Horizon Healthcare Innovations’ Medical Home Pilots Presentation to NJBGH October 12, 2010 Contents ▪ Introduction to Horizon Healthcare Innovations ▪ Brief overview of care model pilots ▪ Primary Care Patient-Centered Medical Home ▪ Oncology care model |1 Horizon Healthcare Innovations, (HHI) Born Sept 2010 HHI is a subsidiary of Horizon Blue Cross Blue Shield of New Jersey, founded in 2010 to energize the transformation of healthcare delivery and create a system marked by quality and effective care, greater efficiency and increased affordability. We acknowledge that the status quo is broken. To achieve our long-term aspirations, HHI will innovate, create and collaborate with our partners including physicians, hospitals, community leaders, employers, patients and other individuals who want to make a difference. We are looking for partners in our quest. |2 Horizon Healthcare Innovations (HHI) Overview Vision We will boldly innovate, in collaboration with others, to foster exemplary healthcare in the communities we serve Mission To catalyze transformation that creates an effective, efficient, and affordable healthcare system Long-term Aspirations ▪ ▪ ▪ ▪ Achieve a sustainable trajectory in healthcare spending Improve quality, access, and population health care Ensure more positive, collaborative relationships with providers Strive for improved overall consumer satisfaction and engagement |3 Contents ▪ Introduction to Horizon Healthcare Innovations ▪ Brief overview of care model pilots ▪ Primary Care Patient-Centered Medical Home ▪ Oncology care model |4 We are in the process of developing 6 potential pilots, with the goal to launch 2-4 by the end of 2010 Primary Care Patient Centered Medical Home (PCMH) Accountable Care Organization (ACO) Efficient Episodes Inpatient Management Population management ▪ Creating a truly patient-centric model of care delivery supported by a care team of heath professionals: – HHI is driving physician practices to transform to take on greater accountability, activity and responsibility for health – Is inclusive of all members, but focuses on early and late stage chronic patients ▪ Improving quality and reduce costs through local accountability, standardized performance measurement, and innovative reimbursement structures Acute procedural episodes ▪ Reimbursing a single individual or entity for all the components of a patient’s care related to a specific procedure or an acute episode of a medical diagnosis within a defined period around that procedure or episode ▪ Encouraging eligible physicians to achieve compliance with the program goals for quality of care and efficient delivery of inpatient care Chronic care management Oncology Medical Home ▪ Transforming oncology practices to deliver treatment and patient guidance Consumer engagement ▪ Transforming the management of chronic disease – leveraging that is evidence-based, consistent, and in the best interest of the patient technology to create consumer ownership of health and healthcare thereby improving medication / treatment protocol adherence and selfmonitoring / healthy activities post diagnosis |5 Guiding principles of the care model pilots 1 Promote high quality, ‘best in class’ evidence based care 2 Tie actions to results, tracking clinical decisions and quality performance 3 Establish closer payor/provider collaboration 4 Support providers to increase affordability 5 Encourage patient ownership and responsibility 6 Be easily scalable over the longer term |6 Horizon’s medical homes aim to address both the systemwide and condition-specific issues that patients experience Primary Care Specific Issues • Current models promote transactional interactions, not prevention and holistic care • Little incentive and infrastructure to support coordination among physicians • Difficulty getting appointments scheduled without long lead times Planned 2011 pilots Potential later pilots Oncology Specific Issues • High level of patient anxiety • No physician identified as responsible for the patient’s overall care • Significant side effects from treatment • Difficult end of life decisions Common Issues Addressed by Care Models • No single physician accountable for total health care needs and costs • No system accountability for inefficiency and waste • Lack of patient / member accountability for their own health care • Little non-clinical support causes patient confusion • Lack of focus on overall patient health and wellness • Fragmented delivery system with misaligned incentives Pregnancy Specific Issues Cardiology Specific Issues • Above average number of high-risk patients in NJ (e.g., diabetics, obese, 40+) • High rate of multiple birth pregnancies and cesarean sections • Lack of support for mother and child throughout and after the pregnancy • Older patients with a high rate of co-morbidities • Lack of support and guidance for necessary lifestyle changes • Multiple potential treatment options |7 Contents ▪ Introduction to Horizon Healthcare Innovations ▪ Brief overview of care model pilots ▪ Primary Care Patient-Centered Medical Home ▪ Oncology care model |8 The Horizon Healthcare Innovations Primary Care Medical Home uses a team based approach to execute four patient-centered strategies, transforming the care experience for patient and practice Medical Home Enablers Evidence Based Medicine Information & Infrastructure Systems Appropriate Reimburseme nt Member Benefits & Incentives Empowered Decision Making Team Based Care Prevention & Health Status Mgmt Personalized Care Management Patient Centered Strategies Access & Availability of Care Accountability & Responsibility Measurement & Reporting |9 The PCMH model transforms delivery of primary care From PCP care model… …to Patient Centered Medical Home model ▪ Variation in Quality between and within ▪ Care standardized according to evidence- practices - scheduled time and practice’s or physician’s tracking mechanisms ▪ Care focus determined by immediate episodic problems and presence of patients (face to face time) ▪ PCP appointments often scheduled when based guidelines and measured on quality, patient experience and utilization ▪ Care collaboratively managed by team with a ▪ ▪ patients deem necessary ▪ Patients left to coordinate their own care, including visits to specialists ▪ Inconsistent reporting / documentation from hospital and specialist visits proactive plan to meet patients’ needs Members build on-going relationship with care team through increased communication PCMH and patient collaborate to ensure timely and appropriate outreach and f/u appointments ▪ Referrals are coordinated by care team, ▪ information is shared with specialists. PCMH co-creates care plan and educates / engages patients to obtain positive outcomes ▪ PCMH tracks tests / consultations, and follows up on ED / hospital visits | 10 Patients will have a new experience with increased engagement and participation throughout the care process Patient Access ▪ Practice uses physician extenders to increase capacity and availability ▪ Strong links with providers facilitates access (e.g., behavioral health network) ▪ Patient and case ▪ ▪ ▪ Practice proactively coordinator communicate to ensure compliance Practices use technology to identify gaps in care Practice monitors performance (1) Before the Visit (4) Ongoing Patient-Centered Coordinated Care ▪ Practice tracks and ▪ monitors referrals, ensuring exchange of relevant clinical information Practice coordinates with relevant medical community actors ▪ engages consumers to schedule visits Case coordinator determines need and type of visit with patient (2) During the Visit ▪ Case coordinator reviews (3) After the Visit ▪ and updates care plan with patient NP and PA address majority of less complex patient issues | 11 Primary Care PCMH – Value Proposition For Patients •Improved experience. Individualized patient centric care •Navigation through the Health Care System •Prevention, wellness, optimization of health status through coordinated, evidence based care For Primary Care Physicians •Specialty Revival through demonstration of the added value of comprehensive primary care •Greater Income opportunities •Professional satisfaction For Employers •Lower Health Care Costs •Improved Wellness and Productivity • More satisfied employees engaged in co-managing their care, armed with better choices of aligned provider care teams. | 12 HHI will provide operational support to facilitate this transformation Detail follows 2013 2012 2011 Formalizing processes and products Building the critical Value-based products infrastructure tailored to PCMH initiatives HHI-provided transformation Increased population coaching and case management and coordinators information provided to Reimbursement aligned to practices process and quality scores Pooled supporting Improved access directly to resources care team Population management with focus on chronic members More defined relationships Optimizing performance outcomes with tools and informatics Consider PCMH networkbased product Savings sharing introduced with reimbursement tied to shared savings Personalized tools and informatics Technology enabled access Individual provider-based portals for members to make appointments, download lab results, access health content, etc. for access to specialists | 13 Case coordinators will be embedded into the practice care team and will be integral to the PCMH model Care planning Referral management Community management ▪ ▪ ▪ ▪ Complete health assessment and individualized care plan for including self-management components Conduct pre-visit planning for patients Review and update care plan Follow up with patients between visits ▪ ▪ ▪ Use electronic system to track referrals Ensure exchange of clinical information into EMR Follow up with specialist/patient on referrals ▪ Create formal agreements with diagnostics, hospitals, EDs, pharmacies, and community resources Ensure real-time exchange of clinical info into EMR Collaborate on discharge activities from Hospital and ED to PCMH Evaluate and tighten network based on quality and cost ▪ ▪ ▪ | 14 Payment structure will evolve over time – with a vision for savings-sharing in the future Today Phase 1 Savings sharing Case coordination Outcomes-based FFS Phase 2 vision Savings sharing Outcomes-based Case coordination FFS ▪ Fee-for-service only Case coordination FFS ▪ ▪ ▪ FFS FFS as paid today ▪ Case coordination payments (PMPM) Case coordination payments (PMPM) ▪ Savings sharing between practice and plan Outcomes-based payments | 15 HHI will use tiers in the near term to encourage stepwise improvement Advanced Medical Home Early Stage Medical Home HHI goals Engage practices and incent medical home development Reward full transformation with higher reimbursement for higher value care Encourage broad participation in medical home initiative Practice requirements HHI support Attainment of any level of recognition Attainment of additional Advanced Medical Home requirements as agreed Demonstrated integration of case upon by Horizon Healthcare coordination activities into practice Innovations workflows beyond Demonstrated commitment to Demonstrated commitment to become an improving quality, process, and advanced medical home utilization metrics Direct funding of infrastructure Significant upside for quality and development (e.g. care team members) process improvements Case coordination fee to support process Opportunity for savings sharing long improvements term Outcome based payments to reward performance Horizon Healthcare Innovations goes beyond existing standards in defining the Patient Centered Medical Home | 16 Initial target practices for PCMH pilot rollout are based on current diabetes pilot 6+ practices 4-5 practices 2-3 practices 1 practice ▪ Initial PCMH pilot rollout targets 33 practices spanning North and South NJ ▪ Phased-rollout will leverage geographic proximity of practices ▪ Aggressive recruitment plan with priority to unrepresented areas no practice Geographic distribution of target practices | 17 Contents ▪ Introduction to Horizon Healthcare Innovations ▪ Brief overview of care model pilots ▪ Primary Care Patient-Centered Medical Home ▪ Oncology care model | 18 Our goal is transformed practice focused on patient-centered coordinated care Current Care Management Future Oncology Medical Home Medical oncologist Radiation oncologist Patient support & guidance Patient & Care Team Pharmacy ? Behavioral Health Patient Surgical oncologist Hematologist Urologist Fragmented and variable care without full use of EBM guidelines reduces quality and creates waste Care coordinator serves as the “patient navigator” coordinating care and guiding patients through treatment Patients very anxious given their cancer diagnosis and lack a single non-physician point of contact and guidance Realigned incentives reward practices for care coordination, member support and use of evidence based guidelines | 19 HHI will measure performance against goals Evidence based care and high quality standards Clinically appropriate Following clinical guidelines Creating and following a care plan Safe Preventing avoidable harm to the patient Avoiding preventable admissions to the ER or IP Improved experience Delivering a care experience that Patient focused outcomes Am I receiving care consistent with best practice? patients view positively Ensuring patient concerns are addressed Encouraging appropriate dialogue surrounding end-of-life decisions | 20 Over time, the reimbursement structure will focus more on rewarding quality of care Savings sharing Case coordination Outcomes-based FFS Payment structure will gradually evolve and be refined to drive behavior Today Phase 1 FFS ▪ Fee-for-service only ▪ ▪ ▪ Phase 2 vision Outcomes-based Savings CC CC FFS FFS FFS as paid today ▪ Case coordination payments (PMPM) Case coordination payments (PMPM) ▪ Savings sharing between practice and plan Outcomes-based payments | 21