Renaissance Medical Management Company Overview A Pioneer Accountable Care Organization

Agenda Brief History of Renaissance Overview of RMMC programs Provider Collaboration Model Question

3 Renaissance exists to support the practice of medicine in an economically sustainable way Renaissance works in conjunction with physicians and payers to build new compensation models designed to properly align incentives for delivering efficacious care

Founded in 1999 – Created to align goals and objectives of providers and payers – Originally a specialist-owned organization – Recapitalized into a primary care – owned company Chairman of the Board – Dr. Barry Green – Practicing Physician Chief Medical Officer – Dr. Kenneth Goldblum – Practicing Physician Remains privately held by doctors History of Renaissance

Compensation should be driven by Quality Less event-driven care means lower costs and higher quality HEDIS and CAHPS becoming ever more important in purchasing decision Improved outcomes drive lower costs for – the Patient – the Payer – the Employer/Purchaser Lower costs can fund incentives

Essential Components for Effective P4P Clinical Staff to manage the process – Coordinate with the practices – Outreach to the patients – Establish treatment goals Effective web based connectivity with the practices – Registry of patients needing preventive care A meaningful incentive program – Clear – Specific – Measurable

People, Processes and Technology Improved HEDIS Scores – RMMC managed program has consistently produced HEDIS scores in 90 th percentile nationally Demonstrated cost reductions for payer – Validated by third party actuarial firm Lower Readmissions Less Event Driven Care Better Outcomes Slowing the progression of risk scores 7 In the right combination…produces

Patient Centric Quality Incentive Model Physician Coordination Quality Program Clinical Nurse Outreach Chronic Care Management Incentive Program Physicians Payers Patient Lower Costs, Higher Quality Pay for Performance Physician Coordination Quality Improvement Committee Regional Medical Directors Health Services teams Web-based tools Quality Program Developed by physicians and Plan Updated annually Clinical Nurse Outreach Follows physician’s plan of treatment Coordinates with patient and caregivers Web-based tools to manage plan Chronic Care Management Care modules to improve outcomes Reduce event-drive episodes Reduce readmissions Educate patients for self-management Incentive Program Clear Transparent Actionable Effective

Role of the Organization Education Physician Leadership Technology development Patient Services: nursing support team Physician office support Program development and administration Data management Contracting 9

Education Pay for Participation 2-3 Learning Sessions per year 3 Regional Physician Group meetings each year Result sharing and feedback from peers Chronic Care Model: teamwork and tools QI processes Leadership development 10

Physician Leadership CMO and four regional Medical Directors Physician Quality Improvement Committee Developmental process Physician led board Quality Improvement doctor in each office 11

Technology E-prescribing EMR Coordinated Care Tool Population Management Tool 12

Patient Services Telephonic nursing support for high risk patients and patients with chronic illnesses Home visit program in past Transitional Care program to decrease readmissions Tied closely to enhancement program “Inside” operation 13

RMMC Enhancement Program Continues to evolve over time Physician designed and administered Goals are quality improvement, cost reduction, and physician income enhancement Incents both processes and outcomes Uses single and composite measures 14

RMMC Enhancement Program Includes HMO members that are formally associated with a PCP office Also includes PPO members that are identified by a validated algorithm we developed Penetration of over 20% in most of our offices Earnings represent about a 10% increase in overall compensation 15

Diabetes Measures Began with just an enhancement for measuring glycohemoglobin Now includes a composite measure of glycohemoglobin under 7, LDL under 100, and urinary micro albumin measured and treated if abnormal Separate measure for blood pressure under 130/80 16

Other Measures CAD: LDL <100, on BB and ACEI/ARB’s where appropriate CHF: BP <130/80, on BB and ACEI/ARB’s Colorectal Cancer Screening Breast Cancer Screening 17

Program Supports Patient Services nurses working with a Diabetes specific module Regular physician meetings with Patient Services with patient identification Active use of reports available through the PMT to identify patients missing data and patients not at goal Learning Sessions on starting insulin and on treating statin intolerant patients 18

Program Supports Learning Sessions on talking to patients about changing their health behaviors Referral to community resources including hospital based CDE programs Regular regional doctor meetings with result sharing Review of specific patient’s treatment with regional medical directors Team meetings in offices to discuss progress amongst doctors and staff 19

Renaissance Operations 20

Our Clinical Staff RMMC RNs collaborate with PCPs on chronic population Care Modules: – Transitional Care – Diabetes – CHF – CAD – Respiratory – Falls Risk Assessment – Hypertension Telephonic and home visit care models Patient Discharge Partners Program for transitional care post hospitalization Coordination of community resources

Our Proprietary Technology Tools Population Management Tool (PMT) – Web-based, secure and compliant – Used by 100% of network practices to identify patients not at goal – Interfaces with Quest TM & LabCorp TM – Interfaces with EMR Coordinated Care Tool – Provides clinical care management capabilities Risk Assessment Goal setting Patient monitoring Nursing documentation Outcomes reporting 22

Impact on Compensation PCP’s earn incentives for quality metrics – Via incentive payment, enhancement to fee schedule or capitation payments – Paid regularly Gain share – Upside arrangement where payer and provider share in total cost savings – Paid annually based on total costs saved and allocated based on quality performance and membership 23

CLINICAL QUALITY PERFORMANCE Dr. Ken Goldblum CMO and Practicing Physician 24

Results from Diabetes Program 25 RMMC is an IPA in SE PA, using the tools and processes and pay for results model, the IPA has consistently delivered superior HEDIS results

…and Lower Disease Burden Progression-Diabetic Patients 26 Well managed patients can lower the disease burden over time. In this case the population of the IPA had a higher disease burden in 2005 than the cohort group, while the progression of the risk scores would be expected with increasing age, the rate can be slowed by effective management reducing the event driven care, complications and intensity of the disease.

HMO DM Commercial HMO Commercial Diabetes 97% 51% 13% 96% 68% 93% 90% 51% 94% 19% 90% 54% 74% 42% 89% 54% 0% 20% 40% 60% 80% 100% 120% Annual HbA1c TestingHbA1c < 7.0% HbA1c > 9.0% Annual Cholesterol Testing LDL Cholesterol < 100 Annual Nephropathy Monitoring BP< 140/90BP< 130/80 RMMCNational 90th HEDIS

HMO DM Medicare HMO Medicare Diabetes 99% 63% 5% 99% 77% 95% 88% 52% 92% 53% 18% 90% 58% 90% 65% 35% 0% 20% 40% 60% 80% 100% 120% Annual HbA1c Testing HbA1c < 7.0% HbA1c > 9.0% Annual Cholesterol Testing LDL Cholesterol < 100 Annual Nephropathy Monitoring BP< 140/90BP< 130/80 RMMCNational 90th HEDIS

Disease Population Commercial Total PMPM Normalized to RMMC for 2005

Disease Population Medicare Total PMPM Normalized to RMMC for 2005

Disease Population Commercial Acute Admissions/1000 Normalized to Plan for 2005

Disease Population Medicare Acute Admissions/1000 Normalized to Plan for 2005

Disease Population Commercial Acute Re-admission Rate Normalized to Plan for 2005

Disease Population Medicare Acute Re-admission Rate Normalized to RMMC for 2005

Diabetes: Disease Population Commercial PMPM Normalized to RMMC for 2005

Diabetes: Disease Population Medicare PMPM Normalized to RMMC for 2005

Diabetes: Disease Population Commercial Acute Admits/ Normalized to Plan for 2005

Diabetes: Disease Population Medicare Acute Admits/ Normalized to Plan for 2005

Diabetes: Disease Population Commercial Acute Re-admission Rate 39 Normalized to RMMC for 2005

Diabetes: Disease Population Medicare Acute Re-admission Rate 40 Normalized to RMMC for 2005

Current Risk Scores: Medicare 5 years Continuously Diabetic & Under 80 41

Source of Savings Medicare 42

Source of Savings Commercial 43

What Doctors Learn Population Management QI processes Working in teams and using tools Result sharing Helping patients change their health behaviors

RMMC Conclusions It is possible to change PCP behavior but it takes about a 10% reimbursement bump Multiple avenues of support improve results The greater the degree of practice penetration the better Improved care of patients with chronic illness lowers costs

Questions?