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Evidence-Based Medicaid: Evidence-Based Medicaid: Health Care That Works Health Care That Works Pay for Performance: Pay for Performance: Health Care That Adds Value Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington Medicaid Program

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Page 1: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Evidence-Based Medicaid: Evidence-Based Medicaid: Health Care That WorksHealth Care That Works

Pay for Performance: Pay for Performance: Health Care That Adds ValueHealth Care That Adds Value

Jeff Thompson MD MPH

Chief Medical OfficerWashington Medicaid

Program

Page 2: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

2

Evidence-Evidence-Based Based

MedicaidMedicaid

Evidence meets PerformanceEvidence meets Performance

Medicaid will do P4P in Medicaid will do P4P in situations unique to situations unique to MedicaidMedicaidBariatric SurgeryBariatric SurgeryManaged CareManaged CareADHD DrugsADHD Drugs

Page 3: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

3

Evidence-Evidence-Based Based

MedicaidMedicaid

Medicaid’s grading system for Medicaid’s grading system for service authorizations service authorizations (WAC 388-501-0165)(WAC 388-501-0165)

DSHS generally approves above the line

Below the line, provider needs to show the evidence or DSHS will disapprove via Prior Authorization

A = Randomized controlled clinical trials (cannot be based on Type III or Type IV evidence alone)

B = Consistent and well done observational studies (cannot be based on Type IV evidence alone)

C = Inconsistent studies

D = Studies show no evidence, raise safety issues, or no support by expert opinion

Page 4: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

4

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Performance: Community ADHD Drug Community ADHD Drug Prescribing Practices for Medicaid FFS ChildrenPrescribing Practices for Medicaid FFS Children

Sedatives

Methylphenidate7,303Amphetamine Salts

5, 188

Dextroamphetamine565

137 108

31

80

60

Age 17 and under FY2005

Page 5: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

5

Evidence-Evidence-Based Based

MedicaidMedicaid

Payment:Payment: ADHD 2 ADHD 2ndnd Opinion OpinionProcess for Process for ChildrenChildren

HRSA Pays Three Hospitals to Review ($225)HRSA Pays Three Hospitals to Review ($225) ADHD in < 5 year olds,ADHD in < 5 year olds, At high doses (120/60)At high doses (120/60) In combinations In combinations

>300 cases logged to date.>300 cases logged to date. 60% are approved60% are approved 40% are changed by the second opinion40% are changed by the second opinion ROI 3:1ROI 3:1

Page 6: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

6

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Performance: Community OutcomesCommunity Outcomesin Bariatric Surgeryin Bariatric Surgery

Page 7: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

7

Evidence-Evidence-Based Based

MedicaidMedicaid

Process: Going from a D Process: Going from a D to a B Gradeto a B GradeSurgery gets a Surgery gets a “B” for “B” for diabetics who are diabetics who are obeseobese (BMI >35) and a (BMI >35) and a “D” “D” for other co-morbid for other co-morbid conditions (WAC 388-551-1600conditions (WAC 388-551-1600 Aug 2004))

6-month pre-op staging 5% weight loss

Nutritional, endocrine, and surgical consultation

3 Centers of experience (< 2% mortality, 15% morbidity and 50% weight loss)

Page 8: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

8

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Performance: Medicaid Pays a Medicaid Pays a Premium for Centers of ExperiencePremium for Centers of Experience

Year Total Payment (P) # Clients Avg Admission PUPM ALOS2002 $734,288 60 $13,351 $1,020 6.52003 $970,298 79 $14,928 $1,024 6.82004 $135,366 10 $13,537 $1,128 7.42005 $99,174 8 $12,397 $1,033 5.42006 $55,792 6 $9,299 $775 6.2

30 days ReadmissionsCosts # Costs #

$49,151 3 $74,229 3$80,227 7 $52,809 4

$0 0 $22,219 2$21,629 1 $21,629 1

$0 0 $18,320 2

Outliers

Page 9: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

9

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Medicaid Performance: Medicaid Managed CareManaged Care

Incentives in place since 2004Incentives in place since 2004 Incentives for HEDIS Incentives for HEDIS

measuresmeasures 2 year old immunizations2 year old immunizations 3 categories of well child care 3 categories of well child care

(birth to 15 months; 3 – 6 years and 12 (birth to 15 months; 3 – 6 years and 12 to 21 years)to 21 years)

Page 10: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

10

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Medicaid Performance: Medicaid Vaccinations Vaccinations

Well-Child CareWell-Child Care Birth to 15 Birth to 15

monthsmonths 2004 – 43.7%2004 – 43.7% 2005 – 41.4%2005 – 41.4% 2006 – 47.0%2006 – 47.0%

3 to 6 year olds3 to 6 year olds 2004 – 53.5%2004 – 53.5% 2005 – 53.0%2005 – 53.0% 2006 – 55.0%2006 – 55.0%

12 to 21 year olds12 to 21 year olds 2004 – 35.2%2004 – 35.2% 2005 – 36.8%2005 – 36.8% 2006 – 32.0%2006 – 32.0%

Combo 1 Immunization Combo 1 Immunization raterate

2004 – State average 2004 – State average 66.9%66.9%

2005 – State average 2005 – State average 69.9%69.9%

2006 – State average 2006 – State average 74.1%74.1%

Page 11: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

11

Evidence-Evidence-Based Based

MedicaidMedicaid

Structure and ProcessStructure and Process

Formal link with Washington State Child Formal link with Washington State Child Profile Immunization RegistryProfile Immunization Registry

Plans uniformly using robust methods Plans uniformly using robust methods Implementing stronger interventions to Implementing stronger interventions to

improve immunization careimprove immunization care Some plans are rewarding Some plans are rewarding

providers/clinics financially for improved providers/clinics financially for improved performanceperformance

Page 12: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

12

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance: Based on Performance: Based on OutcomesOutcomes

DSHS set aside $1,000,000 each to be paid for DSHS set aside $1,000,000 each to be paid for improved performanceimproved performance 1,000,000 for improved immunizations1,000,000 for improved immunizations 1,000,000 for improved well-child care1,000,000 for improved well-child care

Calculations based on point system rewards Calculations based on point system rewards plans forplans for Current year performance relative to other plansCurrent year performance relative to other plans Improvement from previous year to current year Improvement from previous year to current year

relative to other plansrelative to other plans Four highest performing plans share rewardsFour highest performing plans share rewards

Page 13: Evidence-Based Medicaid: Health Care That Works Pay for Performance: Health Care That Adds Value Jeff Thompson MD MPH Chief Medical Officer Washington

Jeff Thompson MD MPH

Chief Medical Officer

Washington Medicaid Program

13

Evidence-Evidence-Based Based

MedicaidMedicaid

Performance Based Care:Performance Based Care:What’s Important?What’s Important?

Mortality vs. Morbidity?Mortality vs. Morbidity? Process vs. Outcomes?Process vs. Outcomes? My Value vs. A Payer’s ValueMy Value vs. A Payer’s Value Local control/measures? vs. Local control/measures? vs.

Central control/measures?Central control/measures? All Politics is Local vs. All Quality is All Politics is Local vs. All Quality is

Central?Central?