1. Propriety and Confidential. Do not distribute. 1 What do MCO’s need from network participants? High quality services that are also compliant with state and federal regulatory requirements Services that achieve positive, measurable results Support health care affordability principles and result in a cost effective approach to services The Next Step to Sustainability

2. Propriety and Confidential. Do not distribute. 2 Contracting Process Step Confirm network needs –Reach out directly to MCO to discuss unmet needs (e.g., results of HEDIS scores) Complete application and paperwork necessary to participate –Learn relevant credentialing criteria Participate in contract negotiation process Maintain copies of all paperwork including welcome letter and signed/executed agreement Participate in provider trainings/forums –Obtain copies of provider handbooks (usually posted on website) Determine any appeal processes if not offered participation The Next Step to Sustainability

3. Propriety and Confidential. Do not distribute. 3 How Much Do I Charge? How much can you save? Serve 100 people who have a history of one (six) day hospitalization per year = 100 x 6 x 1000 or 600,000 Assume reduce hospitalization by 50% = 300,000 Cost of services must be lower than 300,000 300,000 savings 100,000 cost for six months of serving 100 members = 200,000 sustainable contract each year The Next Step to Sustainability

4. Propriety and Confidential. Do not distribute. 4 Get Set Next Step to Sustainability

5. Propriety and Confidential. Do not distribute. 5 Get Set: What I Need to have in Place There are many things that need to happen before the process of contracting with a MCO begins Develop a clear and detailed description of the services your agency is willing to provide –City/county to be served –Your organization’s experience –And any outcome data available List the type of license your organization has Provide a detail description of the services –Days/hours of operation –Staff to peer ratio –Age group to be served Describe the anticipated length of stay for individuals utilizing this service and the number of individuals you plan to serve within a year The Next Step to Sustainability

6. Propriety and Confidential. Do not distribute. 6 Get Set: What I Need to have in Place Identify where you propose referrals to come from and your marketing strategy to inform those sources of the service once established Once you have the description in place with pertinent information, you can contact the managed care company to inform them of your interest As you begin the dialogue with any managed care company, you should begin working on other tasks such as your EIN, NPI number, Medicaid number, etc. The Next Step to Sustainability

7. Propriety and Confidential. Do not distribute. Get Set

8. Propriety and Confidential. Do not distribute. 8 Get Set: What I Need to have in Place National Provider ID # (NPI number) Medicaid and Medicare number (need to contact your Medicaid/Medicare contractor servicing your state) Appropriate license for the service you plan to provide Insurance to cover professional liability (depending on the service provided the amount could be $1M - $5M) Be prepared to be audited at any time by managed care, licensure, fire marshall and Medicaid These are major steps!! The Next Step to Sustainability

9. Propriety and Confidential. Do not distribute. 9 Administrative Details of Success Next Step to Sustainability

10. Propriety and Confidential. Do not distribute. 10 Administrative Details Clarify payment terms as you develop a contract –Fee for service vs. capitation rate –Electronic billing or invoice billing Are there service limits (minimum or maximum)? Is pre authorization required? Typically, yes if: –The service is costly –The service is one closely monitored (usually for reporting) –To ensure medical necessity criteria is met Coordination of benefits (issues to address) –Sometimes individuals have two insurance policies, Medicare and Medicaid, depending on how your services are contracted will depend on how the service is billed and paid The Next Step to Sustainability

11. Propriety and Confidential. Do not distribute. 11 Other Tools to Help You Succeed Strong negotiating skills – Do you need start-up funds? – Should you begin with a “pilot” program before a completed fee for service contract? Have three – four months of reserve money (six months is ideal) A good computer system with strong security is necessary Program staff –Strong leadership –Flexible and patient –Handle change Administrative staff (HR, Billing, Finance) Start up slow Add additional managed care companies The Next Step to Sustainability

12. Propriety and Confidential. Do not distribute. 12 Refining your Pitch Next Step to Sustainability

13. Propriety and Confidential. Do not distribute. 13 Refine, Get Feedback and Practice MCO representatives hold a forum to hear presentations from family/peer run organizations to evaluate their potential value to their network. Presenters present their pitch MCO representatives give feedback Audience comment or ask questions The Next Step to Sustainability

14. Propriety and Confidential. Do not distribute. 14 Personal Strategy Plan Next Step to Sustainability

15. Propriety and Confidential. Do not distribute. 15 Personal Strategy Plan Either personalize our next steps worksheet or create your own Here are the questions that have come up as I create my next steps document The Next Step to Sustainability

16. Propriety and Confidential. Do not distribute. 16 Closure Comments / Questions The Next Step to Sustainability

17. Thank you. Pamela Binkley, pam_binkley@uhc.compam_binkley@uhc.com Dona M. Dmitrovic, dona.dmitrovic@optum.comdona.dmitrovic@optum.com