Transcript Document
1 Emerging Mega-Trends in Healthcare and Implications for Providers of Services to Persons with Developmental Disabilities in New York State New York State Association of Community and Residential Agencies James W. Lytle Manatt Phelps & Phillips December 4, 2014 Agenda 2 Overview of megatrends in larger health and human services environment Impact of megatrends on New York State policy development Discussion of implications for the developmental disability field in New York and beyond Healthcare Megatrends • • • • • • • • • • More with Less, Volume to Value Consumers Take Charge Employers Recalibrate Mega-Health Systems Healthcare Everywhere Value Through Data Predict, Prevent, Personalize The New Aging The Centrality of States The Globalization of Healthcare 3 Megatrend 1: More with Less, Volume to Value 4 Supporting higher-quality outcomes and greater satisfaction, while reducing costs Innovative payment mechanisms and value-based purchasing (vs. traditional fee-forservice) to ↑ quality and ↓ cost Re-pricing of physician specialty services; emphasis on re-balancing primary care; more targeted use of specialty services Satisfying provider supply through: expanded role and scope of practice for non-MDs; new models of mid-level providers and teambased care New York: The Cost and Value Proposition 5 Payment/Delivery System Reform & Scope of Practice NY is remarkably slow and cautious on scope of practice issues for an allegedly progressive State RRecent progress on NPs, pharmacists and extending exemptions from Nurse Practice Act Decades of increasing reliance on managed care for Medicaid newly focused on DD Field DISCO Persistent experimentation in payment methodologies: Rate Rationalization and DSRIP valuebased payments $8 Billion in New Federal Funding 6 Planning Grants, $70 million allocated, $21.6M awarded Other MRT Purposes, $1.08 billion Interim Access Assurance Fund, $500 million DSRIP, $6.42 billion Overall pot to be allocated, depending on application valuation, into Public Hospital and Safety Net Funds 10% of each fund set-aside for high performance payments in years 2 through 5 State Program Administration, $300 million Performance Payments, $6.048 billion Potential Reductions in Federal Funding for Failure to Meet Statewide Metrics, $381 million Overview of DSRIP New York State (NYS) received federal approval to implement a Delivery System Reform Incentive Payment (DSRIP) program that will provide funding for public and safety net providers to transform the NYS health care delivery system. Goals: (1) Transform the safety net system (2) Reduce avoidable hospital use by 25% and improve other health measures (3) Ensure delivery system transformation continues beyond the waiver period through managed care payment reform Key Program Components: Statewide funding initiative for public hospitals and safety net providers Only coalitions of community/regional health providers are eligible DSRIP projects based on a menu of interventions approved by CMS and NYS Payments to providers based on their performance in meeting outcome milestones and state achieving statewide metrics 7 DSRIP Projects Menu & Domains 8 Each DSRIP “Performing Provider System” selects at least 5 projects (and no more than 10 projects) from the following menu: Domain 2: System Transformation Projects (must include at least two projects) • Create integrated delivery systems (required) • Implementation of care coordination and transitional care programs • Connecting Settings • Patient and community activation Domain 1: Overall Project Progress Domain 3: Clinical Improvement Projects (must include at least two projects) • Behavioral health (required) • HIV • Cardiovascular health • Perinatal • Diabetes Care • Palliative Care • Asthma • Renal Care Domain 4: Population-Wide Prevention Projects (must include at least one project) • Promote mental health and prevent substance abuse • Prevent chronic diseases • Prevent HIV and STDs • Promote Healthy Women, Infants and Children Value-Based Payments • Movement to coordinated care did not alter fee for service status quo • Goal: At least 90 percent of plan payments are required to be value-based by 2019 • Value-based payments involves Plan to individual PPS provider, Plan to PPS and Plan-PPS-Provider arrangements • Examples may include: Bonuses or penalties based on quality Shared savings Upside/downside risk sharing Bundled payments with outcome-based component Capitation with outcome-based component 9 Megatrend 2: Consumers Take Charge Increasing role of the consumer in healthcare decision making Consumers become “active shoppers,” able to compare and select products, utilizing data made available on smart phones and in social media Consumers bear more risk, particularly through higher cost sharing and high deductible health plans Individuals and communities increase focus on the impact of personal behavior, including diet, exercise and homebased self-care 10 NYS: Consumers & System Transformation 11 OPWDD and Consumer-Direction Consumer-direction has become a key element of residential, employment and related reforms throughout OPWDD System Transformation Megatrend 3: Employers Recalibrate The employer-sponsored insurance landscape is shifting Employers moving toward dropping coverage for retiree beneficiaries and shifting individuals to the Marketplace, and/or using a voucher system for current beneficiaries to purchase insurance on private/public Marketplaces As landscape for employers as purchasers becomes more complex and regulated, employers may pool interests and purchasing power 12 NYSACRA Members as Employers Employee health benefits in ACA environment Skinny networks, greater cost-sharing, limits on out of network access, prescription drug concerns Coverage for Associations and the self-employed under the ACA: Freelancers dilemma and new ERISA standards State intervention to protect against surprise bills and limits on out of network limitations and costs—and premium review 13 Megatrend 4: Mega-Health Systems Mergers & Acquisitions Merging of payers, providers results in mega-healthcare systems managed by giant organizational entities Roles of providers and payers shift to increase focus on delivering the “right care, at the right place, at the right time” via joint ventures and partnerships Increase in payers’ use of utilization controls and narrow networks creates concern A regarding limited consumer choice ACCESS 14 New York State: Mergers/ACOs/PPSs 15 Mergers & Acquisitions Consolidation of payors and providers present new competitive concerns with legal/regulatory implications Mergers and other affiliations of providers becoming more common as strategy to address current fiscal and operational challenges Accountable Care Organizations and PPSs—providerbased, collaborative, non-MCO models— pose challenges to plans, smaller providers Megatrend 5: Healthcare Everywhere Shifting from care delivered in healthcare facilities to home and communities Tools (e.g., smartphones, social media, sensors, text messaging) empower consumers and physicians with more options for where and how to treat, particularly remotely and from home Care may move from acute to ambulatory settings, where consumers spend their time (e.g., retail clinics, homes) and where care can be delivered by lower-cost providers 16 New York: Convenient & coordinated care 17 Shifting from institutional-based care to home and communities Transformation of home and community-based services for the elderly and persons with disabilities through coordinated care. Patient care monitoring technology, new diagnostic and treatment modalities present new opportunities and new challenges. Telehealth technologies offer new opportunities, challenge statebased licensing quality oversight Expanding ambulatory, urgent care, freestanding emergency room and retail care options— and implications for more traditional providers Megatrend 6: Value Through Data 18 Increasing demand for ability to access and analyze huge amounts of data Insurers and providers will begin to create and analyze giant data sets to support quality improvement, planning, population health management and cost effectiveness II Integration of clinical, molecular and demographic data will drive new R&D for the pharmaceutical and medical device arenas New York: Data-focused health policy Data-driven health policy and new privacy concerns MRT focus on data, reliance on real-time allpayor claims information and analytics Electronic prescribing: new challenges for healthcare practitioners in digital age The SHIN-NY, RHIOs and the health information technology revolution—and privacy concerns 19 Megatrend 7: Predict, Prevent, Personalize Medical care personalized at an individual-by-individual level Genomics brings personalized medicine and predictive diagnostics Emergence of cybernetics, cloning and regenerative medicine Rise of ethical concerns related to scientific advances 20 New York: Bioethical Challenges 21 The New York Experience with Key Ethical Issues in Medicine NY has (slowly) reached consensus on a host of difficult issues, including surrogate decisionmaking, genetics, FHCDA 21st century may promise new genetic interventions to predict & prevent developmental disabilities—and new ethical quandaries as a result. Megatrend 8: The New Aging Impact of the population becoming proportionally older Enhanced focus on selfcare, connected care, and monitoring/assistance that allows individuals to receive care at home longer; enhanced focus on managing chronic disease Increased role for family care giving; increased impact on health of family care givers; increased need for end-of-life care planning Continued shift in Medicare to managed care organizations; increased focus in states on dual eligibles 22 Aging caregivers and workforce Significance of aging on caregivers, professionals and volunteer workforce Implications of aging caregivers on loved ones with developmental disabilities, leading to new and desperate concerns for services Health care workforce shortages compounded by pending retirements of direct service professionals and other caregivers, leaving NYers without care. Demands on workforce to undertake family caregiving responsibilities impacts on healthcare professionals and volunteers 23 Megatrend 9: Centrality of States 24 Expansion of Medicaid and reforms of state programs Medicaid expansion brings the program squarely into health insurance market; concerns regarding sustainability of growing program surface Alignment of public coverage with private insurance New focus on delivering integrated services for medical care, behavioral care, public health Increased use of managed care, including for populations that have been last to transition Why Advocacy in New York is so important 25 New York plays extensive role in overseeing health care issues State’s vigorous healthcare and nonprofit regulatory role makes NYS of central importance Historic and longstanding constitutionallybased role of state in serving persons with His mental disabilities While federal role in overseeing healthcare has grown, State’s responsibility for Medicaid and new FIDA initiative makes NYS key player for public programs Prolonged and persistent dysfunction in D.C.—and relative success in governance at NYSlevel—underscores importance of statedriven public policy Challenges and opportunities: Tale of Two Cities 26 • Workforce COLA implementation Credentialing Progress Justice Center and background checks Continuing recruitment/retention challenges • Fiscal Support State budget status CMS takeback • Pace and scope of change Well-intended and progressive vision Overtaxed state resources/personnel Overwhelmed field Challenges and opportunities: Tale of Two Cities 27 • Federal-state relationship Continued support in Obama Administration Presidential prospects for Hillary Clinton Diminished role for NY in Congress Congressman Issa and CMS view of NYS Medicaid • Complicated political environment Strong support in legislature for field Committed and capable leadership Recent vetoes of legislation to reform front door and related planning bills Prognosis 28 29 James Lytle Partner [email protected] Manatt Phelps & Phillips, LLP 30 South Pearl Street Suite 1200 Albany, NY 12207 (518)431-6704