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