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Published byStephen McDowell Modified over 8 years ago
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Mike Kasper, Chief Executive Officer Driving Value in Health Care www.dupagemedicalgroup.com
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DMG - Vital Statistics Independent multi-specialty group in the western suburbs of Chicago Established in 1999 (from groups practicing since the ’60s) 333 Physicians; 2500 employees ~$375 million Revenue 40 Specialties; 45+ Sites 375,000 Active patients; Serve 1/3 of DuPage County (Locations in 4 counties –DuPage, Will, Kane and Cook) Dedicated to a full range of Ancillary services including Imaging, Infusion Therapy and the Cancer Center (currently under construction) Dominant Physician Group at 3 area hospitals; committed to growing our footprint in the Hinsdale and LaGrange area Completed system-wide rollout of Epic EMR Focused on delivering Quality, Efficiency and Access
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The quantity lever can reduce overall costs without eroding provider or payer economics Medical cost Unit cost Quantity X Models with aligned incentives demonstrate lower costs......while improving economics of providers and payers -30% 0 -10 -20 -30 -40 -50 -60 -54% AverageAvgerage risk marketAvgerage risk marketAvgerage risk marketAvgerage risk market Cost (% under OM) Risk deal Medical costs Non-risk deal Physician profit Payer profit and admin MA plan revenue (Illustrative) Capitated model (Illustrative, based on demonstrated data) Profit pool available to payers and providers Best-in- class risk market Source: The Boston Consulting Group
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Quantity does not need to be managed across entire population; focus on 15% of patients that drive 75% of cost Annual cost / beneficiary (K) 80 70 60 50 40 30 20 10 0 Avg. cost per patient = $11.3K HealthyStableSick (mostly 1+ chronic illness) Sickest (mostly 3+ chronic illness) 15% of beneficiaries = 75% spending 85% of beneficiaries = 25% spending 23 million beneficiaries Spending $1,130 each Total spending = 5% 16.1 million beneficiaries Spending $6,150 each Total spending = 20% 7 million beneficiaries Spending $55,000 each Total spending = 75% CH, DM ESRD, cancer Source: The Boston Consulting Group
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DMG - Driving Integration Through Collaboration Illinois Health Partners (IHP) DMG’s joint venture with Naperville based Edward Hospital Allows for collaborative approach to patient care Creates an aligned entity to take risk and share profits Aligns Physicians and Hospital to improve Quality, Efficiency and Access in the region Allows both DMG and Edward to remain independent Rush University Medical Center Allows for collaborative approach to cancer care Brings university level cancer treatment to western suburbs Information Technology Foundation for collaboration – Epic as EMR HIE
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Efficiency Savings DMG Gain Sharing Direct DMG Care Other Physician PharmaHospital Maximizing DMG’s Future Health Care Revenue
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Questions? www.dupagemedicalgroup.com
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