Bridges to Excellence Perspectives on Program Implementation Jon Conklin Vice President, Medstat BTE Program Administrator Questions • How is BTE Unique? • What Challenges have been faced in Implementing BTE? • What are the Key Success Factors? 2 Copyright 2005 Thomson Medstat 1 How is BTE Unique? 1. Program Design Based on the Business Case • The BTE Business Case: Incentives $ Excellent Health Care Healthier Patients Preventive Screening Fewer Complications Disease Management Fewer Medical Errors Cost Savings Reduced Health Care Costs Increased Productivity Clinical Information Systems • Elements of programs design relating to business case – Outcomes measures – Size of incentives/rewards – Program focus 3 Copyright 2005 Thomson Medstat How is BTE Unique? 2. Outcome Measurement is Critical Why? • ROI Research links Cost Savings to Improved Outcomes • “Excellent Performance” = 1. Adherence to Clinical Guidelines (process of care) 2. Desirable Clinical Results (outcomes of care) Implications? • Outcome measures = lab results blood pressure levels • Chart abstraction required • Physician self-report (with random audit) 4 Copyright 2005 Thomson Medstat 2 How is BTE Unique? 3. Rewards Must be Meaningful • Size of incentives/rewards ~ 1/3 of anticipated cost savings – e.g., Diabetes: • Expected Annual Cost Savings = $300 - $350 per patient • Reward = $100 per patient seen by “excellent” physician • Rewards represent “new money” • Lump-sum rewards – scaled based on patient volume • Direct payment from employers (rather than through plans) 5 Copyright 2005 Thomson Medstat How is BTE Unique? 4. Active Consumer Participation • Encourage active consumerism • Steer patients to “excellent” providers • Reward self-care management 6 Copyright 2005 Thomson Medstat 3 Challenges of BTE Implementation: 1. Data Retrieval and Integration Patients Physicians Health Plans Medstat 7 Copyright 2005 Thomson Medstat Challenges of BTE Implementation: 2. Physician Engagement • Barriers: – Initial skepticism & suspicion – Perceived burden of data collection – Application fees • Strategies: – – – – – – Solicit cooperation from physician organizations Target physician communications Aggressive outreach Provide data collection assistance Reward all qualifiers BTE Newsletter 8 Copyright 2005 Thomson Medstat 4 Provider Outreach: BTE Newsletter • BTE Newsletter includes: − Program-related articles − Lists of recognized physicians and practices − Best practices articles submitted by recognized physicians − NCQA performance measurement information and tips 9 Copyright 2005 Thomson Medstat Challenges of BTE Implementation: 3. Consumer Engagement • Barriers: – Confidentiality – Suspicion – Apathy • Strategies: – – – – Broadcast communications Recruitment by third-party Incentives / Rewards for self-care and physician selection Consumer education campaigns 10 Copyright 2005 Thomson Medstat 5 Consumer Outreach 11 Copyright 2005 Thomson Medstat Challenges of BTE Implementation: 4. Estimating / Quantifying ROI • Convince participants of ROI • Develop BTE ROI Calculator • Quantify actual ROI – Quantify program impact – Control for confounding factors – Demonstrate cause and effect over time 12 Copyright 2005 Thomson Medstat 6 BTE Business Case: ROI Calculator • Employer enters information about employee population and program assumptions • Calculator determines expected program costs and savings 13 Copyright 2005 Thomson Medstat Conclusion: Key Success Factors • Critical mass re: employer participation (covered lives) in specific markets 9 currently representing nearly 350,000 covered lives • Active employer and health plan participation in each market 9 13 large employers in 4 markets, 5+ new markets in 2005, United Health Group first BTE managed care licensee. • Buy-in by physician community 9 from 90 to over 800 new participating physicians in 2004 14 Copyright 2005 Thomson Medstat 7