Transcript Title

PRELIMINARY DRAFT

Payment Improvement Initiative Webinar

Patient-centered medical home March 11, 2013

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Objectives

Welcome, overview of initiative timeline and SIM update – Dr. Joe Thompson

▪ Introduction to patient centered medical homes (PCMH) ▪ Q&A 1

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Overview of initiative aspirations

Retrospective Episodes (e.g. URI, Perinatal, ADHD) Patient Centered Medical Homes Health Homes (Behavioral Health and Developmental Disability) Prospective Episodes (Long Term Services and Support, Developmental Disability)

2013 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 Launch 75 – 100 episodes through mid 2016 2015 Q1 Enroll most Arkansas practices starting in mid 2014 Behavioral Health and DD Health Homes starting in 2014 Reach all Adults in this population by end of 2014; Children to follow in 6-12 months

2

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Arkansas is one of six states CMS awarded model-testing grant

SIM Awardees to implement healthcare innovation plans ▪ The

CMS State Innovation Models

(SIM) Initiative is providing funding to the State of Arkansas –

$42 million

to implement and test the initiatives over the next 42 months –

Funding covers

episode-based care delivery, patient-centered medical homes, and health homes ▪ The State sees this grant as an

indication of CMS’ engagement

with the initiative and belief that it could be a model more broadly applied in the country 3

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Objectives

▪ Welcome, overview of initiative timeline and SIM update ▪

Introduction to patient centered medical homes (PCMH)

Payment Initiative context and role for PCMH – Dr. Andy Alison

– – Overview of PCMH approach Path forward ▪ Q&A 4

There are major health care challenges in Arkansas

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Health status in Arkansas is poor

, with the state ranked at or near the bottom of all states on national health indicators, such as heart disease and diabetes.

The health care system is hard to navigate

, and it does not encourage doctors and other providers to work as a team when caring for patients.

▪ Health care

spending is growing unsustainably:

– Insurance premiums doubled for Arkansas employers and families in past 10 years (adding to uninsured population) – Budget shortfalls projected for Medicaid.

5

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Medicaid and private insurers believe paying for patient results, rather than just individual patient services, is the best option to control costs and improve quality

 ▪  Transition to system that

financially rewards value

and

patient outcomes

and

encourages coordinated care

Reduce payment levels for all providers

regardless of their quality of care or efficiency in managing costs 

Pass growing costs on to consumers

through higher premiums, deductibles and co-pays (private payers), or higher taxes (Medicaid) 

Intensify payer intervention in clinical decisions

to manage use of expensive services (e.g. through prior authorizations) based on prescriptive clinical guidelines 

Eliminate coverage of

expensive services, or eligibility 6

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Patient-centered medical homes are a core component of this shift to paying for results and part of a broader statewide effort Enable and reward providers for

▪ Improving the

health

of the population ▪ Enhancing the

patient experience

of care ▪ Reducing or control the

cost of care

How care is delivered Medical homes + Health homes Episode-based care delivery Five aspects of broader program

Results-based payment and reporting

Health care workforce development Health information technology adoption Consumer engagement and personal responsibility Expanded coverage for health care services

7

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Principles of patient-centered medical home design for Arkansas Patient centered

Focus on improving quality, patient experience and cost efficiency

Empowering

Provide support to enable clinical leadership

Balanced

Provide autonomy as well as guidance

Practical

Minimize requirements and administrative burden 8

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

What is PCMH?

Journey to PCMH

A team-based care delivery model led by a primary care provider that comprehensively manages a patient’s health needs

Aspirations

▪ Providers are responsible for managing health across their patient panel ▪ Coordinated and integrated care across multidisciplinary provider teams ▪ Focus on prevention and management of chronic disease ▪ ▪ Expanded access Referrals to high-value providers (e.g., specialists) ▪ ▪ Improved wellness and preventative care Use of evidence-informed care 9

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Why primary care and PCMH?

Most medical costs occur outside of the office of a primary care physician (PCP) , but PCPs can guide many decisions that impact those broader costs, improving cost efficiency and care quality

Ancillaries (e.g., outpatient imaging, labs) Specialists Patients & families PCP Community supports Hospitals, ERs 10

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Several developments in primary care payment aim to more appropriately compensate PCPs for playing this essential role Medicaid rate bump

– increase in primary care rates paid by Medicaid starting in April Outside of PCMH

Coverage expansion

– decrease in uncompensated care with increase in coverage on exchanges Part of PCMH

Gain-sharing

– significant upside only opportunity to share in savings from effectively patient panels’ total cost of care

Support payments for PCMH

– per member per month (PMPM) payments to support investment in care coordination and practice transformation activities 11

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Goals of episode-based and PCMH components of the Payment Initiative are aligned

Reward high-quality care and outcomes

Encourage clinical effectiveness

Promote early intervention and coordination to reduce complications and associated costs

Encourage referral to higher-value downstream providers

12

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Objectives

▪ Welcome, overview of initiative timeline and SIM update ▪ Introduction to patient centered medical homes (PCMH) – Payment Initiative context and role for PCMH – –

Overview of PCMH approach – Dr. Bill Golden

Path forward ▪ Q&A 13

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Arkansas PCMH strategy centers on three core elements: Incentives

▪ ▪ ▪ Gain-sharing Payments tied to meeting quality metrics No downside risk

Support for providers

▪ ▪ ▪ Monthly payments to support care coordination and practice transformation Pre-qualified vendors that providers can contract with for ▪ Care coordination support ▪ Practice transformation support Performance reports and information

Clinical leadership

▪ ▪ Physician “champions” role model change Practice leaders (clinical and office) support and enable improvement 14

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

INCENTIVES

PCMH model has two ways for PCPs to receive upside only gain-sharing 1 Receive gain sharing based on your own performance improvement

Your year 1 performance

or … 2 Receive gain sharing based on being a high performer in the state

State-wide performance Your year 2 performance Your performance Similar to episodes approach,

but no down-side risk

in PCMH For both options: ▪ Quality metrics must be met for gain-sharing ▪ Costs to calculate gain-sharing are risk-adjusted and exclude high-cost outliers 15

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

INCENTIVES

PMCH model provides options to pool patients across practices to enable gain-sharing

▪ ▪ ▪ To safeguard provider performance measurement from random variation, need to measure costs across a group of at least 5000 Pooling enables smaller practices to reach this panel size and participate in gain-sharing Costs are calculated and gain-sharing allocated based on all patients in a pool

PCPs can choose from 3 pooling options Considerations 1

Everyone starts in a “default pool”

2

Opt out of default if practice or health system has more than 5000 patients for a payer on its own

3

Opt out of default to form a voluntary pool by virtually affiliating with a few other practices Simplest option to sign up and start participating in PCMH, especially for smaller practices ▪ ▪ ▪ Smaller groups may provide Greater opportunity for impact Scale for practice transformation Support network 16

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

SUPPORT FOR PCMH ACTIVITIES

Practices will have the option to contract with pre-qualified vendors to support for care coordination and practice transformation activities Care coordination (on-going activities) State has released two requests for qualifications (RFQs) for vendors to support your practices Practice transformation (up-front activities)

Support to ensure that all patients – especially high-risk patients – receive holistic, wrap around, coordinated care across providers and settings Support to train practices on approaches, tools, and infrastructure needed to achieve a population health approach and improve performance

▪ ▪ Use of pre-qualified vendors is optional Vendor model developed based on provider input that: – – – An easy process to identify vendors is important Support is needed Providers need flexibility to tailor support to their own practices 17

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

SUPPORT FOR PCMH ACTIVITIES

Practices will receive monthly payments to support these activities

Payment amount

Care coordination and general practice investment Practice transformation

▪ ▪ Average of $4 per member per month (PMPM) Actual amount paid to be adjusted based on risk and complexity of patient panel ▪ ▪ $1 per member per month (PMPM) Flat amount per patient – not risk adjusted A PCP with 2000 attributed patients could receive up to $120,000 a year in support Purpose and uses ▪ ▪ ▪ Fund on-going care coordination activities Fund PCP and staff time invested in new care model PCPs choose how to use funds (e.g., pre-qualified vendor, other external support, internal practice investment) ▪ ▪ Fund costs to transition practice model to PCMH PCPs only receive $1 PMPM payment if they contract with a pre-qualified vendor 18

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

CLINICAL LEADERSHIP

Clinical leadership is essential to success Success for PCMH requires physician leaders

In their practices

to change mindsets, role model change and empower office leaders ▪

In their communities

to be proponents and early adopters of the model

Feedback from providers

▪ Critical for physicians to set the vision for how their practices will change ▪ PCMH is a team effort – PCPs, clinical staff, office staff must all be engaged

Provider input & guidance through the PCMH Provider Advisory Group has been a critical part of PCMH development to date

19

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Objectives

▪ Welcome, overview of initiative timeline and SIM update ▪ Introduction to patient centered medical homes (PCMH) – Payment Initiative context and role for PCMH – – Overview of PCMH approach

Path forward – Sheena Olsen

▪ Q&A 20

Anticipated PCMH rollout

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

ILLUSTRATIVE

Potential PCMH coverage over next several years

Wave 3 Wave 2

All Arkansas practices

Wave 1

Early adopters (up to 30%) Start of wave CPCI (69 practices)

October 2012 Mid 2013 ▪ ▪ Wave 2a - pediatrics Wave 2b –adults Mid 2014 21

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

How we hope to continue this engagement Medical societies

▪ ▪ ▪ AAP, AAFP, AHA, AMS Updates and engagement in design process Collaborate to engage membership as PCMH model is implemented

Clinical leaders

▪ ▪ Regular meetings with provider advisory group to input on design Planning sub-groups of pediatricians / family practitioners to input on specific clinical elements (e.g. ,quality metrics)

Broader public awareness

▪ ▪ ▪ Today’s intro webinar Regional town halls and Little Rock forum to raise broader awareness starting in late April in advance of initial (pediatric) enrollment period Email, social media, other media updates 22

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Objectives

▪ Welcome, overview of initiative timeline and SIM update ▪ Introduction to patient centered medical homes (PCMH) ▪

Q&A

23

Questions

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

24

For more information talk with provider support representatives…

PRELIMINARY WORKING DRAFT; SUBJECT TO CHANGE

Online

More information on the Payment Improvement Initiative can be found at www.paymentinitiative.org

– – – – – Further detailed information Printable flyers for bulletin boards, staff offices, etc. Specific details on PCMH Contact information for each payer’s support staff All previous workgroup materials

Phone/ email

Medicaid :

1-866-322-4696 (in-state) or 1-501-301-8311 (local and out-of state) or

[email protected]

Blue Cross Blue Shield:

Providers 1-800-827- 4814, direct to EBI 1-888-800-3283, [email protected]

QualChoice :

1-501-228-7111, [email protected]

25