4/21/2016 Preventing Readmissions from the Post-Acute Care Continuum Tamira Harris, PhD, MBA, MSN Business Advisor Guided Outcomes/Organizational Design Relay Health Intelligence McKesson Corporation. All rights reserved. Confidential and Proprietary. 14/21/2016 Agenda • Current State • Top 10 Challenges/Opportunities for Providers/Hospitals • Stories from the Field • Leveraging Technology - Changing Culture • Opportunities and Next Steps • Questions 2 4/21/2016 McKesson Corporation Confidential and Proprietary Objectives • Demonstrate proactive approaches to care planning. • Understand the cultural shift from reactive to proactive care planning and collaboration. • Identify the new role of the case manager in care planning. 3 4/21/2016 McKesson Corporation Confidential and Proprietary McKesson Corporation. All rights reserved, 1 4/21/2016 Case Management Vision Predictive, actionable intelligence to give Providers confidence in operationally managing their day-to-day, hour-by-hour caseloads – no matter what comes at them. Variability management rather than crisis response Patient-centered, clinically driven operational excellence Sustainable financial improvement though demand forecasting & patient flow based alignment of resources Optimized patient throughput and outcomes, house-wide and across care settings 4 Bending the cost curve Significant growing problem in US Only 21% CFOs report using data to reduce cost $100 in Clinic; $1,000 in ED; $10,000 with admit $12M cost variance 400 bed hospital compared to US average * http://www.medpac.gov/transcripts/readmissions%20Sept%2012%20presentation.pdf 5 Source: NEHI health policy institute Payment Model Trajectory Commercial Payers Leading The Way McKesson Sponsored Research Conducted February 2014 by ORC International with 350 providers and 114 payers participating 6 McKesson Corporation. All rights reserved, 2 4/21/2016 Provider Performance Performance Measures Historical Emerging Physician productivity Care team productivity Tests ordered Patient outcome Procedures performed Complications encountered Informational/emotional needs met Improvement Orientation Increasing revenue/profit Outcomes Improving individually oriented financially grounded metrics Total cost of care Defined performance metrics – team oriented Measure Internal External 7 Setting Value-based Payment Goals — HHS Efforts to Improve U.S. Health Care* “Our goal is to have 85% of all Medicare fee-for-service payments tied to quality or value by 2016, and 90% by 2018. Perhaps even more important, our target is to have 30% of Medicare payments tied to quality or value through alternative payment models by the end of 2016, and 50% of payments by the end of 2018.” *Sylvia M. Burwell, US Secretary of HHS. N Engl J Med 2015; 372:897-899, March 5, 2015 “Transforming Medicare from a passive payer to an active purchaser of high quality, efficient healthcare”- CMS Fee for Service Pay for Value Hospital CEOs Ultimate Dashboard What to Check Daily (Studer Group) Major Service Issues Patient Volume 9 McKesson Corporation. All rights reserved, 3 4/21/2016 Stories From The Field 10 Lessons Learned •Back to the Basics •Starts at Admission •Risk Assessment •Involve the Care Team •Do it Right the First Time •Embrace and Leverage Technology •Focus on Patient Education and Accountability •Create Relationship •Alignment with Community •Planning includes longer term post discharge •Understand Care Transition Metrics • 11 4/21/2016 McKesson Corporation. All rights reserved. Confidential and Proprietary. Challenges and Opportunities McKesson Corporation Confidential and Proprietary McKesson Corporation. All rights reserved, 12 4 4/21/2016 Top Challenges for Case Management • Evolving Roles/Professional Development • Role Definition – Overlap - Competition • Patient Engagement • Patient Safety • Increased Scope • Defining and Demonstrating Value of Service 13 Hospital Associated Infections - Safety •1/20 hospitalized patients contract •10,000 deaths yearly •27 states have mandated reporting •LOS increases 7-9 days •Average increase in cost $40,000 •Adds $4.5-5 .7 billion /year in costs Source: Decision Health 2014 14 4/21/2016 McKesson Corporation. All rights reserved. Confidential and Proprietary. Emergency Department Capacity Management • 40% more ED visits since 2000 with 20% less ED’s • 71% of all admits present via ED Cost/ED Visit $1,200 $1,000 • The average cost per ED visit has increased 44% over the past 10 years and is 10 x more expensive than a lower level of care. • ED Frequent Flyers has become standard terminology 15 4/21/2016 4 4 % $800 $600 $400 $969 $546 $200 $0 2000 2010 McKesson Corporation. All rights reserved. Confidential and Proprietary. McKesson Corporation. All rights reserved, 5 4/21/2016 Heart failure with gaps in care High risk for hospitalization Costly care due to physician practice patterns 16 Frequent fliers at emergency department McKesson Corporation Confidential and Proprietary Mr. Jones • 58 years old • PCP: Mike Allen, MD • Has Type 2 diabetes • Overdue on HbA1C • Recently hospitalized • Just had an unnecessary MRI Next year: No intervention: $50,000 Managed appropriately: $10,000 Surgery and Case Management Better Capacity Management Surgeons have to see 7-10 patients per day to bring 1 to the OR Surgical admissions drive 65% of typical hospital revenue 1 additional case per day for most hospitals = $1-3 M gross revenue Source: Healthcare Advisory Board (Future of General Surgery) Innovations Center interviews and analysis McKesson Corporation. All rights reserved, 6 4/21/2016 Heard on the Streets! “Nurse staffing is a black hole. I only know what my CNO tells me. I think we should be able to do better, and with less crisis staffing.” Resource Staffing “Bed availability – issue is either not enough beds, or not the right bed. Always waiting on beds.” “The discharge process takes too long.” “No one manages the weekends.” Herding cats is easier than herding doctors.” “Post-acute placement is horribly inefficient, and patients that need this level of care consume a lot of our resources.” Flow 19 “ED and CCU wait times are too long for other hospital services.” “Every minute in the OR is costly! Even though we plan, we spend too much time reacting.” “Our PACU gets gridlocked.” Departmental Bottlenecks “We need more standard clinical processes to limit things outside the lines. The goal is getting the patient out the door, and greater standardization means it’s less likely we’ll see that patient again.” Variability in Clinical Quality McKesson Corporation Confidential and Proprietary Safe care is not an accident Not tolerated in any other industry Source: http://www.iom.edu/Reports/2012/Best-Care-at-Lower-Cost-The-Path-to-Continuously-Learning-Health-Care-in-America/Infographic.aspx 20 11/14/2012 McKesson Corporation Confidential and Proprietary Lessons on Flow from the Airline Industry 1. Air traffic control is managed as a system, not a place Every aspect of an individual’s care has a direct impact on the other. 2. Airport operations function 24/7 Patient flow should be managed around the clock. Source: Jonathan H. Burroughs - Fierce Healthcare McKesson Corporation. All rights reserved, 21 7 4/21/2016 Lessons on Flow from the Airline Industry 3. All departures are scheduled in advance . The three most common bottle-neck areas in a hospital are the emergency department, the ICU and the surgical areas. Discharges by severity adjusted DRGs are predictable to 1/100 th of a day. 4. All arrivals are scheduled in advance. If emergent ED, surgical or ICU admissions are tracked over time, the vast majority of trends are predictable. Source: Jonathan H. Burroughs - Fierce Healthcare 22 Lessons on Flow from the Airline Industry 5. Flight schedules are smoothed throughout the day and week. Non-emergent arrivals can be transferred to lower acuity areas and elective surgeries can be scheduled evenly throughout the week. 6. Delayed flights are taken off main runways and taxiways. Delayed discharges and transfers could utilize a supervised holding area to free up beds for admissions and throughput. Source: Jonathan H. Burroughs - Fierce Healthcare 23 Next Steps • • • • Engagement Define – Reinvent Data Leverage Communication 24 McKesson Corporation. All rights reserved, 8 4/21/2016 THANK –YOU!! Tamira.Harris@mckesson.com 25 4/21/2016 McKesson Corporation. All rights reserved. Confidential and Proprietary. McKesson Corporation. All rights reserved, 9