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All-Payer Model Progression
February 2017
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Goals of Today’s Discussion
Provide a big picture overview of efforts to transform Maryland’s health care system in the context of the All-Payer Model Dive deeper into the All-Payer Model and its progression strategy
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Background
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Maryland’s All-Payer Model Goals:
What Are We Trying to Do? Maryland’s All-Payer Model Goals: Fundamentally transform the Maryland health care system Provide person-centered care Improve care delivery and outcomes Moderate the growth in costs
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What Are We Trying to Do? Transform the delivery system:
Provider Centered Old Model Person Centered New Model Treat Test Treat Prevent Manage Coordinated High Quality Episodes Preventable utilization Waste Less care in facilities
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Why? Cost and Outcomes Higher costs (affordability)/less favorable outcomes Population health/health equity Aging of Population 37% increase in Maryland’s population >65-years-old over next 10 years Profound impact on federal and state budgets and delivery system needs
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Why Start with Hospitals?
~75%+ of Medicare expenditures are tied to a hospitalization Hospitals ~56% Post-acute ~12% Facility related physician fees ~10% Agreed to save $330 million in Medicare’s hospital costs over 5 years Importance of Medicare waiver 2015 Maryland Medicare Dollar %
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Implementation Since 2014 2014 - 2015 2015 - 2016 2017-2018
CHANGE THE HOSPITAL PAYMENT SYSTEM Global budgets-- move away from volume- based payments Value- based payments —safety, satisfaction, outcomes IMPROVE HOSPITAL CARE AND TRANSITI ONS Improve transition s and coordinati on from hospitals to the community Improve safety Develop infrastruc ture-- Organize data, information and supports for complex patients Enhance C.R.I.S.P.
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Where We Are Today Maryland’s All-Payer Model
Initial 5-year duration (through 2018) Testing a hospital model that is population and value-based Value created-- Over first 3 years, hospital spending growth slowed and quality improved Generally positive view from CMS Concept expanded for rural hospitals in Pennsylvania
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Where We Are Today (cont.)
To continue success. . . Need to align efforts and incentives with other providers Need to scale up supports for chronic and complex patients Governor Hogan submitted a proposed Progression Plan to CMS Submitted December 2016 Proposes a second term beginning in 2019 Maryland Comprehensive Primary Care Model plan also submitted for implementation in 2018
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Progression
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Payment and Care Delivery Alignment
Current Planned Hospitals on Global Budgets with quality targets Providers on volume-based care without quality targets Little coordination of care Hospitals and Providers with aligned quality targets Sharing information Driving down costs Improving the health of populations
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2017 and 2018: Engage Physicians and Other Providers
ALIGN EFFORTS WITH OTHER PROVIDER S Implement supports for high needs patients and coordinate episodes with physicians and other providers Initiate state-wide Comprehe nsive Primary Care Model for Medicare patients Begin alignment of efforts and incentives
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Care Redesign Amendment: Two Initial Programs
Two initial care redesign programs aim to align hospitals and other providers Voluntary participation Hospital Care Improvement Program (HCIP) Designed for hospitals and providers practicing at hospitals Focus on efficient episodes of care Goal: Facilitate improvements in hospital care that result in care improvements and efficiency Complex and Chronic Care Improvement Program (CCIP) Designed for hospitals and community providers and practitioners Focus on complex and chronic patients Goal: Enhance care management and care coordination
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Maryland Comprehensive Primary Care Program: Summary
CMS Coordinating Entity Care Transformation Organization Care Transformation Organization Patient Centered Home Patient Centered Home Patient Centered Home Patient Centered Home
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Maryland Primary Care Model: What does a transformed practice look like to a patient?
I am a Medicare beneficiary Provider selection by my historical preference I have a team caring for me led by my Doctor My practice has expanded office hours I can take advantage of open access and flexible scheduling: Telemedicine, group visits, home visits My care team knows me and speaks my language My records are available to all of my providers I get alerts from care team for important issues My Care Managers help smooth transitions of care I get Medication support and as much information as I need I can get community and social support linkages (e.g., transportation, safe housing) - Moving forward we envision patient selection of providers
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Maryland’s Planned Progression: Synergistic Models
Person-Centered Care Tailored to Needs Tools Comprehensive Primary Care Model Hospital Global Model Risk stratification Complex and high needs case management/interventions Care coordination Medication reconciliation Chronic care management Focus: Complex and high needs patients Focus: Rising need patients, prevention Goal: Improve Outcomes, Reduce Avoidable Utilization
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Progression Plan for 2019 and Beyond
Build on global revenue model with value incentives Continue transformation to focus on complex and chronic care, episodes Continue to implement and expand Comprehensive Primary Care Model, increasing focus on prevention Payment and delivery alignment beyond hospitals MACRA bonus-eligible programs Increasing responsibility for system-wide costs/goals Dual Eligibles ACO Geographic Incentive Model
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Progression Plan: Key Strategies
Foster accountability for care and health outcomes by supporting providers as they organize to take responsibility for groups of patients/a population in a geographic area. Align measures and incentives for all providers to work together, along with payers and health care consumers, on achieving common goals. Encourage and develop payment and delivery system transformation to drive coordinated efforts and system-wide goals. Ensure availability of tools to support all types of providers in achieving transformation goals. Devote resources to increasing consumer engagement for consumer-driven and person-centered approaches.
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Potential Timeline 2017 2018 2019 2020 TBD MACRA MACRA bonus available
Begin to implement MACRA bonus eligible models MACRA bonus available 2017 2018 2019 2020 TBD Primary Care model Geographic incentives in value based payments Geographic partners and ACOs take on more responsibility Dual Eligible ACOs Care Redesign Amendment Negotiations with CMS for second term Post-acute Behavioral health Long-term care
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Opportunities for HFMA members
Get Connected Utilize CRISP encounter alerts, common care histories, and other care management tools Address gaps in patients’ health Get Coordinated Coordinate your patients’ care with other providers across clinical and community settings Work with case managers to address the medical and social needs of complex patients Participate Use data and information to help improve outcomes and lower costs Consider an ACO, Comprehensive Primary Care Model, geographic initiatives, etc. Get involved in outcomes-based payment programs, etc. Be Proactive Be a watchdog Contribute to the transformation of the state’s healthcare delivery system
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Thank you for the opportunity to work
together to improve care and health for people and communities that receive care in Maryland!
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Appendix
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All-Payer Model: Performance to Date
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Major Impact of Federal Legislation Referred to as “MACRA” (Medicare Access and CHIP Reauthorization Act of 2015) Bi-partisan federal legislation referred to as MACRA dramatically alters physician reimbursement for Medicare Focuses on moving from volume to value Physicians subject to potential payment reductions (or bonuses) up to 9% by 2022 Creates 5% bonus for physicians in Advanced Alternative Payment Models (“Advanced APMs”) Maryland will adapt its approaches to optimize opportunities for MACRA bonuses that can align performance goals under the All-Payer Model
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Progression Plan: Strategies & Key Elements
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