthingsapples-to-applesforcomparisons)

CMSFFSDataSets,CDCDataSets(MEDPAR,PartB,PartD,BRFSS)(Individualproviders,groups,hospitalsandpostacutecenters)

ProviderPatternIntensityProfilesandRiskReadinessforeveryprovider,hospital,postacutecenterintheUS.Allpreloaded withno IT.

AffordableCareActdatatodetermineRisk-ReadinessofProviders/Networks

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No-ValueCare:InnovationFoundedonIt

RowdMaphasno-valuecareandpopulationhealthbenchmarks for…

everyphysician

everyhospital

everyzipcode

…intheUnitedStates.

Whatifyouknewwhichproviderswould

driveyoursuccess?

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No-ValueCare:MarketAdoptingIt

Healthplansandprovidersin48statesandtheDistrictofColumbiauseRowdMapandHHSdatatoreducethedeliveryofno-valuecare.

TheclientsRowdMapservescollectivelycoverthelivesofmorethan100millionAmericans.

Here’swhereHHSDataisbeingusedtomovefromFFStoValueBaseArrangements(not ‘pilot’or‘innovation’ programs)butactiveoperationalprograms.

ClientsusingHHSdataincludeNational,Regional&BoutiquePayersinMarketplace/Exchange,MA,Medicaid,

CommercialandGovernmentProgramsaswellasProviders includingPCP&SpecialtyGroups,CINs&Systems,

ACOs,Bundles &other CMMIProgramParticipants.

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No-ValueCare:PositiveDisruption:AVirtuousCycle

Told‘ya

MarketIncentive

OpenData

PositiveDisruptioninaComplexSystem

DataLiberators

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VirtuousCyclesThreeExamples

AliKhan,MedicalOfficeratCareMore,anAnthemCompany

SteveOndra,ChiefMedicalOfficeratHealthCareServiceCorporation(BlueCrossandBlueShieldofIllinois,Montana,NewMexico,OklahomaandTexas)andSeniorPolicyAdvisorforHealthAffairsattheDepartmentofVeteransAffairsinWashington,DC

JonathanBlum,ExecutiveVicePresidentatCareFirstBlueCrossBlueShieldandFormerPrincipalDeputyAdministratoratCentersforMedicareandMedicaidServices

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VirtuousCyclesThreeExamples

AliKhan,MedicalOfficeratCareMore,anAnthemCompany

SteveOndra,ChiefMedicalOfficeratHealthCareServiceCorporation(BlueCrossandBlueShieldofIllinois,Montana,NewMexico,OklahomaandTexas)andSeniorPolicyAdvisorforHealthAffairsattheDepartmentofVeteransAffairsinWashington,DC

JonathanBlum,ExecutiveVicePresidentatCareFirstBlueCrossBlueShieldandFormerPrincipalDeputyAdministratoratCentersforMedicareandMedicaidServices

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VirtuousCyclesThreeExamples

AliKhan,MedicalOfficeratCareMore,anAnthemCompany

SteveOndra,ChiefMedicalOfficeratHealthCareServiceCorporation(BlueCrossandBlueShieldofIllinois,Montana,NewMexico,OklahomaandTexas)andSeniorPolicyAdvisorforHealthAffairsattheDepartmentofVeteransAffairsinWashington,DC

JonathanBlum,ExecutiveVicePresidentatCareFirstBlueCrossBlueShieldandFormerPrincipalDeputyAdministratoratCentersforMedicareandMedicaidServices

Page 19: CREATING A VIRTUOUS CYCLE - ehcca.com · FOR BOTH PAYERS AND PROVIDERS USING CMS BENCHMARK DATA Value Proposition: Designing and Curating a Pay -for-Value Ready Network Moderator:

VirtuousCyclesThreeExamples

AliKhan,MedicalOfficeratCareMore,anAnthemCompany

SteveOndra,ChiefMedicalOfficeratHealthCareServiceCorporation(BlueCrossandBlueShieldofIllinois,Montana,NewMexico,OklahomaandTexas)andSeniorPolicyAdvisorforHealthAffairsattheDepartmentofVeteransAffairsinWashington,DC

JonathanBlum,ExecutiveVicePresidentatCareFirstBlueCrossBlueShieldandFormerPrincipalDeputyAdministratoratCentersforMedicareandMedicaidServices