Bipartisan Policy Center Glenn D. Steele Jr., MD, PhD President and CEO Geisinger Health System April 24, 2008 Geisinger Health System Business Strategy & Development 02/08 Geisinger Health System Business Strategy & Development 02/08 Geisinger Health System Business Strategy & Development 02/08 Geisinger Health Plan • ~ 211,000 members – HMO, PPO, diversified products – 35,000 Medicare Advantage • >16,000 empanelled physicians* • 75 non-Geisinger hospitals • 41 PA counties * Includes Geisinger physicians of ~700 Electronic Health Record (EHR) • • • • Decision to implement Epic®: 1995 > $80M invested (hardware, software, manpower, training) Running costs: ~ 4.2% of annual revenue of $2.0B Fully-integrated EHR - 40 community practice sites; GMC inpatient; GWV nursing documentation; GWV and GSWB Emergency Department live on EPIC® – GSWB nursing documentation to go live: April 2008 • > 3 million patient records – ~ 98,000 active users of MyGeisinger; goal = 100,000 – > 1,300 non-Geisinger users; confidential access (referring physicians) – Real-time registries track clinical metrics by dept/physician – PACS and web-based image distribution Targets for the Geisinger Transformation • Unjustified variation • Fragmentation of care-giving • Perverse payment incentives – Units of work – Outcome irrelevant • Patient as passive recipient of care; not an active participant Managing to Success Transformation Initiatives* • • • • Geisinger Medical Home Chronic Disease Care Optimization Transitions of Care ProvenCareSM for acute episodic care (the “warranty”) *Achievable only through innovation Managing to Success Geisinger Medical Home Partnership between primary care physicians and GHP that provides 360-degree, 24/7 continuum of care • “Embedded” nurses • Assured easy phone access • Follow-up calls post-discharge and post-ED visit • Telephonic monitoring/case management • Group visits/educational services • Personalized tools (e.g., chronic disease report cards) Admission Metrics GHP MC Medicare Baseline Pre-Program Jan – Oct. 2006 First Year of Pilot Jan-Oct. 2007 Percent Reduction 311/1,000 311/1,000 0% 365/1,000 291/1,000 -20% 269/1,000 232/1,000 -13.8% Lewistown Lewisburg Readmission Metrics Baseline: PreProgram 2005 Q4 – 2006 Q3 Readmission Rate First Year: Pilot 2006 Q4 – 2007 Q3 Readmission Rate % Reduction GHP Managed Care (MC) Medicare 16.6% 16.5% 0% GHP MC Medicare GHS Sites 17.0% 16.6% -2.3% All Medical Home Sites 19.5% 15.9% -18.5% Lewistown (2,120 pts) 20.3% 17.8% -12.3% Lewisburg (645 pts) 15.2% 7.9% -48.0% Diabetes "Bundle" GHS Quality Targets Measures Performance Criteria Standard CPSL FY07 Every 6 months 100% X < 7.0 X HgbA1C measurement HgbA1C control <7 LDL measurement 7 to 9 >9 Yearlyto >100 < 100 <130 >=130 < 130/80 < 140/90 >=140/90 100% X < 100 < 130/80 X X Yearly 100% Yearly 100% Yearly 100% Influenza immunization Yearly 100% X Pneumococcal immunization Once* 100% X Non-smoker 100% X Use of ACE/ARB for microalbuminuria/DM nephropathy Yes 100% Use of ACE/ARB for hypertension Yes 100% Yearly 100% LDL control Blood pressure control Retinal exam Urine (protein) exam Diabetes "Bundle" X GHS Quality Targets Measures Performance Criteria Standard CPSL FY07 Every 6 months 100% X HgbA1C measurement HgbA1C control LDL measurement Foot exam Smoking status Patients who receive/achieve ALL of the above LDL control Blood pressure control Retinal exam Urine (protein) exam Foot exam Influenza immunization Pneumococcal immunization Smoking status <7 7 to 9 >9 < 7.0 Yearlyto 100% >100 < 100 <130 >=130 < 100 < 130/80 < 140/90 >=140/90 < 130/80 Yearly 100% Yearly 100% Yearly Yearly Once* Non-smoker X X X Yes 100% Yes 100% Yearly 100% Patients who receive/achieve ALL of the above X X X X X 100% 100% 100% 100% Use of ACE/ARB for microalbuminuria/DM nephropathy Use of ACE/ARB for hypertension X X Diabetes Profile Report Primary Care Bundle Summary > 20,000 patients 35% 7 met 8 met All met % of total diabetes patients 30% 12/31/07 25% 12/31/07 22% 25% 20% 9/30/06 23% 15% 9/30/06 15% 12/31/07 10% 10% 5% 9/30/06 4% 0% % Pts 0 Measures Met % Pts 1 Measure Met % Pts 2 Measures Met % Pts 3 Measures Met % Pts 4 Measures Met % Pts 5 Measures Met % Pts 6 Measures Met % Pts 7 Measures Met % Pts % Pts 8 Measures Met All Measures Met Chronic Disease Portfolio • • • • • Diabetes Congestive Heart Failure Coronary Artery Disease Hypertension Prevention Bundle ProvenCareSM for Acute Episodic Care (the “Warranty”) Pay-for-Performance Acute Episodic Care ProvenCareSM • • • • • Identify high-volume DRGs Determine best practice techniques Deliver evidence-based care GHP pays global fee No additional payment for complications ProvenCare SM CABG: Reliability ProvenCareSM CABG 100% care 90% 80% P=0.01 P=0.01 70% 60% 50% 40% 30% 20% 10% 0% Fe b06 A pr -0 6 Ju n06 A ug -0 6 O ct -0 6 D ec -0 6 Fe b07 A pr -0 7 Ju n07 A ug -0 7 O ct -0 7 D ec -0 7 % of patients who % of patients received all who received components all of of components care Quality Clinical Outcomes - (18. mos) Before With ProvenCareSM ProvenCareSM (n=132) (n=181) In-hospital mortality Patients with any complication (STS) Patients with >1 complication Atrial fibrillation Neurologic complication Any pulmonary complication Blood products used Re-operation for bleeding Deep sternal wound infection Readmission within 30 days 1.5 % 38 % 7.6 % 23 % 1.5 % 7% 23 % 3.8 % 0.8 % 6.9 % 0% 30 % 5.5 % 19 % 0.6 % 4% 18 % 1.7 % 0.6 % 3.8 % % Improvement/ (Reduction) 21 % 28 % 17 % 60 % 43 % 22 % 55 % 25 % 44 % Value Financial Outcomes - (18 months) • • • • Average total LOS fell 0.5 days (6.2 vs. 5.7) Hospital net revenue grew 7.8% Contribution margin of index hospitalization grew 16.9% 30-day readmission rate fell 44% ProvenCareSM Portfolio • ProvenCare: – CABG – Angioplasty – Angioplasty + AMI – Hip replacement – Knee – Cataract – EPO – Perinatal – Bariatric surgery Policy Implications • Pay for acceptable outcomes only (Medicare) – Achievable by: • IDS • Virtual IDS