Presented: March 14, 2013 © 2013 About Franciscan Alliance • Franciscan Alliance operates in 4 regions • History of serving local communities for over 135 years • 14 Hospitals throughout Indiana and Illinois, as well as several healthcare support companies • Employs Over 700 Providers Franciscan Physician Network • Will Complete Transition To Epic during 2013 © 2013 Carmel 2 Franciscan Alliance Accountable Care Organization © 2013 3 What is an Accountable Care Organization? • An Accountable Care Organization, or ACO, is an entity that agrees to be accountable for the quality, cost, and overall care of a defined population • The Goal of an ACO: Achieve the “Triple Aim” 1. Better population health 2. Higher-quality care 3. Lower costs of care © 2012 4 Why Accountable Care? • Healthcare is moving from an activity-based model to a new, value-based model: Current Environment Activity-based FFS: “More = Better” Future Environment: Value-Based: Rewards for Quality & Cost Effectiveness • Success will depend on the value of services delivered across the continuum of care • Need to be proactive in transitioning our care models © 2013 5 Franciscan Alliance Pioneer ACO at a Glance • Franciscan Alliance selected as 1 of only 32 Pioneer ACOs nationally • Effective date: January 1, 2012 • Length of contract: 3-5 years with termination option • Regions participating: CIR, NIR joined effective 01/01/13 • # ACO providers: Appx. 650 • # ACO hospitals: Franciscan St. Francis Health Indianapolis & Mooresville, Major Hospital, Rush Memorial, Fairbanks • # ACO beneficiaries: 28,000 • 33 Quality metrics © 2012 6 Medicare ACO Initiatives 32 Pioneer ACOs 89 MSSP ACOs (2012 start) 106 MSSP ACOs (2013 start) © 7 Current Franciscan Alliance ACO Partnerships • Franciscan Alliance Pioneer ACO Franciscan Central Region& St. Francis Health Network – 1/1/2012 • Franciscan AHN ACO (MSSP) American Health Network – 7/1/2012 • Franciscan Alliance Pioneer ACO Expansion Franciscan Northern Region – 1/1/2013 • Franciscan Union ACO (MSSP) Union Health System, UAP, & PMG – 1/01/2013 • Franciscan Cigna ACO (Commercial) – 1/01/2013 © 2012 8 ACO Critical Needs • IT infrastructure • Care Management across Pre/Post Acute, Ambulatory, Home Health, and ACOs • Education & communication with ACO providers & partners • Administrative support © 2013 9 ACO IT • ACOs need to collect and centralize quality and cost data for quality reporting • Additional quality measures will be required as the industry matures • Population management systems that can stratify and track the most complex patients (e.g. 20% of patients use 50% of costs) • Move toward integrated EMR systems and advanced clinical processes • Data analyst critical in identifying “low hanging fruit” opportunities © 2013 10 ACO Care Management • Creation of a robust care management program that is diverse enough to address variety of patient needs • Care management staff including BSN, RN, MSW, LSW, MA, and DM • Aggressive outreach to patients • Population management programming efforts • High resource utilization here • Finding the “right fit” may be difficult © 2013 11 ACO Education & Communication • Creation of a robust education program that constantly reaches out to beneficiaries, providers, and staff about the ACO • Customer service is key • Educate, then educate, then educate some more! © 2013 12 Lessons Learned • There will be bumps—and some potholes---along the way! • Flexibility is key to survival • There is no “right way” to do anything in this environment • Data is central to success • Communication among different ACO workgroups essential • This is fun! We are making a difference on how healthcare is delivered and our patients benefit! © 2012 13