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Navigating the Era of Fusion Reimbursement – Bundled Payments

October 22, 2015

THE CAMDEN GROUP | 10/22/2015 1

Introduction

Barbara Letts Senior Manager

Over 12 years of experience in healthcare, with extensive financial modeling, analysis, and strategy experience.

For the past few years, heavily focused on bundled payments (Medicare and employer) as it relates to analytics and finance.

Other areas of focus include feasibility studies for large capital projects or new/expanded service lines, assessment of physician groups for acquisitions, joint venture arrangements, and analysis of commercial contracts for potential new partnerships.

Assessment

Gap analysis Financial assessment Organizational assessment Quality assessment Cost effectiveness and

clinical variation Market assessment Physician culture

assessment

Strategy & Analysis

Implementation Ongoing Support

Market entry strategy Commercial, Medicare,

Medicaid, Employer, Comprehensive Care for Joint Replacement (“CCJR”) Model

Payer strategy Claims analysis Bundles selection and

pricing constructs Pitch development

Program launch Structure and governance Dashboard development

and execution Gainsharing methodology Bundled Payments for Care

Improvement (“BPCI”) initiative ongoing support and tracking

Quality monitoring process Hospital, physician, and

organizational education Data analytics and

episode evaluation Contracting

Onsite project management Ongoing analytics support Dashboard monitoring Physician education Steering Committee support Contract management Program auditing

and evaluation

Bundled Payments Service Offerings

2

States where The Camden Group has worked on Bundled Payment projects

Where We Have Bundled

3 © The Camden Group

THE CAMDEN GROUP | 10/22/2015 4

Fee-for-Service vs. Bundled Payments

Fee-for-Service Bundled Payments

Payer Payer

Facility

Anesthesiologist Surgeon

Physical Therapy/Follow-Up

Facility Professional Services

$

Payer provides single payment for entire episode of care

$ $ $ $

THE CAMDEN GROUP | 10/22/2015 5

The Best Leaders Optimize Data Analytics

ENHANCES TRANSPARENCY

ENABLES EVIDENCE-BASED

DECISIONS

FACILITATES EFFICIENCY

MEASURES OUTCOMES AND

PROGRESS

ENABLES ACTION

Presenter
Presentation Notes
One thing I’ve learned from BP is that data is so important. CMS provides data and we’ve worked the files themselves and worked with Milliman who developed benchmarks for post-acute utilization These are the positive outcomes of optimizing data analytics but I can say the first one “Enhances transparency” has been the most transformative with physicians. They aren’t accustomed to seeing information for a full continuum of care – what happens to the patient when they leave (maybe readmissions but not post-acute care) and the cost. Also seeing the variation among physicians for the same procedure. For hospitals, it’s looking at data beyond their four walls and looking at cost of taking care of patients after they are discharged from the hospital.

Payment Reform Roadmap

Presenter
Presentation Notes
Talk about the evolution of how bundled payments have become nationally known

5

1991

1997

Medicare Participating Heart Bypass Demonstration

Medicare Participating Centers of Excellence Demonstration

2001

Medicare Participating Cardiovascular and Orthopedic Centers of Excellence Demonstration 1998

Medicare Cataract Alternative Payment Demonstration

2006

CMS* Medicare Health Quality Demonstration Project

ACE** Demonstration “Value-based Care Centers”

United Healthcare Oncology Bundled Payments

2010

Geisinger Health System PROMETHEUS ® Payment

Method

2012

Integrated Healthcare Association California Commercial Bundled Payment Project

Blue Cross New Jersey Orthopedics Bundled Payment

CMS National Voluntary Pilot (BPCI)

2015

Oncology Care Model CMS Joint Mandate

Bundles: Nothing New Conceptually

*CMS - Centers for Medicare & Medicaid Services, **ACE - Acute Care Episode © The Camden Group

Presenter
Presentation Notes
I view the 2010 ACE demonstration as the start of the evolution. In our firm, the practice leader Deirdre Baggot for bundled payments ran the ACE program at St. Joseph Exempla in Colorado. That was a 3-year program that included Part A and B services only – no readmissions and no post acute care. With Bundled Payments for Care Improvement and most recently announced Comprehensive Care for Joint Replacement – readmissions and post acute care.

CMS Transitions to Value-Based Reimbursement

2011

Historical Performance Goals

2014 2016 2018

Payments linked to alternative payment models

Fee-for-service (“FFS”) linked to quality

All Medicare FFS

8

30%

85%

50%

90%

~20%

>80%

0%

~70%

Source: The Center for Medicare & Medicaid Innovation (“CMMI”), Bundled Payment Summit, June 2015

Presenter
Presentation Notes
Why push for bundled payments, CMS goal by 2016 is to have 85 percent linked to quality and 90 percent by 2018 and 50% linked to alternative payment models like bundled payments.

Estimated Cumulative Percentage Changes in National Healthcare Expenditures, 2010 through 2019

0.2%

-0.3%

-0.3%

-0.5%

0.0%

-0.6%

0.4%

-1.2%

1.0%

-1.3%

0.8%

-1.5%

0.0%

-2.0%

-0.1%

-5.4%

Bundled Payment

Benefit Design

NP* – PA* Scope of Practice

Retail Clinics

Medical Homes

Disease Management

HIT* Hospital-Rate Regulation

CH

AN

GE

IN N

ATI

ON

AL

HEA

LTH

SPE

ND

ING

(%)

9 NP* - Nurse Practitioner, PA* - Physician Assistant, HIT* - Health Information Technology Source: Hussey P., et al. New England Journal of Medicine 2009;361:2109-2111

Bundles Offer Greatest Opportunity to Bend the Cost Curve

Presenter
Presentation Notes
New England Journal of Medicine bundle payments offers the greatest opportunity to bend the cost curve. According to this study, it is anticipated that it will reduce spending by 5.4 percent. Often times, when presenting bundled payments to physicians for the first time, using a clinical publication such as New England Journal of Medicine is better received.

Being first matters more than being perfect: Failure tolerance

A post-acute strategy and network are vital:

Workforce competency and recruitment obstacles

Challenges persist related to limited technology integration

Not all bundles are created equally:

Care transitions impose much greater risk

Medical episodes have a lower price point and higher complexity

Need for patient activation

Transparency and analytics are needed in real time to mitigate clinical variation

Predictive risk tools are necessary for success in risk based payment models and will become the norm

Know your value proposition

10

Bundles: What We Know for Sure

Presenter
Presentation Notes
Greatest variation has been in post-acute. The DRG payment does not vary with Value prop = all bundled not just Medicare = is it price, quality, technique Key challenges with bundled payments implementation: Physician engagement Role of navigator Data and analytics Managing the care continuum Resource allocation

What CCJR can learn from BPCI Year 1 Results

Model 2 Findings

Within 90 days of discharge from the hospital, costly institutional post-acute care (“PAC”) was substituted by less costly home healthcare.

Model 2 participants experienced reductions in the anchor inpatient length-of-stay (“LOS”) and reductions in the 30-day readmission rates.

The most prevalent clinical episodes in Year 1 fall into orthopedic surgery, excluding the spine. Thus, Model 2 results were driven by patient episodes in this clinical episode group.

As a result, there were reductions in Medicare Part A payments to Skilled Nursing Facilities (“SNF”) and Inpatient Rehabilitation Facilities (“IRF”), accompanied by an increase in Part A payments to Home Health Agencies (“HHA”).

11 Source: CMMI, Bundled Payment Summit, June 2015

Bundled Payments impact of Medicare Readmission Rates

ALL-CAUSE, 30-DAY READMISSION RATES DECLINED 1% FROM 2010 TO 2014

20.00%

19.50%

19.00%

18.50%

18.00%

17.50%

Jan

Feb

Mar

A

pr

May

Ju

n Ju

ly

Aug

S

ep

Oct

N

ov

Dec

Ja

n Fe

b M

ar

Apr

M

ay

Jun

July

A

ug

Sep

O

ct

Nov

D

ec

Jan

Feb

Mar

A

pr

May

Ju

n Ju

ly

Aug

S

ep

Oct

N

ov

Dec

Ja

n Fe

b M

ar

Apr

M

ay

Jun

July

A

ug

Sep

O

ct

Nov

D

ec

Jan

Feb

Mar

A

pr

May

Ju

n Ju

ly

Aug

2010 2011 2012 2013 2014

19.07%

REA

DM

ISSI

ON

RA

TE (%

)

12

*UCL

**CL

***LCL

*UCL - Upper control limit, **CL - Control limit, ***LCL - Lower control limit Source: Healthy Policy and Data Analysis Group in the Office of the Enterprise Management of CMS. April 2014-August 2014 readmission rates are projected based on early data, with 95 percent confidence intervals as shown for the most recent five months.; CMMI, Bundled Payment Summit, June 2015

18.02%

Presenter
Presentation Notes
Since the implementation of value-based reimbursement linked to quality readmissions has declined 1 percent from 2010 to 2014

Comprehensive Care for Joint Replacement

Presenter
Presentation Notes
Talk about the recently announced mandate and compare to BPCI first modeled after the most popular model in BPCI then some non-Medicare bundles Particularly of interest to South Texas given that a number of the MSAs are in Texas also the window to enter in the voluntary program BPCI has passed but I will talk a little about how they compare.

Lower extremity joint replacements (“LEJR”) (MS-DRG 469 and 470)

Commences January 1, 2016 (comments due September 8, 2015)

Mandatory 5-year program

No downside risk in Year 1

Inpatient Stay (Facility and Professional Fees)

90 Days Post-Discharge (Including Readmissions)

Skilled Nursing Facility

Inpatient Rehab Facility

Home Health

Long-Term Acute Care (“LTAC”)

Based on BPCI Model 2

90-day retrospective episode of care

Payments tied to quality (complications and readmissions) and patient satisfaction (Hospital Consumer Assessment of Healthcare Providers and Systems [“HCAHPS”])

Comprehensive Care for Joint Replacement Overview

14 Source: CMS

Presenter
Presentation Notes
Main difference here is that payments are tied to quality. Must meet quality whereas in BPCI, only physicians had to meet quality requirements to receive gainsharing payments.

Payments tied to quality and patient satisfaction

Annual payment reconciliation

Hospitals may assign up to 25 percent risk to collaborators, not to exceed 50 percent of total obligation to CMS (alignment payments)

Hospitals may share 100 percent of savings achieved with collaborators (gainsharing payments)

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

$13,000

$14,000

$15,000

$0

Hospital 1 Hospital 2

CMS owes Hospital 1 $ 2,000

(Cost $ 8,000) (Cost $ 15,000)

Potential gainshare

payment to collaborators

Hospital 2 owes CMS $ 5,000

Outlining the Financial Implications of CCJR

15

Target Price

Potential alignment payment

with collaborators

© The Camden Group

Presenter
Presentation Notes
Again payments must be tied to quality so even if you are able to lower your cost, no payment. Reconciliation is annual whereas BPCI is quarterly. Two examples here: Target price is $10,000 Hospital 1 actual price was $8,000 so CMS pays $2,000 for each episode Hospital 2 actual price was $15,000 so hospital pays CMS $5,000 for each episode Now savings can be shared with collaborators Unlike BPCI hospitals can share risk and there are restrictions

Estimate of episode savings

Final Rule Anticipated

NOV 1 2015

JAN 2017

Comment Period Ends

Year 1 Program Begins Baseline: 2012-2014 No Downside Risk

JAN 2016

Year 2 Baseline: 2012-2014 Downside Risk Begins

Year 4 Baseline: 2014-2016

Program Ends

JAN 2019

DEC 2020

MAR 2016

Anticipated Data Sets from CMS

JAN 2018

Year 3 Baseline: 2014-2016

JAN 2020

Year 5 Baseline: 2016-2018

Likely number of participant hospitals

Percent of national LEJR episodes in the program

CCJR: Anticipated 5-Year Timeline

$153M 25% 800

16

SEP 8 2015

© The Camden Group 16

Presenter
Presentation Notes
Talk about the data sets available – detailed and summary Currently with BPCI there are 20 files or so that will require programming skills because the files aren’t already summarized hopefully with CCJR they will provide this option but the downside is that you may not get all the details to learn about trends and issues

Acute care hospitals are the primary risk holders Hospitals located in the 75 Metropolitan Statistical

Areas (“MSA”) selected by CMS: • High density of Medicare recipients • Regions were excluded due to:

o Insufficient volume of LEJR procedures oHigh BPCI penetration oDisproportionately low or high average costs

BPCI Model 1, 2, and 4 acute care hospitals

participating in joint replacement episodes as of July 1, 2015 are excluded

Hospitals Impacted by the CCJR Mandate

17 Source: CMS

Geographic Regions Identified for CCJR Span the Country

75 Mandated Metropolitan Statistical Areas

Mandated Region for CMS CCJR

18 Source: CMS

Identified MSAs for the CCJR Mandate

Metropolitan Statistical Area State(s) Metropolitan Statistical Area State(s) Akron Albuquerque Asheville Athens-Clarke County Austin-Round Rock Beaumont-Port Arthur Bismarck Boulder Buffalo-Cheektowaga-Niagara Falls Cape Girardeau Carson City Charlotte-Concord-Gastonia Cincinnati Colorado Springs Columbia Corpus Christi Decatur Denver-Aurora-Lakewood Dothan

OH NM NC GA TX TX ND CO NY

MO-IL NV

NC-SC OH-KY-IN

CO MO TX IL

CO AL

Durham-Chapel Hill Evansville Flint Florence Fort Collins Gainesville Gainesville Greenville Harrisburg-Carlisle Hot Springs Indianapolis-Carmel-Anderson Kansas City Killeen-Temple Las Vegas-Henderson-Paradise Lincoln Los Angeles-Long Beach-Anaheim Lubbock Madison Medford

NC IN-KY

MI SC CO FL GA NC PA AR IN

MO-KS TX NV NE CA TX WI OR

19 Source: CMS

Memphis Miami-Fort Lauderdale-West Palm Beach Milwaukee-Waukesha-West Allis Modesto Monroe Montgomery Naples-Immokalee-Marco Island Nashville-Davidson-Murfreesboro-Franklin New Haven-Milford New Orleans-Metairie New York-Newark-Jersey City Norwich-New London Ogden-Clearfield Oklahoma City Orlando-Kissimmee-Sanford Pensacola-Ferry Pass-Brent Pittsburgh Port St. Lucie Portland-Vancouver-Hillsboro

TN-MS-AR FL WI CA LA AL FL TN CT LA

NY-NJ-PA CT UT OK FL FL PA FL

OR-WA

Provo-Orem Reading Richmond Rockford Saginaw San Francisco-Oakland-Hayward Seattle-Tacoma-Bellevue Sebastian-Vero Beach South Bend-Mishawaka St. Louis Staunton-Waynesboro Tampa-St. Petersburg-Clearwater Toledo Topeka Tuscaloosa Tyler Virginia Beach-Norfolk-Newport News Wichita

UT PA VA IL MI CA WA FL

IN-MI MO-IL

VA FL

OH KS AL TX

VA-NC KS

20

Identified MSAs for the CCJR Mandate

Source: CMS

Metropolitan Statistical Area State(s) Metropolitan Statistical Area State(s)

Average Regional Historical Episode Costs* Calendar Years 2012 to 2014, MS-DRG 469 and 470

1

2

3

4

5

6

7

8

9

21 *Displayed figures reflect removal of special payment provisions under Inpatient Prospective Payment System (Value-Based Purchasing, Hospital Acquired Conditions, Readmissions, Disproportionate Share Hospital, Indirect Medical Education, etc.) but does not reflect removal of other prospective payment systems, http://innovation.cms.gov/initiatives/ccjr/ Source: CMS

LEJR Procedures: Understanding Regional Cost Variation

NEW ENGLAND 469—$47,928 470—$24,858

MIDDLE ATLANTIC 469—$52,028 470—$27,406

EAST NORTH CENTRAL 469—$50,954 470—$25,480

WEST NORTH CENTRAL 469—$46,189 470—$23,800

SOUTH ATLANTIC 469—$51,239 470—$25,989

EAST SOUTH CENTRAL 469—$50,328 470—$26,345

WEST SOUTH CENTRAL 469—$55,448 470—$27,464

MOUNTAIN 469—$47,925 470—$23,734

PACIFIC 469—$48,874 470—$23,425

Presenter
Presentation Notes
Texas is in West South Central and has the highest cost compared to all other regions. Understanding regional average will be important and will explain later

Services Included Physicians’ services Inpatient hospital Inpatient hospital readmission Inpatient psychiatric facility Long-term care hospital Inpatient rehabilitation facility Skilled nursing facility Home health agency Hospital outpatient Independent outpatient therapy Clinical laboratory Durable medical equipment Part B drugs Hospice*

Services Excluded Acute care conditions not arising from

existing episode-related chronic clinical conditions or complications from the LEJR surgery

Chronic conditions that are generally not affected by the LEJR procedure or post-surgical care

Hemophilia clotting factors New technology add-on payment

CCJR: Defining the Bundle

22 *Not included in BPCI Source: CMS

Distribution of Hospital Claims – Fiscal Year 2014

Code Descriptor (ICD-9-CM Procedure Code)

Total knee replacement (81.54)

Total hip replacement (81.51)

Partial hip replacement (81.52)

Total ankle replacement (81.56)

Resurfacing hip, total, acetabulum and femoral head (00.85)

Resurfacing hip, partial, femoral head (00.86)

Resurfacing hip, partial, acetabulum (00.87)

Lower leg or ankle reattachment (84.27)

Thigh reattachment (84.28)

Procedure Codes that Map to MS-DRGs 469 and 470

21 Note: Federal fiscal year ending September 30 Source: CMS

57% 30%

12%

<1%

Blend of Hospital & Regional

Baseline

Downside Risk

Upside Opportunity

2016 2017 2018 2019 2020

CY* 2012-2014 CY 2014-2016 CY 2016-2018

2/3 hospital specific + 1/3 regional 1/3 hospital

specific + 2/3 regional

Entirely regional

None Limited (10% stop-loss)**

Full (20% stop-loss)

20% gain cap

Trended to performance period

Pricing set at MS-DRG level

Capped at a high payment ceiling (2 standard deviations from the mean)

Discount factor between 1.7 and 2 percent (based on successfully meeting voluntary reporting requirements)

Proposed Target Pricing Methodology for CCJR

24 *CY - Calendar Year, **If hospital owes CMS, the limited downside risk is based on a either 0.7 or 1.0 percent discount (based on voluntary reporting) Source: CMS

Methodology Considerations

Hospital-level 30-day, all-cause risk-standardized readmission rate (“RSRR”) following elective primary THA and/or TKA

NQF #1551

HCAHPS survey

NQF #0166

Complication Rates Readmission Rates Patient Satisfaction

3 Quality Measures are Required for Payment Eligibility

Hospital-level risk-standardized complication rate (“RSCR”) following elective primary total hip arthroplasty (“THA”) and/or total knee arthroplasty (“TKA”)

National Quality Forum (“NQF”) #1550

25 Source: CMS

Proposed Thresholds for Required Quality Measures

Quality Measure 2016 - 2018 2019 - 2020

Hospital-level RSCR following elective primary THA and/or TKA (NQF #1550)

30th percentile

40th percentile

Hospital-level 30-day, all-cause RSRR following elective primary THA and/or TKA (NQF #1551)

30th percentile

40th percentile

HCAHPS survey (NQF #1661)

30th percentile

40th percentile

26 Note: Thresholds based on the measure results from the Hospital Inpatient Quality Reporting Program. Source: CMS

CMS Discount Payment Eligibility

Successfully submits voluntary data (Patient Reported Outcomes [“PRO”])

Only meets thresholds for 3 required quality measures

Voluntary Reporting Reduces CMS Discount

27 Note: Patient Reported Outcomes may include patient reported recovery of daily functions (e.g., mobility) or reduced symptoms (e.g., reduced pain) Source: CMS

1.7 PERCENT Eligible to receive payment

2.0 PERCENT Eligible to receive payment

Comparing the CCJR Mandate with the BPCI Model 2 Category BPCI (Model 2) CCJR Model

Eligible to Bear Risk Physicians, hospitals, post-acute, conveners

Hospitals only

Action Voluntary Mandatory

Episode Length 30, 60, or 90 days 90 days

Baseline Period July 1, 2009 to June 30, 2012 Years 1 and 2: CY 2012 to 2014; Years 3 and 4: CY 2014 to 2016; Year 5: CY 2016 to 2018

Target Price Historical hospital performance Years 1 and 2: Historical hospital 2/3 and regional 1/3 performance (weighted); Year 3: Historical hospital 1/3 and regional 2/3 performance (weighted); Years 4 and 5: Historical regional performance

Discount 30 or 60 days: 3% 90 days: 2%

Submits voluntary data: 1.7% Does not submit voluntary data: 2%

Stop-Loss or Gain 20% of target amount (2013 there was no downside risk)

20% of target amount (Year 1 no downside risk and Year 2 stop-loss 10%)

Reconciliation Quarterly Annually

Episode Initiators Hospitals, physician groups, PAC facilities Hospitals only

Quality Measures Tracked, physicians accountable Hospitals accountable

Source: CMS 28

SNF 3-Day Rule

During years 2 through 5 of the model, CMS proposes to waive the SNF 3-day rule under certain circumstances. This is only valid if a patient is discharged to a SNF with at least a 3-star quality rating (ratings available on Nursing Home Compare website).

Post-Discharge Home Visits, “Incident to” Rule

CMS is not waiving the “homebound” rule, so beneficiaries are still required to be confined to their home to receive home health services. However, CMS proposes to waive the “incident to” rule for home visits allowing physicians to visit and charge for services in the home for up to 9 visits during the episode.

Telehealth Services

CMS proposes to waive the geographic site requirement and the originating site requirement for telehealth services to permit telehealth visits to originate in the beneficiary’s home or place of residence.

29

Proposed CCJR Program Waivers

Source: CMS

Preliminary Data Analysis and Gainsharing Considerations

Sharing Arrangements

Participant hospital is responsible for episode spending and bears financial risk

Hospital allowed to share in the reward and the risk with “collaborators” through sharing arrangements

Potential collaborators: • SNFs • HHAs • LTCHs • IRFs • Physician

group practices

• Physicians • Non-physician

practitioners • Outpatient therapy

providers • Other

Only collaborators that provide direct care can receive gainsharing or contribute to CMS repayments

Must enter into a written “Participant Agreement”

Providers must specify a formula for calculating the percentage of CMS reconciliation payments used as gainsharing payments to collaborators

Must notify patients of sharing arrangements

Requirements

CCJR: Sharing both the Risk and the Reward

31 Source: CMS

Reconciliation Payments

Payments to a CCJR collaborator may be comprised of 2 sources of savings realized:

The amount a participating hospital may receive as a result of having an actual episode payment that is lower than the CMS target price

Risk-sharing restrictions

The hospital must retain 50 percent of repayment risk

The maximum repayment amount a collaborator can pay is 25 percent

Internal Cost Savings

The cost savings realized by the hospital as a result of certain care redesign activities related to the CCJR episodes of care

Gainsharing restrictions

100 percent of reconciliation payments can be shared with collaborators

Capped at 50 percent of physician fee schedule payments (similar to BPCI)

Potential Gainsharing Funds

32 Source: CMS

Presenter
Presentation Notes
Internal cost savings – ALOS reductions and supply cost (the implant). Some are using their cost accounting systems to use direct variable cost and others are using only the supply cost.

Daily Rates Across the Continuum for Medicare FFS

Home Health SNF IRF LTAC Hospital Acute Hospital

$190 $432 $1314 $1450 $1819

The Right Care Setting: Spend Across the Continuum

Source: MedPAC 2013 Based on Fiscal Year 2011 Data 33

Presenter
Presentation Notes
We’ve talked about how the greatest variation in cost we’ve found has been in post- acute spend. Here are average daily rates across the continuum of care. Also note that SNF are paid per diem. Medicare benefits for SNF stop after 21 days so often times we see in the data the ALOS is around 20-23 days however is this because of the benefit design or is it appropriate amount of care.

Hospitals are Strategically Evaluating Their PAC Partners

Medical Directorship and Staffing

Information Technology and Data Sharing

Facility and Services Quality and Outcomes

Delivery Network and Care Continuum

Patient Satisfaction

34

Presenter
Presentation Notes
PAC knows the impact of these mandates and programs and have reached out to hospitals. We’ve seen letters being sent to hospitals asking them to have them be the preferred SNF provider. We’ve been working with hospitals to create a narrow network of PAC partners if they don’t own them. If they own them, we are also figuring how various strategies such as marketing and right sizing.

5-star rating Facility size, physical

organization, and capacity Private vs. semi-private

room distribution Average LOS for Medicare FFS

and managed care Short-stay to long-term

care transfer rate Program specialties

and capacity Primary care coverage,

medical director relationship Leadership tenure and turnover Staffing, especially RN

coverage

Therapy provision (5,6, or 7 days) INTERACT deployment and use Electronic health record

deployment, use, and integration Functional Independence Measure

subscriber status Admission volume and “churn” Complex care delivery by volume 30- to 90-day readmission rates Survey history Monetary penalties Community discharge rates Number of patients discharged

to home health agency

Common Criteria for SNF Partner Selection

35 Source: MedPAC September 2012; MedPAC Analysis of 2004-2006 5 percent Medicare claims files

Presenter
Presentation Notes
You will have these slides up but here are some criteria we’ve put together based on our experience with hospitals.

36 *CHAP - The Community Health Accreditation Program, **TJC - The Joint Commission Source: Advancing Nonprofit Home Healthcare and Hospice. Home Health Care FAQ. June 2015

Common Criteria for Home Health Agencies

Years serving the community Approved Medicare provider Approved by an accrediting

organization (CHAP*, TJC**) Licensed by the state Provide patients with a “Bill of

Rights” Written plan of care provided

for the patient’s treatment Documentation of the patient’s

course of treatment (and educating family members)

Supervisors assigned to oversee care

Availability of caregivers 7 days a week

Ensure patient confidentiality Nursing supervisor on call

and available 24 hours a day Comprehensive employee hiring,

training, and background check Procedures for resolving issues

between the patient/family and home health staff

Allowing questions or complaints regarding patient care to be addressed

Alternatives if a staff member fails to make a scheduled visit

Agency handling billing processes Agency providing a list of references

Presenter
Presentation Notes
Here is another list of common criteria for home health agencies.

Hospitals Are More Dependent on PAC Providers

Variation and growth in PAC spending has earned PAC a spot on hospital and health systems’ priority list for cost-saving opportunities

Hospitals are developing narrower networks of SNF and HHA providers to deliver high-quality care, leverage clinical expertise, and improve efficiency, patient outcomes, and the patient experience

Hospitals are pursuing more strategy-driven approaches by assessing the value of potential partners

The success of new care delivery models, including hospital-driven bundles and accountable care organizations

37

Cost-Saving Opportunities

New Care Delivery Models

Strategy-Driven Approaches

Narrower Networks

Source: http://www.mcknights.com/guest-columns/positioning-for-narrowing-pac-networks/article/362742

Presenter
Presentation Notes
Basically, PAC partners have been more important than ever. Even with ACOs also, quality is important and cost

Telehealth and/or telephonic communication for patient follow-up across post-acute episodes

Enhancements in Care Delivery

Lean/Process mapping to identify waste and inefficiencies

Standardized care protocols across physicians and sites of care

Early and regular physician rounding

Reduction in ancillary testing Supply chain management/

implant cost reductions

Redesign of Care Pathways

Enhanced pre-registration and patient/family education

Pre-operative education class for patient and family

Patient shadowing program Discharge management

such as early identification of post-acute needs

Standardized risk assessment tools for complex, co-morbid patients

Patient Activation, Engagement, and Risk Management

38

Overall Care Redesign Considerations

Presenter
Presentation Notes
As part of our work, there are overall care redesign considerations also for the whole patient experience. How to operate leaner and keep patient engaged to prevent complications and to make sure patients are adhering to care. The are a variety of strategies we’ve worked with hospitals including a Joint Camp prior to the surgery. It gives patients a lot of education on what to expect before, during, and aftercare. It is a good opportunity to determine what social barriers may exist in that patient’s life.

Transitional care coordinator Patient navigator Longitudinal care plans that pre-

determine care setting needs across the episode

Engagement of nursing staff in program outcomes

Early dashboard development using key clinical and cost metrics

Physician scorecard Clinical effectiveness teams to

address process and care delivery Electronic health record utilization

and customization to identify CCJR patients and document care coordination across care settings

Data sharing between acute and post-acute providers

Care Coordination

System Changes to Support Care

Overall Care Redesign Considerations

39

Presenter
Presentation Notes
We have hospitals creating nurse navigator positions. Also with BPCI, often times, hospitals will make up the cost of these investments before gainsharing.

Patient education Setting care pathway

expectations Caregiver engagement Joint camp attendance Connection with

Orthopedics Navigator Pre-operative assessment Patient risk assessment tools Comorbidity management

prior to surgery Functional assessment and

discharge planning

Discharge planning Hemoglobin management Implant costs Reduction of non-essential

services without benefit (occupational therapy)

Continuous risk assessment Care transitions Medication reconciliation Acute LOS vs. post-acute

costs

Quality transition to preferred care

Management of relationship between SNF and anchor hospital

Patient tracking (e.g., Orthopedics Navigator)

Essential Metrics

Pre-operative Anchor Admission Post-Acute

Hip and Knee Care Redesign Considerations

40

• Ratio discharged to SNF • LOS in SNF

© The Camden Group

Presenter
Presentation Notes
I think I already mentioned the joint camp but here are specific care redesign considerations for hip and knee care

Preparing for the CMS CCJR Mandate

Identify Cost Savings Opportunities

Engage Physicians and Care Teams

Standardize Clinical Care Protocols and Pathways

Determine Post- Acute Care Strategy

Invest in Implementation Resources

Collect and Analyze Post- Acute Spend Data

41

Non-Medicare Bundled Payments

THE CAMDEN GROUP | 10/22/2015 43

In The Headlines…

Presenter
Presentation Notes
You’ve probably heard of the more popular direct-to-employer arrangements where employers will contract with healthcare providers to cover travel and other amenities to have surgeries at their hospital for a fixed price. Employers are bypassing their TPA and working with healthcare organizations that will help them save on healthcare costs as more and more are self-funded.

THE CAMDEN GROUP | 10/22/2015 44

National Market 2015 Significant Growth in Both Medicaid and Employer Bundles

75% Medicare

and Medicaid 15% Commercial

10% Self-Funded Employers

Source: The Camden Group

THE CAMDEN GROUP | 10/22/2015 45

Commercial Payers in Orthopedic Bundled Payments

Presenter
Presentation Notes
Spine hasn’t taken off like hip and knee and are riskier but a high cost. What we’ve seen is more cost avoidance strategies for spine on back care and education.

THE CAMDEN GROUP | 10/22/2015 46

Current Bundled Payments and Looking Ahead…

PEDIATRIC AND

MATERNITY

OUTPATIENT

INPATIENT

ORTHOPEDIC

CARDIOVASCULAR GROWTH OF COMMERCIAL AND

EMPLOYER CONTRACTS

PROSPECTIVE PAYMENT

MEDICARE

Presenter
Presentation Notes
We’ve been working with ambulatory surgery centers and pediatric hospitals with some bundling initiative so stay tuned. Including maternity. Mostly targeting employers and unions.

Questions?

Barbara Letts Senior Manager THE CAMDEN GROUP 100 N. Sepulveda Blvd., Suite 600 El Segundo, CA 90245 310.320.3990 ext. 3988 bletts@thecamdengroup.com

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