Getting to Safe, Affordable, Effective, Patient-Centered Care: Good Data Are Only the Beginning

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Getting to Safe, Affordable, Effective, Patient-Centered Care: Good Data Are Only the Beginning Dana Gelb Safran, Sc.D. Senior Vice President Performance Measurement & Improvement

Transformation Vision: 2016 A health care system that provides safe, timely, effective, affordable, patient-centered care for everyone in Massachusetts. 2

Advancing Quality, Outcomes and Affordability: Role of Performance Measurement and Reporting Programs Reporting to Providers Member Incentives & Benefits Provider Incentives Reporting to Public 3

The Economic Imperative Health care spending per capita is projected to nearly double over the next 10 years. Source: CMS, Office of the Actuary, National Health Statistics Group 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% BCBSMA s medical cost trend is growing five times faster than workers earnings, and nearly four times the rate of inflation. 6.0% 4.0% 2.0% 0.0% 15.9% 13.1% 13.3% 13.8% 12.1% 12.8% 8.2% 2000 2001 2002 2003 2004 2005 2006 BCBSMA Medical Trend Workers Earnings Sources: BCBSMA, Bureau of Labor Statistics Overall Inflation 4

Key components of the Alternative Contract Model Unique contract model: Physicians & hospital contracted together as a system accountable for cost & quality across full care continuum Long-term (5-years) Controls cost growth: Global payment for care across the continuum Annual inflation tied to CPI Incentive to eliminate clinically wasteful care ( overuse ) Savings Opportunity Trend Quality Performance INITIAL GLOBAL PAYMENT LEVEL Expanded Margin Opportunity Improved quality, safety and outcomes: Robust performance measure set creates accountability for quality, safety and outcomes across continuum Substantial financial incentives for high performance (up to 10% upside) Year 1 Year 2 Year 3 Year 4 Year 5 5

Process PatientExper. Outcomes AQC Measures - Illustration Only - Not Actual Provider Scores Ambulatory Measures Hospital Measures Measure Score Weight Measure Score Weight Depression AMI 1 Acute Phase Rx 2.5 1.0 1 ACE/ARB for LVSD 2.0 1.0 2 Continuation Phase Rx 1.5 1.0 2 Aspirin at arrival 2.5 1.0 Diabetes 3 Aspirin at discharge 1.5 1.0 3 HbA1c Testing (2) 3.0 1.0 4 Beta Blocker at arrival 1.5 1.0 4 Eye Exams 1.0 1.0 5 Beta Blocker at discharge 1.3 1.0 5 Nephropathy Screening 1.2 1.0 6 Smoking Cessation 1.0 1.0 Cholesterol Management Heart Failure 6 Diabetes LDL-C Screening 2.8 1.0 7 ACE LVSD 1.3 1.0 7 Cardiovascular LDL-C Screening 2.1 1.0 8 LVS function Evaluation 1.0 1.0 9 Discharge instructions 1.8 1.0 8 Breast Cancer Screening 1.2 1.0 10 Smoking Cessation 3.0 1.0 9 Cervical Cancer Screening 1.3 1.0 Pneumonia 10 Colorectal Cancer Screening 2.4 1.0 11 Flu Vaccine 2.5 1.0 Preventive Screening/Treatment 12 Pneumococcal Vaccination 2.9 1.0 Chlamydia Screening 13 Antibiotics w/in 4 hrs 1.4 1.0 11 Ages 16-20 3.1 0.5 14 Oxygen assessment 1.0 1.0 12 Ages 21-25 1.8 0.5 15 Smoking Cessation 3.1 1.0 Pedi: Testing/Treatment 16 Antibiotic selection 3.0 1.0 13 Upper Respiratory Infection (URI) 1.6 1.0 17 Blood culture 3.5 1.0 14 Pharyngitis 1.4 1.0 Surgical Infection Pedi: Well-visits 18 Antibiotic received 1.3 1.0 15 < 15 months 2.6 1.0 19 Received Appropriate Preventive Antibiotic( 1.4 1.0 16 3-6 Years 2.0 1.0 20 Antibiotic discontinued 3.0 1.0 17 Adolescent Well Care Visits 1.5 1.0 Diabetes 21 In-Hospital Mortality - Overall 3.0 1.0 18 HbA1c in Poor Control 3.2 3.0 22 Wound Infection 2.1 1.0 19 LDL-C Control (<100mg) 2.4 3.0 23 Select Infections due to Medical Care 2.8 1.0 Hypertension 24 AMI after Major Surgery 2.4 1.0 20 Controlling High Blood Pressure 1.3 3.0 25 Pneumonia after Major Surgery 3.4 1.0 Cardiovascular Disease 26 Post-Operative PE/DVT 2.0 1.0 21 LDL-C Control (<100mg) 2.4 3.0 27 Birth Trauma - injury to neonate 1.0 1.0 28 Obstetrics Trauma-vaginal w/o instrument 1.5 1.0 Patient Experiences (C/G CAHPS/ACES) - Adult 3 Hospital Patient Experience (H-CAHPS) Measures 22 Communication Quality 1.9 1.0 29 Communication with Nurses 4.0 1.0 23 Knowledge of Patients 1.9 1.0 30 Communication with Doctors 3.0 1.0 24 Integration of Care 2.1 1.0 31 Responsiveness of staff 2.5 1.0 25 Access to Care 2.4 1.0 32 Discharge Information 2.8 1.0 Patient Experiences (C/G CAHPS/ACES) - Pediatric 3 26 Communication Quality 1.0 1.0 27 Knowledge of Patients 1.5 1.0 28 Integration of Care 2.5 1.0 29 Access to Care 2.8 1.0 Experimental 30 Experimental Measure A 5.0 1.0 33 Experimental Measure C 5.0 1.0 31 Experimental Measure B 5.0 1.0 Weighted Ambulatory Score 2.2 Weighted Hospital Score 2.3 Aggregate Score 2.3 6

Performance Achievement Model Performance Payment Model 10% 8% 9.0% 10.0% % Payout 6% 4% 2% 2.0% 3.0% 5.0% 0% 1.0 2.0 3.0 4.0 5.0 Performance Score 7

Key Components of the Alternative Contract Model Performance Improvement: Cost and Efficiency Savings Opportunity Trend Quality Performance Expanded Margin Opportunity INITIAL GLOBAL PAYMENT LEVEL Year 1 Year 2 Year 3 Year 4 Year 5 8

Geography is Destiny: Practice Pattern Variation 9

Practice Pattern Variation Analysis (PPVA) Unpacking differences in the treatment components of specific episodes across clinicians in a single, defined medical specialty The results are highly actionable because they get to the root of variations in treatment costs for a defined and highly-specific clinical circumstance among physicians of the same specialty Source: Greene RA, et al. Health Affairs 2008; w250-259 10

100 90 80 Benign Hypertension, With and Without Comorbidity Individual Primary Care Physicians Rate of ARB Use per 100 Episodes with ACE-I and/or ARB 2007 Rate = Episodes with ARB / Episodes with ACE-I and/or ARB Rate of Arb Use per 100 Episodes with ACE-I and/or ARB 70 60 50 40 30 1304 Primary Care Physicians (41%) have rates for ARB 1304 use that Primary are above Care Physicians the network(41%) average. have rates for (N=3178) ARB use that are above the network average. (N=3178) The average count of Benign Hypertension, with and without The average comorbidity count of episodes Benign Hypertension, physician inwith this and analysis without is 41. comorbidity episodes per physician in this analysis is 41. Physicians with rates above network average have an average Physicians episode with load ratesof above 44. network average have an average episode load of 44. 20 10 0 1 355 709 1063 1417 1771 2125 2479 2833 Individual Primary Care Physicians (N=3178) 11

Rate of ARB Use per 100 Episodes with ACE-I and/or ARB 70 60 50 40 30 20 10 0 Benign Hypertension, With and Without Comorbidity Primary Care Physicians by Group Rate of ARB Use per 100 Episodes with ACE-I and/or ARB 2007 Rate = Episodes with ARB / Episodes with ACE-I and/or ARB The highlighted group utilizes ARB in 29% of their episodes where ACE-I and/or ARB is prescribed. The total episode load of this group is 469. There are 12 primary care physicians in the group for this analysis. 1 13 25 37 49 61 73 85 97 109 121 Prim ary Care Physician Groups (N=145)

100 90 Benign Hypertension, With and Without Comorbidity Individual Primary Care Physicians Rate of ARB Use per 100 Episodes with ACE-I and/or ARB 2007 Rate = Episodes with ARB / Episodes with ACE-I and/or ARB Rate of ARB Use per 100 Episodes with ACE-I and/or ARB 80 70 60 50 40 30 20 The 12 primary care physicians in this group have rates Theof 12ARB primary use ranging care physicians from 13% into this 55%. group have rates of ARB use ranging from 13% to 55%. 9 physicians have rates above the network average. 9 physicians have rates above the network average. 10 0 1 355 709 1063 1417 1771 2125 2479 2833 Individual Primary Care Physicians (N=3178) 13

Variations in PCP Referral for Low Back Pain Rate of Referral to Orthopedic Surgeon or Neurosurgeon per 100 Episodes 100 80 60 40 20 Low Back Pain as subset of Joint Degeneration of the Neck & Back, with & without surgery Med Grp YZ PCP Groups Rate of Referral to Orthopedic Surgeon or Neurosurgeon per 100 Episodes 2006-2007 Rate = Episodes with at least 1 Referral to Ortho. Surg. or Neurosurg. / Total Episodes per PCP Group - The 21 PCP groups associated with NEQCA have referral rates to orthopedic surgeons and neurosurgeons ranging from 0 to 35 per 100 episodes. - 3 groups have a rate of 0. - 9 groups have rates at or above the network average. 0 1 65 129 193 257 321 385 449 513 577 641 705 PCP Groups (N=767) 14

Variations in Days-to-MRI for Low Back Pain Average # of Days from Initial Visit to MRI 500 450 400 350 300 250 200 150 Low Back Pain as subset of Joint Degeneration of the Neck & Back, with & without surgery Medical Group YZ's PCP Groups Average # of Days from Initial Visit to MRI 2006-2007 Rate = Sum of Days from Initial Visit to MRI / # of Episodes with MRI per PCP Group - The 21 PCP groups associated with Medical Group YZ have average days between initial visit and MRI ranging from 0 to 311 days. - 12 PCP groups have average days less than the network average. - The same 12 PCP groups also have average days less than 6 weeks or 42 days (below dashed line). 100 50 0 1 65 129 193 257 321 385 449 513 577 641 705 PCP Groups (N=720) 15

Select PPVA Topics Provided to AQC Groups Condition Hyperlipidemia Benign Hypertension Depression Migraine (except CHF, w/o AMI) Rhinitis Arthritis Rx Primary Drivers of Variation Imaging Specialty Referral Procedure Non-Urgent Emergency Department Inflammation of Esophagus Utilization JointDegeneration 30of Day Knee All-cause Readmissions Inflammation of Skin CAD, Ischemic Heart Disease Sinusitis (Acute & Chronic), Allergic Low Back Pain Avoidable Use of Hospital Resources Ambulatory Care Sensitive Admissions 16

Variation in 30-Day Readmission Rates by PCP Group 30-day readmition rate per 100 initial admissions 30 25 20 15 10 5 30-day all-cause readmissions rate CY2008 admissions excluding maternity and newborn HMO/POS and Medicare HMO members with in-state referral circle PCPs state average = 9.26% with patients from 121 referral circles 116 referral circles have >+5 initial admissions 12 of them have readmission rates significantly higher than state average Grp A = 8.5% 0 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 97 101 105 109 113 17

Variation in Non-Emergent ED Visit Rate by PCP Group 350 Non-Emergent/Primary Care Treatable ED Visits/1000 Age/Gender Adjusted Group level ED Quarterly Report Incurred Q4 2009 HMO, POS Non-Emergent/Primary Care Tretable ED Visits/1,000 300 250 200 150 100 Group has a total of 647 ED visits in Q4 2009 for its HMO/POS members. Group visit probability/1000 is 139.6. Group has a total of 31 primary care providers for this analysis with approximately 2600 members in their HMO/POS panel.. Group Average for Network Group 50 0 0 20 40 60 80 100 120 Physician Groups in Netw ork 18

Within-Group Variation in ED Visits for Otitis Media 90 80 Otitis Media Rate of ED use per 100 episodes CY2008 Group PCPs and their Panel of HMO/POS Patients Rate of EDUse for Otitis Media 70 60 50 40 30 20 There are 87 PCPs in this analysis for Group with 35 having rates of ED use above the network average. Rates of ED use for Group physicians range from 0 to 33%. The average count of ETG episodes per Group physician in this analysis is 48. Rate = Episodes with an ED Visit / Total ETG Episodes 10 0 1 312 623 934 1245 1556 1867 2178 2489 2800 3111 3422 3733 PCPs 19

Summary Without measurement, we don t know where we are on the journey But imprecise measurement used in high stakes ways undermines our collective efforts Rapid and substantial performance improvement appears to follow when the stage is set with: Substantial financial incentives for improvement on measures that are well accepted, widely validated and clinically important Ongoing and timely data to inform improvement efforts Organizational structure and leadership commitment to the goals Under a payment model that creates accountability for resource use (e.g., global budget), cost and efficiency measures do not need to meet criteria for high stakes use. Incentives for improvement on this domain is built into the payment model Measurement is needed to support accountability and success but not for high stakes Clinically-specific, specialty-specific approach to displaying practice pattern variations appears powerful to engaging physician leaders and front line in (passionately) addressing clinical waste. 20

For More Information dana.safran@bcbsma.com 21