Th 0215pm Linking Compliance Quality and RiskMgmt Murray.ppt · Becker’s Hospital Review 6...
Transcript of Th 0215pm Linking Compliance Quality and RiskMgmt Murray.ppt · Becker’s Hospital Review 6...
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Community HospitalCommunity HospitalCommunity HospitalCommunity Hospital
Linking Compliance, Quality and Risk Linking Compliance, Quality and Risk Linking Compliance, Quality and Risk Linking Compliance, Quality and Risk Management for Better Patient OutcomesManagement for Better Patient OutcomesManagement for Better Patient OutcomesManagement for Better Patient Outcomes
Becker’s Hospital Review 6Becker’s Hospital Review 6Becker’s Hospital Review 6Becker’s Hospital Review 6 thththth Annual Meeting Annual Meeting Annual Meeting Annual Meeting –––– 7 May 20157 May 20157 May 20157 May 2015Presented by: David J. Murray, MS, BS, CCEP, CHPCPresented by: David J. Murray, MS, BS, CCEP, CHPCPresented by: David J. Murray, MS, BS, CCEP, CHPCPresented by: David J. Murray, MS, BS, CCEP, CHPC
Agenda for Today’s Rousing Session!
1) Board Fiduciary Responsibility
2) Past and Current Government Activity Linking Quality and Risk
3) Model for Linking Compliance, Risk and Quality
4) Case Reviews
Who are We Accountable Who are We Accountable Who are We Accountable Who are We Accountable to on Regulatory Side?to on Regulatory Side?to on Regulatory Side?to on Regulatory Side?
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Fundamental Oversight Duties of Trustees
• Management
• Strategic Planning
• Financial
• Compliance
• Quality
Responsibilities & Accountabilities of the Board
& Senior Management
Involvement and Commitment of the Board:
� “shall be knowledgeable”
� “shall exercise reasonable oversight”
� Annual board training
� Regular reports
� Sufficient information to accept key corporate choices
� Enhancing corporate culture
Responsibilities & Accountabilities of the Board &
Senior Management
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Headlines
U.S. spends more than twice as much as other developed
countries on healthcare . . .Yet lags well behind in key
measures of quality
4 in 10 Americans reported experiencing inefficient,
poorly coordinated or unsafe care. Commonwealth Fund
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Scorecard on U.S. health care
systems – Commonwealth Fund
For 37 key indicators for five health care system
dimensions (quality, access, equity, outcomes and
efficiencies), the overall U.S. score was 66 out of a
possible 100
Efficiency was the single worst score among the five
dimensions.
The U.S. is the worldwide leader in costs
The U.S. scored 15th out of 19 countries in mortality
attributable to health care services
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Scorecard on U.S. health care
systems – Commonwealth Fund
For 37 key indicators for five health care system
dimensions (quality, access, equity, outcomes and
efficiencies), the overall U.S. score was 66 out of a
possible 100
Efficiency was the single worst score among the five
dimensions.
The U.S. is the worldwide leader in costs
The U.S. scored 15th out of 19 countries in mortality
attributable to health care services
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Corporate Responsibility and
Health Care Quality
• Healthcare organization boards have distinct
fiduciary responsibility in quality
• Quality is also an enforcement priority for
health care regulators
E.g., poor or no quality is one definition of a
false claim
• Quality is considered a duty of care
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• Embedded within the duty of care is the
concept of reasonable inquiry – directors are
expected to make inquiries to management to
obtain the information to satisfy their duty of
care.
Corporate Responsibility and
Health Care Quality
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Responsibilities & Accountabilities of the Board
& Senior Management
Fiduciary Duties
• Duty of Care
• In re Caremark:
• Ensuring a corporate information and reporting system exists;
• Ensuring that the system is sufficient to assure appropriate information
regarding the organization’s compliance will come to the board’s
attention in a timely manner
• In re Citigroup:
• Held board members can be held personally liable for failure to oversee
corporate compliance activities . . .
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Focus on Areas of Concern to Enforcement
Community
• Submission of accurate claims and information
• Referral Statutes
• Payments to reduce or limit services
• EMTALA
• Substandard care
• Relationships with Federal health care beneficiaries
• HIPAA
Responsibilities & Accountabilities of the Board
& Senior Management
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Defining Quality – Institute of Medicine – Health care
should be:
1. Safe
2. Effective
3. Patient-Centered
4. Timely
5. Efficient
6. Equitable
Responsibilities & Accountabilities of the Board
& Senior Management
Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Compliance:
�No/Poor Quality creates false claims
�Negligent Credentialing
�Non-retaliation for reporting
Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Quality
� Underutilization
� Overutilization
� Error – “To Err is Human” and “Crossing Quality Chasm”
� Outcomes
� Process Improvement
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Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Risk:
�Patient safety
�Incident reporting
�Push for Enterprise Risk Management
Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Government Enforcement:
�OIG Model Compliance
�Quality oversight
�Medically necessary services
�Over/Under utilization
�Guidance for Model Compliance Guides – Quality initiatives/links in each
Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Government Enforcement:
�Work Plans – quality reviews – FY2015
�Hospitals – Quality of Care and Safety
�Participation in projects with QIO’s
�Oversight of pharmaceutical compounding
�Oversight of hospital privileging
� Inpatient Rehab – Adverse Events
�LTC Hospitals – Adverse events
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Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Government Enforcement:
�Corporate Integrity Agreements-Quality
�St Joseph London
�Allegiance Health
�Dallas County Hospital District d/b/a Parkland Health and Hospital System
�All require integration of quality into system compliance programs with quality oversight (e.g. Chief Quality Officers etc.)
Compliance, Quality Compliance, Quality Compliance, Quality Compliance, Quality & Risk Convergence& Risk Convergence& Risk Convergence& Risk Convergence
Government Enforcement:
�Value Based Reimbursement
�Accountable Care Organizations
�Patient Centered Medical Homes
Our Organization and Case StudiesOur Organization and Case StudiesOur Organization and Case StudiesOur Organization and Case Studies
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Organization
Key Advantages
� No silos
� Communication
� Coordination
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Case StudyCase StudyCase StudyCase Study
Readmissions – Focus of all Payors:
� Do you know what your rates are?
� Implications for Reimbursement
� Focus of CMS
� A Case Study!!
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Case StudyCase StudyCase StudyCase Study
Case Study: - Readmissions
Period of Assessment: 14 months
Findings:
• 25% of readmissions had no
primary care provider
• Groups 4, 14, and 16 were
identified with cases by
volume
Intervention:• No primary care – high priority
for telephone follow up
• Target Groups: Partnerships for
transitions of care communication
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Case StudyCase StudyCase StudyCase Study
Results:
� Significant decrease in readmission rate
� Significant decrease in costs (i.e. consolidation of
admissions into one stay)
� Improved patient and provider satisfaction
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Avoidable Admissions/ED Visits/UC Visits:
� Assessment of Hierarchical Condition Categories (HCC)
presenting in any of these settings
� Identification of chronic conditions in acute exacerbation
within these groups
Case StudyCase StudyCase StudyCase Study
Avoidable Care –
Emergency Department at Community Hospital (CH)
• FY2014 YTD ED Visits: 27, at a cost to the health care system of approximately $40k (charges) (Average $1,470 per visit)
• FY2013 ED Visits: 66, at a cost to the health care system of approximately $105k (charges) (Average $1,590 per visit)
Observation and Inpatient Care at Community Hospital
• FY2014 YTD Inpatient/Observations: 16 cases at a cost to the health care system of approximately $473k (charges) (Average $29,562 per stay)
• FY 2013 Inpatient/Observations: 34 at a cost to the health care system of approximately $590k (charges) (Average $17,353 per stay)
Case StudyCase StudyCase StudyCase Study
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What We Found:
� In FY2013, 8 GVPC patients presented to CH ED across 11 visits
� In FY 2014 YTD, 3 GVPC patients presented to CH ED with diabetes out of control
� In FY2013, 7 GVPC patients were admitted (1 of which was admitted 3 times). [NOTE: Cost - $61k in care more than we were reimbursed]
� In FY2014 YTD, 5 GVPC patients were admitted [NOTE: Cost - $54k in care more than we were reimbursed]
� We had gaps in care – we needed to improve transitions
Case StudyCase StudyCase StudyCase Study
So we did some more data mining…
“empanelled patient population” – those
we had direct stewardship over in our
practices.
Case StudyCase StudyCase StudyCase Study
What We Found:
� 972 Patients empanelled at Grand Valley Primary Care (GVPC) are diabetic
� 81 have not been seen within the past year
� 62 are School District 51, 2 of which have not been seen within past year
� 111 GVPC patients visited Grand Valley Urgent Care (GVUC) in past year, totaling 353 visits
� At one point, 367 diabetics had their last HbA1C = 9 or higher
Case StudyCase StudyCase StudyCase Study
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Continued Evolution – Assess the Population we Manage – and Outcomes
Where we headed:
� Causality – Financial Barrier to Care� Employer Clinic for Self Funded Groups� Global Primary Care Fee (Doc + Lab + Pharm) – outside of deductible� EPO Arrangement� $$ to bottom line of the system
� Transitions� Longitudinal chronic care management with outcomes tracking� Aggressive inpatient management� Diabetic Education - Partnership Linkages� Provider Education – Feedback Loop on Patients
� Non-employed Physicians� Employed physicians
� No more avoidable visits for this for empanelled patients
Case StudyCase StudyCase StudyCase Study
Illustrative Example: Major Joint Replacements with Major
Co-Morbid Conditions – and average Operating Room Charges
Community Hospital Challenges . . .
Variance in Cost of Treatment
Major Joint Replacement (Hips & Knees)
with Major Co-Morbid ConditionAverage Operating Room Charges - FY 2009
Physician DRG 469 VAR AVERAGE VAR MEDIAN
10 $ 11,993 $ 3,674 $ 3,244
15 $ 9,184 $ 865 $ 435
5 $ 8,914 $ 595 $ 165
4 $ 8,749 $ 430 $ -
16 $ 7,264 $ (1,055) $ (1,485)
13 $ 5,932 $ (2,387) $ (2,817)
12 $ 5,349 $ (2,970) $ (3,400)
Average $ 8,319
Median $ 8,749
Case StudyCase StudyCase StudyCase Study
Illustrative Example: Major Joint Replacements without Major
Co-Morbid Conditions – and average Operating Room Charges
Community Hospital Challenges . . .
Variance in Cost of Treatment
Major Joint Replacement (Hips & Knees)
without Major Co-Morbid ConditionAverage Operating Room Charges - FY 2009
Physician DRG 470 VAR AVERAGE VAR MEDIAN
9 $ 10,739 $ 2,893 $ 3,077
7 $ 10,161 $ 2,315 $ 2,499
3 $ 10,056 $ 2,211 $ 2,394
6 $ 8,652 $ 806 $ 990
12 $ 7,855 $ 9 $ 193
8 $ 7,469 $ (377) $ (193)
14 $ 6,435 $ (1,411) $ (1,227)
1 $ 6,058 $ (1,788) $ (1,604)
2 $ 6,052 $ (1,794) $ (1,610)
11 $ 4,979 $ (2,867) $ (2,683)
Average $ 7,846
Median $ 7,662
Case StudyCase StudyCase StudyCase Study
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Illustrative Example: Average Laboratory and Pharmacy Charges - Hips
Community Hospital Challenges . . .
Variance in Cost of Treatment
Hip Replacement with No Major Co-
Morbid Conditions - FY 2010
Top Variance Cases by Gross Charges -
Laboratory
LABORATORY
CHARGES
VARIANCE
FROM MEAN
VARIANCE
FROM
MEDIAN
$ 2,455 $ 2,078 $ 2,270
$ 1,892 $ 1,515 $ 1,707
$ 1,739 $ 1,362 $ 1,554
$ 1,604 $ 1,228 $ 1,420
$ 1,523 $ 1,146 $ 1,338
$ 1,409 $ 1,032 $ 1,224
$ 1,353 $ 977 $ 1,169
$ 1,317 $ 940 $ 1,132
$ 1,154 $ 777 $ 969
$ 1,152 $ 776 $ 968
$ 1,129 $ 753 $ 945
$ 1,128 $ 751 $ 943
$ 1,068 $ 691 $ 883
$ 1,060 $ 684 $ 876
$ 1,059 $ 682 $ 874
$ 377 Mean
$ 185 Median
Hip Replacement with No Major Co-
Morbid Conditions - FY 2010
Top Variance Cases by Gross Charges
- Pharmacy
PHARMACY
CHARGES
VARIANCE
FROM
MEAN
VARIANCE
FROM
MEDIAN
$ 5,664 $ 3,410 $ 3,502
$ 5,479 $ 3,225 $ 3,317
$ 4,638 $ 2,384 $ 2,476
$ 4,204 $ 1,950 $ 2,042
$ 4,124 $ 1,870 $ 1,962
$ 3,661 $ 1,408 $ 1,500
$ 3,634 $ 1,381 $ 1,473
$ 3,605 $ 1,351 $ 1,443
$ 3,598 $ 1,344 $ 1,436
$ 3,252 $ 998 $ 1,090
$ 3,242 $ 988 $ 1,080
$ 3,225 $ 971 $ 1,063
$ 3,196 $ 942 $ 1,034
$ 3,157 $ 903 $ 995
$ 3,152 $ 898 $ 990
$ 2,254 Mean
$ 2,162 Median
Case StudyCase StudyCase StudyCase Study
Findings/Action
Waste:
� Significant waste in OR
� Lack of Control – Vendors and Orthos – What’s coming in our back door?
Potential Legal Issues
� Financial Arrangements – Suppliers and Orthos� Sunshine Act Results – a former surgeon was being paid
Compliance Oversight� Supply chain – standardization of supplies (e.g. “formulary”)
� Committee Process for Supply Selection
Case StudyCase StudyCase StudyCase Study
Illustrative Example – Simple Pneumonia: Average Laboratory and Pharmacy Charges
Community Hospital Challenges . . .
Variance in Cost of Treatment
Simple Pneumonia - Adjusted for No Major Co-Morbid or
Co-Morbid Conditions
Physician ID
Average Charges
Laboratory
Variance
from Mean
Variance
from Median
47 $ 1,814 $ 889 $ 1,081
38 $ 1,715 $ 790 $ 982
30 $ 1,519 $ 593 $ 786
48 $ 1,303 $ 377 $ 570
50 $ 1,165 $ 240 $ 432
36 $ 879 $ (47) $ 146
31 $ 841 $ (84) $ 108
44 $ 777 $ (148) $ 44
33 $ 717 $ (209) $ (16)
42 $ 644 $ (282) $ (90)
35 $ 630 $ (296) $ (103)
39 $ 623 $ (302) $ (110)
41 $ 588 $ (337) $ (145)
46 $ 518 $ (407) $ (215)
45 $ 498 $ (427) $ (235)
34 $ 488 $ (438) $ (245)
49 $ 475 $ (451) $ (258)
43 $ 462 $ (464) $ (271)
32 $ 311 $ (614) $ (422)
40 $ 248 $ (678) $ (485)
37 $ 124 $ (802) $ (609)
Mean $ 925
Median $ 733
Simple Pneumonia - Adjusted for No Major Co-Morbid or Co-Morbid Conditions
Physician IDAverage Charges
PharmacyVariance
from Mean
Variance from
Median
47 $ 7,383 $ 5,336 $ 6,179
38 $ 4,512 $ 2,466 $ 3,308
31 $ 4,448 $ 2,401 $ 3,244
30 $ 3,149 $ 1,102 $ 1,945
48 $ 2,387 $ 340 $ 1,183
36 $ 2,222 $ 176 $ 1,018
32 $ 2,129 $ 82 $ 925
46 $ 1,578 $ (469) $ 374
35 $ 1,165 $ (882) $ (39)
34 $ 1,095 $ (952) $ (109)
50 $ 1,089 $ (958) $ (115)
33 $ 1,085 $ (961) $ (119)
45 $ 912 $ (1,134) $ (292)
41 $ 709 $ (1,337) $ (495)
43 $ 657 $ (1,390) $ (547)
42 $ 656 $ (1,390) $ (548)
39 $ 618 $ (1,429) $ (586)
49 $ 415 $ (1,631) $ (789)
44 $ 339 $ (1,708) $ (865)
37 $ 327 $ (1,720) $ (877)
40 $ 269 $ (1,777) $ (935)
Mean $ 2,047
Median $ 1,204
Case StudyCase StudyCase StudyCase Study
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Illustrative Example – Simple Pneumonia: “Profit” and Loss
Community Hospital Challenges . . .
Variance in Cost of Treatment
Profit and Loss - Simple Pneumonia
Physician ID Net Payment P & L Patterns
20 $ (43,008)
23 $ (10,748)
36 $ (9,628)
21 $ (6,399)
28 $ (4,800)
37 $ (4,212)
22 $ (3,623)
25 $ (3,312)
26 $ (3,276)
24 $ (2,512)
30 $ (2,323)
34 $ (1,536)
31 $ (965)
29 $ (489)
38 $ (4) $ (96,836)
27 $ 57
33 $ 254
39 $ 1,098
32 $ 1,104
35 $ 2,412 $ 4,925
Grand Total $ (91,911)
Case StudyCase StudyCase StudyCase Study
Illustrative Example – Simple Pneumonia: Average Laboratory and Pharmacy Charges
Community Hospital Challenges . . .
Variance in Cost of Treatment
Simple Pneumonia - Adjusted for No Major Co-
Morbid or Co-Morbid Conditions
Physician ID
Average
Charges Laboratory
Variance
from Mean
Variance
from Median
47 $ 1,814 $ 889 $ 1,081
38 $ 1,715 $ 790 $ 982
30 $ 1,519 $ 593 $ 786
48 $ 1,303 $ 377 $ 570
50 $ 1,165 $ 240 $ 432
36 $ 879 $ (47) $ 146
31 $ 841 $ (84) $ 108
44 $ 777 $ (148) $ 44
33 $ 717 $ (209) $ (16)
42 $ 644 $ (282) $ (90)
35 $ 630 $ (296) $ (103)
39 $ 623 $ (302) $ (110)
41 $ 588 $ (337) $ (145)
46 $ 518 $ (407) $ (215)
45 $ 498 $ (427) $ (235)
34 $ 488 $ (438) $ (245)
49 $ 475 $ (451) $ (258)
43 $ 462 $ (464) $ (271)
32 $ 311 $ (614) $ (422)
40 $ 248 $ (678) $ (485)
37 $ 124 $ (802) $ (609)
Mean $ 925
Median $ 733
Simple Pneumonia - Adjusted for No Major Co-Morbid or Co-Morbid Conditions
Physician IDAverage Charges
PharmacyVariance
from Mean
Variance from
Median
47 $ 7,383 $ 5,336 $ 6,179
38 $ 4,512 $ 2,466 $ 3,308
31 $ 4,448 $ 2,401 $ 3,244
30 $ 3,149 $ 1,102 $ 1,945
48 $ 2,387 $ 340 $ 1,183
36 $ 2,222 $ 176 $ 1,018
32 $ 2,129 $ 82 $ 925
46 $ 1,578 $ (469) $ 374
35 $ 1,165 $ (882) $ (39)
34 $ 1,095 $ (952) $ (109)
50 $ 1,089 $ (958) $ (115)
33 $ 1,085 $ (961) $ (119)
45 $ 912 $ (1,134) $ (292)
41 $ 709 $ (1,337) $ (495)
43 $ 657 $ (1,390) $ (547)
42 $ 656 $ (1,390) $ (548)
39 $ 618 $ (1,429) $ (586)
49 $ 415 $ (1,631) $ (789)
44 $ 339 $ (1,708) $ (865)
37 $ 327 $ (1,720) $ (877)
40 $ 269 $ (1,777) $ (935)
Mean $ 2,047
Median $ 1,204
Case StudyCase StudyCase StudyCase Study
Findings/Action
Waste/Over Utilization:
� Clinical benefit of resources used
� Quality/Risk oversight of resources used
Potential Legal Issues
� Deviation from standards of care
Compliance/Quality/Risk Oversight
� Credentialing Reporting – sufficient reporting?
� Ongoing monitoring/tracking
� Provider Education
Case StudyCase StudyCase StudyCase Study
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Health GradesHealth GradesHealth GradesHealth Grades
• Truven – Top 10% In Country for Quality Outcomes
• Community Hospital Receives 5-Star Ratings for Orthopedic Program
• Number 3 in Colorado!!!
• American Hospital Quality Outcomes 2013: Health Grades Report to the Nation– evaluates the performance of a 4,500 hospitals
nationwide – 30 of the most common conditions and
procedures
• Financial Improvement
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Fin
Questions?