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IBM Global Business Services

IBM Institute for Business Value


                                                                                                                                    Healthcare and
                                                                                                                                     Life Sciences




        Patient-centered medical home
        What, why and how?
        The patient-centered medical home (PCMH) can serve as a foundation                                 for full implementation include improved
                                                                                                           access to patient information and clinical
        for transformation of the U.S. healthcare system – if appropriately                                knowledge to improve prevention,
        conceived and properly implemented. But it can also suffer from                                    diagnosis and treatment; changes on the
                                                                                                           part of other stakeholders (consumers,
        unfettered expectations. This study makes the realistic case for why                               other physicians, hospitals, health plans,
        and how stakeholders can participate in PCMH initiatives, identifies                               employers, governments and such life
                                                                                                           sciences as pharmaceuticals); and a robust
        critical issues and makes recommendations for best practices to                                    infrastructure to support comprehensive,
        increase the likelihood of initial success and sustainability.                                     coordinated care.

                                                                                                           Benefits, however, may come, however,
        Replacing poorly coordinated, acute-            A set of principles guide the development
                                                                                                           may come at a cost. All stakeholders face
        focused, episodic care with coordinated,        and implementation of the medical home.
                                                                                                           possibly difficult changes and might have to
        proactive, preventive, acute, chronic, long-    At the core of the medical home is the
                                                                                                           make significant compromises. Even so, the
        term and end-of-life care is foundational to    patient’s active, personal, comprehensive,
                                                                                                           alternatives could be even less desirable.
        the transformation of the U.S. healthcare       long-term relationship with a PCP This
                                                                                             .
                                                                                                           Status quo is not an option, so stakeholders
        system. Many believe this can be best           PCP is often a physician specializing in
                                                                                                           should actively participate in collaboratively
        accomplished by strengthening primary           primary care, but also could be a physician
                                                                                                           shaping a more affordable, sustainable,
        care and having primary care provider-          specialist for the dominant condition
                                                                                                           high-valued healthcare system.
        led (PCP) care delivery teams working           affecting the patient or, in jurisdictions where
        at the “top of their licenses” – at the level   they are allowed to practice independently,        A significant transformation of the U.S.
        for which they are qualified and licensed.      a nurse practitioner. Another key principle        healthcare system appears imminent,
        One approach to transforming primary            of the PCMH is the team approach to care.          including investments in prevention – which
        care is the patient-centered medical home       Quality and safety, combined with care             should be a basis of primary care and the
        (PCMH), or the “medical home” – an              coordination, whole-person orientation             PCMH. Medical homes can be created now
        enhanced primary-care model that provides       and appropriate reimbursement, represent           as part of this transformation. Early medical
        comprehensive and timely care and               additional principles of the PCMH. Further,        home pilots have demonstrated success in
        payment reform, emphasizing the central         patients benefit from enhanced access              key areas such as improved quality, greater
        role of teamwork and engagement by those        such as more flexible scheduling and               patient compliance and more effective
        receiving care.                                 communication channels.                            use of healthcare services. Plus, interest
                                                                                                           and support are growing for the medical
 To                                                     While medical homes can be a cornerstone
    r  ec                                                                                                  home model across the healthcare and
 vis       eiv                                          of transformation, they are not a “silver
    it i      ea                                                                                           life sciences landscape. From a financial
        bm      ve                                      bullet.” They hold a great deal of promise,
             .co rsio                                                                                      perspective, incentives are in place to help
                m/ n of                                 but many more supportive measures
                  he                                                                                       PCPs transform their practices.
                     alt the f                          need to be undertaken to fully realize
                        hc
                           are ull re                   the benefits. For example, steps needed
                              /m      p
                                 ed ort,
                                   ica     p
                                       lho leas
                                          me e
Medical homes hold great promise – and                          applying these practices can help increase          © Copyright IBM Corporation 2009
many initiatives are currently in progress. Even                the likelihood of success for an initial rollout      IBM Global Services
so, attempts with even the purest motives                       and a sustainable model. To help frame                Route 100
                                                                                                                      Somers, NY 10589
can fail because of unrealistic expectations,                   discussions and provide guidance in utilizing         U.S.A.
poor planning or poor implementations.                          current best practices when implementing              Produced in the United States of America
Fortunately, best practices are emerging that                   a medical home, we offer observations and             May 2009
                                                                                                                      All Rights Reserved
help to deal with these issues. Appropriately                   recommendations to guide current and future
                                                                                                                      IBM, the IBM logo and ibm.com are trademarks
                                                                initiatives.                                          or registered trademarks of International
                                                                                                                      Business Machines Corporation in the United
                                                                                                                      States, other countries, or both. If these and other
  FIGURE 1: When implementing a PCMH, key steps must be taken to help maintain                                        IBM trademarked terms are marked on their first
  consistent alignment with the problem at hand.                                                                      occurrence in this information with a trademark
                                                                                                                      symbol (® or ™), these symbols indicate U.S.
                                                                                            Is our approach           registered or common law trademarks owned by
                                                                                                                      IBM at the time this information was published.
                                    What are common                                         consistently
      What is the                                                  What are the best                                  Such trademarks may also be registered or
                                    implementation                                          aligned with              common law trademarks in other countries. A
      problem?                                                     practices?
                                    issues?                                                 problem we are            current list of IBM trademarks is available on the
                                                                                            trying to solve?          Web at “Copyright and trademark information” at
                                                                                                                      ibm.com/legal/copytrade.shtml
  •	 What cost/quality/         •	 Incentives to               •	 Who else has          •	 Do you have…               Other company, product and service names may
     access issue(s) are           participate                    addressed our            - An appropriate           be trademarks or service marks of others.
     you targeting?             •	 Members/patients               problem?                   governance
     - Near, long term?                                           - What can we learn        structure with the       References in this publication to IBM products
                                •	 Initial funding                                                                    and services do not imply that IBM intends to
  •	 What are your vision,                                          from them to             right participants?
                                •	 Governance                                                                         make them available in all countries in which IBM
     guiding principles?                                            address our key        - An agreed-upon           operates.
                                •	 Key metrics                      implementation           project plan and
                                •	 Payments                         issues?                  strong project
                                                                                             manager?
                                •	 Practice
                                                                                           - Capabilities to
                                   transformation
                                                                                             support the patient
                                •	 Technology                                                cohort?
                                   infrastructure                                          - Metrics to measure
                                •	 Patient attribution                                       alignment with and
                                •	 Sustainability                                            progress toward
                                                                                             original objectives?

  Source: IBM Global Business Services and IBM Institute for Business Value.




   How can IBM help?
   •	 IBM Healthcare Global Business Services: IBM empowers healthcare stakeholders and
      patients with the right technology and tools to help facilitate collaboration among patient
      and care delivery team to help achieve greater patient health and a healthier society.
   •	 Research: Eight IBM research labs are applying the latest science to healthcares most
      challenging business problems.


   Key contacts:
   Healthcare and Life Sciences:
    Healthcare Transformation                            Paul Grundy, pgrundy@us.ibm.com
     GBS Healthcare                                      Robert Merkel, robert.merkel@us.ibm.com
     GBS Healthcare                                      Robert Hoyt, hoytr@us.ibm.com
     Center for Healthcare Management                    Jim Adams, jim.adams@us.ibm.com
     North America (East)                                Patrick Boyle, pboyle@us.ibm.com
     North America (West)                                Amy David, david@us.ibm.com
   IBM Institute for Business Value:                     Edgar Mounib, ed.mounib@us.ibm.com




                                                                                                                      GBE03207-USEN-01

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Executive Summary: Patient-centered medical home

  • 1. IBM Global Business Services IBM Institute for Business Value Healthcare and Life Sciences Patient-centered medical home What, why and how? The patient-centered medical home (PCMH) can serve as a foundation for full implementation include improved access to patient information and clinical for transformation of the U.S. healthcare system – if appropriately knowledge to improve prevention, conceived and properly implemented. But it can also suffer from diagnosis and treatment; changes on the part of other stakeholders (consumers, unfettered expectations. This study makes the realistic case for why other physicians, hospitals, health plans, and how stakeholders can participate in PCMH initiatives, identifies employers, governments and such life sciences as pharmaceuticals); and a robust critical issues and makes recommendations for best practices to infrastructure to support comprehensive, increase the likelihood of initial success and sustainability. coordinated care. Benefits, however, may come, however, Replacing poorly coordinated, acute- A set of principles guide the development may come at a cost. All stakeholders face focused, episodic care with coordinated, and implementation of the medical home. possibly difficult changes and might have to proactive, preventive, acute, chronic, long- At the core of the medical home is the make significant compromises. Even so, the term and end-of-life care is foundational to patient’s active, personal, comprehensive, alternatives could be even less desirable. the transformation of the U.S. healthcare long-term relationship with a PCP This . Status quo is not an option, so stakeholders system. Many believe this can be best PCP is often a physician specializing in should actively participate in collaboratively accomplished by strengthening primary primary care, but also could be a physician shaping a more affordable, sustainable, care and having primary care provider- specialist for the dominant condition high-valued healthcare system. led (PCP) care delivery teams working affecting the patient or, in jurisdictions where at the “top of their licenses” – at the level they are allowed to practice independently, A significant transformation of the U.S. for which they are qualified and licensed. a nurse practitioner. Another key principle healthcare system appears imminent, One approach to transforming primary of the PCMH is the team approach to care. including investments in prevention – which care is the patient-centered medical home Quality and safety, combined with care should be a basis of primary care and the (PCMH), or the “medical home” – an coordination, whole-person orientation PCMH. Medical homes can be created now enhanced primary-care model that provides and appropriate reimbursement, represent as part of this transformation. Early medical comprehensive and timely care and additional principles of the PCMH. Further, home pilots have demonstrated success in payment reform, emphasizing the central patients benefit from enhanced access key areas such as improved quality, greater role of teamwork and engagement by those such as more flexible scheduling and patient compliance and more effective receiving care. communication channels. use of healthcare services. Plus, interest and support are growing for the medical To While medical homes can be a cornerstone r ec home model across the healthcare and vis eiv of transformation, they are not a “silver it i ea life sciences landscape. From a financial bm ve bullet.” They hold a great deal of promise, .co rsio perspective, incentives are in place to help m/ n of but many more supportive measures he PCPs transform their practices. alt the f need to be undertaken to fully realize hc are ull re the benefits. For example, steps needed /m p ed ort, ica p lho leas me e
  • 2. Medical homes hold great promise – and applying these practices can help increase © Copyright IBM Corporation 2009 many initiatives are currently in progress. Even the likelihood of success for an initial rollout IBM Global Services so, attempts with even the purest motives and a sustainable model. To help frame Route 100 Somers, NY 10589 can fail because of unrealistic expectations, discussions and provide guidance in utilizing U.S.A. poor planning or poor implementations. current best practices when implementing Produced in the United States of America Fortunately, best practices are emerging that a medical home, we offer observations and May 2009 All Rights Reserved help to deal with these issues. Appropriately recommendations to guide current and future IBM, the IBM logo and ibm.com are trademarks initiatives. or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. If these and other FIGURE 1: When implementing a PCMH, key steps must be taken to help maintain IBM trademarked terms are marked on their first consistent alignment with the problem at hand. occurrence in this information with a trademark symbol (® or ™), these symbols indicate U.S. Is our approach registered or common law trademarks owned by IBM at the time this information was published. What are common consistently What is the What are the best Such trademarks may also be registered or implementation aligned with common law trademarks in other countries. A problem? practices? issues? problem we are current list of IBM trademarks is available on the trying to solve? Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml • What cost/quality/ • Incentives to • Who else has • Do you have… Other company, product and service names may access issue(s) are participate addressed our - An appropriate be trademarks or service marks of others. you targeting? • Members/patients problem? governance - Near, long term? - What can we learn structure with the References in this publication to IBM products • Initial funding and services do not imply that IBM intends to • What are your vision, from them to right participants? • Governance make them available in all countries in which IBM guiding principles? address our key - An agreed-upon operates. • Key metrics implementation project plan and • Payments issues? strong project manager? • Practice - Capabilities to transformation support the patient • Technology cohort? infrastructure - Metrics to measure • Patient attribution alignment with and • Sustainability progress toward original objectives? Source: IBM Global Business Services and IBM Institute for Business Value. How can IBM help? • IBM Healthcare Global Business Services: IBM empowers healthcare stakeholders and patients with the right technology and tools to help facilitate collaboration among patient and care delivery team to help achieve greater patient health and a healthier society. • Research: Eight IBM research labs are applying the latest science to healthcares most challenging business problems. Key contacts: Healthcare and Life Sciences: Healthcare Transformation Paul Grundy, pgrundy@us.ibm.com GBS Healthcare Robert Merkel, robert.merkel@us.ibm.com GBS Healthcare Robert Hoyt, hoytr@us.ibm.com Center for Healthcare Management Jim Adams, jim.adams@us.ibm.com North America (East) Patrick Boyle, pboyle@us.ibm.com North America (West) Amy David, david@us.ibm.com IBM Institute for Business Value: Edgar Mounib, ed.mounib@us.ibm.com GBE03207-USEN-01