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Using Market Data to Support Your Compliance Program

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Determining whether your physician contracts are compliant is no cakewalk. An inconsistent or poorly managed process for negotiating and benchmarking physician contracts can lead to conflicts and strain your
internal resources.

Published in: Healthcare
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Using Market Data to Support Your Compliance Program

  1. 1. 1 Using Market Data to Support Your Compliance Program November 21, 2013 Allison Pullins, Director
  2. 2. 2 Discussion Agenda: • Introduce MD Ranger • How to identify quality market data and use it appropriately for physician contract compliance • Outline benefits of using benchmarks for payment rates in your compliance program • Successful strategies and tips from MD Ranger partner organizations
  3. 3. MD Ranger: your physician market data and compliance resource • Provides market data benchmarks for broad range of administrative services • Helps to negotiate competitive contracts • Documents compliance and uncovers potential risks • Identifies opportunities for cost reduction • Provides tools to compare a hospital’s internal data to benchmarks, tools for budgeting • Generates contract-specific reports for compliance documentation 3
  4. 4. 4 MD Ranger Subscribers
  5. 5. 5 Our Methodology MD Ranger’s unique subscription service turns verified hospital data into industry benchmarks. Subscribers submit data via online survey, working with our implementation team to ensure data accuracy. Our unique approach to capturing all contract data from an organization allows us to not only determine what to pay, but also when to pay.
  6. 6. Who I am 6 • Director at MD Ranger, Inc • Background in physician marketing, recruitment, engagement, compensation, negotiations • Helps MD Ranger subscribers leverage the data, analyze internal costs, and document compliance
  7. 7. How to Identify Quality Market Data 7
  8. 8. Attributes of High-Quality Data • Sample size • Participant characteristics • Consistent, comprehensive collection method • Thorough and transparent auditing processes 8
  9. 9. What Does Market Data Reveal? • What similar hospitals pay • How rates are distributed • Hours per month • Annual payments • Hourly rates • Number of positions per service 9
  10. 10. Using Benchmarks for Physician Contracting Compliance Programs 10
  11. 11. Putting Data to Good Use • Make only apples to apples comparisons • Consider sample size • Focus on similar organizations • Consistently apply market data, especially within a certain specialty or service 11
  12. 12. Setting Internal Guidelines • Write your policy with input from key stakeholders, compliance professionals, and attorneys • Put an executive in charge • Communication is key! • Be consistent and descriptive in your policy 12
  13. 13. Example Compliance Policy Guidelines • All physician call coverage contracts must be at or below the 50th percentile • Extenuating circumstances may go up to the 60th percentile • Exception: call coverage for general surgery and orthopedic surgery may be at the 75th percentile • If you must pay above 75th percentile, a written exception request must go to CEO/CCO/etc 13
  14. 14. Benefits of Using Market Data for Your Compliance Program 14
  15. 15. Standardization 15 • Everyone across your organization adheres to the same standard • Consistency ensures fairness and transparency • Protects the organization and physicians
  16. 16. Wide Applicability Across Physician Contracts 16 • Diverse data sets allow you to drill deep into specialties, sub-specialties, etc. • Facilities with special demographics can use the most appropriate data cut • Helpful data on DSH, Medicare status, uncompensated care components, and incentives can help inform contract negotiations
  17. 17. Consistently Measure Performance 17 • Establishing targets for physician contracting costs can be measured through using market data consistently • Aggregated spend on call coverage and physician administrative positions can help measure your financial performance
  18. 18. Strategies, Tips from MD Ranger Subscribers 18
  19. 19. Make Medical Directorships as Simple as Possible • Consider setting an organization-wide hourly rate • Ensure that administrative positions that could be held by physicians of any specialty are standardized • Know and track hours spent by physicians doing administrative, non-clinical duties 19
  20. 20. Make Sure Medical Directorships Don’t Carry Hidden Risks • Is the role a typical directorship role, or are there “above and beyond” duties like starting a clinical program or service line from scratch? • Beware of hidden compliance risks in number of hours per month or number of positions per service • Take a second look at low or average rates 20
  21. 21. Discourage “Exceptions” by Making Dispute Process Rigorous • Be reasonable when creating a policy, yet understand your upper limits • Encourage accountability through using executive involvement in process 21
  22. 22. Health Systems: Empower Facilities to Make Decisions within reason • Publish and communicate reasonable guidelines • Give facility decision-makers access to data; empower them to make their own decisions within the guidelines of your policy • Anything within the policy goes (so be comfortable with your policy!) • Outline a fair process to dispute 22
  23. 23. Always Put the Organization First • Does our physician contracting rate policy help achieve overall goals? • Does your compliance program protect the organization? 23
  24. 24. Questions? 24
  25. 25. We want to hear from you! www.mdranger.com 25 Allison Pullins Director apullins@mdranger.com 650-692-8873

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