Glossary of Shared Accountability Terms 18 Shared Commitments. Providers who participate in Intermountain’s shared risk networks—such as the SelectHealth Share networks and the Intermountain Align Network—agree contractually to “18 Shared Commitments,” which support a high-value healthcare delivery model and Intermountain’s Shared Accountability strategy. The commitments focus on: 1. Clinical excellence, integration, and improvement 2. Patient access 3. Accountability, operational commitment, and mutual respect For example, providers agree to use evidence-based standards; refer within the shared risk panel when clinically appropriate; accept accountability for performance on quality, service, and cost; participate in an incentive compensation program; and share performance data with Intermountain and other providers. ACA. See Patient Protection and Affordable Care Act (PPACA). ACO. See “Accountable Care Organization.” Accountable care. In healthcare delivery, the concept of providers (healthcare delivery organizations, hospitals, clinics, physicians, other clinicians, etc.) assuming financial risk (“being accountable”) for the health management and outcomes of a defined population. In the past, providers generally have been paid based on services provided, and financial risk generally has been assumed by payers such as insurers. The assumption of risk by providers typically is accomplished primarily through some form of prepayment (and/or capitated payment) model, where the providers receive a prepayment to manage the health of a defined population and retain, as income, monies in excess of expenses. See also “ACO,” “Population Health Management,” and “Shared Accountability.” Accountable Care Organization (ACO). An ACO is a provider organization that takes responsibility for managing the health and care of a defined population of patients; the idea is to incentivize caregivers within the ACO to provide effective, high-value care. The U.S. Centers for Medicare and Medicaid Services (CMS) certifies Medicare ACOs that meet certain requirements for the care of Medicare patients; certification confers obligations and benefits to the ACO. The term was coined by Dr. Elliot Fisher of Dartmouth in 2006 and was subsequently included in the Patient Protection and Affordable Care Act (PPACA). The term is also used to refer to similar models for Medicaid and private markets. Alignment of incentives. Making sure that all parties involved in healthcare—including providers, payers, and patients—are financially incentivized to seek high-value care: the highest quality care at the lowest sustainable cost. The goal is to encourage health, prevention of illness and injury, and—when care is needed—the most effective treatments. Attribution. As used in the context of accountable care, “attribution” refers to the assigning of a patient to a healthcare provider. The attributed provider is held accountable for the cost and quality of care provided to the patient. (This can be problematic if the attribution is not accurate and the patient obtained care from a different, non-attributed provider.) Behavior Change Framework. Intermountain believes positive behavior change supports optimal health and optimal clinical outcomes for patients. A team of Intermountain clinicians has developed a behavior change framework to support patient choices that help them live the healthiest lives possible. Intermountain caregivers use the framework—which applies to individuals, families, groups, and communities—to help plan patient engagement communications, resources, and technology. The framework includes three direct variables that can produce action: motivation, ability, and prompts. The model also shows how actions are influenced by mindset, environment, and relationships. Best practices. Medical and healthcare practices that have been demonstrated to be the most effective. Researchers—notably those at the Dartmouth Institute for Health Policy and Clinical Practice, who undertake the longitudinal study called The Dartmouth Atlas of Health Care—have shown that significant inappropriate variation exists in the delivery of healthcare in the United States. A movement began in the 1980s to encourage “continual quality improvement” in healthcare based on statistical quality control techniques developed in other fields (such as manufacturing). As part of this focus on clinical quality, physicians and healthcare organizations discover and then seek to implement medical best practices—care techniques that have been demonstrated to be effective. See “Evidence-based medicine.” Capitation. A term used to refer to a variety of payment arrangements generally based on a per-member-permonth (PMPM) dollar amount paid in advance. The term “capitation” was widely used in connection with managed care plans in the 1990s and acquired some connotations that are inaccurate with respect to Shared Accountability. At Intermountain, we prefer the term “prepayment.” Care management. Programs that help patients manage their care, especially patients who have chronic health conditions such as diabetes, asthma and other respiratory ailments, cardiovascular disease, etc. Care management may also include programs for temporary conditions such as high-risk pregnancies. The term “integrated care management” is sometimes used to describe care management efforts that are coordinated or integrated operationally within an organization. The idea is to place the patient at the center of a range of services and have all the different providers and services of care communicating and collaborating effectively in a highly integrated and well-managed way. Integrated care management is designed to overcome the problems associated with fragmented care delivery, in which patients typically had to become the integrators of their own care, going from one service or physician to another. Such problems associated with fragmented care delivery include poor communication among caregivers, redundant tests and consultations, other unnecessary utilization, lower clinical quality, poorer medical outcomes, misdiagnoses, lower patient compliance with treatment programs, and higher costs. Centers for Medicare and Medicaid Services (CMS). The United States agency that oversees the Medicare and Medicaid programs. Clinical Programs: Intermountain’s Clinical Programs are the mechanism by which our experts in medical science, operations, data analysis, and care delivery collaborate and advance clinical care. In each program, multidisciplinary teams work together to review the medical literature, evaluate our own processes and data, and develop evidence-based best practices and care process models. Our caregivers then apply these standards, using judgment and flexibility, to tailor care to meet the unique circumstances of each patient. Clinical Services. Within Intermountain, the term “Clinical Services” refers to system-wide services that support the delivery of care. Intermountain Healthcare has 15 Clinical Services: Clinical Genetics Institute, Dialysis, Environmental, Food and Nutrition, Imaging, Integrated Care Management, Laboratory, Nursing, Pain Management, Patient and Provider Publications, Patient Flow, Patient Safety, Pharmacy, Rehabilitation, and Respiratory Care. CMS. See “Centers for Medicare and Medicaid Services.” CPI + 1%. Intermountain's (and SelectHealth's) goal of being able to offer an average annual premium increase to commercial large employer clients of the Consumer Price Index (CPI) plus about one percent. Note: For clarity, we refer to this goal not as "CPI + 1%" but rather as "near the general inflation rate" (e.g., "achieving average annual rate increases closer to the general inflation rate"). CPT Codes. See “Current Procedural Terminology (CPT) code set.” Current Procedural Terminology (CPT) code set. A code set created by the American Medical Association and maintained by the CPT Editorial Panel. CPT codes describe diagnostic, medical, and surgical services; the codes are used for financial, administrative, and research purposes by the healthcare industry. New versions or editions are issued each October and are named for the year of intended use (e.g., CPT 2014 was issued in October 2013). Diagnosis-Related Groups (DRGs). Categories of medical procedures or care established by the U.S. government in the 1980s based on the ICD (see “ICD”) and used by Medicare as a basis for paying hospitals. The idea was to identify standard services provided by hospitals. Examples include “normal newborn,” “vaginal delivery,” etc. Efficiency. “Efficiency” is used within Intermountain Healthcare to describe efforts to reduce the cost of units of care or processes: e.g., reducing the cost of supplies, capital equipment, MRIs, lab tests, etc. In contrast, Shared Accountability focuses on reducing the demand for services (see “Population Utilization”) and on effective care processes (see “Intracase Utilization”). Engaging patients. Involving patients in decisions about their health and healthcare. Patients are encouraged to make lifestyle decisions that promote health and prevent illness and injury. They are also encouraged to use healthcare resources wisely, taking advantage of prevention and care management programs and evaluating the potential costs and benefits of various treatment options. Evidence‐based medicine aims to apply the best available evidence gained from the scientific method to clinical decision-making. One definition: “Making a conscientious effort to base clinical decisions on research that is most likely to be free from bias, and using interventions most likely to improve how long or well patients live” (Mark H. Evell, MD, MS, Professor, University of Georgia). According to Brent James, MD, MStat, Intermountain’s Chief Quality Officer, a foundational document of the evidence‐based medicine “movement” was a 1987 article by the U.S. Preventive Services Task Force in the Journal of the American Medical Association (JAMA). This article described four levels of evidence‐base medicine: • Level 4: Personal anecdote. This is the equivalent of an individual provider saying, “In my opinion . . . ” and often reflects the training providers received or the influence of respected mentors. According to Dr. James, this level doesn’t make the cut of evidence‐based medicine at all. • • Level 3: Agreement among a group of respected authorities using formal consensus methods. Using consensus in a decision‐making process implies that all people involved are united in the decision. Level 2 has three sub‐levels: o o o • Level 2‐A: Multiple‐time series (observational studies) or dramatic results. Level 2‐B: Cohort or case‐control studies. This is a study that follows a group of people over time. Level 2‐C: Controlled trials without randomization (quasi‐experimental designs). This is an experimental study in which people are allocated to different interventions using methods that are not random. Level 1: Using at least one randomized controlled trial. A randomized controlled trial is a clinical trial in which the subjects are randomly distributed into groups that are either: 1) subjected to the experimental procedure; or 2) controls (not subject to the experimental procedure). The results of the two groups are then compared. Intermountain uses the evidence-based medicine approach to create “best practices,” which are protocols that indicate how care should be delivered. Following best practices helps clinicians provide excellent clinical care without the variation and waste that reduce quality and drive up costs. Tracking the clinical outcomes and other results helps us create a cycle of more evidence and continually improving care. Fee-for-service (FFS). The payment arrangement between payers and providers—currently the most prevalent in the U.S.—in which providers are paid for services they provide to patients; this payment is received after the services are provided. This arrangement tends to encourage the provision of both necessary and unnecessary services, because additional services result in additional payments. The trend toward accountable care is sometimes described as a transition away from the fee-for-service model to a fee-for-value model or a population health model. Geographic Committees. Geographic Committees are groups of physician and administrative leaders in each Intermountain region who are helping our physicians provide care in a population health model. The committees strategize and support physician engagement, education, and communication efforts. They also help track the quality, access, service, utilization, and costs of patients who are cared for in populations served by specific health plans (although the committees don’t have operational responsibilities). Each committee is co-chaired by a physician and an administrative leader, and committee members include leaders from Intermountain hospitals, members of the Intermountain Medical Group, and affiliated physicians. HDHP. See “High-Deductible Health Plan.” HRAs. See “Health risk assessments.” HSAs. See “Health Savings Accounts.” Health literacy. The ability to understand healthcare information and instructions, especially in the context of patients’ ability to understand and comply with treatment plans. When patients have low health literacy, they often fail to follow their treatment plans. Studies have shown that many patients do have low health literacy and that this is a factor contributing to disparate medical outcomes. Healthcare providers are increasingly addressing this issue and can use various methods to improve the health literacy of the patients and populations they care for. Health Pathway. A standard framework for the development and organization of an all-inclusive compilation of Care Process Models, analytical tools, care coordination services and reporting solutions that form Intermountain’s defined care standard and recommended operations flow for the treatment and or management of a designated clinical condition across the entire care continuum. Health risk assessments (HRAs). These are questionnaires, completed by individuals, to help identify their health status and health risks. Most HRAs seek information related to medical history, demographic characteristics, physiological data, lifestyle, and attitudes. The idea is to provide individuals who complete the HRA with information about their health risks, which can also be used to provide advice on how to improve or optimize their health. Health Savings Accounts (HSAs). Tax-advantaged medical savings accounts for people enrolled in a highdeductible health plan (HDHP). People can use the HSA funds to pay for qualified medical expenses at any time, and spending the funds does not incur a penalty or federal tax liability. When deposited (e.g., when an employer deposits funds in an employee HSA), contributions to the HSA are not considered taxable income. If not spent, the funds accumulate in the HSA year after year (unlike flexible spending accounts, which must be spent during the year). Individuals, not companies, own HSAs. HSAs encourage people to save for future healthcare expenses. High-Deductible Health Plan (HDHP). A health insurance plan with a deductible that is higher relative to the deductibles typical of more traditional plans; the higher deductibles (e.g., typically in the range of $1,000 to $5,000 for individuals) allow such plans to offer lower premiums. Participation in qualified High-Deductible Health Plans is required for those enrolled in Health Savings Accounts (HSAs) and similar tax-advantaged accounts. Compared to people covered by more traditional plans with lower deductibles, people enrolled in HDHPs pay more out-of-pocket or out of their HSAs until their deductibles are reached and benefits are applied (although spending against the higher deductible may be offset by lower spending on the premium, for a lower net cost to the person insured). Higher deductibles tend to make those covered by HDHPs more sensitive to utilizing healthcare. Hot-spotting. Identifying patients in special need of care management or areas (geographic or clinical) of higher-than-normal utilization. The term was popularized in an article by Atul Gawande, MD, in The New Yorker (24 Jan 2011). ICD-10 codes. See “International Statistical Classification of Diseases and Related Health Problems (ICD).” IHI. The Institute for Healthcare Improvement (Cambridge, Mass.), founded in 1991 by Donald M. Berwick, MD, and others with the mission to foster continual improvement in healthcare. The IHI defined the Triple Aim goals (see below) of population health, care quality ("patient experience"), and cost management. IOM. See “Institute of Medicine (IOM).” Incentives. See “Alignment of incentives.” Institute of Medicine (IOM). The IOM is an independent, not-for-profit organization that, although funded by the U.S. government, works to provide unbiased advice about health policy to policymakers and the public. Founded in 1970 as part of the National Academy of Sciences, the IOM is now considered part of the “National Academies” (which include the National Academy of Sciences, the IOM, the National Academy of Engineering, and the National Research Council). In a 1998 report, an IOM committee called the National Roundtable on Health Care Quality defined three major categories of substandard care: overuse, underuse, and misuse. Integrated Care Management. See “Care management.” International Statistical Classification of Diseases and Related Health Problems (ICD). Created by the World Health Organization (WHO), the ICD is a code set that classifies medical conditions such as symptoms, illnesses, diseases, and causes of injuries. ICD-10 is the tenth iteration or edition of the ICD and was implemented October 1, 2014, succeeding the previous edition called ICD-9. LiVe Well. LiVe Well is Intermountain’s name for a host of prevention, wellness, and care management programs offered to patients, health plan members, consumers (including children and teenagers), and employees. See “Promoting health.” MHI. See "Mental Health Integration." Medicaid product. SelectHealth began to administer and operate a managed Medicaid plan in January 2013 called SelectHealth Community Care. The plan is available to Medicaid members in Weber, Davis, Salt Lake, and Utah counties. The plan covers medical and pharmacy services; the Utah Department of Health Medicaid program provides services for mental health, dental, long-term care, transportation, and chiropractic services. Medical home. The “medical home” concept places the patient at the center of a team of caregivers, typically led by the patient’s primary care physician. The idea is that the primary care setting can provide coordination of services and care management to help patients stay as healthy as possible, prevent illness and injury, and obtain access to effective and appropriate healthcare. Intermountain’s implementation of the medical home concept is called “Personalized Primary Care” and is offered by the Intermountain Clinics (the Intermountain Medical Group). SelectHealth also supports Personalized Primary Care in affiliated physician clinics. Medicare Advantage. Licensed by the federal government, Medicare Advantage plans are privately operated “managed Medicare” plans for Medicare-eligible enrollees. These plans are private alternatives to the public Medicare health insurance program and offer certain advantages to Medicare patients who choose to enroll. Intermountain began offering a Medicare Advantage plan in January 2013. Product features include: No deductible; monthly reimbursement for gym memberships or approved wellness programs; $5 copays for primary care provider visits; comprehensive prescription drug coverage; and a point-of-service option that allows members to access healthcare out-of-network for an additional out-of-pocket cost. SelectHealth Advantage plans are available to residents of seven Utah counties: Weber, Morgan, Davis, Salt Lake, Utah, Iron, and Washington. Plans are also available to residents of seven Idaho counties: Boise, Ada, Canyon, Twin Falls, Jerome, Cassia, and Minidoka. Mental Health Integration. Mental Health Integration (MHI) is how Intermountain delivers evidenced-based care and improved outcomes to people with mental and behavioral health needs who are served by Intermountain Medical Group providers. Mental health integration helps primary care and mental health providers collaborate to meet a patient’s physical and mental health needs during each patient visit, which they do by focusing on prevention and early diagnosis, integrating care processes, enhancing information systems and reporting methods, and partnering with community resources. Mental Health Integration is part of Personalized Primary Care (Intermountain’s version of the patient-centered “medical home”) and supports the lifestyle-focused best practices that lead to lower costs in a population health environment. Misuse. One of the three major categories of substandard care identified by the Institute of Medicine. (The other two categories are “overuse” and “underuse.”) “Misuse” refers to misuse of healthcare resources, specifically in ways that negatively affect clinical quality and patient safety. Overtreatment. See “overuse.” Overuse. One of the three major categories of substandard care identified by the Institute of Medicine. (The other two categories are “underuse” and “misuse.”) “Overuse” refers to providing unnecessary tests or treatments to patients, which may be ineffective at best or harmful at worst. Also referred to as “overtreatment.” PHM. See “Population Health Management.” PPACA. See “Patient Protection and Affordable Care Act.” Patient engagement. One of the key component strategies within Shared Accountability is patient engagement: engaging patients more effectively in choices related to their health and healthcare. This strategy recognizes that patients have a vital role to play in optimizing their health, minimizing health risks, choosing treatment options that reflect their values and preferences, and complying with treatment plans. Intermountain offers a number of programs to help engage patients and plan members, including Shared Decision-Making and LiVe Well. Patient Protection and Affordable Care Act (PPACA or ACA) of 2010. Signed into law by President Obama in March 2010, this act is considered the most far-reaching healthcare reform legislation since Congress created the Medicare and Medicaid programs in 1965. Representatives of both political parties informally refer to the PPACA as “Obamacare.” Payers. Organizations that pay for healthcare. The term includes insurance companies, businesses that pay for healthcare for their employees, and government health insurance programs such as Medicare, Medicaid, CHAMPUS, state and local programs, etc. Payers may be categorized as “private payers” (i.e., non-government) or “public payers” (i.e., government). Personalized Primary Care. Intermountain Healthcare’s version of the patient-centered “medical home” concept, in which a patient’s care is coordinated by the primary care physician and clinic staff. (See “Medical Home.”) Physician Payment Model. Intermountain has developed a new Physician Payment Model for physicians who choose to participate in risk-sharing networks. The model continues to pay physicians for the volume of care they provide, along with adding features that reward quality, patient experience, and help in managing the overall cost of care. Population Health. Population health is a healthcare delivery model that encourages improved outcomes and better service and reduces overall healthcare costs. It replaces the fee-for-service system, which pays healthcare providers based on the volume of services given, with a “fee-for-value” system that compensates caregivers for providing evidence-based care, enhancing the patient experience, and helping people maintain better health. In the population health model, hospitals and physicians are prepaid by health insurers and government payers for taking care of a group of people (such as members of a health plan) for a fixed time, with measures in place to ensure high-quality outcomes. At Intermountain, population health is supported by our Shared Accountability programs, processes, and principles. Population Health Management. Managing the health of a defined population. In the context of accountable care, Population Health Management is undertaken primarily by providers who assume financial risk for the health status and care outcomes of a patient and plan member population. Population Health Operations Committee. Population Health Operations Committees are organized in each Intermountain region to operationalize our transition to population health. They help manage the health and the costs of the people in each region who are covered by population health insurance products. Members of the committees include regional leaders from Intermountain’s hospitals, Medical Group, and SelectHealth, who work closely and collaboratively with each region’s Geographic Committee. Key activities of the Population Health Operations Committees: 1. Understanding the assigned populations in terms of health, budget performance, and utilization 2. Developing strategies and priorities for those populations 3. Providing operational support 4. Supporting Community Benefit plans, coordinating with Geographic Committees on physician engagement, and overseeing population health plans, resources, and measurement. Prepayment (to providers). A payment arrangement between payers and providers designed to encourage the provision of high-value care (high quality at an affordable and sustainable cost). Instead of being paid after services are provided, hospitals and physicians are prepaid by insurance companies and government payers for taking care of a group of people for a fixed time, with measures in place to ensure high-quality outcomes. Providers keep the difference between what is prepaid and what is spent, and quality metrics ensure providers don’t withhold needed care. Prepayment takes away the incentive (under fee-for-service arrangements) for providing more care and instead incentivizes more effective care. The idea is to provide care that is demonstrated to help patients, which means avoiding things that don’t help and doing more of the things that do help. Promoting health. To help manage the need and demand for care, Intermountain is enhancing our prevention, wellness, and care management programs. We’re providing a range of health programs under our “LiVe Well” brand, and these include programs for weight management, fitness, smoking cessation, and mental and behavioral health. For patients with chronic or high-risk conditions such as diabetes, asthma, hypertension, cardiovascular disease, depression, or high-risk pregnancy, we’re strengthening our care management programs. We’re also improving our benefit design in our health insurance plans to encourage patients to take greater responsibility for their health. Providers. People and organizations that provide care to patients. The term includes hospitals, physicians, physician clinics, and advance practice professionals. Risk. In the context of accountable care, “risk” means financial risk assumed for the health management of a defined population. In accountable care, risk is assumed at least in part by providers. The assumption of risk by providers typically is accomplished primarily through some form of prepayment model, where the providers receive a prepayment to manage the health of a defined population and retain, as income, monies in excess of expenses. (Intermountain does not anticipate having physicians in a shared-risk network receive capitated payment.) See also “accountable care.” Scientific method. The scientific method refers to a four-step process: 1) Defining a problem and hypothesis; 2) collecting data through observation and experimentation; 3) testing the hypothesis; and 4) revising the hypothesis. Thus, the method uses a combination of deductive and inductive reasoning. SelectHealth Share. SelectHealth Share is SelectHealth’s first commercial health plan product that’s based on Intermountain’s Shared Accountability principles. It’s been offered to large employers since January 2016. The plan is a unique partnership between SelectHealth, providers, employers, and employees. It supports predictable costs and lower premium increases; engaged, healthy employees; aligned financial incentives; and a sustainable partnership that supports better, more affordable healthcare. The plan includes a three-year contract with guaranteed premium rate increases of just 4 percent during years two and three. SelectHealth Share follows a population health model, where Intermountain receives a prepayment from SelectHealth to cover the costs of coordinating the health and the care of people covered by the plan. Intermountain assumes financial accountability for the ongoing health and clinical outcomes of plan members. Healthcare services for covered members are provided at Intermountain hospitals and by providers in a Shared Accountability network—which includes both Medical Group and affiliated providers. Participating network providers agree to 18 shared commitments designed to improve quality, enhance the patient experience, and manage overall healthcare costs. Learn more at https://selecthealthshare.org/. Shared Accountability. Shared Accountability is Intermountain Healthcare's approach to achieving population health and fulfilling our mission of helping people live the healthiest lives possible. Shared Accountability is how Intermountain improves people’s health—not just their healthcare—for the lowest sustainable costs in the changing healthcare environment. In Shared Accountability, healthcare providers, payers, and consumers work together to achieve three goals: 1) better health; 2) better care; and 3) more affordable costs. We use three strategies to achieve these goals: 1. Providing evidence-based care that’s shown to result in optimal outcomes 2. Engaging patients 3. Aligning financial incentives for everyone who has a stake in healthcare Shared Accountability Advocates. At Intermountain, regional planners and communications professionals serve as Shared Accountability “champions” or advocates within their regions or areas. They are available to promote and explain Shared Accountability in their regions, make or arrange presentations at the department level, answer questions, and provide access to information resources. Shared Decision-Making. Physicians in the Intermountain Medical Group are involved in a program called Shared Decision-Making—a collaborative process involving the sharing of relevant, evidence-based information on treatment options, eliciting informed patient preferences, and ensuring that these preferences are integrated into treatment choices and care plans. As part of our Shared Decision Making efforts, the Medical Group offers patients access to online decision aids through EMMI Solutions that can help facilitate the Shared Decision Making process and involve patients in their care, set expectations, and increase knowledge and understanding. Shared Decision-Making can result in a number of patient benefits, including: higher patient satisfaction; greater compliance with treatment plans; improved clinician efficiency; and appropriate use of health resources. Teleservices. The growing field of medicine in which healthcare is provided via electronic communication channels such as the internet, mobile, and other links that allow the caregiver to be physically remote from the patient. Transparency: Healthcare transparency means providing access to information about clinical outcomes, service, and costs to providers, patients, and other healthcare consumers. By improving transparency through better communication of treatment options, details about how care is provided, expenses, and patient experiences, Intermountain builds trust with patients and helps them make more informed decisions. Intermountain has launched a robust initiative to support transparency. Consumers can now see patient comments and star ratings of providers through the physician search tool on the intermountainhealthcare.org website. Dashboards are bringing real-time data to providers related to population health, patient-care quality, outcomes, and cost. Digital tools help patients engage in choices about treatment options and care details. For the future, plans are underway to provide additional information to consumers about hospital and clinic quality, costs, and patient experience ratings. Triple Aim. The Triple Aim defines three goals or imperatives of healthcare: 1) Improve the health of the defined population; 2) Enhance the patient care experience (including quality, access, and reliability); and 3) Reduce, or at least control, cost increases. The idea is that, by focusing on these three goals simultaneously, healthcare leaders and policymakers will develop more effective approaches to providing care. The “Triple Aim” concept was developed by Donald M. Berwick, MD, and others at the Institute for Healthcare Improvement (IHI) in 2007; it was described in an article by Berwick in Health Affairs (May/June 2008). UM. See “Utilization Review/Utilization Management.” Undertreatment. See “underuse.” Underuse. One of the three major categories of substandard care identified by the Institute of Medicine. (The other two categories are “overuse” and “misuse.”) “Underuse” refers to the failure to provide care that would be beneficial to patients. Also referred to as “undertreatment.” Utilization. “Utilization” refers to the use of healthcare services and products—generally, the amount of healthcare used. Utilization can be categorized in many ways; in the context of Shared Accountability, we often speak of two kinds of utilization: 1. Population utilization. This refers to the number of health episodes per patient: e.g., a hospitalization, an outpatient surgery, etc. 2. Intracase utilization. This refers to the number of processes used within each health episode: e.g., imaging scans, lab tests, inpatient days, etc. These types of utilization are represented in the following graphic: Utilization is considered the main driver of healthcare spending. That is, Americans spend more on healthcare because we use more. In general, the healthcare industry has succeeded in reducing the “unit cost” per process over time by finding ways to increase efficiency—reducing, for example, the cost of x-rays, lab tests, inpatient days, and other items or processes. However, healthcare spending has increased because Americans are using more products and services. Utilization Management (UM). “Utilization management” is the evaluation of the medical necessity, appropriateness, and efficiency of the use of healthcare services, procedures, and facilities under applicable evidence-based standards, conditions of participation, or compliance requirements. It may involve such activities as pre-authorization of procedures and tests, care planning and discharge planning, and case appeals. One of the techniques of utilization management is “utilization review,” which is a retrospective evaluation of whether care was provided appropriately. (That is, utilization review is a function within utilization management.) Value. Value is generally defined as the relationship between, or ratio of, benefits to costs (Value = Benefits / Costs). In the context of accountable care, providers are incentivized to increase value (i.e., to maximize benefits while minimizing costs); this incentive generally is provided through some form of prepayment (and/or capitated payment) model, where the providers receive a prepayment to manage the health of a defined population and retain, as income, monies in excess of expenses. The trend toward accountable care is sometimes described as a transition away from the fee-for-service model to a fee-for-value model or a population health model. Updated August 2016