Tax & Insurance Impact of Affordable Care Brian Meyers, CPA Anders Health Care Services Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 2013 Tax Update Jessica A. Johnson, CPA Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Agenda • Fiscal Cliff Tax Changes • Affordable Care Act Tax Implications • Examples • Questions • Planning Considerations Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 The New Law • American Taxpayer Relief Act of 2012 – Passed by Congress Overwhelmingly Jan 1, 2013 • Bush tax cuts made permanent for families with less than $450k of taxable income • Delayed the sequester (billions of dollars in acrossthe-board spending cuts) for another two months. – New legislation made sequester cuts permanent Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 2013 Tax Brackets (Married Filing Jointly) Marginal Income Ranges Tax Rate $0 – 17,850 10% $17,850 – 72,500 15% $72,500 – 146,400 25% $146,400 – 223,050 28% $223,050 – 398,350 33% $398,350 - $450,000 35% Over $450,000 39.6% Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 History of Tax Brackets Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Capital Gains/Dividends • Capital Gains and Qualified Dividends – 20% - For taxpayers in the 39.6% Bracket – 15% - For taxpayers in the 25% - 35% Brackets – 0% - For taxpayers in the 10 or 15% Brackets • Qualified Dividends not taxed at ordinary income rates. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Alternative Minimum Tax • Permanent patch introduced, adjusted for inflation each year • 60 million taxpayers spared from AMT Payroll Tax Increase • FICA taxes – 6.2% Social Security – Employee and Employer – 1.45% Medicare – Employee and Employer • Payroll Tax “Holiday” – 2011 and 2012 – 4.2% Social Security – Employee Contribution • 2013 – 6.2% Social Security Employee Contribution is back Itemized Deduction Phase Out • “Pease Limitation” of itemized deductions is reinstated • 3% phase out of itemized deductions for married couples with AGI in excess of $300k Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Personal Exemption Phase Out • “PEP phase out” of 2% of for each $2,500 or portion there of by which AGI in excess of $300K • PEP completely phased out for AGIs exceeding $425k Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Misc. Individual Items • Child tax credit extended permanently – $1,000 maximum per child • Child and dependent care credit permanently extended – Credit available for up $6,000 of expenses per family • American Opportunity Tax Credit – extended through 2017 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Estate & Gift Tax • Permanent 40% maximum estate/gift tax rate • 2013 estate/gift tax exclusion - $5.25 million – Inflation-adjusted annual amount • Portability made permanent • 2013 Gift Tax Exclusion - $14,000 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Business Tax Provisions • Accelerated Depreciation – IRC 179 Deduction was increased to $500k on the first $2 million of purchases – 50% Bonus depreciation • R&D Credit extended through 2013 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Affordable Care Act – 2013 Tax Changes • New 3.8% Surtax on investment income – The tax will be imposed on the lesser of • Net investment income • The excess of AGI over $250K for married couples Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Affordable Care Act – 2013 Tax Changes • New 3.8% Surtax on investment income Subject to Surtax Wages Exempt from Surtax X Taxable Interest X Capital Gains X Exempt Interest X Dividends X Annuity Income X Passive Income X Rents X Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Affordable Care Act – 2013 Tax Changes • Additional 0.9% Medicare tax on earned income – Employee’s portion subject to additional tax for earned income exceeding $250K for married couples • Additional withholding from wages begins at $200K – Applies to earned income from flow through activities Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Individual Case Study 2012 2013 $355,000 $355,000 Investment Income 50,000 50,000 Long Term Capital Gains 20,000 20,000 Passive Income 20,000 20,000 100,000 100,000 Wages & SE Income Non-passive Income Less Adjustments Adjusted Gross Income (15,067) $529,933 Itemized Deductions $(60,000) Personal Exemptions (7,600) Taxable Income $462,333 (15,067) $529,933 $(53,102) $476,831 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Individual Case Study • 2012 Tax - $127,090 • 2013 Tax - $140,224 • Increase of $13,134 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Individual Case Study $2,274 American Taxpayer Relief Act $5,595 Affordable Care Act Other $5,265 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Planning Considerations Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Minimize AGI • Harvest capital losses • Minimize income from IRA distributions • Don’t forget any Schedule C, Schedule E, or Schedule F expenses • Utilize any above-the-line deductions – Contributions to HSAs, self-employed retirement accounts, and traditional IRAs Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Minimize NII • Invest in tax-exempt bonds • Minimize investing in securities that pay dividends • Increase participation to make passive income nonpassive • Convert passive income to salary (however, then exposed to .9% payroll tax) • Capital loss harvesting • Installment sales Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Affordable Care Act Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Overview • Acts passed in 2010 • Patient Protection and Affordable Care Act • Health Care and Education Reconciliation Act • Political environment Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tax and Regulatory Changes Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Current Changes • • • • Provide dependent coverage up to age 26 Remove co-pays for certain prevention and care Tax credits available to small employers Rebates provided for not meeting medical loss ratios • Nutritional content disclosure • 10% tax on indoor tanning Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Additional Regulations • • • • • • Pharmaceutical companies Insurance companies Hospitals Medicare/Medicaid Tort litigations Medical device manufacturers Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 More Tax Changes • HRA, FSA, HSA or Archer MSA – Disallowed OTC drugs not prescribed • Tax on nonqualified distributions from HSA or MSA increases to 20% 2013 Changes • Limit FSA contributions to $2,500/year with COLA adjustment • Additional tax on wages and investment income for individuals Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 2014 Insurance Reform • Individual Mandate – all US citizens and legal residents required to have health insurance • Create Exchanges for insurance • No denial for “pre-existing conditions" • Employers with >200 employees automatically enroll in health insurance plans • Out-of-pocket, premium and deductible limits • Limit waiting period for coverage Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Insurance Rebates Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Insurance Rebates • Rebates to employers when medical loss ratios are not met • 85% of premiums must be spent on claims or health care quality improvement • 80% for small-group and individual markets • States can establish higher MLR standards Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Insurance Rebates • Rebates issued to employer for group plans • Determine whether or not the rebate must be distributed – Subject to ERISA? – Who pays premiums? – Were premiums pre-tax or after-tax? – Terminated/separated employees Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Small Employer Health Insurance Credit Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Health Insurance Credit • • • • • • Small Employers Provide health insurance to employees 25 or fewer employees Average annual wages less than $50,000 Aggregation rules apply Estimated 4 million businesses eligible, only 228,000 taxpayers took advantage Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 2010-2013 Credit • Full credit for 10 or fewer employees with average wages up to $25,000 • Employer must contribute at least 50% of premium for all employees • Max. 35% of employer contribution to insurance premiums • Limited to 25% for NFPs • Not applicable to employer contributions to HSAs, FSAs, etc. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Up to $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Up to 10 35% 28% 21% 14% 7% 0% 11 33% 26% 19% 12% 5% 0% 12 30% 23% 16% 9% 2% 0% 13 28% 21% 14% 7% 0% 0% 14 26% 19% 12% 5% 0% 0% 15 23% 16% 9% 2% 0% 0% 16 21% 14% 7% 0% 0% 0% 17 19% 12% 5% 0% 0% 0% 18 16% 9% 2% 0% 0% 0% 19 14% 7% 0% 0% 0% 0% 20 12% 5% 0% 0% 0% 0% 21 9% 2% 0% 0% 0% 0% 22 7% 0% 0% 0% 0% 0% 23 5% 0% 0% 0% 0% 0% 24 2% 0% 0% 0% 0% 0% 25 0% 0% 0% 0% 0% 0% Source: Congressional Research Service, Summary of Small Business Health Insurance Credit Under PPACA (P.L. 111-148) 3 (Apr. 5, 2010) Firm Size 2014-2015 Credit • “Guaranteed” through 2013 plus a maximum of 2 consecutive years after • Credit amount rises to max 50% (35% for NFPs) • Only insurance purchased from Exchanges will qualify after 2013 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Up to $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 Up to 10 50% 40% 30% 20% 10% 0% 11 47% 12 Slide #94 from CCH 37% 27% 17% 7% 0% 43% 33% 23% 13% 3% 0% 13 40% 30% 20% 10% 0% 0% 14 37% 27% 17% 7% 0% 0% 15 33% 23% 13% 3% 0% 0% 16 30% 20% 10% 0% 0% 0% 17 27% 17% 7% 0% 0% 0% 18 23% 13% 3% 0% 0% 0% 19 20% 10% 0% 0% 0% 0% 20 17% 7% 0% 0% 0% 0% 21 13% 3% 0% 0% 0% 0% 22 10% 0% 0% 0% 0% 0% 23 7% 0% 0% 0% 0% 0% 24 3% 0% 0% 0% 0% 0% 25 0% 0% 0% 0% 0% 0% Source: Congressional Research Service, Summary of Small Business Health Insurance Credit Under PPACA (P.L. 111-148) 3 (Apr. 5, 2010) Firm Size Calculating the Credit • Report on Form 8941 • Test for eligibility • Average wages = Total wages / FTE Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Calculating the Credit • Determining full-time equivalent employees – Do not count • • • • • • Self-employed individuals Partners 2% shareholders for S corps 5% owners of C corps Many relatives of above Seasonal workers Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Calculating the Credit • Determining full-time equivalent employees – Total hours of service for all eligible employees by 2,080 – Non-hourly employees are capped at 8 hours/day and 40 hours/week – Each employee capped at 2,080 hours – i.e. 10,500 total hours = 5 FTE employees Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Calculating the Credit • Determining wages – All wages paid during the taxable year – Includes OT and bonuses – All wages subject to FICA (not limited to wage base) Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Credit Example • Facts – – – – 5 Employees Total Hours in 2012: 7,000 Total Wages in 2012: $60,000 Total Employer Paid Premiums: $6,000 (all single coverage) • 7,000/2080 = 3 FTE • $60,000/3 = $20,000 Average Annual FTE Wages • $6000 X 35% = $2,100 total credit Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Employer Mandate Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Employer Mandate • In 2014, an “applicable large employer” may be liable for an “assessable payment” if it “fails to offer its full-time employees (and their dependents) the opportunity to enroll in minimum essential coverage under an eligible employer-sponsored plan.” • Imposed for any month at least one covered employee obtains coverage eligible for premium tax credit or cost-sharing benefits Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Applicable Large Employer • Employer who employed an average of at least 50 full-time equivalent employees on business days during the preceding calendar year. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Employees • Full-time employee average at least 30 hours per week* • Seasonal workers excluded up to 120 days • FTE = Hours of all part-time divided by 120* • Safe harbors – IRS Notice 2012-58 • Aggregation rules • Owner-employees not excluded from determining “applicable large employer” status *Further guidance yet to be released Dependents • Minimum Essential Coverage must be offered to employees and dependents – Children up to age 26 – Parents – Siblings – Other relatives and in-laws – Member of household Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Penalties • More likely the less employer contributes • Won’t be imposed on part-time employees – under 30 hours • Both the $2,000 and $3,000 penalties will be adjusted for inflation Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 All-Employee Penalty • $2,000 “all-employee” penalty for employers failing to meet “minimum essential coverage” • $2,000 X (# Full-Time employees – 30) • Penalty only applies to Full-Time Employees • BUT use Full-Time Equivalents to determine if employer is “applicable large employer” Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 All-Employee Penalty • Watch classification of independent contractors • Cost-benefit analysis of providing insurance • Look for further regulations to be issued Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Per-Employee Penalty • Once minimum essential coverage is offered to full-time employees (and their dependents), the penalty is only assessed on the number of fulltime employees who actually enroll through Exchanges and receive a premium tax credit or cost-sharing reduction. • $3,000 per employee not to exceed “allemployee” penalty Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Example of All-Employees Penalty Full-Time Employees Minimum Essential Coverage 80 Other* 10 Total 90 *One of the “other” employees certified for premium tax credit. Penalty Calculation Total Full-Time Employees Less Reduction Base for penalty Penalty 90 (30) 60 x 2,000 $120,000 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Example of Per-Employee Penalty Full-Time Employees Minimum Essential Coverage* 90 Other 0 Total 90 *One of the employees certified for premium tax credit. Penalty Calculation Total Full-Time Employees Less Reduction Base for penalty Max Penalty Penalty ($3,000 x 1) 90 (30) 60 x 2,000 $120,000 $3,000 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Questions Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Planning Considerations • Review your current coverage • Determine if you need to make changes • Watch for updates Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Brian Meyers Anders Health Care Services (314) 655-5500 (Office) bmeyers@anderscpa.com Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Comments? leagueofhealthcareexperts.com/worksmarter Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Practical Applications of Technology Al Klein Managing Member Omniscient HC Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Making Data Work for You • • • • • How Data Is Stored In Your System Types of Systems Pros and Cons Addressing the Current Challenges Tackling a “Simple” Report Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Databases – Good at organizing and managing data – Can be Networked or File-Based – In Healthcare, these can be very large systems – Standardized methods to store and retrieve data – Prepare data for other purposes • Reporting • Exchange between systems and other organizations • Processing for downstream processes Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Tables – Example: Patient PatientID 1 2 3 4 5 6 7 8 LastName Smith Jones Williams Johnson Brown Smith Thompson Young FirstName Robert Joan Thomas Eileen Andrew Robert Nathan Beth DOB 4/5/1933 8/14/1957 11/29/1966 7/13/1922 1/19/1972 9/9/1949 5/14/1939 12/18/1979 SSN 111-22-3333 123-45-1234 453-75-8939 782-55-8392 832-71-5738 312-63-6332 183-98-6765 583-81-5721 Gender M F M F M F M F Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Relationships Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Constraints – Keys (Primary and Foreign) PatientID 1 2 3 4 5 6 7 8 4 LastName Smith Jones Williams Johnson Brown Smith Thompson Young Green FirstName Robert Joan Thomas ileen Andrew Robert Nathan Beth Michael DOB 4/5/1933 8/14/1957 11/29/1966 7/13/1922 1/19/1972 9/9/1949 5/14/1939 12/18/1979 6/19/1949 SSN 111-22-3333 123-45-1234 453-75-8939 782-55-8392 832-71-5738 312-63-6332 183-98-6765 583-81-5721 844-48-4833 Gender M F M F M F M F M Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Constraints – Foreign Keys (Referential Integrity) Not in the Patient Table PatientID 1 2 3 4 5 6 7 8 LastName Smith Jones Williams Johnson Brown Smith Thompson Young FirstName Robert Joan Thomas Eileen Andrew Robert Nathan Beth DOB 4/5/1933 8/14/1957 11/29/1966 8230 1/19/1972 9/9/1949 5/14/1939 12/18/1979 SSN 111-22-3333 123-45-1234 453-75-8939 782-55-8392 832-71-5738 312-63-6332 183-98-6765 583-81-5721 ProcedureID 1 2 3 4 5 6 7 PatientID 1 5 7 3 22 2 7 CPTCode 99213 99212 37000 93829 98112 99214 37000 ProcedureDate 2/1/2013 2/5/2013 2/9/2013 3/1/2013 3/3/2013 3/17/2013 2/9/2013 Physician 3 6 1 7 2 2 1 Gender M F M F M F M F Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Constraints – Data Integrity ResultID 1 2 3 4 5 6 7 PatientID 3 6 1 2 2 8 3 LabDate 3/1/2013 3/3/2013 3/8/2013 3/15/2013 3/18/2013 3/20/2013 3/22/2103 ResultDate 3/3/2013 3/5/2013 3/10/2013 3/17/2013 3/20/2013 3/22/2013 3/24/2103 Result 17 47 Normal 18 132 Fail Result cannot be Empty Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Storage / Retrieval – Data is stored in the order it is added – General truths • • • • Adding new data is unaffected by the volume of data Updating existing data is affected by the volume of data Data is NOT typically retrieved in the order it is stored Retrieving existing data is affected by the volume of data Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System Deletes - BAD Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Indexes – Reorganizes Tables Into More Searchable Formats – Makes It Easy To Locate and Retrieve Data – Enables Keys and Constraints Previously Mentioned – Pose a Risk / Reward Conundrum for Storage / Retrieval Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How Data Is Stored In Your System • Enterprise Database Features – Triggers • “Event-Driven” Code that “Fires” When Data Is Inserted / Updated / Deleted – Stored Procedures / Functions • Code Executed by the Database During Queries and Batch Processing – Risk / Reward Conundrum for Efficiency / Data Integrity Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Types of Systems • Transactional – Record Data Line-by-Line – Highly Configurable – Built for Storing Events and Easy Expansion – Typical Type Used by EMR / EPM – Not Good for Reporting and Aggregation – Envision A Credit Card Statement (the details) Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Types of Systems • Reporting / Aggregation – Summarizes Data from Transactional Data – Highly Indexed – Stores Calculated Data to Increase Efficiency – Built for Reporting and Summary – Quick Access to Ad-Hoc Data – Requires “TLC” – Envision your Car Dashboard Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Types of Systems • Your Report Server – Many EPM / EMRs Use Copies of the Transactional System – This is NOT a Reporting / Aggregation System So Why Do We Have It? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Types of Systems • Your Report Server – Supports non-Real-Time Reports (Batch) – Reduces Load on Production Transactional System – It is “Impossible” to Tune a Transactional System for Efficient Storage and Reporting… Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Addressing The Current Challenges …But We Can Try! How? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Addressing The Current Challenges • Improving Access To Data – Build a Data Warehouse • “True” Reporting / Summary System • Can Be a Large Project • Can Be Expensive and Time Consuming – Tune the Reporting Server • Can Be Affected by Copy Process • Can Affect Other Reporting Processes if Done in a Vacuum Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Addressing The Current Challenges • Improving Access To Data – Hybrid • Develop Small Warehouse(s) for As Many Purposes as Possible in Reporting Server • Ensure Tuning is Replicated by Copy Processes • Do Enough to Make a Warehouse Without Really Making a Warehouse • Be Strategic By Keeping In Mind The Initiatives Adhead of You • Look Around You To Ensure You Are Not Duplicating Efforts Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Addressing The Current Challenges • • • • • • Meaningful Use Patient-Centered Medical Home Accountable Care Organization HEDIS NCQA What Else? / What’s Next? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Addressing The Current Challenges • Strategy – – – – What Do These Have In Common? What Can We Do For All of These at the Same Time? What Is Completely Distinct From One Another? What Can We Build To Support What We Know and What We Expect? – Can We Build It With Buy-In From Relevant Groups? – Can We Support It Without Affecting Others? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling A “Simple” Report • PCMH Requirement – “Daily Huddle” – Data Elements • • • • • • • • Next Day Appointments Patient Demographics Prior Appointment Date Critical Diagnoses Date of Last Vitals Values of Last Vitals Date of Last Important Procedures Values of Last Important Procedures Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling A “Simple?!” Report • PCMH Requirement – “Daily Huddle” – Data Elements • • • • • • • • Next Day Appointments Patient Demographics Prior Appointment Date Critical Diagnoses Date of Last Vitals Values of Last Vitals Date of Last Important Procedures Values of Last Important Procedures Yikes! Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling A “Simple?!” Report • How To Go About Doing This Report – These Elements Are Easy • Demographics • Next Day Appointments – These Elements Are Moderately Easy • Critical Diagnoses – These Elements Are Hard • Anything with “Last” in the Description Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling A “Simple?!” Report • Why Are These Things Moderate or Hard? – Location and Variability in Storage of Data • Visit Tables / Orders Tables / Procedures Tables / Images Tables / Labs Tables – Identification of Appropriate Rows • Lab Codes and Descriptions / CPT Codes and Descriptions / ICD-9(10) Codes and Descriptions / Images Codes and Descriptions – The Word “Last” Adds Complexity Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling a “Simple?!” Report • What Does “Last” Mean to ME? – Diagnoses and Procedure Data Is Usually Stored In The Same Table – It Is Very Difficult to Find The “Last” Time for Anything In A Transactional Table in a Single Query – It Is More Difficult to Find The “Last” Time AND THEN The “Last” Value in a Single Query (You Know This to Be True By How Much Hand Waving I Am Doing) Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tacking a “Simple?!” Report • What To Do? – Write A HUGE Monolithic Query That Gets All The Data At One Time – Write a Bunch of Views That Make the Monolith Look Less Scary – Create a Table (or set of tables) That You Maintain to Store This Data In A More Retrievable Format and Use Them to Build the Report (What do you think we prefer?) Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Tackling A “Simple?!” Report • And the winner is…Building Tables – Not A “True” Reporting / Aggregation System but it Gets Us Closer – Removes the Complexities of Monolithic Queries – Will Perform Much Better – Will Require Maintenance (good and bad) – WILL BE REUSABLE FOR OTHER STUFF! Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Questions? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Alfred Klein Managing Member Omniscient HC 314.581.8941 (m) a.Klein@nomeneo.com www.nomeneo.com Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Comments? leagueofhealthcareexperts.com/worksmarter Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Enhancing Customer Service Through Improved Communication Skills AMG Group League of Health Care Experts Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Objectives for Today • Be more aware of role of active listening in effective communication • Better understand personal listening strengths and improvement opportunities • Explore research and models for handling difficult conversations with patients • Discuss the value of customer service in medical settings today Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 "Five-Star Customer Service: A Step-by Step Guide for Physician Practices." • Patients who are treated with kindness and respect are more loyal • They are also more likely to refer their friends, which helps sustain growth. • But the biggest benefit of delivering a positive patient experience, perhaps, is the legal buffer it provides. Jim Saxton, chairman of the healthcare litigation group for Stevens & Lee law firm in Lancaster, Pa, Published on Physicians Practice (http://www.physicianspractice.com) Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 The onus falls on practice managers • To develop concrete policies and training programs that create a culture of service excellence • "You need to measure where you are, but it can be as simple as asking patients to fill out a one-pager at check out" • Brown's staff, which created their own patient and employee satisfaction surveys, makes them available online and in their clinic, including their physical therapy offices and surgical waiting room — prompting patients to fill them out by offering monthly drawings for a $50 gift card Managing Up • Put that next staff member, whether it's someone in our billing office or one of our providers, in a positive light to our patients so we're already relieving them of any stresses they may have about their appointment • Share something important about an employee's position, or what the provider or employee does particularly well • 'This provider has been with us for 15 years and he has excellent patient care,' or 'May I have you step down and Debbie will assist you with your check out. She's excellent with scheduling," Gastroenterology Specialists of Oregon in Oregon City • "I gave them each $5 one morning and told them their homework assignment was to go out and find a business in our community that they felt has a significant impact on our community and to try and figure out why they have such success,”. Some went to Starbucks, others to McDonald's or Jamba Juice. "Part of the assignment was for them to observe how their business was run and what customer service nuggets of wisdom they could walk away with that we could apply in our own business," she says. "What they wrote down and observed was awesome." The First 10 “Stickers for staff members to wear that say “Remember the first 10”It's a low cost way to remind them how important those first 10 seconds are with a patient," he says. "First impressions make a big difference." • Reward • You'll get better buy-in from your staff, of course, if you reward for a job well done. Brown uses a quarterly bonus. "One of the core components of that bonus is patient satisfaction and that is derived directly from the survey score," he says. "All of the employees are aware that they're being measured on how well the patients are taken care of and how happy the patients are. That can be powerful." Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 How do we make a good first • • • • • • impression? Adjust your attitude Straighten your posture Smile Make eye contact Raise your eyebrows Shake hands. This is the quickest way to establish rapport. It’s also the most effective. Research shows it takes an average of three hours of continuous interaction to develop the same level of rapport that you can get with a single handshake • Lean In • Goman, Carol K, Forbes.com, Feb. 2011 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Customer service culture all begins with leadership "It's got to start from the top with leadership making a conscious decision that they're going to make this part of the employee evaluation, get their staff trained, and integrate it into their practice" • be both "consistent and pervasive." "Consistently means not just when you feel up to it, but that you can turn it on even during your most demanding stressful times, and pervasively means it's not just the doctor or the receptionist but every single person on your staff” • It's worked out well for Alabama Orthopaedic Clinic, which has grown its business in seven of the past eight years — revenue was temporarily flat during one of those years due to the economic downturn. "We're one of the only surgical orthopedic groups that get more referrals from former patients than we do from physicians," boasts Dean Brown, administrator of Alabama Orthopaedic Clinic. "For us, it's all about word of mouth.“ • Shwartz, Shelly K; Physicians Practice, March 2011 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Listening Skills Active Listening – What’s different about it? – What gets in the way? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Listening • Listening is combination of what we –Hear –Understand –Remember Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Communication by the Numbers • ___% Body Language • ___% Tone of Voice/Pace Words Tone/Pace Body Language • ___% Words Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 % of Message Conveyed Via Body Language 1. 15% 2. 43% 3. 55% Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 % of Message Conveyed Via Voice Tone/Pace... 1. 18% 2. 38% 3. 49% % of Message Conveyed Via Words... 1. 7% 2. 23% 3. 56% Communication by the Numbers • 55% Body Language • 38% Tone of Voice/Pace Words Tone/Pace Body Language • _7% Words Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Are You Listening? • They’re NOT listening • They ARE listening Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Listening – filling in the gaps • A person generally speaks 125 words per minute but can process over 400 words per minute. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Keys for Active Listening • STOP • LOOK • LISTEN • ASK • PARAPHRASE Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Listening • Effective listening can help improve your diagnosis of patient’s problems • Can help you understand the psychosocial issues affecting their health • Can potentially help you avoid a lawsuit Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Divergent Frames of Reference • Different for physician and patient • Physician-think about serum creatinine level • Patient-how does this affect my tennis game? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 The most important thing in communication is hearing what isn’t being said. Anonymous Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Harvard Negotiation Project • Doug Stone – Harvard Negotiation Project • Listen for these three layers in patients’ conversations • Gain deeper insight into dynamics of the difficulty as well as clues to solution. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations - The Three Layers - The Facts The Feelings The Identity Issues Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations - The Three Layers - • Layer 1: The Facts – Who did what? – When? – What happened? • Things are rarely what they seem • Don’t assume • Don’t stop here Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations - The Three Layers - • Layer 2 – The Feelings – What Emotions are driving behavior? – Worries/Fears – Hopes – How do they feel about what happened? • May threaten identity Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations - The Three Layers - • Layer 3 – The Identity – What does this say about me? – What is at stake? – How will I see myself? How will they see me? • “What does this mean to you?” Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Difficult Conversations - The Three Layers - • Recognize, Acknowledge, Accept – Benefits • Build a Connection • Make Better, More Informed Choices Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 The “FEARED” structure for Difficult Conversations • • • • • • Facts Empathy Anger Recite Back Extended Family Document Woods, James OB/GYN News, August 2002 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 FEARED Model • Facts-provide facts of case, based on chart and hospital course; establish foundation • Empathy-express empathy; acknowledge that caregivers will try to understand what went wrong and help family deal with issues they face • Anger- ask whether patient feels angry, and if so, where those feelings are directed. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 FEARED Model • Recite – have patient recite back clinician’s explanation; ensure understanding of medical issues involved • Extended Family-directly address any present • Document – conversation including FEARED points Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Discussing Prognosis • Back and Arnold, Journal of Clinical Oncology. Vol. 24, Number 25 Sept.1 2006 – “How Much Do You Want to Know? Talking to Patients Who Are Prepared for Explicit Information” • Most common strategies physicians use in the discussing prognosis – Realism – Optimism – Avoidance Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Discussing Prognosis • A quantitative study concluded that physicians can provide the right amount of information for a particular patient only after eliciting that patient’s goals and values. • “How much do you want to know about the likely course of this disease?” • Based on patient-centered communication Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Discussing Prognosis • More complex than other communication tasks, such as giving bad news. • Requires synthesis of communication skills and biomedical content knowledge. • Comfort with fundamental communication skills, detecting emotions, responding empathetically and eliciting patient understanding. Also assumes physician is prepared to discuss relevant biomedical literature. Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Discussing Prognosis • Some patients will say they want a lot of information, but their body language contradicts this. • hesitating, looking down, shifting in seat • facial expression indicating distress • “I notice you are hesitating..are you having other thoughts about this? Or, “Is this a difficult issue for you to talk about?” Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 For patients who want information • Negotiate the Content of the Discussion – “How much do you want to know about the likely course of this illness? – “Some people want lots of details, some want a big picture and others prefer I talk to their family. What would be best for you?” • Provide the Information • Acknowledge the Patient’s and Families’ Reaction to the News Explicitly • Check for Understanding – “Tell me what you are taking away from this discussion.” Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Demonstrate Support Active Listening C-A-R-E • Concentrate • Acknowledge • Rephrase • Empathize Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Giving Feedback • • • • • Inquire Describe behavior you perceive Express feeling in response to behavior Specify impact of behavior Ask to consider consequences; “Can we agree to work together on this?” Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Demonstrating Support Rephrasing • Shows you have been listening • A chance to be sure you heard and understood correctly • Helps eliminate confusion Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Empathizing • Demonstrates understanding of person’s situation • Listening for content, intent and emotion • Watching for verbal and non-verbal • CAREful Listening Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 “I” Statements • Self-assertion • Position on subject under discussion • Non-judgmental language • Focus on facts Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Reframing • Take a second look • Be open to different perspectives and possibilities Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Six Steps for Resolving Conflict Between Others 1. State reason for meeting & ground rules 2. Explore the conflict – Hear both sides 3. Express needs, hopes, concerns Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Six Steps for Resolving Conflict 4. Generate ideas toward solution 5. Select a solution 6. Decide on follow up steps Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Points to Ponder – What do I usually do and say in an emotionally tense interaction? – What is working well and what gets in my way? – How do I want to be next time? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Points to Ponder – How could I better engage patients in their healing process? – What specifically should I do differently or stop doing? – What WILL I do? How will I know I’m progressing? Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Thank You! • • • • • Ann Grana AMG Group ann@amgccc.com www.amgccc.com 314-541-2220 Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Taking Your EHR to the Next Level Joe Wilmot Regional Sales Consultant GBS Corp Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Healthcare is Broken! • Healthcare Represents 17.9% of our Economy • 2.5 Trillion in 2010 • Life Expectancy has lowered from 1.5 years above average in 1960 to 1 year below average in 2010 • USA first in Expenditure but 37th in Performance • Institute of Medicine Advocates the Need to Adopt and Evolve • Healthcare Providers must embrace Data-Driven holistic approach to Care and Population Health Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Can EHR Make The Difference? EHR can make the difference by using Technology to take it to the Next Level! • • • • Patient Intake Patient Education Patient Reminders Patient Satisfaction Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Intake – Patient Portal • Patient Friendly Input Form Design • Intelligent form progression • Track skipped questions • Integrated with EHR • HIPAA secure and compliant Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Intake – Pen Technology • Ease of Use – Patient Friendly • Eases Adoption of EHR • Flexibility in Form Design Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Intake - Kiosk • Check-In • Update Patient Demographics • Update Clinical History • Credit Card Co-Pay / Account Payment • Patient Picture • Receipt Printer • Eligibility Checking Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Education – Why it Doesn’t Work • Face-to-Face discussions are the end of an encounter is typically a waste of time! • Patients cannot digest all the information • Too much information at one time • May not be engaged into listening • Concerns about condition • Most important questions come up after the patient leaves Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Education Fundamentals • Patient needs to leave with something in hand • Patient Education needs to include • Reason for Visit • Details Necessary to understand Care Plan • What Medications are prescribed and why • Homework Sheets • Home Treatments • Precautions • Pertinent External Resources – Web sites/Books/Videos Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Education Fundamentals • Providers should devote time to Patient Education • Inform patients about their conditions with clear explanations • How to prevent, treat and manage condition • Listen compassionately • Acknowledge patient’s predicaments with empathy and caring statements Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Education with EHR • Many electronic Patient Education Libraries to choose from • What is integrated with your EHR? • Linked to Patient Care Plan • Linked to Patient’s own Clinical Data • Specific Instructions that relate to Patient’s Condition • Automatically note in patient’s chart that Patient Education was provided Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Enhanced Patient Education with EHR • 3-D Modeling • Track Patient Interaction to Document understanding and informed consent • Automatically send context- aware patient education and summary sheets via patient’s email/portal • Customized to specific components of the patient’s treatment – Surgery, Procedures, Research, Outcomes Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Enhanced Patient Education with EHR • Push to Patient Portal • Prompt when opened by the patient • Use Secure email to request additional materials • Multiple Language Options • Searchable Patient Education Library on your Patient Portal Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Education Benefits • Decreased Patient Anxiety • Increase patient understanding • Improve patient compliance • Improved outcomes Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Why are Patient Reminders Important? • • • • Improves patient visit frequency Decreases No-Shows Preventative Care Reputation Improve Patient Care Experience • Improves patient visit quality and satisfaction levels • Facilitates Meaningful Use, PCMH and ACO Compliance Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Not All Patients Are the Same Your patients may need different levels of Patient Reminders • Low Risk – Patient need little oversight or follow-up • Medium Risk – Patient with Chronic Conditions need Care management • High Risk – Require Specific Care coordination to prevent costly events such as hospitalization Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 EHR Patient Reminder Technology Patient Data can be made Actionable • Identify gaps in care • Proactive Reminders – Appointment / Health Monitor Screening / Medication Refills • Intelligent Rules Engine to filter and create reminders • Multiple Contact Methods • Patient specific Text Messaging defaults Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 EHR Patient Reminder Technology • Push data to your Patient Portal • Use Secure Messaging to interact and confirm • Create alerts with reminder event is not met • Clear when appointment is set Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 EHR Patient Reminder Technology • Use Dashboards to monitor compliance Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 EHR Patient Reminder Technology • Potential to enhance revenue is real! Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Satisfaction – Why is it Important? • Improve Revenue • Measure of Quality Care • Attract and Retain Patients • Patients that are satisfied stick with their providers • More likely to refer to friends and family Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Satisfaction – Why is it Difficult? • Making everyone happy is a losing battle • Doctor recommendations can collide with patient expectations • Can cause over-prescribing and over-testing to keep patient happy • Effectively communicating the rationale so patients understand Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Satisfaction – Don’t Forget About Social Media! • Your Practice and the Internet • Google your Practice and Providers • Build and Protect Your Reputation • Automated Social Media Posts • Search Engine Optimization Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Satisfaction – What are the benefits? • Decreased Patient Anxiety • Increased Patient Understanding • Improved Patient Compliance • Outcomes Data • Improved Provider-Patient Communication • Alerts Practice/Provider of pending issues-concerns • Improves referrals • Patient retention Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Using EHR for Patient Satisfaction • EHR Technology • Patient Portal – Pushed after clinical encounter • Automated compliance tracking • 3rd Party Add-Ons • Download appointments • Surveys pushed to patients • Compliance tracked and follow-up by service Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Using EHR for Patient Satisfaction • Use Outcomes to track overall compliance • Alert of issues/concerns with specific workflow • Alert of issues/concerns with staff and providers • Use as a tool to adjust and improve • Know how & where to improve your practice! Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Patient Satisfaction – Make it Work! • Make sure everyone is one the same page • Listen to employees – present ideas • Collaborate at all levels – Check-In / Nurse / Provider / Check-Out / Administration • Small things matter • Make the patient comfortable • Free wireless in waiting room • Use technology to reach out to patient Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220 Mike Spencer Regional Sales Consultant GBS Corp (314) 517-5054 (Cell) (314) 966-4692 (Office) mikesp@gbscorp.com Work Smarter • LeagueOfHealthcareExperts.com • 314-541-2220