Dr Ashish Jha: lessons from organisational change

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5 Years On: A Bird's Eye Look at Improvement under ACA

Ashish K. Jha, MD, MPH

February 26, 2015

+ Background

The ACA has two goals:

Expand Coverage

Fix the healthcare

delivery system

+

Why delivery reform?

+ Total U.S. healthcare spending, 2013:$2.9 trillion

Source: Centers for Medicare & Medicaid Services

$4,881

$5,243

$5,694

$6,129

$6,508

$6,887

$7,265

$7,652

$7,944$8,175

$8,428$8,698

$8,996

$9,255

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Per Capita National Health Expenditures

+

-22% -31%

-12%

-14% -13% -51%

+37%

$0

$2

$4

$6

$8

$10

$12

$14

$162001 2010

What’s the cost of high costs?

Changes in MA state spending, 2001-2010 (in billions)

+ Quality is suboptimal

1 in 4 seniors injured during hospitalization*

Each year:

1.8 million hospital-acquired infections

4th leading cause of death

1.5 million preventable injuries due to medications

A top10 cause of death

Large variations in use of effective services

Patient experience often suboptimal

*Source: OIG, HHS, Adverse Events in Hospitals: National Incidence Among Medicare Beneficiaries

+ Why do we have cost and

quality problems?

+ Multiple theories

Fragmentation

How we pay for care (FFS, lack of incentives)

Inadequate transparency

Inadequate competition

Inadequate patient “skin in the game”

+ The ACA & Delivery Reform

Change how we pay for things

Hospital readmissions reduction program

Value-based purchasing

Hold providers accountable

Patient-centered medical home

Accountable Care Organizations

Centrally manage innovation

CMMI

+So is the ACA working?

+ What are the facts?

+ Readmissions Reduction Program

Up to 3% penalty for high readmission rate

2/3 of hospitals penalized each of the 3 years

Penalty seems to be making a difference

+ Good News: Readmissions are down

19.0%

17.8%

15.0%

16.0%

17.0%

18.0%

19.0%

20.0%

21.0%

22.0%

2007 2008 2009 2010 2011 2012 2013

Medicare 30-day all-cause readmission rate

Source: Centers for Medicare & Medicaid Services

ACA

+ HITECH Act: Incentives for EHRs

Signed into law in 2009 by President Obama

Incentives for “meaningful use” of Health IT

Through 2013: Incentives seem to be working

+ Use of EHRs among U.S. hospitals

9.1%11.9%

15.2%

26.6%

44.6%

59.8%

0%

10%

20%

30%

40%

50%

60%

70%

2008 2009 2010 2011 2012 2013

Basic or Comprehensive EHR

Incentives

Start

+ Value-based purchasing aka P4P

Up to 2% of Medicare payments tied to:

Broad set of quality measures:

Processes

Outcomes

Patient Experience

Efficiency

Impact underwhelming

+

11.2%

8.1%

8.6%

0%

2%

4%

6%

8%

10%

12%

Mortality rates for Acute MI, CHF and Pneumonia

Mortality rate for VBP conditions

ACA

+ Patient experience, hospitalsPercentage of patients who rated their hospital highly

63%64%

66%

67%

69%

70%71%

50%

55%

60%

65%

70%

75%

80%

2007 2008 2009 2010 2011 2012 2013

ACA

+ Big lesson across three programs:

Incentives work when:

They are sizable

Narrowly tailored

Easily measured

Transparently designed

+ What’s happening with ACOs?

+ACOs: What are they?

CMS Definition: “ACOs are groups of

doctors, hospitals, and other health care

providers, who come together voluntarily to

give coordinated high quality care to the

Medicare patients they serve”

Simple Definition:

Group of providers that take responsibility

for a population

+ACOs come in 2 main flavors:

Pioneers Big

Risk-sharing, moving towards capitation

Many of the premier organizations (Partners, etc.)

Shared-savings program Smaller

Less risk-sharing

+ Good News: Number of ACOs up

146

252

366

455

0

50

100

150

200

250

300

350

400

450

500

2012 2013 2014 2015

Source: Health Affairs Blog; Centers for Medicare & Medicaid Services

15-20% of Medicare Beneficiaries in an ACO

+ How are ACOs doing?

+ Pioneer ACOs by Year 2

32 Pioneers initially signed up

13 dropped out or switched to SSP

Of the 19 remaining:

4 generated shared losses

2 broke even

13 generated shared savings

+ SSPs: Financial Performance at Year 1

5

77

40

92

6

0

10

20

30

40

50

60

70

80

90

100

Losses > 10% Losses 1-10% Broke even(savings/losses

<1%)

Savings 1-10% Savings >10%

Nu

mb

er

of

AC

Os

*Compared to target

+ What about quality?

+ Shared Savings ACO quality performanceACOs vs. PQRS participants

68.5 70.1

76.0

70.472.5 70.8

85.7

79.1

0

10

20

30

40

50

60

70

80

90

100

Diabetic HbA1c Control(<8%)

Diabetic Blood PressureControl (< 140/90)

Aspirin Use for Diabeticswith Heart Disease

ACE/ARB Therapy forPatients with CAD andDiabetes and/or LVSD

ACO

PQRS

+ Drilling down on ACOs:

Challenges and Opportunities

+ What do the ACOs look like?

+ ACO Size: Number of participating docs

37

40

12 12

0

5

10

15

20

25

30

35

40

45

<100 100- 500 501- 1,000 >1,000

Pe

rce

tna

ge

of

AC

Os

Number of Physicians

+ Participating providersACO contains:

52% 48%

HospitalYes

No

33%

67%

Home Care Agency

25%

75%

Skilled Nursing Facility

+ What are ACOs doing?

+

%

Primary care

incentive

payments for

performance

on:

%

Primary care

incentive

payments for

performance

on:

Quality

None 25

<10% 44

>10% 31

%

Primary care

incentive

payments for

performance

on:

Efficiency

None 46

<10% 29

>10% 25

%

Primary care

incentive

payments for

performance

on:

Patient

Satisfaction

None 35

<10% 46

>10% 19

Incentives for primary care docs

+ Major programmatic efforts

%

Currently in use

by majority of

ACO

participants:

%

Currently in use

by ACOs:

Electronic Health

Record96

%

Currently in use

by ACOs:

Electronic Health

Record96

Targeted Disease

Management

Programs

76

%

Currently in use

by ACOs:

Electronic Health

Record96

Targeted Disease

Management

Programs

76

Programs to Reduce

Preventable

Readmissions

84

%

Currently in use

by ACOs:

Electronic Health

Record96

Targeted Disease

Management

Programs

76

Programs to Reduce

Preventable

Readmissions

84

Case Management

for High Cost

Patients

80

+ What are ACOs doing less?

%

Currently in use

by ACOs:

%

Currently in use

by ACOs:

Messaging Between

Providers and

Patients

37

%

Currently in use

by ACOs:

Messaging Between

Providers and

Patients

37

Electronic Alerting of

PCPs when their

Patients use ER

43

%

Currently in use

by ACOs:

Messaging Between

Providers and

Patients

37

Electronic Alerting of

PCPs when their

Patients use ER

43

Programs to Reduce

Hospital Acquired

Infections

47

%

Currently in use

by ACOs:

Messaging Between

Providers and

Patients

37

Electronic Alerting of

PCPs when their

Patients use ER

43

Programs to Reduce

Hospital Acquired

Infections

47

Patient Decision Aids

for Discretionary

Procedures

22

+ Where are the challenges?

+ Challenges to implementing ACOs

% Reporting Somewhat or Very

Challenging% Reporting Somewhat or Very

Challenging

Shifting Mindset from FFS to Integrated Care 91

% Reporting Somewhat or Very

Challenging

Shifting Mindset from FFS to Integrated Care 91

Facilitating Data Exchange 91

% Reporting Somewhat or Very

Challenging

Shifting Mindset from FFS to Integrated Care 91

Facilitating Data Exchange 91

Building EHR for Population Health Management 88

% Reporting Somewhat or Very

Challenging

Shifting Mindset of doctors from FFS to

Integrated Care91

Facilitating Data Exchange 91

Building EHR for Population Health Management 88

Controlling Use When Patients Can Receive

Care Outside of ACO97

+

%

Do you

believe that

most

ACOs:

Will Improve

Quality

Yes 86

No 11

No response 3

ACOs are optimistic

%

Do you

believe that

most

ACOs:

Will Improve

Quality

Yes 86

No 11

No response 3

Will Reduce

Costs

Yes 64

No 34

No response 3

+Final thoughts

U.S. on a major effort to fix the delivery system Mix of centralized and market-based

Initial glimpse: some early successes

ACOs represent a most promising approach Some will figure it out

What are the lessons for improvement?

Will we know how to spread and scale it?

Long journey to healthcare delivery reform We are still just getting started

+ Thank you

Twitter: @ashishkjha

+ HQA composite score, nationwideACA

75%

80%

85%

90%

95%

100%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

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