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![Page 1: Defense Health Agency Update Bryan T. Wheeler Acting General Counsel, Defense Health Agency September 22, 2015 “Medically Ready Force…Ready Medical Force”](https://reader036.fdocuments.in/reader036/viewer/2022081419/56649ed35503460f94be36b7/html5/thumbnails/1.jpg)
Defense Health Agency Update
Bryan T. WheelerActing General Counsel, Defense Health Agency
September 22, 2015
““Medically Ready Force…Ready Medical Force”Medically Ready Force…Ready Medical Force”
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DHA at Full Operating Capability
““Medically Ready Force…Ready Medical Force”Medically Ready Force…Ready Medical Force”
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2015-2016 Update
∎ DHA Structure, support∎ Procurements∎ Compound Pharmacy Spending Issues
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Defense Health AgencyLeadership Team
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Lt Gen Douglas RobbDirector
Mr. Paul HutterActing Deputy Director
CMSgt Edward VotteroActing Senior Enlisted Advisor
MG Richard ThomasDirector
Healthcare Operations
RADM Bruce DollDirector
Research & Development
Brig Gen Robert MillerDirector
Education & Training
RADM Raquel BonoDirector
NCR Medical
Mr. David BowenDirector
Health IT
Mr. Darrell LandreauxActing Director
Business Support
““Medically Ready Force…Ready Medical Force”Medically Ready Force…Ready Medical Force”
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Emerging Issues
““Medically Ready Force…Ready Medical Force”Medically Ready Force…Ready Medical Force”
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DHA Procurements
• Authority to address coverage for emerging technologies
• DHMSM
• T-2017
• Other Procurements
7““Medically Ready Force…Ready Medical Force”Medically Ready Force…Ready Medical Force”
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DHMSM
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Tailored Acquisition
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∎ Per the 2 Jan 2014 ADM, the tailored acquisition process is documented in the Acquisition Strategy Authority to Proceed (ATP) decision points used as acquisition
milestones: RFP ATP, Contract Award ATP, Limited Fielding for Initial Operational
Capability (IOC) ATP (4Q 2016), Full Deployment Decision (FDD) ATP
∎ The DHMSM program uses the DoD EHR Senior Stakeholder Group (SSG) and the Functional Advisory Council (FAC) to iteratively inform OSD, DHA, and Service program stakeholders
∎ National Defense Authorization Act (NDAA) for Fiscal Year 2014 mandates deploying EHR solution by 31 Dec 2016
Distribution D: Distribution authorized to the DoD and U.S. DoD contractors only. Other requests for this document shall be referred to DHMSM PMO.
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Governance
Functional Advisory Council (FAC)
ASD(HA) / Service Military Medical Advisory
Committee (SMMAC)
Secretary of Defense
USD(AT&L)USD(AT&L)
= Command relationship= Functional relationship
DHMS PEODHMS PEO
DoD EHR Senior Stakeholder Group (SSG)
Medical Operations Group (MOG)
Medical Deputies Action Group (MDAG)
USD(P&R)USD(P&R)
DHMSMDHMSM DMIXDMIX IPOIPO
Director DHA
Secretary of Veterans Affairs
DoD/VA Executive Committee
10Distribution A: Approved for Public Release
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A Common Goal
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2009EHR Way Ahead
2010iEHR
2013DHMSM Kick-Off
2015Contract Award
2006AHLTA Fielding
Complete
“I walk slowly, but I never walk backward.”- President Abraham Lincoln
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DHMSM Road to Full Deployment
Enterprise Deploymentto all CONUS
and OCONUS sites
All IOC Sites GALs
Limited Fielding for IOC Decision [USD(AT&L)]
IllustrativeNot to Scale
Full Deployment Decision [USD(AT&L)]
IOC Decision and Declaration[ASD(HA) & Service SGs]
DT
&E
OT
&E
VC
D
Full Deployment / FOC
FO
T&
E
Remainder of Region
Acronyms:
ASD(HA) – Assistant Secretary of Defense for Health Affairs DT&E –Developmental Test & EvaluationFDD – Full Deployment DecisionFOC – Full Operational CapabilityFOT&E – Follow-on Operational Test & Evaluation,if neededIOC – Initial Operational CapabilityOT&E –Operational Test
& EvaluationSG – Surgeon GeneralUSD(AT&L) – Under Secretary of Defense for Acquisition, Technology, and Logistics VCD – Verification of Corrected Deficiencies
Contact Award ATP
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Enterprise EHRGuiding Principle: A flexible and open, single enterprise solution for
both garrison and operational healthcare.
55 Military Medical Centers & Inpatient Hospitals352 Health Clinics282 Dental Clinics
450+ Forward & Resuscitative Sites300+ Ships2 Hospital Ships6 Theater Hospitals3 Aeromedical Staging unitsO
pera
ting
Envi
ronm
ent
Competitively acquire, test, deliver and successfully transition to a state-of-the-market
EHR
Deployment of the new EHR and follow-on theater capabilities to expeditionary
locations
EHR60+
Capabilities
JROC CDDRequirements
Consolidated Data Center
MED COI Infrastructure
Small & Distributed Form Factor
Service Tactical Infrastructure
C2
MHS Approved Requirements Logistics
Service Specific
DHMSM JOMIS
+ =DHMSM
Configured EHR +
Theater Capabilities
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Collaborative Delivery of a Modernized EHR
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To deliver a modernized EHR to the military garrison and operational points of care, and transform how the military health system provides healthcare, the Services, DHA and Acquisition Teams will collaboratively work with the care locations to configure, test, train and deploy the new solution
Conclusion
AcquisitionDHMS
Solution Delivery & InfrastructureDHA
Site PreparationServices
Modernized EHRBusiness Processes
& RequirementsFunctional Champion
Deploy to 1,200+ Care
Locations
& 205,000+ ProvidersAcross the
World
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EHR Modernization Potholes
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• Governance • Unstable resources• Unclear Program Scope • Insufficient Change
Management • Inadequate Technical Skills• Schedule Driven• Consensus Decision Making• Lack of Communications• Insufficient Training • Underestimating Culture • Leadership Stability
Distribution A: Approved for Public Release
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T-2017
∎ T-3 Contracts Worth $53B∎ Two Regions Instead of Three∎ Award expected early CY16
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Other Procurements
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Other DHA Procurements
∎ 8 expected awards for September∎ 3-4 expected awards for October∎ 1 expected award for November∎ 2 expected awards for December∎ Those contracts and others with cum. awards of
>$30 B over next two years
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Compound Pharmaceuticals
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LES/FOUOLES/FOUO 20
Unsolicited Marketing and Misrepresentation
Scheme:
• DHA-PI and its contractors are receiving numerous complaints from beneficiaries regarding “cold calls” and “robo calls”
• Typically callers state they represent TRICARE and are offering a new benefit at no cost (usually pain or scar cream) and needs patient’s PII
• Compound pharmacies are also using Patient Recruiters (including Active Duty Personnel) that offer gift cards or cash to sign patients up to receive compounds. Marketers reported to receive as much as $5K per beneficiary that they convert to compounds
• Websites are targeting TRICARE beneficiaries stating they will be paid anywhere from $200-$350 a month to join a study. There is no study being conducted. It’s a ruse to get beneficiaries to sign up and receive compounds
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LES/FOUOLES/FOUO 21
No Physician/Patient Relationship
Scheme:
• Utilizing select physicians to write scripts without patient interaction
• Physicians receive as much as $500 per script
• TRICARE experiencing an increase of high volume compound prescribers
o Top prescriber generated $102.4M in paid claims (for 15,987 scripts) within last 360 days
o Prescriptions written by physicians that are not in the same geographical region of the beneficiary
o Providers generally are not submitting healthcare claims—they are being paid by the pharmacies
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LES/FOUOLES/FOUO 22
Compromised PII and PHI
Scheme:
• Personally Identifiable Information/Protected Health Information is compromised
o Purchased from co-conspirators at providers office, hospital, clinic, etc.
o Acquired from marketing calls; e-mail solicitations; website
• Information is sold to pharmacy engaged in fraud
o Information is used to fabricate prescriptions
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LES/FOUOLES/FOUO 23
Beneficiary Kickbacks
Scheme:
• Beneficiary converts to compound medication in return for cash kickback
o Beneficiary may or may not receive the medication
o Typically beneficiary converts to multiple compound medications
o In some instances immediate family members also convert to compounds to expand the kickback revenue stream
o In some instances beneficiaries that are recruiters also convert to compounds to receive kickbacks
• No cost share or copayment collected
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LES/FOUOLES/FOUO 24
Investigative Activities
76 active compound pharmacy/prescriber investigations opened in past 90 days
DCIS is lead agency for the majority of compound pharmacy investigations; DCIS independently pursuing numerous leads
May 1, 2014-May 1, 2015:
• $603.4 million paid to top 10 pharmacies – Related to suspect pharmacies under law enforcement review
• $349.7 million paid for prescriptions generated by top 10 high volume prescribers
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LES/FOUOLES/FOUO 25
Investigative Activities (cont.)
DCIS Cyber Crimes Unit engaged in link analysis intelligence gathering concerning top 50 paid pharmacies
DHA-PI routinely sharing data mining reports with DCIS-HQ (high prescribers report, top paid compound pharmacies, etc.)
NCIS gathering intel on Active Duty Patient Recruiter/Patients
Weekly collaboration meetings with PBM, DCIS, and DOJ
• DCIS leadership want to be kept apprised of effectiveness of TRICARE controls
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LES/FOUOLES/FOUO 26
Investigative Activities (cont.)
Common owner(s) of different suspect pharmacies is not unusual
In one ongoing DCIS fraud investigation of a retail pharmacy the pharmacy converted their business model from a retail pharmacy to a compound pharmacy
Health Care Fraud Prevention and Enforcement Action Team (HEAT) initially declined dedicating resources to TRICARE.
Recently one Heat (Strike Force) Prosecutor from DOJ has been assigned to a case. And the Miami HEAT (Strike Force) has agreed to look at five cases.
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CBS News Segments
http://www.cbsnews.com/news/investigation-insurance-billed-18000-for-unwanted-pain-meds
http://www.cbsnews.com/news/free-pain-meds-for-veterans-cost-taxpayers-big-bucks/
http://www.cbsnews.com/news/doctors-complicit-costly-abuse-military-health-care-system/
To view right click
LES/FOUOLES/FOUO
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LES/FOUOLES/FOUO 28
Limited Controls
ESI-PI notifying select pharmacies that directly soliciting beneficiaries is prohibited by network agreement; requesting pharmacies to acknowledge they will comply – 13 notifications have been mailed so far
Pharmacies requesting to be in network that note they dispense over 5% of compound drugs are generally denied
ESI-PI identifying network retail pharmacies that converted to compounding pharmacies in violation of network agreement; also pharmacies known to enter network as a retail pharmacy that convert to a compounding pharmacy; 34 compound pharmacies terminated from network
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LES/FOUOLES/FOUO 29
Limited Controls (cont.)
Claims suspensions triggered by DHA-PI administrative review of prescribers prescribing outside the state in which they practice, or after significant law enforcement/DOJ event
Exclusions burdensome to execute; typically requires health care fraud conviction
As of 1 May 2015 TRICARE instituted a preauthorization process, and will deny payment for safety and efficacy concerns
TRICARE does not have a closed compound pharmacy network (similar to specialty pharmacy network)
TRICARE does not use a fee schedule to control costs of compound medications. ESI is now negotiating rates with compounding pharmacies as of 1 May 2015
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LES/FOUOLES/FOUO 30
Resource Impact
Law Enforcement:
• Health Care Fraud is one of the DCIS Investigative Priorities;
• Limited DCIS investigative resources; law enforcement resources not sufficient to address scope of problem
• DCIS operates from a finite budget (unlike FBI and HHS-OIG no recoveries go to DCIS from doubles, trebles, fines, and penalties to support future investigative operations)
DHA-PI:
• Tremendous increase in Fraudlines (498 in last 90 days)
• Active case inventory greatly expanding
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LES/FOUOLES/FOUO 31
Compound Expenditures 2012-2015
Compound Pharmacy Expenses Through April 30th, 2015
$600,000,000
$500,000,000
Through April 30th: $546.8 M March: $335M February: $233.5M January: $167M
$400,000,000
$300,000,000
$200,000,000
$100,000,000
$0
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May Total: $70.67, June Total: $10.231M,July Total: $11.533M, August Total : $9.01M
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Data Source: ESI Claims Data
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Seized from Oldsmar PharmacyFebruary 2015
LES/FOUOLES/FOUO 35
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Questions
36