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Sustaining Population Health Outcomes
William J. Kassler, MD, MPH
Practical Playbook Meeting
May 2016
U.S Health in International Perspective
• US spends far more per person on health care
• Shorter life span, Poorer health
• Consistent and pervasive over entire life:
Infant mortality & low birth weight
Injuries & homicides
HIV/AIDS
Drug-related deaths
Obesity & diabetes
Heart disease
Chronic lung disease
Disability
Factors that Determine Health
Adapted from Kindig JAMA 2008; 299(17): 2081-2083.
Number of Deaths from Behavioral Causes
Source: Mokdad et al JAMA 2004
Impact Of Obesity On Medical Spending:
1987 – 2001
• Obesity increased by 10% in population
• Spending for obese was 37% higher
than for non-obese
• Rate of growth in spending higher for
obese:
63% ↑ obese vs. 37% ↑ non-obese
• Obesity accounted for 27% of growth in
spending
Thorpe et al Health Affairs, no. (2004):10.1377
Socio-economics factors linked to poor
health outcomes
• Area Deprivation Index (ADI)
– Neighborhood-based composite measure
consisting of 17 markers of socioeconomic status
• ADI correlated with:
– Mortality rates (age and race adjusted) for men
and women
– 30 day readmission rates
• increase with worsening ADI
• Magnitude equal to COPD and > diabetes
Sources:
Singh, GK Area deprivation and widening inequalities in US mortality, 1969-1998. Am J Public Health July 2003
Kind, AJ et al Neighborhood socioeconomic disadvantage and 30-day rehospitalization: a retrospective cohort study Ann Intern Med Dec 2014
Health vs Social Services Expenditures
Determinants
SOCIAL,
ENVIRONMENTAL,
and BEHAVIORAL
FACTORS
(60%)
GENETICS
(20%)
HEALTH CARE
(20%)
8
HEALTH CARE
SPENDING
(65%)
SOCIAL SERVICE
SPENDING
(35%)
Investment
Mismatch
Courtesy of Elizabeth Bradley
Investing in Social Services
How?
Population Management
vs
Total Population Health
Reconciling the clinical perspective with a
broader community perspective
Community:
Public Health,
Social Services
sectors
Health Systems:
Hospitals, ACOs,
Health Plans
Clinical Practices:
Primary Care
Medical Homes,
Specialty Care
Subgroups of
Patients:
Panels,
Racial/Ethnic
groups, patients
with specific
chronic diseases
Based on Kassler et al. N Engl J Med 372; 2015
Clinical Practices
• Population-based approaches:
– considering what happens between visits
– using registries and tools to improve preventive care
– addressing health disparities by including social, economic,
and cultural factors
– referring patients to a wider range of community services
• Supportive strategies:
– Medical homes and care management payments
– Linking practices and patients to community supports
– Practice support (Transforming Clinical Practice Initiative)
– Community Health Workers - translation, appointment
scheduling, referrals, and transportation
Delivery Systems
• Population-based approaches:
– Assessing community health needs
– Investing community benefit dollars
– Collaborating with other organizations to support
nonmedical services delivered in community
settings
• Supportive Strategies:
– Performance based alternative payment models
(e.g. ACOs) incentivize investments
Health Plans
• Medicaid and Medicare contracts afford
greater flexibility than FFS to pay for
population services
• Some MCOs cover bicycle helmets, car seats,
participation in the YMCA’s Diabetes
Prevention Program or March of Dimes Baby
and Me Tobacco Free program
Medicaid Managed Care
Positively Impacting Social Determinants of
Health: How Safety Net Health Plans Lead
the Way June 2014
Leveraging Medicaid contracts through sponsorships,
grants, and partnerships to invest in:
• Housing support,
• Employment initiatives,
• Literacy programs,
• Services for overcoming food insecurity.
Communities / States
• Medicaid
– Historically covers many non-medical support services
– Waivers & Demos provide additional opportunities to invest in
upstream strategies (Vermont waiver)
• State Innovation Models
– Use multiple levers for health systems transformation
– Population health plans
• Accountable Health Communities
Accountable Health Communities Model
Intervention Approaches
• Track 1: Awareness – Increase beneficiary awareness of available community
services through information dissemination and referral
• Track 2: Assistance – Provide community service navigation services to assist high-
risk beneficiaries with accessing services
• Track 3: Alignment – Encourage partner alignment to ensure
that community services are available and responsive to the needs
of beneficiaries
Looking ahead: MACRA
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA)
is a bipartisan legislation signed into law on April 16, 2015.
• Repeals the Sustainable Growth Rate (SGR) Formula
• Changes the way that Medicare rewards clinicians for value
over volume
• Streamlines multiple quality programs under the new Merit-
Based Incentive Payments System (MIPS)
• Provides bonus payments for participation in eligible
alternative payment models (APMs)
CMS has adopted a framework that
categorizes payments to providers
Payments are
based on
volume of
services and
not linked to
quality or
efficiency
Category 1:
Fee for Service
– No Link to
Value
Category 2:
Fee for Service
– Link to
Quality
Category 3:
Alternative Payment Models -
- Built on Fee-for-Service
Architecture
Category 4:
Population-Based
Payment
At least a
portion of
payments vary
based on the
quality or
efficiency of
health care
delivery
Some payment is linked to
the effective management
of a population or an
episode of care
Payments still triggered by
delivery of services, but
opportunities for shared
savings or 2-sided risk
Payment is not directly
triggered by service
delivery so volume is
not linked to payment
Clinicians and
organizations are paid
and responsible for the
care of a beneficiary for
a long period (e.g., ≥1
year)
Source: Rajkumar R, Conway PH, Tavenner M. CMS ─ engaging multiple payers in payment reform. JAMA 2014; 311: 1967-8.
Lessons Learned: ACOs
• Demographics vary …
– Urban/rural, large/small, HIT, populations served
• ... But culture similar
– Focus on value & population perspective before
started ACO
– Emphasis on strengthening primary care
(e.g. built on integrated medical home)
– History of coordination across sites of care
(e.g. leveraged pre-existing relationships/focus on transitions)
– Strong clinician leadership / engagement
– Familiarity with data
Strategies for Sustainability
• Embed population health
– Value-based payments (MIPS metrics and
incentives)
– Advanced APMs
• Support infrastructure development
• Partnership, collaboration and alignment
across sectors
• Lessons learned from model testing
Hospitals’ Role in Population Health:
• To retain tax exempt status, non-profit hospitals must:
– Conduct “community health needs assessment” every 3 yrs
– Adopt implementation strategy to meet the community health needs
identified through the assessment
• Community Building. IRS-approved activities:
– Leadership development / training for community
– Community health improvement advocacy
– Physical improvements and housing
– Coalition building
– Economic development
– Community support
– Environmental improvement
– Workforce development
Next generation models?
• Incentives for cross-sector collaboration
– CHNA, Community Building
• Risk adjusted payments for poverty
• Community incentive payments (e.g. tobacco)
• Social Impact Bonds
Challenges
• Fiduciary constraints on payers
– Funding non-medical services & upstream approaches
– Funding services for non-beneficiaries
• Scale-up from testing to implementation
– Time horizon and actuarial standards
• Provider scope of practice and accountability
• Measurement and data infrastrucure
Policy – Related Research Priorities
• Paucity of effectiveness data on psychosocial
interventions
– associated culture of resistance to evaluation
• Behavioral economics
• Emerging role for local public health agencies
• Practice infrastructure to manage populations
• Measurement
• Health disparities
• Collaboration and consolidation
Thank you

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Sustaining Population Health Outcomes

  • 1. Sustaining Population Health Outcomes William J. Kassler, MD, MPH Practical Playbook Meeting May 2016
  • 2. U.S Health in International Perspective • US spends far more per person on health care • Shorter life span, Poorer health • Consistent and pervasive over entire life: Infant mortality & low birth weight Injuries & homicides HIV/AIDS Drug-related deaths Obesity & diabetes Heart disease Chronic lung disease Disability
  • 3. Factors that Determine Health Adapted from Kindig JAMA 2008; 299(17): 2081-2083.
  • 4. Number of Deaths from Behavioral Causes Source: Mokdad et al JAMA 2004
  • 5. Impact Of Obesity On Medical Spending: 1987 – 2001 • Obesity increased by 10% in population • Spending for obese was 37% higher than for non-obese • Rate of growth in spending higher for obese: 63% ↑ obese vs. 37% ↑ non-obese • Obesity accounted for 27% of growth in spending Thorpe et al Health Affairs, no. (2004):10.1377
  • 6. Socio-economics factors linked to poor health outcomes • Area Deprivation Index (ADI) – Neighborhood-based composite measure consisting of 17 markers of socioeconomic status • ADI correlated with: – Mortality rates (age and race adjusted) for men and women – 30 day readmission rates • increase with worsening ADI • Magnitude equal to COPD and > diabetes Sources: Singh, GK Area deprivation and widening inequalities in US mortality, 1969-1998. Am J Public Health July 2003 Kind, AJ et al Neighborhood socioeconomic disadvantage and 30-day rehospitalization: a retrospective cohort study Ann Intern Med Dec 2014
  • 7. Health vs Social Services Expenditures
  • 8. Determinants SOCIAL, ENVIRONMENTAL, and BEHAVIORAL FACTORS (60%) GENETICS (20%) HEALTH CARE (20%) 8 HEALTH CARE SPENDING (65%) SOCIAL SERVICE SPENDING (35%) Investment Mismatch Courtesy of Elizabeth Bradley
  • 11. Reconciling the clinical perspective with a broader community perspective Community: Public Health, Social Services sectors Health Systems: Hospitals, ACOs, Health Plans Clinical Practices: Primary Care Medical Homes, Specialty Care Subgroups of Patients: Panels, Racial/Ethnic groups, patients with specific chronic diseases Based on Kassler et al. N Engl J Med 372; 2015
  • 12. Clinical Practices • Population-based approaches: – considering what happens between visits – using registries and tools to improve preventive care – addressing health disparities by including social, economic, and cultural factors – referring patients to a wider range of community services • Supportive strategies: – Medical homes and care management payments – Linking practices and patients to community supports – Practice support (Transforming Clinical Practice Initiative) – Community Health Workers - translation, appointment scheduling, referrals, and transportation
  • 13. Delivery Systems • Population-based approaches: – Assessing community health needs – Investing community benefit dollars – Collaborating with other organizations to support nonmedical services delivered in community settings • Supportive Strategies: – Performance based alternative payment models (e.g. ACOs) incentivize investments
  • 14. Health Plans • Medicaid and Medicare contracts afford greater flexibility than FFS to pay for population services • Some MCOs cover bicycle helmets, car seats, participation in the YMCA’s Diabetes Prevention Program or March of Dimes Baby and Me Tobacco Free program
  • 15. Medicaid Managed Care Positively Impacting Social Determinants of Health: How Safety Net Health Plans Lead the Way June 2014 Leveraging Medicaid contracts through sponsorships, grants, and partnerships to invest in: • Housing support, • Employment initiatives, • Literacy programs, • Services for overcoming food insecurity.
  • 16. Communities / States • Medicaid – Historically covers many non-medical support services – Waivers & Demos provide additional opportunities to invest in upstream strategies (Vermont waiver) • State Innovation Models – Use multiple levers for health systems transformation – Population health plans • Accountable Health Communities
  • 17. Accountable Health Communities Model Intervention Approaches • Track 1: Awareness – Increase beneficiary awareness of available community services through information dissemination and referral • Track 2: Assistance – Provide community service navigation services to assist high- risk beneficiaries with accessing services • Track 3: Alignment – Encourage partner alignment to ensure that community services are available and responsive to the needs of beneficiaries
  • 18. Looking ahead: MACRA The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) is a bipartisan legislation signed into law on April 16, 2015. • Repeals the Sustainable Growth Rate (SGR) Formula • Changes the way that Medicare rewards clinicians for value over volume • Streamlines multiple quality programs under the new Merit- Based Incentive Payments System (MIPS) • Provides bonus payments for participation in eligible alternative payment models (APMs)
  • 19. CMS has adopted a framework that categorizes payments to providers Payments are based on volume of services and not linked to quality or efficiency Category 1: Fee for Service – No Link to Value Category 2: Fee for Service – Link to Quality Category 3: Alternative Payment Models - - Built on Fee-for-Service Architecture Category 4: Population-Based Payment At least a portion of payments vary based on the quality or efficiency of health care delivery Some payment is linked to the effective management of a population or an episode of care Payments still triggered by delivery of services, but opportunities for shared savings or 2-sided risk Payment is not directly triggered by service delivery so volume is not linked to payment Clinicians and organizations are paid and responsible for the care of a beneficiary for a long period (e.g., ≥1 year) Source: Rajkumar R, Conway PH, Tavenner M. CMS ─ engaging multiple payers in payment reform. JAMA 2014; 311: 1967-8.
  • 20. Lessons Learned: ACOs • Demographics vary … – Urban/rural, large/small, HIT, populations served • ... But culture similar – Focus on value & population perspective before started ACO – Emphasis on strengthening primary care (e.g. built on integrated medical home) – History of coordination across sites of care (e.g. leveraged pre-existing relationships/focus on transitions) – Strong clinician leadership / engagement – Familiarity with data
  • 21. Strategies for Sustainability • Embed population health – Value-based payments (MIPS metrics and incentives) – Advanced APMs • Support infrastructure development • Partnership, collaboration and alignment across sectors • Lessons learned from model testing
  • 22. Hospitals’ Role in Population Health: • To retain tax exempt status, non-profit hospitals must: – Conduct “community health needs assessment” every 3 yrs – Adopt implementation strategy to meet the community health needs identified through the assessment • Community Building. IRS-approved activities: – Leadership development / training for community – Community health improvement advocacy – Physical improvements and housing – Coalition building – Economic development – Community support – Environmental improvement – Workforce development
  • 23. Next generation models? • Incentives for cross-sector collaboration – CHNA, Community Building • Risk adjusted payments for poverty • Community incentive payments (e.g. tobacco) • Social Impact Bonds
  • 24. Challenges • Fiduciary constraints on payers – Funding non-medical services & upstream approaches – Funding services for non-beneficiaries • Scale-up from testing to implementation – Time horizon and actuarial standards • Provider scope of practice and accountability • Measurement and data infrastrucure
  • 25. Policy – Related Research Priorities • Paucity of effectiveness data on psychosocial interventions – associated culture of resistance to evaluation • Behavioral economics • Emerging role for local public health agencies • Practice infrastructure to manage populations • Measurement • Health disparities • Collaboration and consolidation