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PCEHR: The case for Change, the role of insurers and maximising benefits

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AHIA 2011 Conference Presentation by David Champeaux - MicKinsey and Company Pacific Rim

Health & MedicineBusiness
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PCEHR – benefits at stake and the role of Health Insurers AHIA 9 November 2011 Conference presentation CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited
Today’s discussion about the PCEHR What is the value at stake? What will it take to realise the value? How can Health Insurers contribute?
There are 5 high-level categories of direct benefits for the PCEHR ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SOURCE: PCEHR benefits and Evaluation Partner Quality Safety Access Efficiency Population
The PCEHR creates potential value oportunities for private health insurers and their members ,[object Object],[object Object],[object Object],[object Object],In the short term ,[object Object],[object Object],[object Object],In the longer term (subject to legislation)
Kaiser Permanente uses EHR to drive new program for patients with CAD SOURCE: Brian Sandhoff et al , “Collaborative Cardiac Service: A Multi-disciplinary approach to caring for patients with coronary artery disease,” Permanente Journal, Summer 2008, Volume 12 No. 3; Interview with Hal Wolf Significantly improved outcomes Percent ,[object Object],[object Object],77 22 +250% 24 100 -76% ,[object Object],patients at target LDL 1 All-cause mortality over 8 years 1 Low-density lipoprotein cholesterol ,[object Object],Kaiser Permanente: One of the largest not-for-profit health plans in the U.S. 8.7 million insured and 40 billion in revenues Integrated Network with >14,000 physicians, medical centers & hospitals ,[object Object],[object Object],[object Object],[object Object]
Kaiser leverages the potential of an EHR with value-added enhancements for its members and network physicians ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],SOURCE: Brian Sandhoff et al.; Holsclaw et al.: Assessment of Patient Satisfaction with telephone and mail Interventions provided by a Clinical Pharmacy Cardiac Risk Reduction Service, JMCP Vol. 11, No. 5 June 2005; Interview with Hal Wolf; Company website, McKinsey High satisfaction rate with care Percent being (very) satisfied Physicians Patients 1 Electronic medical record ,[object Object],[object Object]
Benefits realisations requires coordinated adoption in local systems Features of the system Example health community – newborn baby clinical module Specialist Parents and baby GP Public Hospital PCEHR record Immunisation register Midwife Consumer summary Discharge summary Event summary Specialist letter ,[object Object],[object Object],[object Object],IT vendors Jurisdictions Peak bodies Federal Government/NEHTA Enablers Geographical granularity – people see providers in their local area Requires coordinating multiple players Feedback loops – critical mass of stakeholders needed
PCEHR adoption will be a journey Usage and benefits will increase over time as: ,[object Object],[object Object],[object Object],[object Object],[object Object]
How Health insurers can contribute to PCEHR adoption and benefits Example actions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Questions?

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PCEHR: The case for Change, the role of insurers and maximising benefits

  • 1. PCEHR – benefits at stake and the role of Health Insurers AHIA 9 November 2011 Conference presentation CONFIDENTIAL AND PROPRIETARY Any use of this material without specific permission of McKinsey & Company is strictly prohibited
  • 2. Today’s discussion about the PCEHR What is the value at stake? What will it take to realise the value? How can Health Insurers contribute?
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Editor's Notes

  1. MEL-AAA123-20111007-
  2. Panel- Clear accountability for a single patient / a group of patients / a population Registry- An IT infrastructure to support a single integrated patient record Self-care - Encouraging populations to adopt healthy behaviours and patients to actively manage their health Clinical leadership- Clinicians as “healers, partners and leaders” Governance and incentives- A robust governance structure to make things happen, with incentives for both the doctor, the patient and the population to improve health outcomes
  3. Panel- Clear accountability for a single patient / a group of patients / a population Registry- An IT infrastructure to support a single integrated patient record Self-care - Encouraging populations to adopt healthy behaviours and patients to actively manage their health Clinical leadership- Clinicians as “healers, partners and leaders” Governance and incentives- A robust governance structure to make things happen, with incentives for both the doctor, the patient and the population to improve health outcomes