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HFMA Florida Chapter Fall Conference September 16, 2010 1
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Accountable Care – Approach or “Thing” Physician/Hospital Integration Journey Concepts of Bundling Payments The Payer/Buyer Perspective Roles and Accountabilities of an ACO Potential ACO Models The ACO Revenue Cycle Infrastructure 2
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Genesis from “HillaryCare” in 1993 ◦ Managed Competition and the PHO Quality Payment for Services – CMS 2003 ◦ Process – Evidence Based Medicine Guidelines ◦ Outcomes – Improvement in Quality Measures ◦ Treatment of Chronic Diseases Shared Savings for Cost Containment ◦ Emerging Payer/CMS Pilots in Episodes of Care Integrated Care = Good Non-Integrated = Bad 3
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New Name with Newly Anticipated Functionality Entity Will Need to be Able to do the Following: ◦ Assemble and Manage a Broad-based Group of Providers including Acute Hospitals, Primary Care Physicians, Sub-Specialists, and Ancillary Providers. ◦ Provide Services in a Seamless Business Infrastructure ◦ Accept and Administer Bundled Payments from Payers ◦ Identify Enrollment and Pay Providers ◦ Report on Quality, Costs, and Patient Outcomes ◦ Manage Risk and Gain-Sharing Methodologies 4
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Medical Staff Delegated Responsibilities ◦ Credentialing, Privileging, Quality Assurance Creation of PHOs for Managed Care Service Line Development ◦ Specialty Partnering with Hospital Employment of Primary Care & Sub-Specialists IT Connectivity and Meaningful Use 5
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Other than Employment – Not Much Regulatory Constraints ◦ Stark, F&A, IRS, etc. Cultural Issues ◦ Professional Independence ◦ Entrepreneurial Interests ◦ Control vs. Security Financial IT Platform Differences ◦ Hospital Legacy & Practice Management Systems 6
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Management of Chronic Care Patients –Screening and Lifestyle Management Medical Home Approach – Primary Care Population-based Semi-Capitation Episode of Care Fixed Payment Performance-based Payment Combinations of Those Above 7
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Slow the Rate of Cost Growth Public Health Approach – Lifestyle/Prevention ◦ Obesity, Smoking Cessation, Screening, etc. Reduce Fee-For-Service Exposure ◦ Bundling Acute Care Episodes for Elderly ◦ Medical Home Fixed Payments for M&M Shift Risk to Provider Community ◦ Move toward “Partial Capitation” 8
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Four Clinical Areas Represent 61% of Spend ◦ Cardio-Vascular, Orthopedic, Neuro, Cancer Difficulty Predicting Unit Cost and Utilization Hospital and Physician Combined ◦ Bundled Payment Minimizes Risk of Outliers ◦ Pharma and Medical Device Usage Included Pay For Performance / Enter “the Ratchet” “They” Won’t be Able to Contract for This 9
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Clinically and Financially Integrated Provider Network Capability to Underwrite Risk Broad Scope of Clinical Services ◦ Acute Care, Primary Care, Out-Patient Care, Rehabilitation Services, Home Care, etc. Information Technology Infrastructure ◦ Internal and External Transaction Capabilities Ability to Engage with Consumers/Patients/Payers 10
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Health Plan as ACO Independent Practice Association as ACO Multi-Specialty Group Practice as ACO Hospital as ACO Hospital and Medical Staff as ACO Other Entrepreneurial Models??? 11
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Management of Provider Networks Administrative IT Platform - Eligibility Financial IT Platform - Claims Utilization Management Reporting Patient Engagement and Incentives Strong Capital Position Experienced in P4P/Payment Bundling 12
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Strong Clinical and Financial Infrastructure Durable Provider Relationships Case Management Expertise Leverage on Acute Care Costs Managed Care Contracting Expertise Focus on Patient Retention/Engagement 13
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Solid Administrative Infrastructure Comprehensive Clinical Coverage Integrated Clinical Platform Integrated Financial Platform Out-Patient Services Built-in Referral Network 14
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Comprehensive Acute Care Services Relationships with Ancillary Providers Large Medical Staff Footprint Local Brand Awareness Solid Capital Structure Administrative and Financial IT Infrastructure Managed Care Relationships 15
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Full Spectrum of Patient Services Superior Local Brand Awareness Clinical Integration Ability to Retain Risk Contracting Leverage with Payers Administrative/Financial Infrastructure 16
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Shared Governance Among Constituents Community Benefit Organization/Co-Op Medical Staff Roster Development Invitation to Ancillary Providers Participation Agreements Information Technology Requirements Health System Capitalization 17
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Choose Scope of Clinical Services Establish EBM Guidelines for Services Model Historical Financial Performance Determine Professional Fee schedules Establish Hospital Revenue Code Charges Create Combined Charge Structures Determine P4P Gain Sharing Rules Determine Risk Retention Rules 18
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Patient Enrollment and Eligibility Contract Modeling and Management Maintenance of CDM/Fee Schedules Case Management/Referral Services Claim Re-Pricing/Clearing/Payment Dispute Resolution/Collections Performance and Dashboard Reporting 19
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Receive Enrollment Data from Payers to ACO Identifying Patient Enrollees Develop Patient Roster for Physician Offices and Hospital Registration Perform Eligibility Checking using HIPAA Transactions and Portal Interfaces Transmit Authorizations to Practices and Hospital Accounting Operations 20
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Based on ACO Developed EBM Rules: Track Utilization among Providers Identify Variances from ACO Guidelines Manage and Track Provider Referrals Create Worklists for ACO Reviewers Develop Internal Clinical Authorizations Accommodate External Clinical Authorizations 21
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Model Bundled Contracts using Historical Claims Data and ACO Charge Master Load Executed Contract Terms and Rules into ACO Master Contract Library Disseminate Relevant Terms to Providers for Verification and Reconciliation Identify Payer Variance Record 22
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Create Charge Master Indexes ◦ Chronic Care Bundles/Medical Home ◦ Acute Episodes/Procedure Package Pricing ◦ Bundled Charges for Episode of Care – 30 Days Imbed Charge Master into ACO Platform Maintain and Update Disseminate to Providers 23
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ACO Platform Receives Un-scrubbed Claims from Physicians and Hospital – UBs & HCFAs ACO Re-Prices Claims According to Contract Terms or CMS Methodology ACO Bundles Individual Claims Into Bundled Claim Edited Format ACO Clears Bundled Claim to Payer/CMS ACO Receives Payments/Pays Providers 24
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There WILL BE Incorrect Payments within a Bundled Payment Environment Administrative Denials/Underpayments ◦ Clinical Denials/Reduction of P4P Payments ◦ Financial Reconciliation Denials/Outliers ACO Platform Re-Adjudicates Disputed Claims with Denial Management Tools Patient Receivables – Co-Pays, etc. 25
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Care Management/Utilization Management ◦ Flash Reporting on Active Patients ◦ Concurrent Clinical Variance Reporting ◦ Summary Reporting On Process/Outcomes Administrative Reporting – Process Costs Financial Reporting ◦ Charge/Cost, Payer Variances, Gain-Sharing, Risk/Retention, Receivables, Distributions 26
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The New ACO Technology Platform is not simply the Traditional PHO Platform The Buyer Market will Change its Approach The ACO must have a Nimble Platform Physicians will need Assurances that the Operating System is Accurate and Transparent The Current Revenue Cycle Systems and Applications are Inadequate for the Future 27
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The Accountable Care Organization Concept and Construct is a MUST for Health Systems As an ACO, Health Systems will be positioned as an Integrated Delivery Network As an Integrated Delivery Network, the Health System can effectively deal with changing Reimbursement Methodologies from Payers And, as an ACO, Health Systems can become a Participant in the planned State Exchanges 28
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Nick Hilger JDA eHealth Systems 1717 Park Street, Suite 250 Naperville, IL 60562 nhilger@jdaehealth.com (630)355-5220 ext. 3279 (Office) (651)324-2943 (Mobile) 29
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