15th Annual Healthcare Summit Disruptive Forces in Healthcare
Kelowna, BC
Dr. Robert Halpenny President & CEO Interior Health
} Who is Major driver of Healthcare expenditure in BC?
} Ministry of Health Budget: $17 Billion 48% Acute Care- $8.1 Billion 6% Pharmaceuticals- $1.1 Billion 24% MSP- $4.1 Billion 78%
◦ Directly related to physicians and their patterns of practice
} Healthcare approached 50% of provincial budget
} 11,361 MD’s have the potential to have an impact on approximately 39% of provincial budget!
Quality Cost MD office MD office College of Physicians and Surgeons of BC Patterns of Practice Committee
Audit & Inspection Committee Hospital Hospital Health Authority Board ??????? CPSBC
} Patient Cost Estimator ◦ Estimate the average cost � Services provided to the average typical inpatient
� Undergone the expected course of treatment � Exclude physician services � Most recent data 2012-2013 � Varying wage rates have significant impact on estimate
} We have the data required ◦ ROI to get the data vs “Appropriateness Measures”
} Incentives Not Aligned ◦ Health Authorities � Patients are an expense ◦ Physicians � Patients are revenue
Source: Health System Matrix 5.0
*5 popula)on segments with highest costs + Healthy segment (reference).
} How do we move to aligning incentives and increasing MD involvement in cost containment?
} Clinical Integration/Physician Engagement ◦ Share saving = increase volume ◦ Best practices- quality and cost ◦ Align MD payment with system direction ◦ Pay for performance ◦ Contracts ◦ Salary
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