The Core Institute's High-Tech Health Care Strategy
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Transcript of The Core Institute's High-Tech Health Care Strategy
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LEADING HEALTH CARE TOMORROW…
SUSTAINABILITY, PROFITABILITY, SURVIVAL
David Jacofsky, MD
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"The concept is interesting and well-formed, but in order to earn better than a 'C', the
idea must be feasible” A Yale University management professor in response to Fred
Smith's paper proposing reliable overnight delivery service.
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THE INVERSE RELATIONSHIP
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WE MAY BE GOOD…BUT WE COULD BE BETTER!
1278
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AVERAGE HOSPITAL INPATIENT CHARGES: MS-DRG 470 IN 2011
http://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-Sheets/2013-Fact-Sheets-Items/2013-05-08.html
2011 National Average: $50,116
Despite clear evidence that orthopedic conditions can be improved significantly with standardized care, measured outcomes, and unique payment models, there is still wide variation in orthopedic care patterns.
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INDUSTRY DYNAMICS
Changing Payment Systems
Efficiency Pressures
Lack of Physician Alignment
Decreasing Margins &
Quality
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SUCCESS REQUIRES ASERVICE LINE MANAGEMENT PLATFORM
Must develop an outcomes management platform proven to:
– Improve outcomes – Reduce the cost of care– Manage post-acute utilization– Improve provider compliance with
quality metrics– Integrate physicians and hospital
partners across the continuum of musculoskeletal care
– Ultimately cannibalize your own volume
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KEY COMPONENTSData
Analysis
• Leading indicators• Outcomes Metrics• Understanding CMS Data• Data analysis
• Alignment structure/strategy in place and working
• Physicians, post-acute providers, consultants, etc.
• Assessment of current process
• Development of new process
• Implementation and sustaining care continuum
Stakeholder Alignment
Care Redesign
The most successful care management programs will have all three foundational components.
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TO SURVIVE AS A COMPANY…
“…requires a part R&D and a part fortune teller. Companies that survive predict what consumers will want or need a full 3 years before consumers realize it…”
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GERARD J. TELLIS• Unrelenting Innovation
– “Organizations are in greatest danger of failing when they’re at the peak of their success”
– “Market dominance can be a curse that blinds companies to the next big innovation or process change on the horizon.”
• Studied 770 companies across 15 countries• Research found that success over the long haul is NOT related to:
– Size– Number of patents– Dollars invested into R&D
• Research found that success over the long haul IS related to:– A “culture of innovation” – An appetite for risk– Reward for radical and fresh thinking– A focus on the future, not the past– Willingness to put current business at risk
“Creating a culture designed to cannibalize currently successful products is the only way to go. Trying to buy that kind of culture usually doesn’t work”
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WHAT TO EXPECT IN HEALTHCARE SHOULD BE ANALOGOUS TO THE PATH
SEEN IN OTHER INDUSTRIES…
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5 PHASES OF INDUSTRY DEVELOPMENT
• Craft/Art• Rules plus Instruments• Standardized Procedures• Automation• Computer Integration
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EXAMPLES OF SOME INDUSTRIES
• Airlines• Firearms Safety• Manufacturing• Communications• Finance• National Security
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AVIATION AS AN EXAMPLE
• Failures are defined by complications called crashes• Began in 1903 – Wright Brothers• Between 1930 and 2010 accident risk decreased by
over 6 orders of magnitude (1,000,000 fold)• During the same period, infant mortality rates
decreased by only 30 fold• When the Army Air Corps took over flying the
airmail in 1934, in 78 days of operation it had 66 accidents and 12 fatalities
• Experts believe that up to 80% is due to a shift from “art to science” and “intuition to real time data”
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EARLY FLIGHT• Early pilots used their senses and muscles to control an
airplane very directly• Open cockpits allowed them to directly feel and hear
the engine, aircraft, and environment• Maneuvering required physical strength to move the
controls, and they could not take their hands off the controls
• Instruments were basic • Navigation was based on visual landmarks such as
following roads and railroads• Decisions on whether to take off in bad weather were
based purely based on judgment. • Each pilot flew differently, with idiosyncratic results
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MODERN AVIATION
• Flying is mostly engineering science• Very little is left to chance or human error• The role of the human pilot is radically different,
with their senses replaced by digital readouts, and muscles replaced by computer-controlled motors and other actuators
• Computers do the actual flying, while the pilots monitor and direct the computers
• Pilots have discretion to override the computers, but virtually never need it– Most often due to other human errors requiring a
change
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FROM ANNALS OF INTERNAL MEDICINE
“We believe that to achieve the next increase in safety levels, healthcare professionals must face a very difficult transition: abandoning their status
and self-image as craftsmen and instead adopting a position that valuesequivalence among their ranks. For example, a commercial airline passenger
usually neither knows nor cares who the pilot or the copilot flying theirplane is; a last-minute change of captain is not a concern to passengers, as
people have grown accustomed to the notion that all pilots are, to an excellentapproximation, equivalent to one another in their skills. Patients have a
similar attitude toward anesthesiologists when they face surgery. In bothcases, the practice is highly standardized, and the professionals involvedhave, in essence, renounced their individuality in the service of a reliable
standard of excellent care. They sell a service instead of an individual identity.”
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ART VS. SCIENCE
• Surgery remains a craftsmen market• Patients believe outcomes are based on
their surgeon because high variation exists and preventable complications are rampant (1 in 7000 admissions leads to a preventable death)
• Where on the spectrum an industry falls is based squarely on the available technologies to move an art to a predictable science
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AVIATION PHASE 1“PURE ART/CRAFT”
• Pilots were revered and flying was an art• The best pilots felt gauges were slower then their
hands and minds and were a non-proven distraction
• Standard definitions didn’t even exist making it difficult to compare safety records of aircraft or pilots
• Certain activities were near impossible due to loss of visual landmarks and lack of certain technologies– Flying above the clouds
• Navigation Method: Railways and landmarks
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AVIATION PHASE 2“INSTRUMENTS AND RULES”
• Instruments are born• Able to fly above clouds• Instruments superior to human
senses– Even though many state they disagree
• Navigation Method: Gyroscopes and Maps
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AVIATION PHASE 3“STANDARD PROCEDURES”
• Checklists begin to be used by some– Others resist, many of them the most
famous pilots• Human errors minimized• Navigation Method: Celestial
Navigation and Gyrocompass
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AVIATION PHASE 4“AUTOMATION”
• Jets require faster reflexes and calculations become too complex for pilots to perform in real time
• Best pilots who weren’t trained on newer systems almost immediately become obsolete– Easier to retire than retrain at a certain point
• Younger pilots trained to rely on systems promote rapidly
• Navigation Method: Automated Radio Paths
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AVIATION PHASE 5“COMPUTER INTEGRATION”
• Super-human responsiveness for certain functions• Goal oriented targeting
– Craft can hit an altitude and speed and 3D position more accurately, more quickly than any human
– AND do so while calculating the most fuel efficient manner to get there based on air speed, wind speed, humidity, and weight distribution
• Navigation Method: Integrated navigation systems including GPS, 4D, gravitational field, and inertial systems
• We still need pilots for the most complex of situations (e.g. choosing the landing site on the Hudson River after bird impacts into engines)
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AVIATION IS A SYSTEM AND FLYING IS WHAT A PILOT
DOES…
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ISN’T ANYTHING AN ART THOUGH?
• Today there now are mathematical models that are proven predictors of success for both movies and hit songs…– Are used to suggest modifications to
make them more successful and desirable to consumers
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HISTORY OF ALMOST EVERY INDUSTRY AND EVERY
EXPERT WOULD SAY THAT HEALTHCARE WILL FOLLOW
THE SAME PATH…
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HEALTHCARE IS BETWEEN STAGE 2 AND 3…
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THE TRANSITION TO RISK: INEVITABLE
The shift from Volume to Value is already underway, so that inaction is not an option
Fee for Service INCENTIVE = VOLUME
Drivers of Change:• The recent Presidential election has cemented the
implementation of the ACA• Healthcare remains focus of budgetary political
activity (e.g. tax cuts, SGR, Sequestration, Debt Ceiling) • Demand by patients and payors for transparency and
demonstrable value of care by providers:o Reduced costso Reduced pricingo Reduced Utilizationo Improved quality outcomeso Accountable providers across the continuum
Population Health Management
INCENTIVE = VALUE
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FUTURE PAYER REFORM ALIGNMENT STRATEGIES
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HEALTHCARE REFORM
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NEW PAYMENT MODELSCost, Quality, Experience
• Population Health
• Bundled Pricing– BPCI– CJR
• Shared Savings– Pioneer ACO Program– Commercial ACO Contracts– Gain-sharing
• Pay-for-Performance– Readmissions Penalties– Quality-Based Commercial Contracts– Value-Based Purchasing
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MUST MANAGE ENTIRE THE CONTINUUM!
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KEY COMPONENTSData
Analysis
• Leading indicators• Outcomes Metrics• Understanding CMS Data• Data analysis
• Alignment structure/strategy in place and working
• Physicians, post-acute providers, consultants, etc.
• Assessment of current process
• Development of new process
• Implementation and sustaining care continuum
Stakeholder Alignment
Care Redesign
The most successful care management programs will have all three foundational components.
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Execute. Transform. Succeed.
STAKEHOLDER ALIGNMENT
& CARE REDESIGN
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Service Line Management
Bundled Payments
Shared structural components
Generally service line focused
Infrastructure to ID & support quality
improvement targets
Physician incentives
BUNDLED PAYMENTS & SERVICE LINE OPTIMIZATION
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QUALITY INFRASTRUCTUREQuality
Committee
Service ExcellencePeer Review Committee
Surgical case reporting
M &M
Compliance
Risk management
Audits
FPPE/OPPE
MACRA work group
Provider Clinical Manage
mentArizona
• East Valley• West
Valley• Central
Valley
Michigan• Novi• Southfield• Brighton
CORE Analytics
TeamComplications
reporting
Provider Dashboard
Patient reported outcomes
Patient complaint system
Continuous patient monitoring system
Service Line
Management
BDWMC
BDMC
BTMC
BEMC
BUMCP
BBWMC
BBMC
BCGMC
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CARE REDESIGN SUMMARYStakeholder Alignment• Infrastructure and
platform engages physicians in a different way
• 1:1 surgeon to surgeon coaching
• Incentive structure beyond gain sharing
Care Redesign• Pathways, protocols and
order sets• Presurgery education
(Clinic & Hospital)• Standard reports• Key performance
indicators• Daily monitoring of
outcomes and readjusting
• Project management
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Execute. Transform. Succeed.
DATA ANALYSIS( AND PROBLEMS WITH BIG DATA)
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PROVIDER CONNECT
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DOCUMENTS ON PROVIDER CONNECT
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E-FACE SHEET /REGISTRY
43
Here’s a link to EFaceV2 in the development environment (only accessible from within the CORE network):http://core-dev/EFaceV2/ Here’s a link to EFaceV2 in the live production environment:https://www.coreqit.com/EFaceV2/
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PROBLEMS WITH BIG DATA AND PUBLIC OUTCOMES…
44
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INTERNAL QUALITY MEASURES
• Weekly Case Reporting• Surgical Case Reporting Committee
– Monthly review of case reporting– Cases selected for Peer Review
Committee and M&M Conference– Review any new or potential legal cases– Protected under Peer Review
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TKA COMPLICATIONS
Further drill done by procedure can be done
TKA related complications sorted in descending order
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FOCUSED PROVIDER PRACTICE EVALUATION
• Historically used in hospitals to check requested clinical privileges against actual performance
• At CORE, we use it at 60 and 120 days from start of clinical practice. We review against 5 parameters:– Culture and organizational fit– Understanding of productivity and revenue– Attitude toward Quality metrics– Understanding and practice of standardization
and Evidence Based Medicine– Perception survey completed by staff
48
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OVERALL FINDINGS FROM THE AUDIT
% Indica
tion Documented
% Algorit
hm/ Pro
tocol Fo
llowed
% Imag
ing/ Documen
tation Complet
e
% Technique W
ithin St
andard
s
% Complications R
ecogn
ized an
d Man
aged*
% Procedure
Follo
w Up Occu
rred
% Post Pro
c Imag
ing Complet
e &Revi
ewed
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Provider A Provider B Provider C Provider D Provider E Provider F
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ADHERENCE TO PROTOCOL
Provider A Provider B Provider C Provider D Provider E Provider F0
2
4
6
8
10
Algorithm/ Protocol Not Followed Algorithm/ Protocol Followed
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YOU MUST DRIVE EVIDENCE BASED BEHAVIORS TO HELP
PHYSICIANS BE SUCCESSFUL!
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OSTEOPOROSIS SCREENING, DEXA ORDERING, & COMMUNICATION
• From the Office Visit Note, in the Past Medical History or due to diagnosis, the Medical Assistant will indicate if the patient has a history of osteoporosis. This information will translate into the DEXA Screening section for the provider.
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OSTEOPOROSIS SCREENING, DEXA ORDERING, & COMMUNICATION
• The Provider will select the bright green DEXA Screen button. This DEXA Screen button will only appear for eligible patients based on data entered for DOB, insurance, and/or fracture diagnosis.
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• The DEXA Screen dialog box will open prepopulated based on the osteoporosis past medical history entered and previous orders. Select the appropriate action from the action list, and then select Log Action and Return to A/P.
OSTEOPOROSIS SCREENING, DEXA ORDERING, & COMMUNICATION
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CUSTOM PRO
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PRO CONTINUED
56
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PRO CONTINUED
57
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PATIENT CLICK SUBMITS AND RETURN TABLET TO STAFF
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PRE-OP PREDICTIVE SCORING (POPS)®
Development And Deployment
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SYSTEMS AND PROGRAMS SCALABLE TO ANY HOSPITAL,
INSURANCE PROGRAM, OR PHYSICIAN GROUP!
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ar Apr
May Jun Jul
2012 2013 2014 2015 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
Routine DC Linear (Routine DC) SNFLinear (SNF) DC to Home Health Linear (DC to Home Health)
POST ACUTE USAGE
Home w/ OP PT
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LENGTH OF STAY
Jan-11
Mar-11
May-11
July-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12Sep
-12
Nov-12
Jan-13
Mar-13
May-13
Jul-13Sep
-13
Nov-13
Jan-14
Mar-14
May-14
Jul-14Sep
-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15Sep
-15
Nov-15
Jan-16
Mar-16
May-16
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Total Hips LOS Total Knees LOS
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POPULATION HEALTH CAPITATED RISK
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FFS RISK
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MUST MANAGE ENTIRE THE CONTINUUM!
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PAYMENT STRUCTURE SHOULD INCENTIVIZE OPTIMAL SITE OF SERVICE
ASC
Acute Care Hospital
• Most patients for high acuity surgery (e.g., joints)
• High risk patients for inpatient and outpatient surgery
Surgical Hospital
• Select patients for high acuity surgery (e.g., joints)
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POPULATION HEALTH – THE ORTHOPEDIC CONTEXT
1 Risk infrastructureBasic organizational foundations to manage at-risk contracts
2 Episode EfficiencyUnderstanding how to maintain or improve quality across an episode while reducing total costs
3 Appropriate UtilizationUnderstand type and cause of orthopedic utilization by putting the patient at the center of this approach
4 Prevention and WellnessUnderstand sources of claims in the population and identifying what claims can be prevented through education, coordinated care, and prevention
Taking a Population Health approach to orthopedics requires the surgeon to take a view beyond the operating suite in considering the total impact and need for orthopedic care.
Risk Infrastructure
Episode
Efficiency
Appropriate
Utilization
Prevention and Wellness
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PATH TO POPULATION HEALTH SOLUTIONS…
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THE FUTURE IS ABOUT…
• Leverage and Scale• Population Health• Clinically Integrated Networks• Technology to manage costs, behaviors, and
improve outcomes• “Winners” and “Losers”
Be Bold. Lead.
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QUESTIONS?
“... it ought to be remembered that there is nothing more difficult to take in hand,
more perilous to conduct, or more uncertain in its success,
than to take the lead in the introduction of a new order of things.”
Nicolo Machiavelli, The Prince
1515
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QUESTIONS?