1. Health Reform: An Environmental Overview Jon Fishpaw, VP, Advocacy & Government Relations Catholic Health Partners May 18, 2011

2. An Important First Step While not perfect, the legislation represents an important first step in helping ensure Americans have access to quality healthcare, and we are encouraged by the inclusion of numerous global provisions in the legislation that: Covers 32 million uninsured and prohibits denials for pre-existing conditions; Provides funding for workforce development and related job training; Implements a series of insurance and delivery system reforms; and Provides incentives for health and wellness.

3. More Work Needed for Systemic Reform CHP believes much work remains to be done on reforming the reimbursement model in order to incentivize hospitals and others that are consistently providing high quality care at the greatest value to payers. We are also disappointed that lawmakers didn't seize this historic opportunity to align payment incentives, and we'll continue to lead by example and advocate for aligned incentives so that we can control the growing costs of healthcare.

4. Implementation and Changes Over Time States Attorneys General have filed suit against federal government on Constitutionality, and potential Supreme Court decision. Added fiscal pressures due to one-half of newly insured on Medicaid & 133% of FPL new floor for Medicaid eligibility. Federal Bureaucracy HHS Secretary is central actor to rule-making and regulatory oversight new federal legislation to follow. Elections 2012, 2014 mid-terms, and 2016 Presidential elections.

5. Healthcare Reform Implementation Timeline

10. Barriers to Overcome Numerous sections of ACA are authorized, but not appropriated. CBO projects 22M+ Americans will remain without coverage by 2019. Beginning in 2014, 16 of 32 million newly insured to be covered by Medicaid, placing further constraints on state budgets. Systemic program payment reform, including physician payment. In addition to new rule-making authority and regulatory oversight for providers and employers, there are issues that remain unaddressed …

11. Opportunities & Challenges Opportunities Expanded coverage to 32 million uninsured Linking payment to quality Greater physician alignment & integration Pilot Programs & innovative care solutions Limitations on specialty hospitals Challenges Cuts before Coverage Planning Cost containment Employer health insurance provisions Increased regulation

12. The Road Ahead An incremental, collaborative approach will help address provider, employer and community provisions… Title I.Quality, Affordable Health Care for All Americans Title II. Role of Public Programs Title III.Improving the Quality and Efficiency of Healthcare Title IV.Chronic Disease Prevention / Improving Public Health Title V.Health Care Work Force Title VI.Transparency and Program Integrity Title VII. Improving Access to Innovative Medical Therapies Title VIII. Community Living Assistance Services and Supports Title IX. Revenue Provisions

13. Four Steps to Considering the Elements Preparation Establishment of clear stakeholder groups to understand timing and impact of provisions. Pilot / Demonstrations / Grant Funding Identifying the universe of opportunities. Rule Making Shifting external federal focus to executive branch of government. Strategy Linking reform provisions to current and tangible initiatives.

14. Integrating Reform with Top Priorities 1.Ambulatory Transformation: ACOs Medical Homes Physician Employment and Alignment 2. Inpatient Transformation: Increase Quality Lower Cost Full Transparency 3. Clinical Information Transformation: Epic (EMR) Health Information Exchanges

15. Medical Home: One Example of Reform Integration Source: Advisory Board

16. Questions? Jon Fishpaw VP, Advocacy & Government Relations Catholic Health Partners jpfishpaw@health-partners.org 513.639.0136