THE COMMONWEALTH FUND The Role of Payment Reform in Improving Health System Performance Stuart Guterman Vice President, and Executive Director, Commission on a High Performance Health System The.
Download ReportTranscript THE COMMONWEALTH FUND The Role of Payment Reform in Improving Health System Performance Stuart Guterman Vice President, and Executive Director, Commission on a High Performance Health System The.
THE COMMONWEALTH FUND The Role of Payment Reform in Improving Health System Performance Stuart Guterman Vice President, and Executive Director, Commission on a High Performance Health System The Commonwealth Fund Society of American Business Editors and Writers Business of Health Care Symposium New York, NY January 18, 2013 2 We have the most expensive health care system in the world THE COMMONWEALTH FUND 3 International Comparison of Spending on Health, 1980–2010 Average health spending per capita ($US PPP) Total health spending as a percentage of GDP 18 9000 United States Norway Switzerland Canada Netherlands Germany France Denmark Australia Sweden United Kingdom New Zealand 8000 7000 6000 5000 16 14 12 10 4000 8 3000 6 2000 4 1000 2 0 0 1980 1985 1990 1995 2000 2005 2010 United States Switzerland Canada New Zealand Sweden Norway 1980 1985 1990 1995 France Germany Netherlands Denmark United Kingdom Australia 2000 Notes: PPP = purchasing power parity; GDP = gross domestic product. SOURCE: Commonwealth Fund, based on OECD Health Data 2012, available at http://stats.oecd.org/Index=aspx?DataSetCode=SHA. 2005 2010 THE COMMONWEALTH FUND 4 Total National Health Expenditures (NHE) 2011–2021: Current Projection and Constant Proportion of GDP NHE in trillions $5.0 Current projection Constant proportion of GDP 5.9% annual growth; 77% over 10 years $4.8T (19.6% of GDP) $4.4T (17.9% of GDP) $4.0 4.9% annual growth; 62% over 10 years $3.0 $2.0 $1.0 $2.7T (17.9% of GDP) NHE currently projected, 2012-2021: $36.8T Total savings if NHE grows at same rate of GDP: $1.4T $0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Commonwealth Fund CMS, Office of the Actuary, National Health Statistics Group, National Health Expenditure Projections 2011-2021, available at http://www.cms.hhs.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-andReports/NationalHealthExpendData/Downloads/Proj2011PDF.pdf. 2021 THE COMMONWEALTH FUND Rising health spending puts pressure on the federal budget—but also on state and local budgets, businesses, and households THE COMMONWEALTH FUND 6 Federal Health and Total Spending as a Percentage of GDP, 2000-2087 (Under CBO’s Extended Alternative Fiscal Scenario) Percentage of GDP 35 30 25 20 15 10 5 Health spending Total noninterest spending 0 2000 2010 2020 2030 2040 2050 2060 2070 2080 NOTE: Figures for 2012-2087 are projections; CBO’s extended alternative fiscal scenario assumes that Medicare payment rates for physicians are maintained at the 2012 levels, the automatic spending reductions required by the Budget Control Act of 2011 do not take effect, and after 2022 several policies that would restrain spending growth do not take effect; most other federal spending is assumed to grow at the same rate as GDP after 2027. SOURCE: Congressional Budget Office, Supplemental Data for The 2012 Long-Term Budget Outlook (Washington, DC: Congressional Budget Office, June 2012), available at http://www.cbo.gov/sites/default/files/cbofiles/attachments/43288LTBOSuppTables_0.xls. THE COMMONWEALTH FUND Medicare Spending per Enrollee Projected to Increase More Slowly Than Private Insurance Spending per Enrollee and GDP per Capita Annual rate of growth (percent) 8.0 GDP per capita 7.0 6.0 Medicare spending per enrollee Employer-sponsored insurance spending per enrollee 5.0 3.7 4.0 3.0 4.6 4.5 3.8 2.9 2.7 2.0 1.0 0.0 2008–2011 2011–2021 (projected) Note: GDP = gross domestic product. Source: CMS Office of the Actuary, National Health Expenditure Projections, 2011–2021, updated June 2012. THE COMMONWEALTH FUND Projected U.S. National Health Expenditures (NHE) by Source, 2013–2023 NHE in $ billions 6000 $5.5 trillion Federal government 5000 $4.0 trillion 32% State and local government 4000 $2.9 trillion 31% 28% 18% 3000 2000 18% 24% 18% 25% 1000 26% 26% 28% 26% 2013 2018 2023 17.9% 18.7% 20.5% Private employers (including "other private revenue") Households 0 % GDP: Note: GDP = gross domestic product. Source: Estimates by Actuarial Research Corporation for The Commonwealth Fund. THE COMMONWEALTH FUND Premiums Rising Faster Than Inflation and Wages Cumulative changes in insurance premiums and workers’ earnings, 1999–2012 Projected average family premium as a percentage of median family income, 2013–2021 Percent Percent 200 Health insurance premiums 175 180% Workers' contribution to premiums 150 Workers' earnings 125 Overall inflation 35 30 172% 25 22 23 20 100 15 12 13 75 50 25 47% 10 38% 5 15 17 18 18 18 18 19 24 26 25 26 27 28 29 30 31 20 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 0 Projected Sources: (left) Kaiser Family Foundation/Health Research and Educational Trust, Employer Health Benefits Annual Surveys, 1999–2012; (right) Commonwealth Fund estimates based on CPS ASEC 2001–12, Kaiser/HRET 2001–12, CMS OACT 2012–21. THE COMMONWEALTH FUND 10 10 The system’s performance doesn’t match the level or trend in spending THE COMMONWEALTH FUND Rating of U.S. Health System’s Performance “On the whole, how successful is the U.S. health system in achieving high performance on the following domains?” THE COMMONWEALTH FUND Source: Commonwealth Fund/Modern Healthcare Health Care Opinion Leaders Survey, Aug. 2011. 12 How the U.S. Health System Scores on Dimensions of a High Performance Health System 2006 revised 2008 revised 2011 75 73 70 Healthy Lives 70 71 Quality 75 * 67 Access 57 55 52 53 53 Efficiency * Equity 69 71 69 67 65 64 OVERALL SCORE 0 * Note: Includes indicator(s) not available in earlier years. Source: Commonwealth Fund Commission on a High Performance Health System. Why Not the Best? Results from the National Scorecard on U.S. Health System Performance, 2011 (New York: The Commonwealth Fund, October 2011) 100 THE COMMONWEALTH FUND 2010: 29 Million Adults Under Age 65 Underinsured, 81 Million Either Underinsured or Uninsured Uninsured during year 45.5 million (26%) Insured, not underinsured 110.9 million (65%) Uninsured during year 52 million (28%) 13 Insured, not underinsured 102 million (56%) Underinsured* 29 million (16%) Underinsured* 15.6 million (9%) 2003 2010 Adults 19–64 (172 million) Adults 19–64 (184 million) * Underinsured defined as insured all year but experienced one of the following: medical expenses equaled 10% or more of income; medical expenses equaled 5% or more of income if low income (<200% of poverty); or deductibles equaled 5% or more of income. Source: C. Schoen, M. Doty, R. Robertson, S. Collins, “Affordable Care Act Reforms Could Reduce the Number of Underinsured U.S. Adults by 70 Percent,” Health Affairs, Sept. 2011. Data: 2003 and 2010 Commonwealth Fund Biennial Health Insurance Surveys. Underinsured and Uninsured Adults at High Risk of Going Without Needed Care and of Financial Stress 14 Percent of adults (ages 19–64) Insured, not underinsured 75 Underinsured Uninsured during year 63 52 46 50 28 58 27 25 0 Went without needed care because of costs* Have medical bill problem or outstanding debt** * Did not fill prescription; skipped recommended medical test, treatment, or follow-up; had a medical problem but did not visit doctor; or did not get needed specialist care because of costs. ** Had problems paying medical bills; changed way of life to pay medical bills; or contacted by a collection agency for inability to pay medical bills or medical debt. Source: C. Schoen, M. Doty, R. Robertson, S. Collins, “Affordable Care Act Reforms Could Reduce the Number of Underinsured U.S. Adults by 70 Percent,” Health Affairs, Sept. 2011. Data: 2003 and 2010 Commonwealth Fund Biennial Health Insurance Surveys. Mortality Amenable to Health Care Deaths per 100,000 population* 1997–98 150 2006–07 134 127 116 115 109 99 100 89 88 120 113 106 97 97 88 81 76 50 96 57 55 61 60 61 64 66 74 67 76 79 78 77 80 83 d De nm Un ar ite k d Ki ng do Un m ite d St at es al an d Ze la n Ne w Ir e ec e Gr e m an y d Ge r Fi nl an No rw ay Ne th er la nd s Au st ria en Sw ed pa n Ja ly It a ra lia Au st Fr an ce 0 * Countries’ age-standardized death rates before age 75; including ischemic heart disease, diabetes, stroke, and bacterial infections. Source: Commonwealth Fund Commission on a High Performance Health System. Why Not the Best? Results from the National Scorecard on U.S. Health System Performance, 2011 (New York: The Commonwealth Fund, October 2011) 16 Quality of Care* (1-Year Survival Index, Median=70%) Quality and Costs of Care for Medicare Patients Hospitalized for Heart Attacks, Hip Fractures, or Colon Cancer, by Hospital Referral Regions, 2004 1.20 1.10 1.00 0.90 0.80 0.70 0.80 0.90 1.00 1.10 1.20 1.30 Relative Resource Use** * Indexed to risk-adjusted 1-year survival rate (median=0.70). ** Risk-adjusted spending on hospital and physician services using standardized national prices. Data: E. Fisher, J. Sutherland, and D. Radley, Dartmouth Medical School analysis of data from a 20% national sample of Medicare beneficiaries. Source: The Commonwealth Fund Commission on a High Performance Health System, Why Not the Best? Results from the National Scorecard on U.S. Health System Performance, 2008, (New York: The Commonwealth Fund, July 2008). THE COMMONWEALTH FUND 17 What Drives Variation in Spending? Average risk-adjusted standardized spending for chronic obstructive pulmonary disease episode Type of service Low Average High Difference between high and average % $ Total episode 6372 7871 9748 23.8 1877 Initial hospital stay 4408 4414 4406 -0.2 -8 Physician 547 569 576 1.2 7 Readmissions 671 1543 2550 65.3 1007 Post-acute care 466 998 1780 78.4 782 Other 280 347 436 25.6 89 SOURCE: G. Hackbarth, R. Reischauer, and A. Mutti, "Collective Accountability for Medical Care—Toward Bundled Medicare Source: G. New Hackbarth, R. Reischauer, “Collective Accountability for Medical Care—Toward Bundled Payments," England Journal of Medicineand JulyA. 3, Mutti. 2008 359(1):3–5. Medicare Payments” New England Journal of Medicine July 3, 2008 359(1):3-5. THE COMMONWEALTH FUND Receipt of Recommended Screening and Preventive Care for Adults Percent of adults age 18+ who received all recommended screening and preventive care within a specific time frame given their age and sex* U.S. Average 49 2002 50 2005 51 2008 U.S. Variation 2008 60 400% + of poverty 200% –399% of poverty 49 41 <200% of poverty 56 Insured all year 46 Uninsured part year 32 Uninsured all year 0 20 40 60 80 100 * Recommended care includes at least six key screening and preventive services: blood pressure, cholesterol, Pap, mammogram, fecal occult blood test or sigmoidoscopy/colonoscopy, and flu shot. Source: Commonwealth Fund Commission on a High Performance Health System. Why Not the Best? Results from the National Scorecard on U.S. Health System Performance, 2011 (New York: The Commonwealth Fund, October 2011) 18 Access Problems: More Than Two of Three Adults Have Difficulty Getting Timely Access to Their Doctor 19 Percent reporting that it is very difficult/difficult: Getting an appointment with a doctor the same or next day when sick, without going to the emergency room 29 Getting advice from your doctor by phone during regular office hours 39 Getting care on nights, weekends, or holidays without going to the emergency room 58 71 Any of the above 0 25 50 75 Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The 2011 Commonwealth Fund Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). 100 THE COMMONWEALTH FUND 20 Potential Waste and Inefficiency: More Than Half of Adults Experience Wasteful and Poorly Organized Care Percent reporting in past two years: Doctors ordered a test that had already been done 23 Time spent on paperwork related to medical bills and health insurance a problem 26 Health care system poorly organized 36 54 Any of the above 0 25 50 Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The 2011 Commonwealth Fund Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). 75 THE COMMONWEALTH FUND 21 Poor Coordination of Care Is Common, Especially if Multiple Doctors Are Involved Number of Doctors Seen Percent reporting in past two years: Any 1 to 2 3+ After medical test, no one called or wrote you about results, or you had to call repeatedly to get results 27 21 36 Doctors failed to provide important information about your medical history or test results to other doctors or nurses you think should have it 23 22 26 Test results or medical records were not available at the time of scheduled appointment 18 14 29 Your primary care physician did not receive a report back from a specialist you saw 15 11 24 Your specialist did not receive basic medical information from your primary care doctor 12 9 18 Any of the above 47 42 55 Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The Commonwealth Fund 2011 Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). THE COMMONWEALTH FUND 22 So what’s the problem with our system? And how do we fix it? THE COMMONWEALTH FUND 23 A Majority of Americans Say the Health Care System Needs Fundamental Change or Complete Rebuilding Only minor changes needed Fundamental changes needed Rebuild completely 22 46 26 <$35,000 21 42 30 $35,000–$49,999 21 43 34 $50,000–$74,999 30 41 27 $75,000 or more 19 57 19 Insured all year 24 49 23 Uninsured during year 16 40 37 Northeast 17 46 31 North–Central 20 49 25 South 24 45 24 West 27 44 27 Percent reporting Total Annual income Insurance status U.S. region Note: Subgroups may not sum to total due to rounding. Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The 2011 Commonwealth Fund Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). THE COMMONWEALTH FUND 24 Support for More Accessible, Coordinated, and Well-Informed Care Total: Very important or important Very important Important You have one place/doctor responsible for primary care and coordinating care 93 64 29 On nights and weekends, you have a place to go besides ER 85 54 31 All your doctors have easy access to your medical records 96 70 26 You have information about the quality of care provided by different doctors/hospitals 96 58 38 You have information about the costs of care to you before you actually get care 89 58 31 Percent reporting it is very important/important that: Note: Subgroups may not sum to total due to rounding. Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The Commonwealth Fund 2011 Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). THE COMMONWEALTH FUND Support for Doctors Working in Teams and Groups to Improve Patient Care 25 Percent reporting it is very important/important for improving patient care 100 Important 86 75 Very important 65 44 50 25 36 42 30 0 Doctors and nurses working closely as teams, with expanded role for nurses Doctors practicing with other doctors in groups, rather than on their own Note: Subgroups may not sum to total because of rounding. Source: K. Stremikis, C. Schoen, and A.-K. Fryer, A Call for Change: The 2011 Commonwealth Fund Survey of Public Views of the U.S. Health System (New York: The Commonwealth Fund, April 2011). THE COMMONWEALTH FUND 26 The impact of health reform THE COMMONWEALTH FUND System Improvement Provisions in the Affordable Care Act of 2010 Exchange Standards and Plans State or regional exchanges; private and co-op plans offered; essential health benefits 60%–90% actuarial value, four tiers plus young adults policy; insurers must meet medical loss ratio of 80 percent for individual and small groups, 85 percent for large groups Innovative Payment Pilots: Medical Homes, Accountable Care Organizations, Bundled Hospital and Post-Acute Care Allow Medicaid beneficiaries to designate medical home; ACOs to share savings in Medicare; CMS Innovation Center Productivity Improvements Modify market-basket updates to account for productivity improvements Primary Care 10% bonus payments for 5 years; Federal funding for Medicaid payment rates to primary care physicians no less than 100% of Medicare rates in 2013 and 2014. Prevention and Wellness Provide annual wellness visit and/or health risk assessment for Medicare beneficiaries; strengthen state and employer wellness programs; remove cost-sharing for proven preventive services Comparative Effectiveness Create Patient-Centered Outcomes Research Institute Quality Improvement Direct HHS to develop national quality strategy, public reporting Note: ACO = accountable care organization; PCP = primary care physician; AHRQ = Agency for Healthcare Research and Quality. HHS = Department of Health and Human Services Source: Commonwealth Fund analysis. THE COMMONWEALTH FUND Uninsured Nonelderly Under Baseline and the Affordable Care Act in 2022, by State Baseline Affordable Care Act VT WA MT NH ME VT WA ND MT MN OR NY WI SD ID MI WY NE NV UT CA PA IA IL CO KS MO OH IN WV OK NM ID MS AL MI WY NV PA IA NE IL UT CO CA KS WV MO VA KY DE MD DC NC OK NM SC AR MS TX OH IN MA RI NJ CT TN AZ GA NY WI SD SC AR ME ND MN OR DE MD DC NC TN AZ VA KY MA RI NJ CT NH AL GA LA TX FL LA FL AK 4%–<10% 20%–<25% 10%–<15% 25%–<30% 15%–<20% 30%–<35% AK HI 22% of nonelderly uninsured HI 10% of nonelderly uninsured Note: Baseline scenario is if the Affordable Care Act had not been enacted in 2010; Affordable Care Act is full implementation of the law; Romney plan includes full repeal of the Affordable Care Act and replacement with state block grants for the Medicaid program and equalization of the tax treatment of individually purchased health plans and employer plans. Source: S.R. Collins, S. Guterman, R. Nuzum, M.A. Zezza, T. Garber, and J. Smith. Health Care in the 2012 Presidential Election: How the Obama and Romney Plans Stack Up (New York: The Commonwealth Fund, October 2012) . THE COMMONWEALTH FUND The Affordable Care Act and Vulnerable Populations “How effective do you feel the Affordable Care Act will be in addressing the following issues for vulnerable populations?” THE COMMONWEALTH FUND Source: Commonwealth Fund/Modern Healthcare Health Care Opinion Leaders Survey, Aug. 2011. Impact of Health Reform on National Health Expenditures NHE in trillions $5.0 Before Reform* $4.5 6.3% annual growth $4.3 After Reform $4.0 $4.6 5.7% annual growth $3.5 $3.0 $2.5 $2.5 $2.0 $1.5 Total savings = $1.0 Trillion $1.0 $0.5 $0.0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Notes: * Estimate of pre-reform national health spending when corrected to reflect underutilization of services by previously uninsured. Source: D. M. Cutler, K. Davis, and K. Stremikis, The Impact of Health Reform on Health System Spending, (Washington and New York: Center for American Progress and The Commonwealth Fund, May 2010). THE COMMONWEALTH FUND 31 Payment and Delivery System Reforms Can Help Build a High Performance Health System THE COMMONWEALTH FUND 32 The Problem: Fragmented Health Care Delivery and Financing, Inconsistent Incentives That Often Punish Efforts to Provide Better Care • The Diagnosis: The U.S. health system has multiple co-morbidities, but one of the fundamental problems for patients is fragmentation of providers and fragmentation of care delivery – Poor care coordination and care transitions – Sub-optimal quality and efficiency • The Treatment: Policies that change the way health care is organized, delivered, and paid for, to elicit and reward better results – Foundation of patient-centered primary care – Coordination of care among multiple providers and care settings – Accountability for the total care of a patient – Payment reform – Optimal use of health information technology – Continuous quality and efficiency improvement THE COMMONWEALTH FUND What Provider Delivery System and Payment Reforms are Being Tested/Implemented? • • • • • • Accountable Care Organizations – Shared savings – Shared savings and shared risk – Global payment -- partial or full capitation Patient-Centered Medical Homes – Blended fee for service, care management fee, bonuses for quality Bundled payment for acute hospital episodes – Inpatient hospital care and inpatient physician services – Inpatient hospital care, inpatient physician services, post-acute care services Value-Based Purchasing Tools, infrastructure support • Enhanced care coordination/chronic disease management • Health information technology • Beacon communities; health information exchanges Combination strategy in innovator communities 33 THE COMMONWEALTH FUND 34 Accelerating system change THE COMMONWEALTH FUND High Performance Health System Criteria for Developing Options to Stabilize Spending Growth • Set targets for total spending growth • Pay for value to accelerate delivery system reform for better outcomes, better care, at lower costs • Address the systemwide causes of health spending growth―not just federal health costs • Align incentives for providers and consumers across public and private payers • Protect access and enhance equity, but also engage and inform consumers • Invest in information systems to guide action THE COMMONWEALTH FUND A Synergistic Strategy for Improving System Performance Payment reforms to accelerate delivery system innovation ($1,333 billion) • Pay for value: replace the SGR with provider payment incentives to improve care • Strengthen patient-centered primary care and support care teams • Bundle hospital payments to focus on total cost and outcomes • Align payment incentives across public and private payers Policies to expand and encourage high-value choices ($189 billion) • Offer new Medicare Essential plan with integrated benefits through Medicare, offering positive incentives for use of high-value care and care systems • Provide positive incentives to seek care from patient-centered medical homes, care teams, and accountable care networks (Medicare, Medicaid, private plans) • Enhance clinical information to inform choice Systemwide actions to improve how health care markets function ($481 billion) • Simplify and unify administrative policies and procedures • Reform malpractice policy and link to payment* • Target total public and private payment (combined) to grow at rate no greater than GDP per capita** Notes: SGR = sustainable growth rate formula; GDP = gross domestic product. * Malpractice policy savings included with provider payment policies. ** Target policy was not scored. THE COMMONWEALTH FUND Projected National Health Expenditures (NHE), 2013–2023: Potential Impact of Synergistic Strategy NHE in $ trillions $6.0 Current baseline NHE projection $5.5 Projected NHE net of policy impacts $5.0 $5.1 $4.0 $2.9 $3.0 $2.0 $1.0 NHE as percentage of GDP— Current projection: 18% in 2013→21% in 2023 Under proposed strategy: 18% in 2013→19% in 2023 Cumulative NHE savings under proposed strategy: $2.0 trillion $0.0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: GDP = gross domestic product. Source: Estimates by Actuarial Research Corporation for The Commonwealth Fund. Current baseline projection assumes that the cuts to Medicare physician fees under the sustainable growth rate (SGR) formula are repealed and basic physician fees are instead increased by 1% in 2013 and held constant from 2014 through 2023. THE COMMONWEALTH FUND Impact of Synergistic Strategy on Projected Annual Hospital and Physician Spending, 2013–2023 Spending in $ billions $2,000 Hospital (baseline) Hospital (net of policy impacts) $1,750 $1,646 Physician (baseline) $1,500 Physician (net of policy impacts) $1,509 $1,250 $1,122 $1,000 $902 $750 $597 $1,055 Projected growth of hospital spending, 2013–2023: • Baseline projection: 82% (6.2% annual) • Net of policy impact: 67% (5.3% annual) Projected growth of physician spending, 2013–2023: • Baseline projection: 88% (6.5% annual) • Net of policy impact: 77% (5.9% annual) $500 $250 $0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 THE Source: Estimates by Actuarial Research Corporation for The Commonwealth Fund. Current baseline projection assumesCOMMONWEALTH that FUND the cuts to Medicare physician fees under the sustainable growth rate (SGR) formula are repealed and basic physician fees are instead increased by 1% in 2013 and held constant from 2014 through 2023. There Are Hopeful Signs: The Health System Already is Responding to the Challenge to Provide Better Care • 39 Meaningful use of health IT – • physicians with Electronic Health Records doubled from 17 to 34 percent in last there years • half of all hospitals have registered for a Medicare or Medicaid EHR Incentive Payment; $2.5 billion in EHR incentive payments • 50,000 health IT-related jobs created since the enactment of the HITECH Act (BLS) • Hospitals/physicians are participating in care transformation collaboratives • 32 Pioneer ACOs – committed to moving faster toward accountability • Primary care and Medical homes – Comprehensive Primary Care Initiative; 41 state Medicaid programs supporting initiatives • Bundled payment – Acute Care Episode demonstration, CMS bundled payment initiative • Community-based Transitions Program – 7 communities in Arizona; Atlanta; Akron; Merrimack Valley (MA), Southern Maine, and Chicago selected as of January 2012; aims to improve post-hospital discharge care transitions and reduce hospital readmissions • Partnership for Patients -- 6,900 hospitals and organizations pledged their THE commitment to a national campaign to improve the safety and coordination of care COMMONWEALTH FUND 40 Thank You! David Blumenthal, M.D. President Chair, Commission on a High Performance Health System [email protected] Cathy Schoen Senior Vice President, Research & Evaluation [email protected] Mark Zezza Senior Program Officer, Payment & System Reform [email protected] The Commonwealth Fund Commission on a High Performance Health System Melinda Abrams Vice President, Patient-Centered Coordinated Care [email protected] Sara Collins Vice President, Affordable Health insurance [email protected] For more information, please visit: www.commonwealthfund.org THE COMMONWEALTH FUND