Reward Health Sciences, LLC Business Plan · Intervention Design. Cause ‐ Effect Model. includes....

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Using Intervention Models and Predictive Models to Optimize Patient Selection for Care Management in ACOs The Fifth National Predictive Modeling Summit Washington, DC Richard E. Ward, MD, MBA Reward Health Sciences, Inc. November 9, 2011 Health Sciences Health Health Sciences Sciences REWARD RE RE W W ARD ARD Copyrighted 2011, Reward Health Sciences, Inc. 1

Transcript of Reward Health Sciences, LLC Business Plan · Intervention Design. Cause ‐ Effect Model. includes....

Page 1: Reward Health Sciences, LLC Business Plan · Intervention Design. Cause ‐ Effect Model. includes. Process Model. includes. Intervention Model. informs. informs. Evaluation. Plan.

Using Intervention Models and Predictive Models to Optimize Patient Selection for Care

Management in ACOs The Fifth National Predictive Modeling Summit

Washington, DC

Richard E. Ward, MD, MBA Reward Health Sciences, Inc.

November 9, 2011

Health

SciencesHealthHealth

SciencesSciencesREWARDREREWWARDARD

Copyrighted 2011, Reward Health Sciences, Inc.

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Outline

• How can ACOs reduce cost• IT investment priorities

• Using analytic models – Population Management 

– Provider– ACO Financial Models

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Whatever we call it….

• Accountable Care Organization

• Patient‐Centered Medical Home

• Clinical Integration

• Population Management

• Value Based Health Care

• Managed Care 2.0

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Providers

•Taking responsibility for cost and 

quality of care for a defined 

population of patients

•Working as a team

•Sharing some gains and bearing 

some risk 

ENABLING INVESTMENTSNEW STRUCTURES

NEW INFORMATION TECHNOLOGYNEW ANALYTIC CAPABILITIES

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Clinician Workstation‐

Results‐

Profiles‐

To Do List‐

Guidelines

Sources of Cost Savings for ACOs

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Cost Impact

Reduce Use of Low 

Value Services of 

Specialists and 

Facilities

PCP Referral Influence

Reduce Rate of 

Avoidable Clinical 

Events

Patient Self‐Management Support

Care Coordination

Reduce Resources 

Per Clinical ServiceLean

Reduce Duplication 

of Services

Clinical Decision Support

Health Information Exchange

Provider Consolidation 

increasing Market Power 

Increase Price per 

Clinical Service or 

Episode 

Delivery System Delivery System 

TransformationTransformation

PatientPatient‐‐Centered Centered 

Medical HomeMedical Home

andand

Accountable Care Accountable Care 

OrganizationOrganization

andand

Meaningful Use of Meaningful Use of 

Health Information Health Information 

TechnologyTechnology

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Health Information Technology

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Accountable CareAccountable CarePatient CenteredPatient Centered

PopulationPopulationProcessProcess

Guidelines & ProtocolsGuidelines & ProtocolsMeasuresMeasures

Going PaperlessGoing PaperlessClinical Data Accessibility, Efficiency, SecurityClinical Data Accessibility, Efficiency, SecurityOld Vision

New Vision

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Health Information Technology

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ProcessProcess

DataDataOld Vision

New Vision

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Benchmarks

Goals

Quality & Cost

PerformanceAnalysisLiterature

Expert Opinion

BestPractices

Data

Outcomes

Process

Feedback

Incentives

&Protocols

&

Guide

lines Implementation

HealthCare

Care‐Delivery

Care‐Planning

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Systems to Enable Process Transformation

HealthCare

Care‐Delivery

Care‐Planning

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Leverage Workflow Automation / Leverage Workflow Automation / 

Business Process Mgmt Business Process Mgmt 

Technology used in other Technology used in other 

industriesindustries

TightlyTightlyIntegratedIntegrated

Care Planning ToolsCare Planning ToolsPatient CenteredPatient CenteredProblem OrientedProblem Oriented

SmartSmartPopulationPopulation

Care ProcessCare ProcessManagement ToolsManagement Tools

Physician controlledPhysician controlledMeasurableMeasurableCoordinationCoordination

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UnstructuredUnstructured Passively StructuredPassively Structured

• Free text• Dictated and Transcribed• Dictated and voice‐

recognized• Document Images• Optical Character 

Recognition

• Drawings• Clinical Images• Sounds

• Text‐to‐code logic• Commands to include text 

blocks in notes

• Loose XML messages

Actively StructuredActively Structured

• Registry• Questionnaire• Form‐based Template 

Charting

• Problem‐oriented clinical 

documentation templates

• Rigorous XML messages

Enables:•Reminders and alerts•Performance measures•Comparative effectiveness

Health Information

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Analytic Data RepositoryAnalytic Data Repository

RawRawVersionedVersioned

DataData

Source SystemsSource Systems

Reports &Reports &Reporting Reporting 

ApplicationsApplications

out

Analytic Data Repository Framework to Support ACOs

Scheduling

Admit, Discharge,Transfer (ADT)

Billing

MedicationAdministration

Operating Room

Credentialing

Etc.

in

Data Derivation Engines & ServicesData Derivation Engines & Services

Disease ID Risk ScoresGaps in CareEpisodes of 

Care

Clinical Data 

Repository

Cubes & Other Cubes & Other 

SummarySummary

Data StructuresData Structures

Care 

Relationships

Specialty / 

Peers

ReferralRelationships

Etc.

Derived data

Analyzable Analyzable 

DataData

••NormalizedNormalized••DocumentedDocumented••With derived With derived 

entities and entities and 

attributesattributes

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MODELSREPORTS &MEASURES

vs.

Looking back Looking ahead

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Intervention Design

Cause‐Effect Model

includes

Process Model

includes

Intervention Model

informsinformsEvaluation

Plan informs

ProcessMgmtSystem

Configuration

informs

Clinical ProgramOperations

orchestrates

Activity Datacreates

enablesextrapolation of

Calculated ActualOutcomes

to

Projected OutcomesFor Alternative

Intervention Designs

enablescalculation of

supports assumptions

of

confirms plausibility

of

Effect Measurement

informs

informs

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Chronic

Conditions

Chronic

ConditionsWellnessWellness Concerns

& Symptoms

Concerns

& SymptomsAcute 

Conditions

Acute 

Conditions

ElectiveSurgical Conditions

ElectiveSurgical Conditions

Complex 

Catastrophic 

Conditions

Complex 

Catastrophic 

Conditions

Continuum of Patient Needs

Using Models for Care Management

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Is Care Management Effective?

• Are drugs effective?• Is a scalpel effective?

• Which population?• What point in time?• What intervention?• What outcomes of interest?• What time horizon?• What evidence threshold?

It depends

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TARGETEDHOLISTICCompeting Intervention Design Philosophies

Easier to design•

Respects professionalism•

Addresses patient complexity•

Difficult to evaluate

Many “triggers”

General Assessment

Multi‐Issue Care Plan

Intervention Periodas Coach Evolves Goalsand Revised Care Plan

Consistent intervention 

process enables process 

improvement•

Targeting protocol can be 

applied to comparison 

population for evaluation

Targeting of PatientsBased on Objective CriteriaBased on Opportunity to

Benefit from aparticular intervention 

Outreach Protocol

Intervention Protocol

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Using Intervention Models to Explore Alternative Interventions

Care Transition 

Nurse On Site

Care Transition 

Nurse On Phone

Identified Population/Spend $100 $100

Patients Identified in when still in hospital

$100 $48

Target Rate$100 $41

Reach and Engagement Rate

Effectiveness Rate in avoiding need for readmission

$65 $13

Total Gross Savings $20 $2

100% 48%

100% 86%

65% 32%

30% 15%

IllustrativeCopyrighted 2011, Reward Health Sciences, Inc.

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Intervention ModelsAssumptions

Epidemiology‐‐‐‐‐‐‐‐Effectiveness‐‐‐‐‐‐‐‐Economic‐‐‐‐‐‐‐‐Preferences‐‐‐‐‐‐‐‐‐‐

Optimistic Best Pessimistic‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Calculations Results

Can be used to determine:• Optimal targeting threshold• Program dynamics (ramp up)• Uncertainty (ranges)• Geographic critical massCopyrighted 2011, Reward Health Sciences, Inc.

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Illustrative

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Illustrative

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Number of IP admissions per 1000 members identified with CHF, by percentile of risk score

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

0102030405060708090100Percentile of Symmetry risk score

IP A

dmit

Rate

per

100

0

Predicted rate per 1000

Overall IP Rate

Illustrative

Threshold

Y N

0% 10% 20% 30% 40% 50% 100%

Target RateCopyrighted 2011, Reward Health Sciences, Inc.

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Diabetes Disease Management

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

0% 5% 10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Finding Target Penetration that Yields Max Net Savings:

Maximizing Beneficial Impact for Members for the Amount Spent

Gross Savings

Cost

Net Savings

Dollars

41%

Fixed Cost

Illustrative

Target Penetration Rate (as % of Diabetes population)

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Diabetes Disease Management

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

0% 5% 10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Finding Target Penetration that Yields Max Net Savings:

Maximizing Beneficial Impact for Members for the Amount Spent

Gross Savings

Cost

Net Savings

Dollars

Target Penetration Rate (as % of Diabetes population)

41%

Fixed Cost

Threshold

Y N

Illustrative

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Diabetes Disease Management

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

0% 5% 10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

Finding Target Penetration that Yields Max Net Savings:

Maximizing Beneficial Impact for Members for the Amount Spent

Gross Savings

Cost

Net Savings

Dollars

41%

Fixed Cost

Illustrative

Target Penetration Rate (as % of Diabetes population)

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Highest ROI Does Not Yield Maximum Net Savings or 

Maximum Penetration Rate for Member Impact

Diabetes Disease Management

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,0000% 5% 10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

-

0.50

1.00

1.50

2.00

2.50

Gross Savings

Cost

Net Savings

ROIDollars

41%18%

Fixed Cost

ROI*

Increasing the target penetration 

rate from 18% to 41% leads to a 

lower ROI, but the net savings 

increases by 24%.

Illustrative

Target Penetration Rate (as % of Diabetes population)

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Chronic Disease Management

(0.15)

(0.10)

(0.05)

-

0.05

0.10

0.15

0.20

0.25

- 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45

Variable Cost PMPM

Net

Sav

ings

PM

PM IHDCHFDiabetesCOPDAsthma

47% of Ischemic Heart Disease

87% of CongestiveHeart Failure

41% of Diabetes

34% ofCOPD 20% of Asthma

Max Net Savings Signature Illustrative

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Does global opportunity score / stratification make sense 

with targeted interventions?

Intervention Proxy for Return

Care Transition ProgramFor Patients Admitted to Hospital

Probability of Being Re‐AdmittedWithin 30 days of Discharge to Home

Nurse Advice about Pros and ConsOf Spine Surgery

Probability of Getting Back SurgeryIn Next Year 

Nurse Coaching to IncreaseChronic Condition Self‐ManagementMotivation and Effectiveness

Probability of Being Admitted toHospital in Next Yearfor Chronic Disease 

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Dynamic Models

• Thinking like an accountant  analyzing accounts receivable

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Model of One Engagement Cohort for a Program Component

Total Savings

$ per 100 Members

Intervention

Engage

Outreach

121110987654321

Months Since Member was Targeted

Capital/Operating Cost, Benefit Savings

Total $ Impact

$ per 100 Members

Targeting Volume

Target

Development Cost

121110987654321

Months Since Started Program Development

Capital/Operating Cost, Benefit Savings

Model of Program Component, Rolled‐Out “Go”

Decision

Total Portfolio $

Etc.

Program B

Program A

AprMarFebJanDecNovOctSepAugJulyJunMayAprMarFebJan

20122011

Capital/Operating Cost, Benefit Savings

Model of Overall Portfolio of Clinical Programs, in Calendar Time

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-$5M

$0M

$5M

$10M

$15M

$20M

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Benefit Cost SavingsOperational CostsInvestment CostsQuarterly Economic Impact

Dynamic Models

Quarterly Economic Impact

2009 2010 2011 2012 2013 2014

Case Management

Illustrative

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Dynamic Models

Quarterly Economic Impact

2009 2010 2011 2012 2013 2014

ILLUSTRATION

Chronic Condition Management

‐$1.0M

‐$0.5M

$0.0M

$0.5M

$1.0M

$1.5M

$2.0M

$2.5M

$3.0M

$3.5M

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Benefit Cost Savings

Operational Costs

Investment Costs

Quarterly Economic Impact

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Dynamic Model of Entire WCM Solution

Quarterly Economic Impact

2009 2010 2011 2012 2013 2014

ILLUSTRATION

‐$3M

‐$2M

‐$1M

$0M

$1M

$2M

$3M

$4M

$5M

$6M

Benefit Cost Savings

Operational Costs

Investment Costs & Core Costs

Net Quarterly Impact

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Analyzing Uncertainty Using Monte Carlo Simulation

Assumptions

Calculations

90% Interval of Uncertainty

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33

Chronic Condition Management—Sensitivity Analysis

2014 Cumulative Net Savings Frequency Distribution 2014 Cumulative Net Savings Variable Sensitivity

Contribution to Variance

Illustrative

1%

1%

1%

1%

2%

17%

71%

7%

0% 20% 40% 60% 80%

Other

Average Length of RegularEngagement Phone Calls (min)

MA PPO Annual Inflation (ProgramCosts) Growth Rate

MA PPO Annual Medical SpendGrowth Rate Above Inflation

Double Counting Assumption

Engagement Rate (% of reachedmembers engaged)

Member Reach Rate (% of targetedmembers reached)

Total Spend Reduction for EngagedMembers

0

200

400

600

800

1,000

1,200

‐$10M $4M $18M $32M $46M $60M

Freq

uency

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34

Example of “Hurricane Diagram”

WCM Solution Cumulative Net Savings

90%

Confidence

Note: Based on a Monte Carlo analysis with 10,000 trials, and triangular distributions on 72 input variables for entire portfolio

Range of Outcomes—Cumulative Portfolio Net Savings

ILLUSTRATION

‐$20M

$M

$20M

$40M

$60M

$80M

$100M

$120M

$140M

Jun‐10 Dec‐10 Jun‐11 Dec‐11 Jun‐12 Dec‐12 Jun‐13 Dec‐13 Jun‐14 Dec‐14

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InghamInghamInghamInghamInghamInghamInghamInghamIngham

KalamazooKalamazooKalamazooKalamazooKalamazooKalamazooKalamazooKalamazooKalamazoo

KentKentKentKentKentKentKentKentKent

OaklandOaklandOaklandOaklandOaklandOaklandOaklandOaklandOakland

WashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenaw WayneWayneWayneWayneWayneWayneWayneWayneWayne

Modeling Geographically‐Sensitive Interventions

County # Facilities

# Nurse Case Mgrs

Annual Net Savings

Engaged LocallyOakland County 85 10 $ xWayne County 91 8 $ xKent County 22 4 $ xWashtenaw

County 19 3 $ x

Ingham County 7 2 $ xKalamazoo

County 12 2 $ x

Engaged TelephonicallyAll Other

Counties 364 $ x

= Counties targeted locally

ILLUSTRATIVEIn‐HospitalDischarge Planning

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WashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenawWashtenaw

KentKentKentKentKentKentKentKentKentOttawaOttawaOttawaOttawaOttawaOttawaOttawaOttawaOttawa

MacombMacombMacombMacombMacombMacombMacombMacombMacombOaklandOaklandOaklandOaklandOaklandOaklandOaklandOaklandOakland

WayneWayneWayneWayneWayneWayneWayneWayneWayne

Modeling Geographically‐Sensitive Interventions

Top Counties –ILLUSTRATIVE SNF/LTC Spend

County Members SNF-LTC Spend % of SNF Spend

Wayne County 1,281 $ x 10-15%

Oakland County 1,470 $ x 10-15%

Kent County 1,292 $ x 5-10%

Macomb County 778 $ x 5-10%

Washtenaw County 546 $ x 5-10%

Ottawa County 478 $ x 2-5%

Kalamazoo County 330 $ x 2-5%

Ingham County 298 $ x 2-5%

Genesee County 183 $ x 1-2%

Muskegon County 195 $ x 1-2%

Livingston County 166 $ x 1-2%

Jackson County 246 $ x 1-2%

St. Clair County 196 $ x 1-2%

Calhoun County 122 $ x 1-2%

Grand Traverse County 164 $ x 1-2%

Berrien County 153 $ x 1-2%

Saginaw County 185 $ x 1-2%

Eaton County 167 $ x 1-2%

Bay County 97 $ x 1-2%

Allegan County 139 $ x 1-2%

Monroe County 117 $ x 1-2%

Wexford County 52 $ x 1-2%

$ x

$ x

$ x

$ x

$ x

$ x

Total SNF/LTC Spend

Nursing HomeCare Coordination

Illustrative

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Projected benefit cost savingsAnnual savings by initiative category

$5,006

$6,281

$7,530

$8,472

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

2010 2011 2012 2013

Ben

efit

cost

sav

ings

($k)

Service utilization ConditionClinical IT Core clinical processNew group Planned

Projected benefit cost savingsAnnual savings by initiative category as % of 

total benefit cost

0.23% 0.24% 0.24% 0.24%

0.18%

0.23% 0.25% 0.25%

0.25% 0.25% 0.25% 0.25%

0.35%

0.40%0.43% 0.44%

0.00% 0.00% 0.00% 0.00%0.0%

0.1%

0.1%

0.2%

0.2%

0.3%

0.3%

0.4%

0.4%

0.5%

0.5%

2010 2011 2012 2013

Ben

efit

cost

sav

ings

(%)

Service utilization ConditionClinical IT Core clinical processNew group Planned

Modeling for Provider‐facing Clinical Programs Savings for Customer X for 41 Initiatives in the BCBSM Physician

Group Incentive 

Program

ILLUSTRATIVECopyrighted 2011, Reward Health Sciences, Inc.

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MODELSREPORTS &MEASURES vs.

Looking back Looking ahead

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CareOffered

CareReceived

PhysiologicEffect

Mortality 

Reduced,FunctionImproved

CostsSaved orIncurred

PopulationHealthier

PremiumLowered

Process Outcome

• Simpler to define, concrete • Less expensive• Fewer confounding variables• Less measurement variation• Faster improvement cycle• Less problem with turnover

• Measures based on ultimate goals• More intuitive to consumers• Avoids “micro‐management”• Promotes innovation

RE Ward (9/96)

Types of Measures

ReminderSystem

DocumentedStandards

QACommittee

Structure

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CareOffered

CareReceived

PhysiologicEffect

Mortality 

Reduced,FunctionImproved

CostsSaved orIncurred

PopulationHealthier

PremiumLowered

Process Outcome

Meaningful 

Use of 

Certified HIT 

componentsRE Ward (9/96)

Types of Incentives

ReminderSystem

DocumentedStandards

QACommittee

Structure

Quality ofCare Metrics

ACOMedicare Gain 

Sharing

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41

Measurement of Outcomes

• Can only measure events that did not  happen by comparison

• Two basic types of comparison groups:–Pre‐Post

–Concurrent

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42

Formal analysis uses more 

rigorous methods to deal with 

potential confounding 

variables and assess 

confidence interval.

Iterative process requires 

methods expertise; impractical 

to do over and over for 

monthly reporting.

Outcome measure defined so as to 

be able to define the denominator 

population symmetrically for 

intervention and comparison 

group.

Comparison could be historical or 

concurrent.

Objective is to track actual results 

to determine if expected results 

are achieved.

Periodic RetrospectiveProgram Evaluation

ConcurrentOutcomes Monitoring

The Levels of Effect Measurement

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43

Comparison group is not truly 

comparable

Noise > Signal

Noise = “common cause”

or 

“random”

variation in people 

and their response to disease 

and treatment

BIASVARIATION

The Two Key Challenges to Measurement

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• Risk adjustment does not help.

TightEligibilityCriteria

More ConsistentIntervention(“Lab Conditions”)

Reduce Variation Increase sample size 

(“Power”)

Methods to Address Variation

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Confounding Variables Create Bias

Voluntary 

ParticipationIn Disease 

Management Program

Personality trait:Tendency to be

proactive and engaged

Example of a CandidateConfounding Variable

People who are 

proactive and 

engaged are more 

likely to say “yes”

when invited to 

participate in 

voluntary program.

LowerBenefitCost

HypothesizedCause‐EffectRelationship

People who are 

proactive and 

engaged are more 

likely to comply with 

medications and take 

steps to avoid disease 

exacerbations

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• These only work if you have data for all important candidate confounders.

• Increasing sample size does not help.

Disprove

No assoc withRisk Factor

or Intervention

No CausalAssoc wOutcome

Control

StratificationStatisticalModels

(Regression)

Avoid Confounders w/Randomization

Deal withConfounders

Methods to Address Bias

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Addressing Bias

Top Five ROI Bias Issues

1.

Regression to the Mean

2.

Biased Secular Trend Adjustment

3.

Once‐chronic‐always‐chronic “migration bias”

4.

Risk Factor Switcharoo

5.

Volunteer Bias with “I did my best”

control for  confounding

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6,533

3,450

-1,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Pre Intervention (3 months) Post Intervention (3 month)

Ave

rage

Cos

t Per

Cas

e (P

MP

M)

Regression to the Mean

47.1%Reduction!

$3,083SavingsPer Case!

Medicare Advantage Cases referred between April 2007 ‐

Dec 2008.   n=11,768

Case Management – Cost per Case before and after referral

Illustrative

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Regression to the Mean

Medicare Advantage Cases referred between April 2007 ‐

Dec 2008.   n=11,768

Case Management – Cost per Case before and after referral

*Post date ranges in relation to 5‐days after targeting.

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Pre61-90

Pre31-60

Pre0-30

Post'0-30

Post31-60

Post61-90

Post91-120

Post121-150

Post151-180

Post181-210

Days in Relation to Targeting for Case Management*

Cos

t Per

Mem

ber P

er M

onth

Engaged

Illustrative

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Regression to the Mean

Medicare Advantage Cases referred between April 2007 ‐

Dec 2008.   n=11,768

Case Management – Cost per Case before and after referral

*Post date ranges in relation to 5‐days after targeting.

Engaged

Not Engaged-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Pre61-90

Pre31-60

Pre0-30

Post'0-30

Post31-60

Post61-90

Post91-120

Post121-150

Post151-180

Post181-210

Days in Relation to Targeting for Case Management*

Cos

t Per

Mem

ber P

er M

onth

Illustrative

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Solution = Outcomes Monitoring with “Re‐qualification”Regression to the Mean

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Pre-Intervention Actual

Pre-Intervention Trend

Illustrative

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Pre-Intervention Actual

Pre-Intervention Trend

Expected Post-Intervention Trend

Solution = Outcomes Monitoring with “Re‐qualification”Regression to the Mean

Ramp‐Up Intervention Steady State

Illustrative

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Pre-Intervention Actual

Pre-Intervention Trend

Expected Post-Intervention Trend

Post-Intevention Actual

Solution = Outcomes Monitoring with “Re‐qualification”Regression to the Mean

Ramp‐Up Intervention Steady State

Illustrative

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0

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on 1

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Pre-Intervention Actual

Pre-Intervention Trend

Expected Post-Intervention Trend

Post-Intevention Actual

Solution = Outcomes Monitoring with “Re‐qualification”Regression to the Mean

Ramp‐Up Intervention Steady State

Illustrative

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Applying Outcomes Monitoring to a

Vendor‐delivered Disease Mgmt Program

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Using Statistical Models

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Key Conclusions

• Plans and Providers must prepare to

share risk

• Systems should capture Actively Structured Data• Cause‐Effect models

should be developed to support 

intervention design, prospective outcomes estimates and 

evaluation plan• Intervention Models

should be used to prospectively 

estimate outcomes of clinical programs and to determine 

optimal targeting• Engagement Cohort method

should be used to model the 

dynamics of program ramp‐up and ramp‐down.• Monte Carlo analysis

should be used to assess 

uncertainty • Pre‐Post Analysis

without “requalification”

is analytic 

malpractice

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Thank You!

Copyrighted 2011, Reward Health Sciences, Inc.

QuestionsContact Info:

Richard E. Ward, MD, [email protected]

519‐817‐8300

58