hat
is the current state and impact of clinically integrated network
initiatives in marketplaces you have observed?
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William J DeMarco
MA, CMC President/CEO, Pendulum HealthCare Development
Corporation
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We are currently working on
developing some regional collaborative ACO strategies
linking current and/or new ACOs to a larger provider base to
increase assignments of beneficiaries as well as spread the
administrative costs over a larger population. This gives us
a unique perspective as to how the process of integration
occurs and, when faced with an opportunity to buy in to an
operating ACO, the schedule for integration advances quite
quickly.
We see three models. The first is a vestige
of the older definition of integration where a lot of
contracts between hospitals and physicians are exchanged and
the newly formed provider unit attempts to leverage itself
with third party managed care organizations to get higher
fees. These structures eventually disappoint all concerned
as the ability to reduce costs is exclusively tied to
discounting fee schedules and not changing utilization
patterns.
The second model of Integration starts to
get at the real issues of changing financial incentives of
hospitals and physicians by creating new pathways for care
and new workflows for administrative staff. Within this
second model the focus is first on early intake, usually
through primary care; the second is tracking and reviewing
the physician to hospital admission hand off; and the third
is the post discharge planning and return of the patient to
a physician manager. Working at perfecting these three
phases of care coordination usually produces some results.
We are seeing shared savings contracts now being offered by
larger employers as well as larger insurance companies. The
only downfall here is lack of consistency because people get
distracted by shiny objects. Meaning the big savings through
reducing cost of the ESRD patients or a big savings of
heading off hospital emergency room expenses overshadows the
consistency needed in such areas as reducing unnecessary
referrals and generally building a fully operational patient
engagement process are set aside because of the big savings
that occurs only a couple times in a performance period. To
be successful the provider must do a lot of things
consistently and we find that sometimes a simple workflow
change can save more than all the big ticket items do.
The third model gets at the core principles of not just
clinical integration but also tying this to financial
integration. This is where the dollars are usually coming in
a bundled, global or capitated amount for one or more
payers. Using the physician and hospital data they are able
to track insurance claims and negotiate with the payer as a
fully integrated care system. This last model is the jumping
off point to a fully capitated, provider led health plan
because it takes into consideration the total cost of care
(TCOC) and connects it to select populations with a specific
diagnosis. This is more than contracts or mere utilization
changes; it is building consistency of incentives for
physicians across an aligned set of goals.
The hazard
exists when a stage one contracted network attempts to join
a risk bearing ACO network or build one on its own. Several
large systems have spun their wheels, eventually calling in
help to move them to stage three in a hurry so they could
get their arms around all the pieces of the delivery system
both inside and outside the four walls of the hospital or
clinic to create a medical neighborhood with unified goals
and guidelines. The collaboration model works because those
early sponsored ACO can share their experiences and
opportunity for change with less developed delivery systems.
What has been missing all along is this definition of not
just clinical integration but also financial integration.
People have shied away from this, saying they do not want to
take the risk. With all the new MACRA rules in effect and
the hospitals being forced to follow Medicare instituted
sanctions and incentives, the fact is that risk is here to
stay and it's moving more quickly than anyone had
anticipated. The new model of the ACO is a shared risk and
incentive plan that can be adopted across Medicare and
commercial beneficiaries.
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Peter R. Kongstvedt
MD, FACP Principal, P.R. Kongstvedt Company, LLC
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While scientists are in general
agreement about how evolution works, there are several
somewhat different theories for exactly how it proceeds. One
theory put forth by the late Stephen Jay Gould is called
"Punctuated Equilibrium," and it essentially means that
evolutionary changes proceed rather slowly in stable
environments, disrupted - or punctuated - by bursts of
massive changes in response to substantial environmental
changes. Mutations that could not thrive in the earlier
environment do so in the new one, though some prove more
long-lasting than others. That's what we're seeing right now
as the federal government changes the healthcare
environment.
Clinically integrated networks
initiatives are mutating all over the place, as are private
payer organizations. Each showing some similar features, but
each having its own distinctive forms and functions, partly
in response to the external environment, both local and
national, and partly in response to their existing
capabilities and cultures. Examples of differing factors
include such things as health system employed physicians vs.
independent physicians or groups; rewarding health system
executives for making high margins and high utilization vs.
rewarding for reducing costs; private payers creating
reward-based payment models vs. reward and risk-based;
health systems competing with payers vs. partnering with
them vs. contracting with them; health system regional
dominance vs. regional competition; and so forth. In
reality, none of these are actually "vs." situations; they
are more of a balance between such factors.
If the
environment has an impact on health system clinical
integration, there is also a feedback loop just as in
biologic evolution: as they evolve, they have an impact on
their environments as well. We are seeing that as well, but
it remains far too early to describe it in any way that will
not be different within a year or two. Mutation: the engine
that powers change. Gotta love it.
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Cyndy Nayer
President, CyndyNayer.com Founder/CEO of Center of Health
Engagement |
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Whether reading the national
business and health care journals, scoping the Facebook
posts from patients and health execs, or watching the nearby
hospitals and health care providers here in Florida, the
simple answer to this question ranges from "Gee, that's an
interesting merger" to "Nothing integrated when the numbers
of poor health keep rising." In short, integrated networks
are still not operating past the beginner levels, with a few
exceptions.
As a quick refresher, the concept of
integrated networks emerged mid-1980s to offset the
exploding costs of delivering care. These early trials were
built on cost cutting and efficiencies of scale in
purchasing, not on patient or community outcomes. Merger
begat merger, through managed care, health system purchases,
and physician acquisition. Each tailored "network" promised
lower prices and better outcomes, but big promises became
small deliveries.
Fast-forward 20 years and the new
networks are growing larger, particularly in the
physician-owned and/or driven acquisitions, with the hopeful
goal of reorganizing payment based on outcomes. While some
pockets of ACO-PPO-HMO-HDHP overlap are testing the payment
models, we have still not seen sustainable, replicable, and
predictable outcomes, even in more forward networks such as
those in the Northeast and West coasts.
The current
state is flummoxed because of the lack of interoperability
and delivery of full data to patients, complicated by the
jet-propelled rise of drug costs and treatments. There are
three opportunities for true integration that can include
the patients in the patterns of care while managing the
appropriate treatments and delivery of efficiencies.
1. Government. In order to achieve patient compliance and
patient-provider trust for getting to goal, treatments and
services must be transparently priced. The major stumbling
block is the government's inability to negotiate Medicare
drug prices, aggravated by separate system of validation and
pricing of devices. When complicated cases are present, the
patient expects to be treated by the best treatment and
physician recommendations. Trust is broken when clinicians
do not know pricing or are paid bonuses for using
brand/generic/device that the payer prefers, regardless of
patient impact. When the patient-provider trust is impugned,
goals are not achieved, more services are required, and
costs go up. Medicare drug management is the key to making
rapid strides in trust, compliance, outcomes, and value.
2. Government. (No, this is not a typo) The
government-as-employer should, by dollar definition, be able
to set the leadership for other employers and payers in an
area. Yet, the integration of the DOD and VA health records
is still a shambles, despite the US being the richest
container of tech savvy. The remarkable revelations of
inappropriate data outcomes from the CDC, FDA, and other
"health" agencies demonstrates the confusion in the system
that first proposes "Big Data" as the cure to integration
and interoperability, and then stumbles on the timeliness
and consistency of the measures. The integration of health
networks will accelerate and progress when the standards for
measures AND communication to the various stakeholders is
functioning appropriately, demonstrating the relationships
of costs, communication, and compliance for various
populations in the US and beyond.
3. Government. The
insanity of providing geographically-bound medical plans is
an overwhelming problem in the US. A good example is a
Kansas City patient, obviously on the Missouri-Kansas
border, using clinicians for treatment on both sides of the
border and having to manage the requirements not only of her
health plan but also the out-of-network care, eligibility to
receive care, and so forth. Deductibles, copays,
out-of-pocket expense, physician/system choice are all
compromised. Imagine what happens when people travel to
out-of-state care for cancer. Imagine what happens when one
network has to intersect with another- integration of any
kind, even sharing patient-level data, is more often
missing-in-action.
The bully pulpit of the US health
experts, US tech experts, and US patients must be the placed
as the core of data-design-delivery in order for integration
in health care to occur. Anything less will continue to be
networks-for-optimum-billing, which is not at all focused on
patient or system outcomes, nor on building a healthier US.
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Mark E. Lutes
Chair, Board of Directors / Member of the Firm, Epstein
Becker Green
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CINs - "The
State of the Union": In most markets, CINs are
today more aspirational than anyone likes. By "anyone" I mean
the policy makers who would like them deployed to help
realize value based purchasing goals, hospitals that would
like them ready as vehicles to develop and enforce care
paths, independent physicians who would like them to be
shelter from the pressures to accept hospital system or
other employment, employers who would like local experienced
value based contracting vehicles -- to name a few.
Most CINs are probably stalled over insufficient bonus money
at the ready (or plausible) to get their participants'
attention/change practice patterns. Payors are not waking up
every morning wanting to contract with a CIN. Face it, its
work. There are special contracts to write, there are
reports to be created and run, reconciliations to be
negotiate, compliance can be more difficult, and the
likelihood of medical management success is uncertain. Can
they reasonably be expected to prioritize this spend within
a 15% of the premium that already seems stretched by
expenses?
Is "help on the way"? The optimists should
point to the opportunity of the "alternative payment
methodology" under MACRA as a driver. They might also cite
other pressures to create the infrastructure-needs for
structures to handle current and future episode payment
needs and platforms to fight inappropriate readmissions
among others.
The pessimists would argue that even
the above do not aggregate to a "tipping point". They would
argue that until new incentives are created among the buyers
(e.g., mandates to commercial, MA and Medicaid plans) plans
will not invest enough into building CIN relationships for
them to take off. Similarly, self-funded plans lack the
incentives to spend their assets to build the chassis for
local population health management.
However, this is
an election year...ideas will be hatched and will gain
currency. Some of those incentives to stimulate the payor
market to seek out and facilitate CIN development are within
the legislature's reach. Ah...to dream. |
Henry Loubet
Chief Strategy Officer Keenan
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California arguably has the most
robust clinical integration activity in the nation with at
least 67 ACOs serving about 1.3 million people. According to
the Berkeley Healthcare Forum at the University of
California - Berkeley School of Public Health, the state is
well on its way of achieving the goal of 60% of the
population under integrated care by 2022. Medical groups
under ACO contracts are beginning to show higher quality
metrics in several areas of condition management (cancer,
diabetes, pediatric care and Chlamydia) as well as patient
service categories versus groups that are not participating
in ACO models. (Shortell and Scheffler, Health Affairs Blog,
6/2/2015) These programs are delivering results and, if
these trends continue, clinically integrated care will be
the most significant factor in improving population health
and decreasing medical costs. Success will
depend largely on making progress on both the technological
aspects of integrated care along with the human/cultural
dimensions. Strides in the interoperability of Health Care
IT, Electronic Health Records and patient portals must be
coupled with the ability of provider staff, patients and
families to effectively interact with the technology. The
value of systems will only be as great as the willingness of
people to use them to enhance the flow of current, relevant
patient information when and where it is needed.
This is especially true for the consumer engagement of
patients and their families as fully participating partners
in the delivery of health care. Movement must continue in
the direction of making the patient interface not just
easier to access, but actually engaging and useful to them.
Widespread availability of smart phones and tablets is an
opportunity we can seize to help close this part of the
loop. The patient engagement must not only prompt
communication about illness and injury but emphasize
wellness and fitness also. In addition to the basic
functionality of patient-system interaction, consideration
for language and cultural preferences among different
segments of the population is essential.
The goal of
clinical integration has often been stated: "to maximize the
value of services delivered." Measurement of this goal must
recognize both the technological and human challenges of
achieving it. Inherent in the word "value" is also an
understanding of the cost-benefit relationship. Reaching the
goal of clinical integration will require continuous
measurable improvement along all of these dimensions. |
Vince Kuraitis
Principal, Better Health Technologies, LLC
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The question around the state and
impact of CINs is one of HUGE importance. That said, my
short answer is "We really don't know." The CIN movement has
been stealthier than the development of B1 bombers.
The promulgation of CINs was initiated and promoted by the
Federal Trade Commission guidance in the mid-1990s. The CIN
construct was the government's response to the industry's
spawning of "financially" Integrated Delivery Systems in the
early 1990s. The intent was to provide antitrust guidance by
allowing clinically beneficial integration initiatives
across provider organizations while discouraging veiled
anti-competitive practices.
As of 2008 there were
only a handful of CIN initiatives in the US; by 2013 the
Advisory Board reported that there were some 500 CINs in
existence. Who/what are they? Don't know -- I've never
actually seen a list of CIN initiatives.
Contrast
the dearth of information about CINs with the plethora of
information and discussions around ACOs. ACOs have been
widely reported on in excruciating detail. I'd imagine
there's a fair amount of overlap between a list of ACOs and
a list of CINs -- but that's conjecture. A few CINs have
been above the radar -- Advocate in Chicago is the poster
child example of a visible, successful, aggressive CIN.
The structure of CINs has been highly regulated.
Ideally, CINs would be driven primarily by clinicians
seeking to promote integrated patient care and secondarily
by business executives focused on creating effective
partnerships and alliances. Yet, the creation and guidance
of CINs has been driven and controlled by lawyers and
compliance officers. |
There
is No Crying in Bundles: Making Your Worst Failure Your Greatest
Success, March 15, 2016
Growing
a Health System with Market Intelligence: Transitioning to
Value-Based Networks, March 16, 2016
Value of ACA Coding Improvement: Market Share and Market
Effects, April 6, 2016
2016
Population Health Web Summit, May 19, 2016
2016
Predictive Modeling Web Summit, September 15, 2016
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