macro trends and physician alignment...
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5665NorthScottsdaleRoadSuite110Scottsdale,AZ85250Phone:(480)427-3943www.ssbsolutions.com PROPRIETARYANDCONFIDENTIAL
V2
December2016
MacroTrendsandPhysicianAlignmentStrategies
2MacroTrendsandPhysicianAlignmentStrategies|December2016
TableofContents
Slide
ChallengesinToday’sHealthcareIndustry 3
PhysicianClinicalandBusinessAlignmentModels- Employedphysicianmodels- Aligningindependentphysicians- Next-generationphysicianalignment
25
SummaryConclusions 51
Appendix 56
3
MacroTrendsandPhysicianAlignmentStrategies
December2016
ChallengesinToday’sHealthCareIndustry
4MacroTrendsandPhysicianAlignmentStrategies|December2016
Estimated2015USHealthcareSpendingbyPayerSource
Source:CMS’OfficeoftheActuary
PrivateInsurance1,10035%
Medicare64621%
Medicaid55518%
OutofPocket35111%
ThirdPartyPayers33411%
OtherInsurance1154%
TotalHealthcareExpenditures$3.24Trillion
HDHP HospitalownedMDGroups
HospitalownedASCJVs
5MacroTrendsandPhysicianAlignmentStrategies|December2016
DIRECTIONDecliningReimbursementIncreasedClinicalRiskNarrowNetworksGreaterTransparencyEnhancedConnectivity
ReadingthePuckinHealthcareTodayandTomorrow
LEVEL OF CRITICAL MASS LEADS MARKET ACCELERATIONCriticalMassofandbetweenPhysicians/PhysicianGroupsCriticalMassofandbetweenPhysicians/HospitalsCriticalMassbetweenPhysicians&Hospitals/Payers
EXTERNAL FORCESConsumerChoiceandAccessPayerMetamorphosisProviderConsolidationPrimacyofPrimaryCareNewCareDeliveryOptions(Th!nk,One,Retail,Online)
6MacroTrendsandPhysicianAlignmentStrategies|December2016
Physician/HospitalAlignmentandIntegration
The “Medical Ecosystem”
PhysicianCommunity
Hospitals
Pressures on Physicians• Decliningpayerreimbursement/growthinself-pay%
• Decliningrevenuefromancillaries
• PCPshortages
• SpecialistShortages
• Recruitingchallenges
• Increasedpracticeoverhead
• Growingregulatoryrequirements
Pressures on Hospitals• Pluralisticmedicalstaff
• Decliningpayerreimbursement/SelfPay%grows
• Increasedcompetitionfromspecialtyhospitals
• Physician-sponsoredOPcompetition
• RiseofP4Pprograms
• Increasedconsumerexpectations
• Regulatorydemands
Increasingly aligned interests and the need to manage to “Meaningful Clinical
Integration”
7MacroTrendsandPhysicianAlignmentStrategies|December2016
GrowingProfitabilityCrisisforNon-DominantProviders
Revenues and expenses per enrollees
Cost of care increasing 7-9%
annually
$
Y1
HealthcareReven
ues
Y3
HealthcareReven
ues
Y5
HealthcareReven
ues
CostofC
are
CostofC
are
CostofC
are
Mountinglossesduetomedicalcostinflation
NOACTION
Declining reimbursement
over time
DOING NOTHING ISUNSUSTAINABLE
8MacroTrendsandPhysicianAlignmentStrategies|December2016
ProvidersCreateStructurestoOptimizeValue-BasedCareParticipationValue-BasedReimbursement NewPayerProducts
AlignmentofQualityMetricswithFinancialIncentives
BusinessModel Fee-for-Service P4P APRDRGs SharedSavings Bundles EpisodesofCare GlobalRisk
ClinicalModel CareTransformation PopulationHealth
Management
• Individual• SmallGroup• Mid-SizeGroup
• Mid-LargeGroup• PrivateExchange
• Individual• SmallGroup
• FFS• EpisodesofCare• APRDRGs
• FFS• MSSPACO• MedicareAdvantage
PatientCare/Experience
ChangesinReimbursement
CommercialInsurance
ERISA(ASO)
StateandFederalExchanges
Medicaid
Medicare
ExpansionofPatientPopulationCoverageCreatesNewProducts
andPurchaseOptions
NewProviderEntities
ACO SpecialtyCIN
DEFINITIONSCIN- FTC- compliantClinically
IntegratedNetwork
ACO- AccountableCareOrganization
MedicareSharedSavingsPlan
SpecialtyCIN- CINforCV,Orthopedics,
Oncology,CV,Spineandotherkeyspecialties
CIN
KEYTAKEAWAYHospitalsandaffiliatedphysicianshaveanopportunitytocaptureincentive-basedreimbursementbyenteringinto“value-based”contractswithpayers.Buttodothat,theyneedtoformaClinicallyIntegratedNetwork(“CIN”)thatmeetsFederalTradeCommissionstandards.
9MacroTrendsandPhysicianAlignmentStrategies|December2016
GovernmentalProgramsHaveFocusedonHighCostMedicareBeneficiaries– CV,Spine,Ortho,Oncology,EndofLifeExpensesLeadtotheExpansionofMedicareAdvantagePlansandMedicareSharedSavingsPrograms
Source:Fischbeck,Paul."US-EuropeComparisonsofHealthRiskforSpecificGender-AgeGroups.”CarnegieMellonUniversity:September2009
Annu
alperca
pitahealth
careco
sts
Age0 10 20 30 40 50 60 70 80 90
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
UKGermanySwedenUSSpain
U.S.isspendingmuchmoreforolderages
KeyTakeaway:TheCINmustalsohaveclinicalmodelsforthemanagementofspecialtycare,includingchroniccaremanagementandthemanagementofepisodiccare.
10MacroTrendsandPhysicianAlignmentStrategies|December2016
Payer-ProviderPartnershipsCanAlleviateProviderPressures
Today(3-5%
OperatingMargin)
Impact fromRate Pressures
(Negativemargin within3-5 years)
UnnecessaryUtilizationReduction
SharedSavings
New Growth(i.e., covered
lives)Operating
CostImprovements
Current FFSModel Accountable Care Model
Payer PitchNarrownetworksaggregatepatients,ultimatelyleadingtonewgrowththatmonetizesaccountablecarebeyondFFS.
11MacroTrendsandPhysicianAlignmentStrategies|December2016
PotentialScopeofIntegratedCareManagementModel
PREVENTIVE HEALTH
CASEMANAGEMENT
Wellnesssupportandpreventiveservicesforthecommunity
COMPLEX CAREPatientswithon-goingmedical
andsocialconcerns
COMMUNITY RESOURCES
ProgramManagementandServiceDelivery
ProgramSupport(e.g.,RiskStratification,Analytics,PerformanceTracking)
DISEASEMANAGEMENT
Patientswithsingle,non-complicated
chronicconditions
Potentialpatientmigration
Patientswithacute,time-limitedmedicalneeds
∙ InstitutionalCare∙ HomeHealth∙ SchoolClinics∙ EldercarePrograms∙ SocialWorkerSupport∙ Transportation∙ Etc.
NetworkDevelopment/Management
CarePlanIntegrationandUtilization
12MacroTrendsandPhysicianAlignmentStrategies|December2016
NarrowNetworks– 1stMoverPayerStrategy(15%HospitalDiscounts)RiskContinuumforExistingandProposedVBPaymentStructures
FinancialRiskClinicalIntegration
• Consumers• Employers• HealthPlans• GovernmentPayors
• Physicians• MedicalGroups• Hospitals• OtherProviders
*ModifiedfromHFMAmaterialswithSSBSolutions,Inc.proprietarydatabase
FFS
TierAFTCcompatiblemeaningful
clinicalintegrationinfrastructure-baseline
largenetwork
TierBCINnetworkatleast15%
smallerthantierIwithmoreadvancedCIcapabilities
TierCCINnetworkatleast30%smallerthantier1and
capableofglobalpaymentswithperformancerisk,
p4p,etc.
TierDCINnetworkatleast45%smallerthantier1andcapableofacceptingglobalpaymentwithfinancialrisk(e.g.MA
capability)
ManagingRiskUtilizesTiered/NarrowNetworks
13MacroTrendsandPhysicianAlignmentStrategies|December2016
HorizonAnnouncesOMNIATier1Network
14
THE OMNIA HEALTH ALLIANCE
27
4
1 3534
14
132
3
1522
20
19
33
9
28 318
29
32
23
3617
16
18
26 6
30
21
24
7
Tier 1 doctors, specialists andother health care providers
12
115
ADDITIONALTIER1PROVIDERSAtlantiCare23.AtlantiCareRegionalMedicalCenter– Mainland24.AtlantiCareRegionalMedicalCenter– AtlanticCity
CapeRegionalHealthSystem25.CapeRegionalMedicalCenter
CooperUniversityHealthCare26.CooperUniversityHospital
Englewood27.EnglewoodHospitalandMedicalCenter
MeridianHealth28.BayshoreCommunityHospital29.JerseyShoreUniversityMedicalCenter30.OceanMedicalCenter31.RiverviewMedicalCenter32.SouthernOceanMedicalCenter
PrincetonHealthCareSystem33.UniversityMedicalCenterofPrinceton
St.Joseph’sHealthcareSystem34.St.Joseph’sRegionalMedicalCenter35.St.Joseph’sWayneHospital
Shore36.ShoreMedicalCenter
OMNIA HEALTH ALLIANCE TIER 1 PROVIDERSAtlantic Health System1. ChiltonMedicalCenter2. MorristownMedicalCenter3. OverlookMedicalCenter4. NewtonMedicalCenter
BarnabasHealth5. ClaraMaassMedicalCenter6. CommunityMedicalCenter7. JerseyCityMedicalCenter8. MonmouthMedicalCenter9. MonmouthMedicalCenterSouthernCampus10.NewarkBethIsraelMedicalCenter11.SaintBarnabasMedicalCenter
HackensackUniversityHealthNetwork12.HackensackUMC13.HackensackUMCMountainside14.HackensackUMCatPascackValley
HunterdonHealthcare15.HunterdonMedicalCenter
InspiraHealthNetwork16.InspiraMedicalCenterElmer17.InspiraMedicalCenterVineland18.InspiraMedicalCenterWoodbury
RobertWoodJohnsonHealthSystem19.RobertWoodJohnsonUniversityHospitalHamilton20.RobertWoodJohnsonUniversityHospitalNewBrunswick21.RobertWoodJohnsonUniversityHospitalRahway22.RobertWoodJohnsonUniversityHospitalSomerset
SummitMedicalGroup613physicians
15MacroTrendsandPhysicianAlignmentStrategies|December2016
Payer/ProviderGoalsforVBPartnerships
ProviderCareAccountabilityandintegration
Relativ
eFina
ncialR
isk
FFS
SharedIncentives
BundlesandEpisodesof
Care
ManagingaSpecificConditionorService
Line
SharedSavings
SharedRisk(ODS)
GlobalRisk(ODS)
ManagingHealthofaDesignatedPopulation
AchievingSpecific
QualityandCost
ImprovementMetricsor
PCMHStatus Hospital/HospitalSystemMulti-SpecialtyPhysicianGroup
Hospital/PhysicianGroupPhysicianNetwork/IPA
ParticipatinginaNarrowNetworkNarrowNetwork(orTiered)
ThreeExamplesofPayer/ProviderGoals:1) FindNEWpartnersinCURRENTVBpartnershipcategories2) FindNEWpartnersinNEWVBpartnershipcategories3) ExpandEXISTINGpartnersintoNEWVBpartnershipcategories
Payers/Providersneedstoassessintrinsicstrategies,clinicalmodelsandcapabilities.
16MacroTrendsandPhysicianAlignmentStrategies|December2016
WhileValueBasedPrograms(CINs/ACOs/SpecialtyCINs)HaveExpanded– WhyHaveRegionalPopulationHealthCostsNotDecreased?
Revenues and expenses per beneficiary
$
2013
New
JerseyM
arketM
LR
2015
New
JerseyM
arketM
LR
HighPerform
ingMed
ical
Grou
p/CIN(SMG)
HighPerform
ingMed
ical
Grou
p/CIN(SMG)
New Jersey Medicare Cost
per Beneficiary
D =8%D =22% IncreasedHospitalBased
Billing• MedicalGroupBillingStructure• Outpatient/AncillaryBilling• Hospital/PhysicianJointVentures
(e.g.HospitalASCRates)
IncreasedDiseaseBurden• Cardiovascular• Orthopedics• Oncology– therapy/drugs• Neurosciences/Dementia
17MacroTrendsandPhysicianAlignmentStrategies|December2016
TelemedicineWillVarybyProgramandEnablingCapabilities
Sources: The eICU® Solution: A Technology-Enabled Care Paradigm for ICU Performance http://www.ncbi.nlm.nih.gov/books/NBK22836/
Developing telemedicine capabilities thatallow forconsults,tele- EDand eICU acrossthe state and developcloser relationshipswith referring physicians while minimizing travel time.
American Telemedicine Association: Program Guidelines http://www.americantelemed.org/
Program Type Initial Requirements EnablingCapabilities
“On Demand” Consults
Patient or provider initiated consultsusing real-time, interactive
technologies to perform video andaudio-based interventions
• Two-wayvideo and audio• Provider’s and patient’s environmentthat
ensures privacy• Specialty programs could include tele-
derm – cardiology– pulmonary– neurology–radiology, etc.
Software,Hardwareand
Services
Tele-ED
Network of systems used to createa collaborative, inter-professionalcare model focused on patients
with emergent conditions
• Credentialing (can be by proxy)• Telemedicine cart and trained staff• Contract to provide telemedicine
servicesas a physician consult• Services could include tele-ED, tele-
stroke, and trauma
Software,Hardwareand
Services
eICU
Provides continuousmonitoring ofICU patient from a remote location,enabling more timely interventionsin a more cost-effective model
• Adequate bandwidth to support real- timevideo
• High-resolution camera and a two-way audiosystem in each patient room
• “Hot”phones provide ICUstaff withimmediate access to the intensivist - ledstaff inthe eICU.
Software,Hardwareand
Services
18MacroTrendsandPhysicianAlignmentStrategies|December2016
Max
“Next-Generation”DeliveryModel—MaximizingAccesstoQualityServicesThroughFocusedAssetDevelopmentAndDeploymentStrategy
MAIN CAMPUS(S)
• Tertiary andquaternarycare facilitycaring forthe mostcomplexpatients andincludes:
• ICU• CVICU• NICU• Med/Surg• ED• Specialty care• Advancedimaging• Interventional radiology• ECMO• Anesthesia• Infusion• Dialysis
SATELLITE ACUTECARESITEOF SERVICE• Low to mid acuity in-patient facility servingas a referral centerinto main campus
• Licensed inpatientunits or free-standinghospital
• EDPHYSICIANSPECIALTY CENTER
• Specialty Care• Primary Care• Imaging• After Hours Urg Care
LARGEAMBULATORY SITE
• Specialty Care• Urgent Care• Rehab• Sedated Imaging• Infusion• Nutrition• Anesthesia• ASC
RETAILSPACES• Store front spaceforselect services(therapies, sports med,rehab, imaging)
COSTS $25M - $100M $5M- $15M $2M - $5M $500K- $2M
SPACE 20,000 – 60,000 Sq. Ft. 10,000 – 35,000 Sq. Ft. 2,500 – 10,000 Sq.Ft. 1,000 – 5,000 Sq.Ft.
Max MinSERVICE INTENSITY
Integratewithe-HealthandVirtualCare
CollaborationwithHPIandIndependentPhysiciansCreatingSystemofCare
19MacroTrendsandPhysicianAlignmentStrategies|December2016
Memorial Hermann
HCA
St. Luke’sMethodist
Inpatient Market Share Market Share Ranking1st: AggregateMarket Share1st: Burns1st: Cardiology1st: ENT1st: General Medicine1st: General Surgery1st: Neurology1st: Neurosurgery1st: Ophthalmology1st: Orthopedics1st: Rehab1st: Thoracic Surgery1st: Urology1st: Vascular2nd: Gynecology2nd: Obstetrics2nd: Neonatology2nd: Spine2nd: Oncology
211 Locations
$4.9B Total Assets$4BNetOperating Revenue
22,000 Employees; 5,000 Medical Staff
Greater Houston MSA 6.36million population, projected to 6.9million by2018
TheMarketLeader– EmphasizingRetailExpansionandCriticalMass
20MacroTrendsandPhysicianAlignmentStrategies|December2016
SUPERCINPerformanceStandards
ProviderNetworkSupport
SupportInfrastructure
$$$$$$$$$$
$$$$
$$$$$$$$$$
$$$$
Payers
CONTRACTS REVENUE
SpecialtyCIN-ChospitalSpecialtyCIN-CphysiciansSpecialtyCIN-CCo-mgmt.companiesOtherentitiesfocusedonclinicalintegration/performance
CIN-A CIN-B SPECIALTYCIN-C
H
ContractedServicesEnterprise,SiteSpecific,Specialty,etc.
CIN-AhospitalsCIN-AphysiciansCIN-ACo-mgmt.companiesOtherentitiesfocusedonclinicalintegration/performance
CIN-BhospitalsCIN-BphysiciansCIN-BCo-mgmt.companiesOtherentitiesfocusedonclinicalintegration/performance
SuperCIN,CINandSpecialtyCINContractingOpportunities
HH
CINA orCINBContractsfor
SpecialtyCINContractsfor
CINA/CINB N/A Complex CareSpecialtyPHM
Specialty CIN Complex CareSpecialtyPHM
N/A
SuperCIN ParticipateinSuperCINPHM
Contracts
Complex CareSpecialtyPHM
Payers DirectPHMContract
SpecialtyPHMContract
CONTRACTINGMATRIX
21MacroTrendsandPhysicianAlignmentStrategies|December2016
Quincy
“Provider-Dominant”– IowaSuperCINValue-BasedStrategy
MHNCentralIowa
MHNSiouxland
MHNDubuque
MHNClinton
MHNIowaProfile• JOA:CHIandTrinity• 27.5%MarketShare• 13,000Employees• $2.2BillionFY10OperatingRevenues
• 11OwnedHospitals• 29AffiliateHospitals• 142PhysicianClinics• 625Physicians
MHNNorthIowa
22MacroTrendsandPhysicianAlignmentStrategies|December2016
CURRENT STATEFragmented Community Care
Resources
National Dialysis
Contracts
Retail Pharmacy ContractsEmergencyCarePatient-Centered
CommunityCare(PC3)
NationalDialysisContracts
RetailPharmacyContracts
Federally-AffiliatedFacilities
EmergencyCare
ProjectARCH
Veteran’sChoice
Community Care Network
• VHAVisionistobuilda“SystemofSystems”toadministerCCN- 4.3MillionVeterans/$12.3BilliongoingtoprivatesystemsforFY17- High-PerformingNetworkSystems- IntegratedCustomerServiceSystems
“WildCard”– VHACCNOrganizesCurrentOfferingsintoSingle,IntegratedEntity
• Fragmentedandinefficientprograms
• Typicallyfocusedonaspecificpopulation
• Overlappingorinconsistenteligibilitycriteria
• Employmultipleprocessesforthesameactivity(e.g.,claimsprocessing)
• Careofteninconsistentwithbest
FUTURE STATEResources Integrated into Single
Program
23MacroTrendsandPhysicianAlignmentStrategies|December2016
VACommunityCareRegionsandEstimatedEligibleVeterans
24MacroTrendsandPhysicianAlignmentStrategies|December2016
TimingandSpeedofMarketShiftVariesbyState
MDs
+HospitalA
ggregateReven
ue($
)
AggregateFFSRevenue($)
AggregateValueBased/CINRevenue($)
0%
10%
20%
30%
40%
50%
60%
70%
80%
2012 2013 2014 2015 2016 2017 2018 2019 2020
FasterMarketTransition-MA,AZ,CA
SlowerMarketTransition-
IN,MT,MD,LA
KEYTAKEAWAYHospitalsandaffiliatedphysicianswillhavetworevenuestreams(FFSandVB)formanyyears,butovertime,theVBstreamwillbecomelargerthanFFS.
Acceleratorsforvalue-basedmarkettransition- Non-Federaldefaultstate-basedexchanges(e.g.,MA;CA)- State-basedMedicaidexpansion(e.g.,AZ)
25
MacroTrendsandPhysicianAlignmentStrategies
December2016
PhysicianClinicalandBusinessAlignmentModels- Employedphysicianmodels- Aligningindependentphysicians- Next-generationphysicianalignment
26MacroTrendsandPhysicianAlignmentStrategies|December2016
ClinicalIntegration:OptimizingContinuumofMDRelationships
Independent Physicians
Medical Directors ContractedPhysicians
RadiologyAnesthesiology
EREtc.
Credentialed Staff DirectorAgreements
Professional Services Contracts
Employed Physicians
Pluralistic Medical Staff
Teaching Faculty
EmploymentAgreements
Teaching and Research
Agreements
27MacroTrendsandPhysicianAlignmentStrategies|December2016
AlignmentModelsFocusonClinicalIntegration
Model Attributes/Enterprise Orientation Targeted Physicians
EMPLOYMENT PLUS VARIATIONS
Employment, by the hospital, larger physician group or related organization (payer). Most effective in “value-based” environment.
Historically highly focused on PCP’s, recently expanded to virtually all specialties
CIN/CO-MANAGEMENT Joint management of a hospital service line and/or operating entities between the hospital and a group of organized physicians. Works in both “value-based”and FFS environment.
CIN/Co-Management Structure. Historically, specific to the service line/COE but is becoming more expansive. Optimizes independent physician alignment
JOINT VENTURES Economic venture where the asset or service are jointly owned by physicians and hospital. Increasingly subject to intense regulatory scrutiny.
Specific to the service of the JV. provider-based reimbursement can be lucrative to independent physicians wishing to sell ancillaries
PRACTICE SUPPORT MSO, loans, recruiting support etc. To assist independent physician/groups practices. Most effective with independent physicians.
Historically focused on PCP’s but expanding to include specialists
PAYER CONTRACTING Legacy vehicle is PHO and is designed to increase negotiating strength with payers. Increasingly ineffective. PHO transitioning to CINs.
Open to all qualified medical staff members. Segmentation often lacking. Without a goal of “single signature”contracting other alignment models more effective
CONTRACTUAL Specific to single physician or group for a designated services. Examples include medical directors, hospitalists, PSAs, etc.
Aligned to specific service being provided. Alignment focus is evolving to more employment
Leve
l of
Inte
grat
ion
28
MacroTrendsandPhysicianAlignmentStrategies
December2016
EmployedPhysicianModels
29MacroTrendsandPhysicianAlignmentStrategies|December2016
Forthe3rdConsecutiveYear,theThreeMost-placedProvidersWereFamilyMedicine,InternalMedicineAndHospitalists
PlacementSpecialties2016.Source:TheMedicusFirm
30MacroTrendsandPhysicianAlignmentStrategies|December2016
IntegrationModelsforPhysicians
Model Attributes/Enterprise Orientation
EMPLOYMENT(Plus variations)
Employment, by the hospital, larger physician group or related organization (payer)
CIN/CO-MANAGEMENT Joint management of a hospital service line and/or operating entities between the hospital and a group of organized physicians. Migrating to Value Based Contracts.
JOINT VENTURES Economic venture where the asset or service are jointly owned by physicians and hospital.
PRACTICE SUPPORT MSO, loans, recruiting support etc. to assist independent physician/groups practices.
PAYER CONTRACTING Designed to increase negotiating strength with payers. Increasingly ineffective.
CONTRACTUAL Specific to single physician or group for a designated services (e.g., medical director)
Leve
l of
Inte
grat
ion
An increasingly critical option for key primary care and specialty physicians struggling with practice cost vs. reimbursement issues
31MacroTrendsandPhysicianAlignmentStrategies|December2016
Hospital-SponsoredMedicalGroupStructuralOptions
Model A: “Embedded” Medical Group
Model B: Separate LLC / 501(c)3
Virtual stand-alone medical group with an advisory board, physician
executive, and CAO, but embedded in a health system structure
Medical group structured as a separate 501(c)3 or LLC legal entity sponsored by
a stand-alone health system
System board holds reserved powers over medical group
Hospital System Board
Hospital
Medical Group(Dept. of Hospital)
Group Board
Hospital System Board
Hospital
Medical Group(LLC/501(c)3)
Group Board
32
MacroTrendsandPhysicianAlignmentStrategies
December2016
AligningIndependentPhysicians
33MacroTrendsandPhysicianAlignmentStrategies|December2016
IntegrationModelsforIndependentPhysicians
Model Attributes/Enterprise Orientation
EMPLOYMENT(Plus variations)
Employment, by the hospital, larger physician group or related organization (payer)
CIN/CO-MANAGEMENT Joint management of a hospital service line and/or operating entities between the hospital and a group of organized physicians. Migrating to Value Based Contracting.
JOINT VENTURES Economic venture where the asset or service are jointly owned by physicians and hospital.
PRACTICE SUPPORT MSO, loans, recruiting support etc. to assist independent physician/groups practices.
PAYER CONTRACTING Designed to increase negotiating strength with payers. Increasingly ineffective.
CONTRACTUAL Specific to single physician or group for a designated services (e.g., medical director)
Leve
l of
Inte
grat
ion
Sweet spot hospital’s “anchor’ services (e.g., cardiology, orthopedics, oncology)
34MacroTrendsandPhysicianAlignmentStrategies|December2016
GeneralCo-ManagementStructure
CO-MANAGEDSERVICELINEClinicalDeliveryofServices
TeachingResearch
Planning/MarketingPhysicianDevelopment
CO-MANAGEMENTLLC
Operating Agreement
Physicians
CEO/President
LLCBoardMSA
SHAREHOLDERS
Clinical management
services
ClinicalManagement
FinancialManagement
OperationalManagement
35MacroTrendsandPhysicianAlignmentStrategies|December2016
TypicalFlowofFeesandIncentivePaymentsforCMLLC
Base Fees Incentive Fees
$ $
MedicalDirectors
Boards and Committees
Operating expenses
PhysicianInvestors
HospitalInvestors
CO- MANAGEMENTLLC
$
Management Fee (FMV)
Incentivefeesbasedonachievingspecifiedandmeasureablemetricsfor:– Clinicalquality– Budget-relatedgoals– Operationalgoals– Programdevelopment
ShareholderdistributionsmadeasavailableandsanctionedbyLLCboard
Admin Costs
LLCBoard
36
MacroTrendsandPhysicianAlignmentStrategies
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Next-GenerationPhysicianAlignment:CINs/CIOs/ACOs
37MacroTrendsandPhysicianAlignmentStrategies|December2016
VBRevenueStrategies– SpecialtyCIN
FFSRevenueEnhancementStrategies
ManagementCompanyKeytoManagingFFS&VBSpecialtyCare
ManagementofSpecialtyCareDuringFFS toVBTransition
2016 2017 2018
ManagingSpecialtyCareTransition
Ongoing
38MacroTrendsandPhysicianAlignmentStrategies|December2016
ManagementofOrtho/SpineServicesDuringTransitionfromFee-for-ServicetoValue-BasedReimbursement
2017 2018 20192016Past
Fee-for-Service
2020
FocusisontransitiontoValue-BasedReimbursementenvironment,clinicalintegrationanddevelopmentoftheSpecialtyCIN
Focusisoncontractingforvalue-basedspecialtyservices;SpecialtyCINisthecontractingvehicle
Value-BasedReimbursement
Transition
FocusisonmanagementofservicelineinFFSenvironment
39MacroTrendsandPhysicianAlignmentStrategies|December2016
50% 50%
SpecialtyCINNeededforVBContracting*
OrthopedicGroups
SpecialtyCIN,LLCManagementLLC $Payers
SharedOwnership50% 50%
VBContracts
ManagementLLC—2Missions:• ManagementoftheServiceLines• ManagementoftheSpecialtyCIN
Co-ManagementCompany
SpecialtyCIN,LLCBoardofManagers
SharedGovernance
Ortho/SpineServiceLines
FinancialConsiderations:• Sharedcapitalcontributions• Sharedfinancialrisk
*Sharedownershipmodel
• ACOsandCINs• Governmentprograms• Commercialpayers• Directcontractswith
employers
40MacroTrendsandPhysicianAlignmentStrategies|December2016
PhysicianLeadershipandEngagementEssentialtoCINSuccess
GovernanceandLeadership• Effectivegovernanceandmanagement• Membereducationandengagement• Managingmemberdynamicsandrelationships
FormCIN• Legalstructure• Organization/ownership• Governance• Infrastructuredevelopment• Budgeting/financialmodeling
ClinicalIntegrationandPerformanceImprovement
• PopulationHealthManagementandValue-Basedclinicalmodels
• Caretransformation• Carecoordination• Providercompensation• Enablingtechnology• Performancetracking
MedicalStaffCollaboration• Staffeducationandengagement• Integrating/collaboratingwithCIN
qualityinitiatives• Delegatedfunctionality
Clinically Integrated Network
HPCPsSpecialists
PHYSICIAN-LEDINITIATIVE
PHYSICIAN-SUPPORTEDINITIATIVE
KEYTAKEAWAYAlignedphysicianswillneedtobecomeengagedinallfacetsofCINdevelopmentandwillneedtoprovidesignificantclinicalleadership.
41MacroTrendsandPhysicianAlignmentStrategies|December2016
Value-BasedContractingRequiresFTC-Compliant“ClinicalIntegration”
H H H
H H H
IndependentPhysiciansHospitalsandEmployedPhysicians
CINNetworkParticipationAgreements
ClinicalScope Membership
Encompassesfullcontinuumofcare (inpatient,outpatient,alternativecare,andcollaborativecaresettings)
Targetedatphysicianswhoseparticipation haspotentialtomaximizequalityandefficientresourceutilization
Performance Improvement CapitalRequirements
Designedtoimprovequalityandreducecoststhroughprotocolsadherence supportedbycomprehensivedatacollectionandreporting
Significantinvestmentrequiredtodevelop anddeploytechnologyinfrastructure(clinicalandfinancial)tosupportimprovedcaredelivery
OrganizationalRequirements LegalConsiderations
MarketPowerConcentration FraudandAbuseIssues
Clinicallyintegratednetworkswhichmateriallyreducecompetitionmaybesubjecttochallenge
Mustsatisfy Anti-KickbackStatute andStarkrules
Ownershipandcontractualarrangementsmustbeat FairMarketValue
StateLicensing/RegulatoryRequirements
Mustcomplywithallallstatelicensingandregulatory requirementswithregardtoownership,financialarrangementandotherstatutes
KEYTAKEAWAYForthehospitalandaffiliatedphysicianstoengageinjoint,value-basedcontracting,theycollectivelymustmeetFTCrequirementsfor“clinicalintegration,”whichcoveracombinationoforganizationalandlegaltouchstones.CINwillneedaformalorganizationstructure(usuallyanLLC)andproviderparticipationagreementsthatdefineparticipationrequirementsandperformanceexpectationsfornetworkserviceproviders.
42MacroTrendsandPhysicianAlignmentStrategies|December2016
PatientStratificationandPopulationHealthManagement
ClaimsMedications
LabTestsReferralsERAdmits
HRA
PCMH
Low-Risk PatientsMedium-Risk PatientsHigh-Risk Patients
OngoingMonitoringandInterventions
PeriodicMonitoringandInterventions
EpisodicOutreachCl
inicalprotocols
Team
-based
Carecoo
rdination
PerformanceMetrics
ClinicalManagement- Qualityandsafety- Outcomes- Patientsatisfaction
ResourceManagement- Useofancillaries- Admissions- ERvisits
HealthStatusStratification
redictiveModels
DATAPredictive
Models
Patient-CenteredMedicalHome(“PCMH”)
DataAnalytics
KeyTakeaway:PopulationhealthmanagementiscoordinatedthroughathePatient-CenteredMedicalHomemodelofcareanddrivenbydataanalyticstostratifythepopulation.
43MacroTrendsandPhysicianAlignmentStrategies|December2016
CriticalInfrastructureandTechnologyNeedsforCIOs/CINs/ACOsCategory Description KeyCapabilities
PopulationandClinicalRiskManagement
Quantifypatientrisk,inputtorisk-adjustedpaymentmethods,andabilitytopredict/tailorcareneedsandenablegreaterrisk-sharing.
• Predictivemodeling• Patientstratification• Clinicalriskquantification• Patientattributionanalysis
FinancialandNetworkManagement
Facilitatetransfer,disbursement,incentivealignment,andcontractmanagementofvalue-basedpayments.Tightlytrackcostsacrossthecarecontinuumtosupportoperationofahigh-performingnetwork.
• Novelreimbursementmodelsupport• Networkassessment• Contractdevelopment• Patientfinancialmanagement
ClinicalModelDesignandManagement
Promoteevidence-basedcaredelivery,enabletightercarecoordination,supportforintegratedtreatmentplanning,andcost-effectiveuseofresourcesandsettings.
• Clinicalprocessdevelopment• EBMpathwaydevelopment• Protocolmanagement• Bundledpaymentcaremanagementmodels• Carecoordination/transitionsofcare
CoreClinicalTechnologyInfrastructure
Deployandleveragerobustclinicaltechnologyinfrastructuretocreateseamlessclinicalintegrationacrossacuteandambulatorysettings.
• InteroperableEMR• Sharedclinicalandadministrativedocumentation• Referralandnetworkmanagement• POCdecisionsupport• Bundledpaymenttrackingandreporting
IntegratedDataExchange
Ensureintegrated,secure,timelyaccesstoclinicalandadministrativedata.
• Integratedaccesstoclinical,financial,andadministrativedata– e.g.claims,encounter,cost/quality,EBMguidelines
PerformanceManagement
Enablerobust,transparentperformancemanagementthatallowsroot-causeidentificationofcostandqualitygapsandtiespaymenttoperformance.
• Performancemetricdashboards• Integratedcostandqualityreporting• Providerperformanceprofiling• Utilization/qualityreview
PatientEngagement Enablepatient-focusedprogramsandtoolsthatpromoteself-managementandallowforcostandquality-conscioushealthcaredecisions,particularlyforat-riskandchronicallyillpatients.
• Patientnavigationandcarecollaboration• Intelligentscheduling/tracking/monitoring/alerts• Shareddecisionmaking• Informationportals
44MacroTrendsandPhysicianAlignmentStrategies|December2016
ProviderReimbursementChanges– SharedSavings/PatientCareManagementFeeswithQualityMetricsCreateValueBasedModels
FromCMS/CommercialPayertoHospitalsandPhysicians(inordinarycourse)
FromCIO/ACOtoNetworkPCPs($5.00-$40.00PMPM)
FromCMS/CommercialPayerSharedSavingsthroughCIO/ACO(bycreatingsavingsandmeetingdefinedperformancetargets)
45MacroTrendsandPhysicianAlignmentStrategies|December2016
ProvidersWillManage“New”MultipleValueBasedRevenueStreams
PCPandSpecialtyStrategieswillbeemployedbyCIOs,CINs,ACOs,SpecialtyCIOsallshouldbestructuredtotakeadvantageoftheFFSrevenuestreamplusfouradditionalrevenuestreamsandpaymentmethodologies.
AdministrativeFees
AdminCostsandContingency
$
PremiumRevenue
$
QualifyingPhysiciansUsuallyPCPs
OtherSpecialistsHospitals
AncillaryProvidersRx/LabOther
MedicalLossRatio(MLR)
$
Fee-For-Service
CLINICALQUALITYTARGETS
PATIENTSATISFACTIONTARGETS
SHAREDSAVINGS
PatientCareManagementFees
$
$
$
Value-BasedPerformancePayments
Newrevenuestream$
46MacroTrendsandPhysicianAlignmentStrategies|December2016
CMSPerCapitaSpendNationally
Source:DartmouthAtlas
47MacroTrendsandPhysicianAlignmentStrategies|December2016
$25.80
16.80
17.40
1.39 0.90
$20.03
15.76
16.74
CMSSavings CIOAdm HospitalsInPatient Physicians Pharmacy/OP/Other
MedicareFFS MedicareACO
RevenueImplications—NextGenerationACOvs.FFSMedicare
CIN/ProviderCosts $MMAdministration/$15PMPM 0.90Totals 0.90
Provider RevenueInpatient(Hospital) 20.03PhysicianServices 15.76Pharmacy/OP/Other 16.74Totals 52.53
IncentiveAllocationDistribution (IAD)CMS(15%) 1.39Hospitals(35.1%) 3.26Physicians(35.1%) 3.26AllPCPPhysicians(5%) 0.46Totals 8.37
(NetofCINAdminCosts)
1ForcomparabilityonlyasNextGenerationACOsrequire10,000attributedlives.
NGACOAssumes5,0001 enrolleesat$1,000PMPM$62MMinTotalPremiumRevenue/MaximumSharedSavingsare$9.3MMor15%)
$1.39of$9.3MMinMaximumSharedSavingstoCMS(15%Share)$7.9MMinMaximumSharedSavingstoACO(85%Share)plustelemedicinefees
$23.3total-9.7%
-22.4% -6.2% -3.8%
$19.5+16.0%
FinancialImpactonKeyStakeholdersMedicareFFSvs.NextGenerationACO($MM)
48MacroTrendsandPhysicianAlignmentStrategies|December2016
RevenueImplications– MedicareAdvantagevs.FFSMedicare
Assume5,000enrolleesat$1,200PMPM(HCC=1.23)withoutadditional“star”reimbursement$72MMinTotalPremiumMARevenuevs.$60MMintotalFFSPremiumRevenue
MLR=85%(industryincentives)toproviders/HumanaModel*
MAHealthPlan $MMAdministration 7.2Profit 3.6Totals(15%MLR) 10.8
ProvidersHospital (Inpatient) 20.2PhysicianServices 14.4Pharmacy/OP/Other 14.4Totals(68%MLR) 57.1
IncentiveAllocationHospitals (50%) 7.14Physicians (50%) 7.14Totals(17%MLR) 14.3
FinancialImpactonKeyStakeholdersMedicareFFSvs.MedicareAdvantage($MM)
*Humana=81%MLR:AetnaFL83%MLRWithout5Starincentiveallocation(4%+)
1.8
$25.05
$16.80$17.40
7.2
$20.20
$14.4 $14.4
TPI/MAHlthPln Hospitals Physicians Parmacy/OPOther
MedicareFFS MedicareAdvantage
$21.5Total+28%
+400%
-17%
$27.3Total+9%
+400%
-14%
-19%
49MacroTrendsandPhysicianAlignmentStrategies|December2016
NextGenerationClinicallyIntegrated“SystemofCare”
CREATING A CLINICALLY INTEGRATED “SYSTEM OF CARE”
Primarycare
Specialists
“Traditional”CIN
Ancillarie
s Hospitals
Strategicnetworkdesignprocesstocreateintegratedsystemofcaretoextendserviceaccessandtouchpoints(Hardassetsandvirtual)
Primarycare
Specialists
ClinicallyIntegratedSystemofCare
Ancillarie
s Hospitals
UrgentCareMinuteClinics
TelemedicineOnlineConsults
FreestandingEDsPostAcute
ASCsSpecialtyCenters
CENTRALIZEDSERVICESPayerContracting
NetworkManagementTechnologySupport
KEYTAKEAWAYThevisionforaclinicallyintegrated“SystemofCare”isstrategicallyinspiredbythegroundbreakingretailhealthcarestrategybeingimplementedsuccessfullyat“OneMemorialHermann.”Aclinicallyintegrated“SystemofCare”movesbeyondthe“traditional”CIN,whichfocusesprimarilyonintegratingandconnectingexistinginpatientandoutpatientfacilities,clinicsandphysicians,butdoesnotseektoprovideexpandedhealthcareaccesspointsthroughoutthecommunity.
50MacroTrendsandPhysicianAlignmentStrategies|December2016
Humana—MedicareAdvantageTransitionStrategyforProviders
1st Year—PhaseI 2nd Year—PhaseII 3rd Year—PhaseIII
SharedIncentives IncreasedIncentiveOpportunities
“15centSolution”
KeyElementsofPhaseI- FFSreimbursement
(e.g.,120%ofMedicare)
- Qualityreporting- HCCcalculation- Modestupside
incentiveopportunity
- Nodownsiderisk- Opportunityfor
higherreimbursement
KeyElementsofPhaseII- FFSreimbursement
(e.g.,120%ofMedicare)
- Largerincentivesforqualityperformance
- LargerincentivesforHCCimprovement
- Nodownsiderisk- Opportunityfor
highertotal
KeyElementsofPhaseIII- HumanapaysCIN
85%ofpremium- Baselinereflects
higherHCCscores- Significantupside
anddownsiderisk- Opportunityfor
muchhighertotalreimbursement(e.g.160%ofMedicare)
KEYTAKEAWAYHumanaprovidesaclear,3-5yearstrategytoevolvephysiciangroupsandcommittedCINstogreaterriskandgreaterpotentialreimbursementfortheMedicarepopulation.
51
MacroTrendsandPhysicianAlignmentStrategies
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SummaryConclusions
52MacroTrendsandPhysicianAlignmentStrategies|December2016
2016—ComplexandCrowdedFFSandValue-BasedEnvironment
Care Coordination and Patient OutreachProgram Advisory and Implementation Services
Data Aggregation and Intelligence Risk Management and Analytics
END-TO-END
Source:CuratingtheBestofDigitalandPopulationHealth,Dr.GordonJoneshttp://www.slideshare.net/elcid84/phmslideshare2014?qid=331b8a6e-df33-4f6b-8bbf-ee7bc139c465&v=default&b=&from_search=3
53MacroTrendsandPhysicianAlignmentStrategies|December2016
ConclusionsandImplications
NationalImplications:
• GovernmentalACOs/Plans– AsgoesreimbursementstructuresforMedicare,sogoesthecommercialreimbursementstructuresaswell.LookforMedicareAdvantageandNGACO’stoinfluenceeveryproviderinasimilar“ValueBased”manner.
• HealthSystemCINs– Alllargesystemswillemulatea“OneMemorialHermann”Modelbuttheirsuccesswilldependontheirsurvivalof“NarrowNetworks”andtheir“CapabilitytobuildouttherightmixRetailHealthandexistingassets.”
• Multi-SpecialtyGroupCINs– Needdominantcriticalmass(e.g.,800poundgorilla)inapluralistichospitalandpayerenvironment.OtherwisetheyneedtobeassociatedwithalargeHealthSystem(s)CINthathelpsthemachievecriticalmass.
• PayerRelationships– Pluralisticuntiltheystartdownthe“NarrowNetwork”/ValueBasedProduct/Population(AtRisk)pathwaysthentheywillsegregatebypopulation(MedicareAdvantage)andSpecialtyProduct(CVSpecialtyCINforJoints,CHF,IHD,CABG’s,etc.)
• “WildCard”– VeteransHealthcareAdministrationCommunityCareNetwork(VHACNN)– 4.3millionveteransusing(VHACCN)4regions,$12.3billionintotheprivatedeliverysystemFY17
54MacroTrendsandPhysicianAlignmentStrategies|December2016
CriticalTakeaways
PrioritizekeyInitiativestofulfillthefollowingobjectives:
• Preserveandgrowadominantcriticalmassofpatients,facilitiesandtechnologytosustainandenlargeanoptimalregionalfootprint
• Significantresourceinvestmentswillberequiredtosupportthedevelopmentofadditionalvalue-basedproducts
• Bepreparedfora“zig-zag”expansionpathwaywhichwillrequiremultiplestartsandstopstoultimatelydevelopnumeroussuccessfulmodels
5665NorthScottsdaleRoad,Suite110n Scottsdale,AZ85250Phone:(480)427-3943nwww.ssbsolutions.com
56
MacroTrendsandPhysicianAlignmentStrategies
December2016
Appendix
57MacroTrendsandPhysicianAlignmentStrategies|December2016
MemorialHermannAccountableCare
• Clinically IntegratedIPA• Private, Employed & FacultyIntegration
• Exclusive Contracting DOJ/FTCProtections
CMSSharedSavings• 45,000 attributed beneficiaries• FocusPatientCenteredMedicalHome
Gr Houston >11,000MHMD 3,500CI 2,900ACO 2,700
PCMH304
211 Locations
Year 1 CMS Shared Savings $57,800,000 Savings(#1 ACO in the US)
COMMERCIAL
Commercial• 260,000coveredlives• BCBS,Aetna,Humana
MedicareAdvantage• 19,600coveredlives
MEDICARE
58MacroTrendsandPhysicianAlignmentStrategies|December2016
MHMDBoardof Directors
Clinical Programs Committee
H&V
Cardiology
Neuro
Neurology
WomenChildren
Neonatal
Surgery Medicine Oncology Contract
MemorialHermannHealthSystemCINisOrganizedforPopulationHealthManagementAroundServiceLinesandSpecialties
CVSurgery Neurosurgery OBGyn
Anesthesia
Bariatrics
Orthopedics
ENT
CriticalCare Medical
Emergency
HospitalMedicine
PostAcute
Oncology
Radiation
Contract
Radiology
Pathology
AdultPCP
Peds
PrimaryCare
59MacroTrendsandPhysicianAlignmentStrategies|December2016
Banner/AetnaProducts
AetnaWholeHealthProductwithBanner
• License• Claims• MemberServices• SalesandMarketing• Actuarial/Underwriting• ImplementationServices
HealthPlanServices• License• Claims• MemberServices• SalesandMarketing• Actuarial/Underwriting• ImplementationServices
HealthPlanServices
CareManagement
• EmbeddedCM• TelephonicCM• DM,UM,CM• Wellness• SeniorPrograms• ImplementationServices
CareManagement
• Telephonic/Embedded• UM,DM,CM,BH,MMTraining,StaffandPrograms
• WellnessandLifestyle• Clinical/ITPlatform• ImplementationServices
HIT/HIE
• HIE• CDS
• PHR/PtPortal• Analytics
• ImplementationServices
• CTSuite
HIT/HIE
• HIE• CDS
• PHR/PatientPortal• Analytics
• ImplementationServices
• CareTeamSuite• HIE
• CDS•
• Analytics&Reporting• ImplementationServices
•
ProviderBrandedHealthPlan
ProviderBrandedHealthPlan
StrategyDevelopmentandChangeManagement
AetnaWholeHealth
Physicians Hospitals OutpatientFacilities
Pharmacy HomeHealth
StandAloneorTurn-KeySolutions
AnyPayerAnyInsuranceSegment
60MacroTrendsandPhysicianAlignmentStrategies|December2016
CINStrategy:BannerHealthMovedthePhoenixMarketin2011andtheArizonaMarketin2014toBecomeaStatewideCIN
CIN Banner HealthNetwork(“BHN”)withFTCApprovalin2011
Participants • BannerHealth(Hospitals)includingUofA’stwohospitals• BannerMedicalGroupandUofAMedicalGroup/FacultyPracticePlan• BannerPhysicianHospitalOrganization• ArizonaIntegrated Physicians(IPA)ownedbyDaVitaHealthcarePartners
KeyPayerRelationship(s)
• Medicare(PioneerACO), Aetna,BCBSAZ(MA),Humana,HealthNet,United,Cigna• MultipleproductsandplansincludingMSSP,globalrisk,MA,narrownetwork• NoMedicaidproductatthistime
AttributedLives • 200Kcommerciallivesin2012;22KMAlives;estimated500K- 750Klivesbyendof2015;UofAHealthPlanMembers
OrgStructureandGovernance
• Physicians own50%andBannerHealthowns50%;sharedsavingscommensuratewithownership• BPHOcanengageinrisk-basedcontracting• BHNBoardhasrepresentativesfromallthreephysicianentitiesandBannerHealth;four
subcommitteesoftheBHNBoard:Quality/ClinicalIntegration;Finance;OperationsandContracting;andInformationTechnology
Key Points • AetnapartnershipispivotalinbuildingofBHNI/Tinfrastructuretosupportutilizationmanagement• ArizonaIntegratedPhysicianspartnershipchargedwithbuildingclinicalinfrastructureonambulatory
sideownedbyDaVita/HealthcarePartners• BHNpushingactivelytodevelopnarrownetworkproductsconsistentwithchangingpayerenvironment• BHNhastriedseveraltypesofriskmodelsandplans toofferacapitatedarrangementinthethirdyear
ofthePioneerprogram,aswellaswithseveralcommercialofferings
61MacroTrendsandPhysicianAlignmentStrategies|December2016
BannerHealthNetworkandBCBS-AZCaseStudy
BannerHealth25%
ArizonaIntegratedPhysicians25%
BannerMedicalGroup25%
BannerPHO*25%
BannerHospitals
800+Physicians120PCPs
600Physicians150PCPs900+Physicians
170PCPs
*BannerHealthowns50%ofBannerPHO
Banner
KeyElementsoftheBHNPartnership• “Win/win”structure• TermsareacceptabletoAIP
• FormationofnewcompanyforallVBPcontracting
• 50/50ownership• 50/50governance
• AIPhasleadershiprole• AIPisexclusivetoBHNforVBPcontracts
• BannerisexclusivetoBHNforVBPcontracts
• Alignmentofincentives• 50/50sharingofincentivesandrisk
JV#1:BannerHealthNetwork(50/50JVBetweenBannerHealthandPhysicians)
JV#2:BCBS-AZandBannerHealthNetwork
(50/50JV)• Purposeisjointdevelopmentofvalue-basedproducts
• Mutualexclusivityforvalue-basedproducts
62MacroTrendsandPhysicianAlignmentStrategies|December2016
ProgramDesignRequiresConsensusonFormandFunction
ApproachtoRisk
DegreeofCentralization
HeterogeneityofClinicalResources
LevelofIntegration
CentralizedDeliveryofServices
PCPOfficeBased
SpecializedClinicalTeam
BroadClinicalandBehavioralTeamandCommunity
Resources
Targeted,SiloedPrograms
ClinicallyIntegratedProgramSupportingaRangeofHigh-RiskPatients
Givenprogramvisionandscope,availableresources,andsizeoftheat-riskpopulation(nowandinthefuture),Aspirusneedstoidentifythesweetspotwithregardtobalancingkeyprogramdesignconsiderations
Selected Design Considerations
Disease-focused
Patient-focused
63MacroTrendsandPhysicianAlignmentStrategies|December2016
SSBCaseStudy:Multi-HospitalSystemLeveragingStanfordModel
HealthsystemstudiedandadaptedbestpracticesandtoolsfromtheIntensiveOutpatientCareProgramdevelopedatStanfordUniversity
CareCoordinationSupportHubPracticeA
PracticeB
PracticeC
H H
H H TransitionalCare
Managers
POSTACU
TECAR
ESERV
ICES
DischargedPts
$PayerServicesandPrograms EM
BEDDEDCAREMAN
AGERS
• Carecoordinationbuiltonfocuseddisciplineandadefinedstructure
• Dedicatedcarecoordinatorswithspecifiedresponsibilities- Hybridmodel—somecarecoordinatorsemployed
fulltimebytheCIN,andothersemployedeitherbypracticesorthehealthsystem
• Patient-centricratherthandisease-centric• Twoseparateprograms—chroniccareandcaretransitions
PROGRAMHIGHLIGHTS
64MacroTrendsandPhysicianAlignmentStrategies|December2016
CareManagementModelsMustBalanceGoalsandPerspectives
• Thegoalofcarecoordinationistofacilitatetheappropriateandefficientdeliveryofhealthcareservicesbothwithinandacrosssystemsofcare
• Whilestakeholdershareacommongoal,keygroupsmayalsohavedifferentperspectivesandexpectationsabouttherelativevalueandsuccessofdifferentapproaches/interventionsaswellasorganizationofresources
Source:AgencyforHealthcareResearchandDevelopment
Initial focus in model development is to ensure at the outset that stakeholder perspectives and
expectations are broadly understood and aligned
MeetPatientNeedsandPreferencesinDeliveryofHigh-Quality,
High—ValueCare
SystemRepresentative(s)Perspective
65MacroTrendsandPhysicianAlignmentStrategies|December2016
FourPHMPurchaseCategoriesforProviders
ENTERPRISEDEVELOPMENTPLATFORM Examples
Integrateddatacapture,analyticsandcommunicationsplatformto beusedbymultipleconstituenciesacrosstheenterprise
CaradigmHealthCatalystHealthcare DataWorksRecombinant(Deloitte)IBM
ANALYTICS-AS-A-SERVICE ExplorysHumedicaLumerisPremier(Verisk)Truven
OutsourcedPHManalyticsanddata managementtosupportPHMstrategiesandbenchmarking
POINTSOLUTIONS AltasoftMedventiveMidas+MedeAnaltyicsCloudera
Standalone componentswithnarrowbutdeepfunctionalityandsubjectmatterexpertise
EMRSUB-MODULE EpicCernerMEDITECHAllScripts
IntegratedPHManalytic andprocessroutineswithintheprovider’sEMR
Source:AdaptedmaterialfromtheAdvisoryBoard“OverviewoftheHealthcareAnalyticsMarket”(2014)http://www.slideshare.net/elcid84/phmslideshare2014?qid=331b8a6e-df33-4f6b-8bbf-ee7bc139c465&v=default&b=&from_search=3
5665NorthScottsdaleRoad,Suite110n Scottsdale,AZ85250Phone:(480)427-3943nwww.ssbsolutions.com