Bundled Payments for Care Improvement - Advanced January 15, 2018 - - PowerPoint PPT Presentation

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Bundled Payments for Care Improvement - Advanced January 15, 2018 - - PowerPoint PPT Presentation

Bundled Payments for Care Improvement - Advanced January 15, 2018 Agenda for today 1 Welcome & Introductions 2 Strategies for the early phases of BPCI Advanced 3 Review of the opportunity Why should you be interested? 4 Overview of


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Bundled Payments for Care Improvement - Advanced

January 15, 2018

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Agenda for today

1 Welcome & Introductions 2 Strategies for the early phases of BPCI Advanced 3 Review of the opportunity – Why should you be interested? 4 Overview of BPCI-A 5 A look at the CV data 6 Your first steps & actions 7 Q&A

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WELCOME & INTRODUCTIONS 01

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Keely Macmillan GM BPCI Advanced Archway Health Ginger Biesbrock Vice President MedAxiom

Dave Terry

CEO & Co-Founder Archway Health Joel Sauer Vice President MedAxiom

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THE SOLUTION

The MedAxiom & Archway Health partnership is intended to make design and implementation of bundled payment programs as simple as possible for heart programs. The team combines the expertise of CV consultants, proven healthcare operators, big data analysts, and technology entrepreneurs.

EDUCATION DATA READINESS & OPTIMIZATION TOOLS & SOLUTIONS

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Archway Overview

Company Background

  • 100% focused on bundled payments – its all we do
  • Built comprehensive, one-stop-shop bundled payment platform
  • Founded in 2014 with offices in Boston and NY
  • Backed by athenahealth & Coverys (medical malpractice insurance company)

Experienced Team

  • Our team has been active in BPCI since its inception in 2011
  • Active in all of the CMS bundled payment programs – BPCI, CJR, OCM, BPCI

– A Convener in the BPCI program Trusted Partner

  • Working with dozens of clients & hundreds of providers across the country
  • Expanding beyond CMS into the commercial and self-insured employer

markets Real Results

  • All of our partner hospitals & physicians are earning significant savings

– Up to $12 million annually per hospital – Up $100,000 per physician in PGPs

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STRATEGIES FOR THE EARLY PHASES OF BPCI-A 02

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Timeline for BPCI-A rollout

24 pages, not a 30- minute process!

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12 Components of BPCI Advanced Application, Due March 12th 30+ Narrative questions

Each component has several narrative questions:

1. Organization Information, including CEHRT attestation, participant list, and executive summary of application 2. Practitioner Engagement – including plan for consent, retention, and adherence for care redesign 3. Care Improvement – plan for care redesign care processes in evidence-based medicine, beneficiary/caregiver engagement, quality and care coordination, including readiness assessment 4. NPRA Sharing –experience in gainsharing and P4P initiatives, and proposed methodology for BPCI Advanced gainsharing 5. Quality Improvement – including experience in improvement interventions and plan for quality improvement in BPCI A

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12 Components of BPCI Advanced Application, Due March 12th 30+ Narrative questions (Cont…)

Each component has several narrative questions:

6. Quality Assurance – Approach to ensure clinical appropriateness, including Sanctions, Investigations, Probations, or Corrective Action Plans 7. Beneficiary Protections –plan for beneficiary protection, education, engagement 8. Financial Arrangements- planned gainsharing arrangements and funds flow mechanism 9. Organizational Capabilities and Readiness –

  • 10. Partnerships – business relationships
  • 11. Data Request & Attestation
  • 12. Certification
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MedAxiom homepage

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This isn’t an uncomplicated process

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We’re trying to make it easy! Oh and with no commitments either!

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Our Bundled Payment Process

Phase I: Pre-Program Activities Phase II: Program Design Phase III: Program Management Phase IV: Continuous Performance Improvement

  • Preliminary

Opportunity Assessment

  • Strategic

Evaluation

  • Application & DRA

Submission

  • Detailed Pricing

Analysis

  • Bundle Selection
  • Contract

submission

  • Governance &

leadership structure

  • Select 2-3 High

Priority Opportunity Areas

  • Care Management

Process Design

  • Preferred

Provider Network Development

  • Provider

Gainsharing & Collaboration Agreements

  • Ongoing

Performance Tracking – Archway Analytics

  • Real Time Patient

Tracking – Archway Carelink

  • Financial

Reconciliation Management

  • Funds Distribution
  • Ongoing CMS

Reporting

  • Best Practice

Sharing

  • Performance

Coaching & Training

  • Clinical & Process

Innovations

  • New Payor &

Employer Contracts

  • New Provider

Recruiting

  • Bundle Adds &

Drops

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Why we encourage you to apply

  • March 12, 2018 deadline
  • Non-binding commitment to CMS
  • Allows you to see your data (all of it)
  • Get to see the Target Price
  • So can quantify estimated opportunity
  • Provides several months to make final

participation determination

  • August 2018
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REVIEW OF THE OPPORTUNITY – WHY SHOULD YOU BE INTERESTED?

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Example: Variation in CHF w/MCC spending by state MS-DRG 291

Anchor IP HHA IRF LTCH HOPD Readmissions SNF

State avg post acute care spend for CHF w/MCC ranges from $10,000 to $17,500

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Example: Variation in CHF w/MCC spending by NJ Hospital MS-DRG 291

Avg post acute care spend for CHF w/MCC among NJ hospitals ranges from $15,600 to $27,500

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What is a Bundled Payment?

In a bundled payment model, a single provider is responsible for managing all aspects of care during a discrete episode. Provider as “Conductor”

Bundle Definition

  • “Trigger event” starts episode (specific

DRG or procedure)

  • Defined end date - 90-day episode length
  • Providers are given a bundle-specific

Target Price

  • All clinically relevant costs are included in

the Target Price

  • Providers share in savings below Target

Price

  • Retrospective payment model
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23,000 20,000

5,000 10,000 15,000 20,000 25,000

Target Price Avg Actual Costs

Inpatient Anchor Readmissions PAC Facility (LTACH, SNF, IRF) Home Health Part B (Prof & drugs) Hospital OP Other (OP, DME)

How is Additional Revenue Earned? Example calculation for Congestive Heart Failure

Providers earn additional revenue when actual costs are less than the target price (savings are in addition to traditional professional service billing) $3,000 savings per case kept by specialist

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National Average CHF Bundle Opportunity

Cardiologists could earn an additional $3.8k per CHF bundle

Anchor IP HHA IRF LTCH HOPD Readmissions SNF

  • Avg wage-adjusted CHF Total Bundle cost = $19.1 k
  • Avg wage-adjusted CHF Post Acute Care (PAC) cost = $12.8 k (67%
  • f total)
  • Cardiologists could earn an additional $1,300 - $3,800 per CHF

bundle by reducing PAC utilization by 10 - 30%

– 38% of CHF bundles include a readmission; Avg readmissions per CHF bundle = $5.1k – Cardiologists could earn an additional $1k per CHF bundle by cutting readmissions by 20%

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Advanced-APM: Eligibility Thresholds Increase Overtime

Physicians must have minimum % volume under risk arrangement

25% 25% 50% 50% 75% 75% 20% 20% 35% 35% 50% 50% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2019 2020 2021 2022 2023 2024+

A-APM Track: Revenue and Patient Count Thresholds

Payments through Advanced APMs Patients in Advanced APMs

Medicare or All-Payer Options

Performance Year 2017 2018 2019 2020 2021 2022+

Medicare threshold calculation: Medicare Part B payments for bundle patients/ Total Medicare Part B payments

  • or -

Medicare bundle patients / Total Medicare patients

Can include Medicare Advantage; denominator depends on participating providers

Medicare-only Option

Payment Year

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OVERVIEW OF BPCI-A 04

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BPCI Advanced Model – Key takeaways

  • Voluntary program with two anticipated start dates: 10/1/2018 and

1/1/2020

Ø Non binding application due March 12th for first start date

  • 29 inpatient bundles and 3 outpatient bundles
  • More sophisticated target pricing methodology
  • Qualifies as an Advanced Alternative Payment Model (APM) Under

MACRA

  • Episode Initiators can be acute hospitals or Physician Group Practices

(PGPs)

  • Quality performance will adjust incentive payments
  • While still non-binding, Application for BPCI Advanced is more robust

than recent open window periods

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Bundle Definitions

  • 90-day post discharge period for all bundles
  • Retrospective Reconciliation: FFS payments are billed

and paid for as usual, and the total FFS payment for the bundle is retrospectively reconciled against a pre- determined target price

  • Semi-annual reconciliation

Patients Included:

all Medicare FFS beneficiaries

Patients Excluded:

Beneficiaries covered under Medicare Advantage or United Mine Workers or with Medicare as a secondary payers; ESRD eligible beneficiaries; beneficiaries who die during the Anchor Stay or Anchor Procedure

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Costs included in the bundle

  • Costs included: all clinically relevant Part A & B items and services furnished during and

following the anchor stay/procedure, including:

  • Physicians’ services, other hospital outpatient services, readmissions, LTCH, IRF

, SNF , home health agency, Clinical lab, DME, Part B drugs, and hospice [new]

  • IP bundles also include: diagnostic testing and certain therapeutic services furnished in

three days prior to the Anchor Stay

  • Charges from an ED visit at another hospital if the beneficiary is transferred the day of
  • r before admission for the anchor stay [new]
  • Costs excluded: costs for clinically unrelated services including major trauma, cancer-

related care, organ transplants, ventricular shunts, blood clotting factors

  • IPPS New technology add-on payments
  • OPPS pass-through payments
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Bundles in BPCI Advanced

Inpatient bundles anchored by MS-DRGs Ø 8 Cardiac: AMI, CHF, Cardiac arrhythmia, Cardiac defibrillator, Cardiac valve, CABG, Pacemaker, PCI

Ø 10 Ortho: MJRLE; MJRUE; Double JRLE; Fractures of femur/hip/pelvis; Hip & femur procedures except MJ; Lower extremity/ humerus procedure except hip, foot, femur; Spinal fusion (non-cervical); Cervical spinal fusion; Back & neck except spinal fusion; Combined anterior posterior spinal fusion Ø 3 GI: GI hemorrhage; GI obstruction, Major bowel procedure Ø 2 Respiratory: COPD, bronchitis, asthma; Simple pneumonia and respiratory infections Ø Other: Cellulitis; Renal failure; Sepsis; Stroke, UTI Ø New: Disorders of the liver excluding malignancy, cirrhosis, alcoholic hepatitis

Outpatient bundles identified by HCPCS

  • PCI
  • Cardiac Defibrillator
  • Back & Neck except Spinal Fusion
  • Beginning 1/1/2020: CMS may add or

remove bundles on an annual basis IP bundles represent >55% of all IP expenditures, or $70+ billion in annual national spends. Under BPCI Advanced, this represents $2+ billion in savings for CMS and up to $15 billion of shared savings for providers

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Target pricing

Detailed methodology forthcoming from CMS

  • Each hospital Episode Initiator receives its own Target Price for each Bundle
  • PGPs will be assigned a target price specific to the acute hospital where the anchor

procedure is performed; the target price will be adjusted by PGP-specific adjustments

  • A preliminary Target Price will be determined prospectively, and a final Target Price

set retrospectively at the time of Reconciliation based on actual patient case mix

  • CMS will apply Winsorization at the 1st/99th percentile to trim outlier spend

calculated based on a combination of historical Medicare FFS spending, adjusted to reflect the Episode Initiator’s efficiency relative to its peers over time, along with adjustments for patient characteristics and regional spending trends

Benchmark price:

3% discount to Benchmark Price (3% discount subject to change in future Model Years)

Target price:

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Reconciliation

During semi-annual reconciliation, aggregate clinical spending for each bundle will be compared to the target price

  • If spending is lower than the target price, participants

receive a positive reconciliation amount (i.e. bonus payment)

  • If spending is higher than the target price, participates

receive a negative reconciliation amount (i.e. repayment to CMS)

20% stop-gain and stop-loss is applied at Episode Initiator Level

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Adjusting Payment by Quality Performance

  • Quality score will be calculated for each measure for each bundle
  • Scores will be aggregated across all bundles for a given Episode

Initiator, weighted by volume and measure, to generate Episode Initiator-specific Composite Quality Score (CQS)

  • Outcome measures weighted more than process measures
  • A CQS Adjustment Amount will be applied to bonus or repayment

amount

  • For first two years, there is 10% cap on the amount to which CQS

can adjust bonus or repayment

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Quality Measures

Claim-based measures required and collected by CMS starting 10/1/2018: 1. All-cause Hospital Readmission Measure required for all bundles 2. Advanced Care Plan required for all bundles 3. Perioperative Care: Selection of Prophylactic Antibiotic: 1st or 2nd Generation Cephalosporin 4. Hospital-Level Risk-Standardized Complication Rate Following Elective Primary THA/TKA 5. Hospital 30-Day, All-Cause, Risk-Standardized Mortality Rate Following CABG 6. Excess Days in Acute Care after Hospitalization AMI 7. AHRQ Patient Safety Indicators (PSI 90)

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Quality Measures

  • For non claims based measures,

participants must report quality data by February 20 of the following year

  • E.g. by February 20, 2021, Participants

must report on all applicable quality measures for all of 2020.

  • Participants can receive historical

quality data by submitting non- binding application Claim-based measures required and collected by CMS starting 10/1/2018: 1. All-cause Hospital Readmission Measure required for all bundles 2. Advanced Care Plan required for all bundles 3. Perioperative Care: Selection of Prophylactic Antibiotic: 1st or 2nd Generation Cephalosporin 4. Hospital-Level Risk-Standardized Complication Rate Following Elective Primary THA/TKA 5. Hospital 30-Day, All-Cause, Risk-Standardized Mortality Rate Following CABG 6. Excess Days in Acute Care after Hospitalization AMI 7. AHRQ Patient Safety Indicators (PSI 90) Additional measures that may be required starting 1/1/2020 1. CAHPS for Clinicians 2. CAHPS for Hospitals 3. CAHPS Home Health Care 4. Hypertension: Improvement in Blood Pressure 5. Drug Regimen Review with Follow-up 6. Surgical Site Infection 7. Unplanned Reoperation within 30 Day Postop Period

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BPCI Advanced provides physicians an opportunity to qualify for QPP’s (MACRA) Advanced-APMs Payment Track

  • 5% annual lump sum bonus
  • Requires participation in Advanced Alternative Payment

Model (i.e. BPCI-Advanced)

  • Quality reporting requirement fulfilled through

BPCI Advanced participation

  • Requires minimum % of Medicare payments or Medicare

patients in risk arrangement

  • Default payment track
  • Quality reporting requirements
  • Upside/downside payment adjustment based on relative

quality performance; two-sided risk increases from ±4% to ±9% over time

  • Budget neutral nationwide (i.e. forced winners & losers)

QPP forces physicians into

  • ne of two

Medicare FFS payment tracks

MIPS A-APMs

BPCI Advanced will not qualify physicians for Advanced APMs track until MACRA Year 3, corresponding with Performance year 2019 and Payment Year 2020

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Overlap with other CMMI Programs

  • BPCI Advanced excludes episodes for beneficiaries aligned to Next Gen ACO,

MSSP Track 3, Vermont Allpayer ACO, ESRD Seamless Care Organization – For example, if an Episode Initiator participating the MJRLE bundle treats a beneficiary aligned to a Next Gen ACO, that case would not count in BPCI Advanced

  • BPCI Advanced includes episodes for beneficiaries aligned to MSSP Tracks 1,

1+, and 2

  • Hospitals participating in CJR cannot participate in hip/knee bundle in BPCI

Advanced, but can participate in other bundles – CJR bundles take precedence over BPCI-A bundles

  • BPCI Advanced does not take precedence over OCM and vice versa; CMS will

adjust OCM payments to account for overlap with BPCI Advanced

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A LOOK AT THE CV DATA 03

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CV bundle opportunities in BPCI Advanced

  • Medicare spends $18.6 billion annually on the eight inpatient CV bundles

included in BPCI Advanced, representing 15% of total Medicare FFS IP spending

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National Average AMI Bundle Opportunity

Cardiologists could earn an additional $3.6k per AMI bundle

Anchor IP HHA IRF LTCH HOPD Readmissions SNF

  • Avg wage-adjusted AMI Total Bundle cost = $19.0 k
  • Avg wage-adjusted AMI Post Acute Care (PAC) cost = $12.0 k (63%
  • f total)
  • Cardiologists could earn an additional $1,200 – 3,600 per AMI

bundle by reducing PAC utilization by 10 - 30%

– 32% of AMI bundles include a readmission; Avg readmissions per AMI bundle = $4.7 k – Cardiologists could earn an additional $1k per AMI bundle by cutting readmissions by 20%

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National Average CABG Bundle Opportunity

Cardiologists could earn an additional $3.1k per CABG bundle

Anchor IP HHA IRF LTCH HOPD Readmissions SNF

  • Avg wage-adjusted CABG Total Bundle cost = $38.8k
  • Avg wage-adjusted CABG Post Acute Care (PAC) cost = $10.5 k (27%
  • f total)
  • Cardiologists could earn an additional $1,000 - $3,100 per CABG

bundle by reducing PAC utilization by 10 - 30%

– Avg IRF spend per CABG bundle ~$1,900 – 18% of CABG bundles include a readmission; Avg readmissions spend per CABG bundle = $2.2k

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YOUR FIRST STEPS & ACTIONS 03

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MedAxiom/Archway Support Process

  • Call or email

MedAxiom

  • Share some basic

information

  • Determine interest

in evaluating

  • pportunity &

submitting non- binding LOI to CMS

Sign our Good Faith Agreement BPCI-A Application – Due March 12 Preliminary Opportunity Assessment

  • Non-binding letter

that explains how MedAxiom/Archway and your practice will engage to apply for BPCI-A

  • Receive detailed

analysis on your

  • rganization’s risks

and opportunities using the Archway Analytics platform.

  • Work with

MedAxiom/ Archway to submit your application and request your data Contact Us

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Archway as a Convener

Providers can participate in BPCI Advanced two ways:

1) Apply to program directly: submit non-binding application and request for data 2) Join a convener, which will submit non-binding application on their behalf and clean their data

  • A Convener facilitates program participation on behalf of

Episode Initiators (PGPs or hospitals) and bears and apportions financial risk

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Archway Academy

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BPCI-A Readiness Assessment

About your Group, Hospital or Program

  • What is the current state of program alignment for these patients?
  • What is your venue to develop clinical, financial, and operational

strategies for these patient populations? Stakeholder Identification and Alignment

  • What services are currently being utilized for the , HF AMI & CABG

patients?

  • What is the degree of integration between these offered services?
  • What is the degree of operational effectiveness for these services?
  • How much variability is there by provider throughout the continuum?
  • What is the current opportunity to create alignment?

Clinical Strategy

  • How much clinical variation currently exists in your program?
  • What is the ability deploy a standard clinical strategy – current culture

and philosophy?

  • What is your patient identification and annotation standard?
  • Do you have effective transition processes?
  • Are you utilizing clinical protocols, order sets, pathways?

Operational Structure

  • EMR utilization to support clinical standards and care coordination?
  • What is your care team composition and functionality?
  • What is your current performance management strategy and reporting

capabilities?

  • What is your ability to track these patients throughout the episode?
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Q&A

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Upcoming Conferences

ACC CV Summit February 22-24, 2018 www.acc.org/CVSummit2018 CV Transforum Spring’18 April 12-14, 2018 www.cvtransforum.com

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Thank you.

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