Transcript BCBSTX Update & Health Care Reform

Emerging Provider Payment Models
Medical Homes and ACOs
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Aligning Reimbursement and Incentives
Continuum of Payment Models
Episodic Cost
Fee-for-Service
Pay-forPerformance
Total Cost
Episodic
Bundling
Global
Payment
Full Risk /
% of
Premium
Deployment
depends on a
number of factors:
• provider
infrastructure and
ability to accept risk
• patient condition
• benefit design
Provider Accountability
Patient Centered Medical Home
Accountable Care Organization
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ACA Alternative Payment Legislation
• Title III, Subtitle A, Part III
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Improving the Quality and Efficiency of Health Care
Transforming the Health Care Delivery System
Encouraging Development of New Patient Care Models
• §3022 – Medicare Shared Savings Program - ACOs
• §3023 – National Pilot Program on Payment Bundling
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Patient Centered Medical Home Model
Redesigning the way primary care is delivered and financed
Hospital Care
Imaging Services
Lab Services
Specialist Care
Pharmacist Care
Patient
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Personal Physician*
Trusted personal physician
Physician who provides, manages and facilitates care
Care is coordinated or integrated across healthcare system
More accessible practice with increased hours and easier
scheduling
 Payment mechanisms that recognize the added value
of delivering care through the PCMH model
 Assistance to practices seeking transformation
 Support to practices adopting HIT for QI
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* Includes Non Physician Professionals
Blue Patient Centered Medical Home
Pilots as of July 2010
Time in Market
Will Launch in 2011
Less than one year
One Year
Two Years
Three Years
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Texas Medical Home Initiatives:
Current and Future
BCBSTX Pilots
Eff. February 1, 2010
Medical Clinic of North Texas
• 131 total physicians
• 88 Primary Care Physicians
Village Health Partners (Plano)
• 10 total physicians
• 10 Primary Care Physicians
Client Participation in Pilots
• Approximately 25,000
Accountable Practice Models
Medical Home/ACO Hybrid
Effective date: January 1, 2011
Austin Regional Clinic (Austin)
• 288 total physicians
• 159 Primary Care Physicians
Kelsey Seybold (Houston)
• 379 total physicians
• 195 Primary Care Physicians
Trinity Clinics (Tyler)
• 269 total physicians
• 92 Primary Care Physicians
Client Participation in Pilots
• Approximately 75,000
Total physicians includes PCPs. Total PCPs include IM, Family, and Peds.
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ACO - Everybody has heard about it
but few have seen ……
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ACO Definition and Key Impacts
ACO (Accountable Care Organization) – a entity that takes
accountability for total cost and quality of care for a
specified population
Cost – reduce or at least control the growth e.g. reduce the
historical trend
Quality – maintain or improve clinical quality and patient
experience and satisfaction
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ACO Development
• Primary Care foundation
• Provider and payer collaboration
• HIT/connectivity
• Population management systems
• Care coordination
• Cost efficiency focus
• Quality thresholds
• Shared Savings → fixed payment (risk adjusted)
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Cost and quality improvement sources
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Improved prevention and early diagnosis of conditions
Unnecessary testing, referrals and medications
Chronic disease management
Emergency room visits
Avoidable hospital admissions
Healthcare acquired infections
Hospital complications
Hospital readmissions
Lower cost treatments/conservative medicine
Lower cost place of service
Lower cost and/or cost efficient providers
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ACO Barriers
• Primary care shortage
• FFS system
• Lack of alternative payment arrangements with incentives
• Unaffiliated/uncoordinated providers
• Lack of HIE/HIT
• Financing for population management systems
• Loss of revenue to some providers
• Antitrust concerns
• Significant resources required
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Questions????
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