Presentation on theme: "Patricia L. Hale, MD, PhD, FACP Deputy Director Office of Health Information Technology Transformation New York State Department of Health www.pathalemd.com."— Presentation transcript:
Patricia L. Hale, MD, PhD, FACP Deputy Director Office of Health Information Technology Transformation New York State Department of Health E-Prescribing Overview: What Works; What Doesn't and How Do We Implement It? HIMSS 09 Physicians' IT Symposium: Closing the Gap: From Implementation to Safety & Quality Saturday, April 4, 3:00 PM - 4:00 PM
Objectives: Review the positive and negative points of e- Prescribing Discuss implementation of e-Prescribing Examine the challenges of implementation
Source: The Institute of Medicine of the National Academies of Science (IOM). Slide used by permission from SureScripts More than7,000 Americans Die Annually From Preventable Medication Errors More than 1.5 Million Americans are Injured Annually by Preventable Medication Errors
Physicians write as many as 4 billion prescriptions each year.... On Paper! The Challenge of “Prescription Hand-offs” Illegible Handwriting Unclear Abbreviations and Doses Verbal Communication Among Physicians, Patients and Pharmacists 4 out of 5 patients who visit a physician leave with at least one prescription 65% of the US population use a prescription medication each year
Less than 1 in 5 of Physicians Use ePrescribing Only 20% of prescriptions are electronically prescribed with 80% still handwritten Most electronic prescriptions are still sent by FAX Sources: eHealth Initiative, 2004 and: Center for Information Technology Leadership, “The Value of Computerized Provider Order Entry in Ambulatory Settings,” National savings from universal adoption of electronic prescribing systems could be more than $27 billion
Patient safety Between 1.5%-4.0% prescriptions are in error with serious patient risk Adverse drug events occur in 5%-18% of ambulatory patients Cost of errors: >$2 billion / year Quality of care - Compliance 20% of scripts are never filled Patient satisfaction is declining Impact on productivity: Physician practice: 3 hours per day Pharmacy: 4 hours per day (up to 1 call per Rx) Inefficient delivery with paper, fax and phone Illegible handwriting Phone tag and fax tag Patient waiting in the pharmacy Rx
Pen Print 6% Fax 37% EDI + Decision Support 61% Source: CITL Slide used by permission from SureScripts
Ability to create a prescription electronically Ability to receive automated decision support during script creation Medication lists and information Eligibility determination Formulary coverage from insurer including co-pay information Prior authorization clinical decision support including Drug interactions, drug-allergy, etc. Ability to send script electronically to pharmacy using standard transmission messaging (NCPDP SCRIPT, ASC12) Ability to receive/authorize pharmacy initiated-renewals electronically Ability to determine “fill status” as a measure of compliance (medication history) Ability for pharmacy to process electronic script in their system Slide used by permission from SureScripts
Prescriber eRx Software Pharmacy and PBM eRx Software New Rx, refills, renewals, authorizations, change Rx, Prescription history from pharmacies Eligibility, Formularies, medication claims histories
Electronic prescribing is under-utilized: Purchasing software does not equal adoption or effective use Certified version typically a simple upgrade away Extremely low awareness among install base Rx InterOp >150,000 Certified EMR Users Practice Size Best estimates for ePrescibing or EMR adoption based on high quality surveys (%) All24 Small7-16 Large*39 *”Large” is defined as > 20 physician FTEs in one study with 39% adoption and >50 in two another studies with 47% and 57% adoption respectively. Sources: Jha et al, Health Affairs, 10/11/06; MGMA, 2005; CDC/NCHS Nat’l Ambulatory Medical Care Survey, 2005; HSC Community Tracking Study, 2006; Forrester, 2003; SureScripts estimates, 2006
Less than 1 in 5 of Physicians Use ePrescribing Only 20% of prescriptions are electronically prescribed with 80% still handwritten Most “electronic” prescriptions are still sent by FAX National savings from universal adoption of e- prescribing systems could be more than $27 billion The Technology is Available Today… But Not Used
Where are we? We remain at the tipping point of adoption of clinical systems at the point of care Early adopters are now on board and EMRs are becoming mainstream in large practices Mainstream Market where incentives are most effective Enthusiasts And Early Adoptees 2.5%13.5%34% 16% Tipping Point?? Mandates to reach non- adopters eHIT
So Why Aren’t We All e-Prescribing?
Everyone Benefits – But Not Equally >80% Payors/PBMs: Increased generic/formulary usage, efficiency, Rx compliance and prevention of ADEs (reduced costs) Patients: Increased safety, efficiency and compliance Lower co-pays >20% Providers: Increased efficiency, improved care, patient satisfaction and potential short and long term incentives (pay-for-performance) Pharmacies: Increased efficiency, improved care, improved patient satisfaction
Benefits Include: Discovery of potentially significant drug-drug, drug-allergy or drug-lab interactions; Reduced adverse drug events (ADE), Reduced avoidable emergency department visits or hospital admissions; Eliminated transcription or legibility errors; Availability of a more complete, up-to-date medication list for each patient; Increased practice efficiency (particularly med renewal requests); Increased prescriber efficiency (e.g., fewer call-backs from pharmacies); More effective medication reconciliation across multiple settings of care; Increased patient satisfaction. MGMA 2008 survey:
But… Providers are concerned about… Cost of buying, installing and supporting a systemand Return on Investment (ROI) Financial Cost Change Management and Workflow Lack of reimbursement for costs and resources Increased time to use the system = reduced productivity (initially) while struggling to create efficient workflows Challenges of creating a complete, accurate patient medication history from multiple sources Time required to review medications, warnings, alerts and recommendations
But… Providers are concerned about… Limitations preventing use for all prescriptions due DEA restriction from use for controlled medications and other Federal and State rules and regulations Hardware and Software Selection and support Limitations on E-Prescribing System Remote Access Pharmacy, Payer/PBM and Mail Order Connectivity Medication History and Medication Reconciliation System Functionality Gaps Prescribing from Multiple Office Sites or remotely …..Still not considered a routine standard of practice
What are the key elements influencing the business case for clinicians? Business case varies according to: ▪ Size of practice ▪ Type of practice (primary care vs specialty, mostly new patients, mostly recurrent complex patients, etc) ▪ Participation of health plans ▪ Participation of local pharmacies ▪ Practice setting (large/small, urban/rural) ▪ Availability of IT infrastructure and support ▪ Stand alone e-prescribing vs EHR ▪ Availability of incentives and ability to take advantage of them
Cost: Initial costs include software licensing fees, hardware, network and Internet access and training and technical support Complete cost will also include Temporary decreases in productivity resulting from training and workflow redesign (averaging 2-6months) Practice management, lab and other interfaces Customization for practice specialty and other factors Maintenance of system Upgrades Data conversation (from different PMS or from stand alone e- prescribing system to EHR)
Cost: Stand alone e-Prescribing start up and ongoing cost estimated at $ $3500 per physician per year for software plus hardware etc EMR costs estimated at $20-25,000 initial and $3000 per year per physician for software plus hardware etc Costs are less in urban areas where Internet and IT services are more readily available Large practices can save significantly through cost sharing and increased efficiency of implementation and support by being able to afford dedicated staff
Potential Savings Both stand alone e-prescribing systems and EHRs Increased practice efficiency handling med renewal requests Increased prescriber accuracy resulting in fewer call-backs from pharmacies for legibility issues, drug incompatibility or ineligibility EHRs Decreased chart pulls resulting in less staff time Decreased transcription costs
So – “bottom line”….What is the business case for a large urban practice? Advantages: ▪ Financial investment capability ▪ Dedicated staff opportunity ▪ Leverage with health plans and pharmacies, etc for connectivity ▪ Often can leverage other incentive opportunities with health plans, P4P, PQRI etc. Disadvantages: ▪ Organizational “buy in” with large potentially diverse physician staff often resulting in “hold outs” and partial implementations ▪ Major changes in workflow can be disruptive decreasing productivity making clinician payment strategies etc in need of temporary modifications ▪ Significant Initial cost
So – “bottom line”….What is the business case for a small rural practice? Advantages: ▪ Organizational “buy in” less of an issue ▪ Less total initial investment Disadvantages ▪ Difficult to absorb cost including system cost and decreased productivity ▪ Can have connectivity issues and difficulty obtaining skilled IT support ▪ No leverage with health plans or pharmacies resulting in decreased opportunity for optimum data flow ▪ No opportunity for dedicated staff to maximize success or take advantage of other incentives like P4P and PQRI
“ Bottom Line” Practice SettingPractice typePrescriptions and Refills/day/ prescriber Stand Alone e-Prescribing* length of time to achieve +ROI*** EMR** approximate length of time to achieve +ROI**** Rural Small 1-5 Docs Primary Care40/603-5+years “Specialty20/ years Rural Large 10+ Primary Care40/ years2-4+ years “Specialty20/ years2-4+ years Urban Small 1- 5 Primary care40/ years2-4+ years “Specialty20/ years2-4+ years Urban Large 10+ Primary Care40/ years2-3+ years “Multispecialty20/ years1-3+ years *Stand alone e-Prescribing start up and ongoing cost estimated at $ $3500 per physician per year for software plus hardware etc **EMR initial and ongoing yearly costs estimated at $20-25,000 initial and $3000 per year per physician for software plus hardware etc *** Stand alone e-Prescribing ROI calculated using savings estimates for time savings due to automated refill requests and decreased phone calls resulting in decreased staff time **** EHR ROI calculated using savings estimates from e-Prescribing plus decrease chart pulls (staff time) and decreased transcription costs References: MGMA survey 2007, 2008; Medical Group Management Association, “The cost of administrative complexity,” MGMA Connexion, November/December 2004; “Evidence on the Costs and Benefits of Health Information Technology”. May Congressional Budget Office
Incentives and Implementation Support Services Where do they fit in?
Overview of Current and Potential Programs to Promote e-Prescribing Economic Incentives Reimbursement for Utilization Incentive programs disincentive programs ▪ MIPPA ▪ ARRA ▪ Other programs sponsored by Medicaid, private health plans, employers and others Grants, Loans and other funding programs Pay for Performance Malpractice Insurance Premium Reductions Healthcare IT Suppliers discounts, group buying programs, etc Policy Incentives and Programs for Implementation Support Accreditation ( JCAHO 2005 Hospitals’ National Patient Safety Goals, others in development) Relaxed STARK regulations CMS DOQ-IT CCHIT certification of “free standing” E-prescribing and ambulatory EHR products …and eventually…Mandates??
Beginning January 1, 2009, Medicare offers physician payment incentives of 2% for using e-prescribing in 2009 and 2010, with this amount declining slightly over the following three years. Those physicians who do not adopt e-prescribing for Medicare by 2012 will start seeing their Medicare payments incrementally reduced, up to 2% annually beginning in The Secretary of Health and Human Services may make an exemption on a case-by case basis if significant hardship can be demonstrated. Health plans offering Medicare Part D drug programs must begin supporting e-prescribing by May, The Secretary has the authority to update the codes of the electronic prescribing measure in the future. The legislation refers specifically to the electronic prescribing measure currently in the 2008 Physician Quality Reporting Initiative (PQRI) (measure #125) CCHIT certification is required for both “free standing” e- prescribing and EHR products
The stimulus package includes $36B in health IT funding from the federal government through Appropriations and Incentives E-Prescribing and ARRA Appropriations for Health IT & HIENew Incentives for Adoption $2 billion for loans, grants & technical assistance: HIE Planning & Implementation Grants EHR State Loan Fund National Health IT Research Center & Regional Extension Centers Workforce Training New Technology R&D New Medicare and Medicaid payment incentives to providers for EHR adoption $20 billion in expected payments through Medicare $14 billion in expected payments through Medicaid ~$34 billion in gross expected outlays, $4.3 billion for broadband & $2.5 billion for distance learning/ telehealth grants Directs ONC to invest in telehealth in frastructure and tools Directs the new FACA Policy Committee to consider telehealth recommendations Broadband and Telehealth Comparative Effectiveness $1.1 billion to HHS for CER Establishes Federal Coordinating Council to assist offices and agencies of the federal government to coordinate the conduct or support of CER and related health services
HHS to establish interoperability standards by the end of 2009 to guide HIE development MIPPA and ARRA Timeline 2009 Setting of standards enables the building of HIE infrastructure to practically and usefully implement standards to achieve interoperability to comply with Medicare and Medicaid incentive payment requirements for HIE interoperability State grant monies begin flowing from HHS to develop technical, privacy, governance and financing frameworks necessary for HIE to take shape...likely 09/ Medicare and Medicaid ARRA incentive payments begin, presuming HIEs have come online 2016 Medicare and Medicaid ARRA incentive payments give way to penalties on providers for failing to adopt HIT MIPPA e- prescribing incentives begins MIPPA e-Prescribing incentive payments give away to penalties
Existing Statutory Definition of “Meaningful Use” of EHRs Three Components Uses EHR in a meaningful manner, which includes electronic prescribing as determined to be appropriate by the HHS Secretary Uses EHR that is “connected in a manner” that provides for the electronic exchange of health information to improve the quality of health care, such as promoting care coordination (in accordance with law and standards applicable to the exchange of information) Submits information on clinical quality measures and other measures as selected and in a form and manner specified by the Secretary
2011 is first year 2012 is first year 2013 is first year 2014 is first year 2015 is first year 2011$18, $12,000$18, $8,000$12,000$15, $4,000$8,000$12,000$15, $2,000$4,000$8,000$12, $0$2,000$4,000$8,0000 TOTAL$44,000 $42,000$35,0000 Medicare Health IT Physician Payment Incentives
Eligible ProviderPercent Match/ LimitMedicaid ShareLimit Amount Independent physician 85% net average allowable costs >30% $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years Pediatrician 85% net average allowable costs >20% $16,667 for purchase, $6,667 for operations/maintenance Max of $51,200 in 5 years Nurse mid-wife 85% net average allowable costs >30% $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years Physician Assistant if is lead clinician at RQHC or FQHC 85% net average allowable costs >30% of patient population are “ needy individuals ” By determination of the Secretary Nurse practitioner 85% net average allowable costs >30% $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years Hospital owned clinician practice 85% net average allowable costs >10% $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years FQHC or RQHC-based practicing physician 85% net average allowable costs >30% of patient population are “ needy individuals ” $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years Third-party sponsoring entity supporting EHR implementation 85% of net allowable costs; third-party entity can keep 5% of funds as pass-through >30% $25,000 for purchase $10,000 for operations/maintenance Max of $64,000 in 5 years Physicians receiving Health IT incentive payments under Medicaid are eligible for up to approximately $64,000 over a five year period if they can demonstrate “meaningful use” of EHRs in their practice.
Will nearly double e-Prescribing adoption over MIPPA levels by 2014 and four fold over current levels Saving of over $22 billion in federal costs will offset $19 billion investment Savings of over $56 billion for all payors Will help prevent more than 3.5 million serious medication errors (ADEs) Visante Report 2009
1-4% reduction in drug spending Pharmacy costs decrease 3-3.5% (Mass eRx Collaborative 2006) 3.3% increase in tier 1 prescribing (Archives Internal Medicine 2008) Generic use increased 4.8% (Sierra/SW Medical 2006) 5.3% reduction drug costs (JMCP 2005) Increased generic use from (HAP/HFMG 2006) 3.7% increased generic prescribing and 10.1% decrease in cost (WellPoint/Wellinx 2005) 11% decrease drug costs and $4.99 decrease per prescription (Ann Fam Med 2004) Increased use of mail in service pharmacy 10% (Drug Benefit Trends 2003) Increased formulary compliance by more than 5% and increased generic use by 7% (Aetna 2008) Visante Report 2009
INCREASED ADHERENCE, DISEASE MANAGEMENT AND COORDINATION OF CARE 0.25% reduction in ER and hospital costs 1% increase use of target drugs for chronic disease and DM management saves 15% in costs (HealthPartners 2007) Hyperlipidemia treatment compliance increased from 50%- 90% of benchmark (Project ImPACT 2000) Increased use of ACE-inhibitors for DM+HTN (CITL 2003) PREVENTION OF ADE RELATED HOSPITALIZATION, ER AND PHYSICIAN VISITS 35% decrease preventable ambulatory ADEs with 0.05% decrease hospital, ER and physician costs 30-50% decrease of 8 million ambulatory ADEs (RAND 2005) 9.5% of new prescriptions changed or cancelled due to drug/drug interaction warnings (HAP/HFMG 2006) Visante Report 2009
Consider starting e-prescribing this year to take best advantage of Medicare incentives as they will decrease starting in 2011 and Medicare reimbursement will decrease in 2012 if you are not e-prescribing. Evaluate your patient population to see which of the programs you may qualify for Evaluate your practice setting for decision on what type of product to implement and potential resources for support Be sure any potential vendors for either e-prescribing stand alone products (Medicare MIPPA e-prescribing program only) or EHR products are current year CCHIT certified. Carefully evaluate any potential vendor to be sure they meet other restrictions. For ARRA incentives it will be critical to be sure your vendor is prepared for potential further requirements by HHS and ONC for capabilities to meet the “meaningful use” criteria. Be sure your billing system will be prepared to handle Medicare electronic prescribing specific codes and possible new codes required for ARRA incentives.
Resources for Implementation Support Medical Informatics Organizations HIMSS, eHI, AMIA etc Vendor and vendor user groups Surescripts/RxHub Medical Societies State or regional medical societies Medical specialty society chapters IPA or other regional physician groups Hospital or Medical Center State Department of Health or other state agencies Health Plans or Employer groups sponsoring projects Pharmacies and Pharmacist organizations Consultants
References and Resources : 1. Electronic Prescribing for the Medical Practice: Everything You Wanted to Know But Were Afraid to Ask, Patricia L. Hale, PhD, MD, FACP, Editor and also the e-Prescribing resource center on the HIMSS web site at: 2. E-Prescribing - A Clinicians Guide - e-Health Initiative Prescribing_Clinicians_Guide_Final.pdf Prescribing_Clinicians_Guide_Final.pdf 3. E-Prescribing and health information technology. Davis, Ronald, American Medical Association. 4. National Progress Report on E-Prescribing SureScripts For more information on the Medicare incentive program: PQRI Toolkit - and for MIPPA Evidence on the Costs and Benefits of Health Information Technology. May Congressional Budget Office, page 17. HealthIT.pdfhttp://cbo.gov/ftpdocs/91xx/doc9168/ HealthIT.pdf 7. Physicians' Experiences Using Commercial E-Prescribing Systems - Physicians are optimistic about e-prescribing systems but face barriers to their adoption. - by Joy M. Grossman, Anneliese Gerland, Marie C. Reed, and Cheryl Fahlman - Health Affairs April 6, Free e-prescribing readiness assessment online E-Prescribing: Why the Fuss? Kenneth G. Adler, MD, MMM FAMILY PRACTICE MANAGEMENT Pr eprint | -www.aafp.org/fpm 10. Surescripts/RxHub Electronic Prescribing: Building, Deploying and Using E-prescribing to Save Lives and Save Money – Center for Health Transformation HIMSS e-Prescribing Wiki:
The HIMSS E-Prescribing Task Force will continue to develop: “tip sheets” for providers on how to incorporate E-Prescribing solutions into the medical practice HIMSS E-Prescribing interactive Wiki Comments and recommendations on e-Prescribing issues such as CCHIT certification, definition of “meaningful use” criteria, etc. HIMSS will leverage Virtual Conference and Exhibition programs to highlight E-Prescribing and provide education updates. Join us!
“ We tried dedicating this computer to deciphering our doctors' handwriting." Cartoon by Dave Harbaugh Web site with further information and links: QUESTIONS?