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All-Payer Model Progression

This discussion provides an overview of efforts to transform Maryland's health care system through the All-Payer Model, focusing on person-centered care, improved outcomes, and cost moderation. The progression plan includes strategies such as care redesign, aligned quality targets, and expanded primary care models.

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All-Payer Model Progression

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  1. All-Payer Model Progression February2017

  2. Goals of Today’s Discussion • Provide a big picture overview of efforts to transform Maryland’s health care system in the context of the All-Payer Model • Dive deeper into the All-Payer Model and its progression strategy

  3. Background

  4. What Are We Trying to Do? Maryland’s All-Payer Model Goals: • Fundamentally transform the Maryland health care system • Provide person-centered care • Improve care delivery and outcomes • Moderate the growth in costs

  5. What Are We Trying to Do? Transform the delivery system: Provider Centered Old Model PersonCentered New Model Treat Test Treat Prevent Manage Coordinated High Quality Episodes Preventable utilization Waste Less care in facilities

  6. Why? Cost and Outcomes • Higher costs (affordability)/less favorable outcomes • Population health/health equity Aging of Population • 37% increase in Maryland’s population >65-years-old over next 10 years • Profound impact on federal and state budgets and delivery system needs

  7. Why Start with Hospitals? • ~75%+ of Medicare expenditures are tied to a hospitalization • Hospitals ~56% • Post-acute ~12% • Facility related physician fees ~10% • Agreed to save $330 million in Medicare’s hospital costs over 5 years • Importance of Medicare waiver 2015 Maryland Medicare Dollar %

  8. Implementation Since 2014

  9. Where We Are Today Maryland’s All-Payer Model • Initial 5-year duration (through 2018) • Testing a hospital model that is population and value-based • Value created-- Over first 3 years, hospital spending growth slowed and quality improved • Generally positive view from CMS • Concept expanded for rural hospitals in Pennsylvania

  10. Where We Are Today (cont.) To continue success. . . • Need to align efforts and incentives with other providers • Need to scale up supports for chronic and complex patients Governor Hogan submitted a proposed Progression Plan to CMS • Submitted December 2016 • Proposes a second term beginning in 2019 • Maryland Comprehensive Primary Care Model plan also submitted for implementation in 2018

  11. Progression

  12. Payment and Care Delivery Alignment Current Planned • Hospitals on Global Budgets with quality targets • Providers on volume-based care without quality targets • Little coordination of care • Hospitals and Providers with aligned quality targets • Sharing information • Driving down costs • Improving the health of populations

  13. 2017 and 2018: Engage Physicians and Other Providers

  14. Care Redesign Amendment: Two Initial Programs • Two initial care redesign programs aim to align hospitals and other providers • Voluntary participation

  15. Maryland Comprehensive Primary Care Program: Summary CMS Coordinating Entity Care Transformation Organization Care Transformation Organization Patient Centered Home Patient Centered Home Patient Centered Home Patient Centered Home

  16. Maryland Primary Care Model:What does a transformed practice look like to a patient? • I am a Medicare beneficiary • Provider selection by my historical preference • I have a team caring for me led by my Doctor • My practice has expanded office hours • I can take advantage of open access and flexible scheduling: • Telemedicine, group visits, home visits • My care team knows me and speaks my language • My records are available to all of my providers • I get alerts from care team for important issues • My Care Managers help smooth transitions of care • I get Medication support and as much information as I need • I can get community and social support linkages (e.g., transportation, safe housing)

  17. Maryland’s Planned Progression: Synergistic Models Person-Centered Care Tailored to Needs Tools Comprehensive Primary Care Model Hospital Global Model Risk stratification Complex and high needs case management/interventions Care coordination Medication reconciliation Chronic care management Focus: Complex and high needs patients Focus: Rising need patients, prevention Goal: Improve Outcomes, Reduce Avoidable Utilization

  18. Progression Plan for 2019 and Beyond • Build on global revenue model with value incentives • Continue transformation to focus on complex and chronic care, episodes • Continue to implement and expand Comprehensive Primary Care Model, increasing focus on prevention • Payment and delivery alignment beyond hospitals • MACRA bonus-eligible programs • Increasing responsibility for system-wide costs/goals • Dual Eligibles ACO • Geographic Incentive Model

  19. Progression Plan: Key Strategies • Foster accountability for care and health outcomes by supporting providers as they organize to take responsibility for groups of patients/a population in a geographic area. • Align measures and incentives for all providers to work together, along with payers and health care consumers, on achieving common goals. • Encourage and develop payment and delivery system transformation to drive coordinated efforts and system-wide goals. • Ensure availability of tools to support all types of providers in achieving transformation goals. • Devote resources to increasing consumer engagement for consumer-driven and person-centered approaches.

  20. Care Redesign Amendment • Negotiations with CMS for second term • Primary Care model • Geographic incentives in value based payments • Geographic partnersand ACOs take on more responsibility • Dual Eligible ACOs Potential Timeline MACRA Begin to implement MACRA bonus eligible models MACRA bonus available • Post-acute • Behavioral health • Long-term care

  21. Opportunities for HFMA members

  22. Thank you for the opportunity to work together to improve care and health for people and communities that receive care in Maryland!

  23. Appendix

  24. All-Payer Model: Performance to Date

  25. Major Impact of Federal Legislation Referred to as “MACRA” (Medicare Access and CHIP Reauthorization Act of 2015) • Bi-partisan federal legislation referred to as MACRA dramatically alters physician reimbursement for Medicare • Focuses on moving from volume to value • Physicians subject to potential payment reductions (or bonuses) up to 9% by 2022 • Creates 5% bonus for physicians in Advanced Alternative Payment Models (“Advanced APMs”) • Maryland will adapt its approaches to optimize opportunities for MACRA bonuses that can align performance goals under the All-Payer Model

  26. Progression Plan: Strategies & Key Elements

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