The Qliance Direct Primary Care Medical Home: Improving Care and Reducing Costs Presented to: CLG Employer Resources Erika Bliss, MD – President & CEO of Qliance August 9, 2012 Current Healthcare Costs: Fiscal Cancer Healthcare Costs (in billions) $80 17% of GDP, projected to be >19% by 2017 Specialty & Other Primary care 62% of bankruptcies in 2010 were due to medical expenses Primary care is severely underfunded (only represents 3% of medical expenditures) $2,520 Total annual healthcare costs = $2.6T ($8047 per person per year) Burdensome fee-for-service insurance billing system undermines potential of primary care Qliance Confidential & Proprietary 2 The Effect of Inadequate Primary Care An ineffective primary care system pushes patients to expensive down-stream care. The result is an increase in health care costs for employers and employees. ($$$) Emergency Care ($$$) Hospital Care Primary Care ($$$) Specialist Care Qliance Confidential & Proprietary ($$$) End of Life Care Effective Primary Care Changes the Dynamic… Primary care can address 80-90% of medical issues ($) Emergency Care Primary care can catch little problems (hyperglycemia) before they become big problems (diabetes) ($) Hospital Care Primary Care Robust primary care reduces need for expensive downstream care But, good primary care requires doctors to spend time with their patients ($) Specialist Care Qliance Confidential & Proprietary ($) End of Life Care The Solution: • Operate outside of traditional insurance – reserve insurance for undesirable, costly events – pay direct for primary care which is desirable and low-cost – eliminate high administrative overhead for primary care practices • Charge a monthly fee – – – – low-cost: $64 per month eliminates negative incentives of the fee-for-service system incentivizes doctors to focus on holistic care no co-pays or additional charges for visits and services • Provide great access – – – – – limit patient panel size offer 30-60 minute appointments multi-modal access, including office, phone, and e-visits extended office hours and weekend hours 24x7 physician coverage Qliance Confidential & Proprietary The Qliance Mission Re-establish the direct relationship between doctor and patient, allowing time to develop trust and foster a partnership that promotes and sustains health. Dedicate ourselves to providing care that is personal, high-quality, accessible, and most of all, humane. “If you give them enough time, your patients will tell you what is wrong with them. Time to listen to a patient is what is missing in today’s system.” -Garrison Bliss, MD, Qliance Founder Qliance Confidential & Proprietary Qliance: All-Inclusive Primary Care Preventive Care Urgent Care Specialist & Hospital Care Coordination Wellness Care Enhance primary care to increase quality & control costs Behavior & Lifestyle Management Qliance Confidential & Proprietary Chronic Disease Management Qliance Patients Use Less Downstream Care Type of Referral Qliance # per Benchmark** Difference * year/1000 Savings PMPY*** Specialist Visits 670 2000 -66% $199.50 ER Visits 56 158 -65% $153.00 Hospitalizations (visits) 34 53 -35% --- Hospitalizations (in days) 105 184 -43% $186.56 Advanced Radiology 300 800 -63% $400.00 Surgeries 22 124 -82% $306.00 3540 1847 +92% $0**** --- --- --- $1,245.06 Primary Care Visits Savings Per Member Per Year * Based on best available internal data, may not capture all non-primary care claims. ** Based on regional benchmarks from Ingenix and other sources. *** Based on average costs in WA State. ****No additional cost for additional primary care visits in the Qliance model. Source: Qliance Medical Group non-Medicare patients, 2010 (n=3,088) 8 How Does Qliance Improve Member Health? •Gives members the care and resources they need the way they want it. They want: – To feel better – To not feel rushed, with: Enough time with their doctor to understand what’s wrong and what they need to do next Enough time with their doctor to understand their choices – Appointments when they need them – Convenience (onsite lab, common DME, X-rays, etc.) – Help over the phone or by email instead of coming in – Expert advice on the best specialists or hospitals to get the best care 9 How Does Qliance Reduce the Overall Cost of Care? • By shifting focus to primary care that includes at no extra cost to the member: – – – – Longer appointments Basic x-rays and labs onsite First fill drug dispensary Routine DME • Establishing trusting relationship with patients so we can positively influence their decisions and behaviors • Being available when patients need us so they don’t have to go to urgent care or emergency rooms • Reducing self-referral to specialists • Coordinating specialist, ancillary, and hospital care, making sure they get the right care at the right time 10 Plan Integration Examples PPO HDHP • Plan design & contribution can drive participation • High deductible not required • Higher OV copay incorporates well • Provides soft bridge to higher deductible • Can work well with Account Based plans (HRA) • Put Q before HRA to maximize participation and value to employee • Employer gets full benefit from the Qliance claims impact • Can incorporate into plan design (tiered benefit) or just use as a network • Provide claims history for financial analysis to show areas of savings Self-Funded • Utilization reporting provided • New Cigna Level-Funded Partnership with discounted rates Our Clinics Downtown Seattle Kent Station Mercer Island 509 Olive Way Suite 1607 Seattle, WA 98101 521 2nd Place North Suite 103 Kent, WA 98032 7707 SE 27th Street Suite 104 Mercer Island, WA 98040 Tacoma 2420 S. Union Avenue Suite 100 Tacoma, WA 98405 Qliance Confidential & Proprietary Mill Creek Guardian Family Care (Qliance affiliated clinic) 805 – 164th Street SE Suite 100 Mill Creek, WA 98012