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Integrating                                            Risk
                                                                                      Qua
                                                                                         lity




Risk and
Quality
BeneïŹts of this Critical Merger


Wayne Pan, MD, MBA
Chief Medical OfïŹcer
PaciïŹc Partners Management Services, Inc.

        Medicare Revenue Management ‱ The Reach Resort, Key West ‱ January 18, 2012
?
Adjusting your MLR labels so that you get payment for
health care costs that then fund your quality programs


Marrying qualitative goals with quantitative goals


Providers and health plans inïŹ‚uencing each other’s
star ratings: How high is high enough to lift up that
poor performer and how low is low enough to squeeze
them out?


Tying your satisfaction surveys to CAHPS surveys –
using the same language in your in-house surveys to
groom your members for positive feedback and
helpful mock results


Whether or not to absorb the member’s co-pay if that
prevents them from getting care and providing risk
adjustment opportunities
MLR: medical loss ratio
       medical expenses
      premiums collected
MLR: medical loss ratio
medical expenses      admin expenses
premiums collected
                   + premiums collected = 1
MLR: medical loss ratio
medical expenses      admin expenses
premiums collected
                   + premiums collected = 1
Limits premiums: 118% of medical losses (85%)
                 125% of medical losses (80%)
INNOVATION?
MLR: medical loss ratio
medical expenses      admin expenses
premiums collected
                   + premiums collected = 1
admin expenses:
   admin ratio
        +
  proïŹt margin
MLR: medical loss ratio
medical expenses      admin expenses
premiums collected
                   + premiums collected = 1
medical expenses:
    incurred claims
      expenditure
             +
“activities that improve
  healthcare quality”
make patients sicker?
get sicker patients?
quality:
       case management/care coordination
            chronic disease management
          medication/care plan compliance
               reduction of disparities
          quality reporting/documentation
    accreditation fees directly related to quality
hospital readmission prevention/discharge planning
          patient education and counseling
  promotion of patient safety and error reduction
         prospective drug utilization review
     wellness and health promotion programs
          wellness assessments/coaching
                rewards to members
the argument for quality
What does
         2
qualitymean you?
measurement?
improvement?
startwithwhy
whysmen
5 whysmen
why
why
why
why
why
patient
beginsandends
patient
think
                               what                               program
        fro
           m
               in
                 si
                    de         how                                process
                         ou
                           t
                               why                                patient




                                 adapted from Simon Sinek, “Start with Why,” (2009)
patientcenteredness
“how will the patient beneïŹt from this?”


“does this make it easier for the patient?”
Adjusting your MLR labels so that you get payment for
health care costs that then fund your quality programs


Marrying qualitative goals with quantitative goals


Providers and health plans inïŹ‚uencing each other’s
star ratings: How high is high enough to lift up that
poor performer and how low is low enough to squeeze
them out?


Tying your satisfaction surveys to CAHPS surveys –
using the same language in your in-house surveys to
groom your members for positive feedback and
helpful mock results


Whether or not to absorb the member’s co-pay if that
prevents them from getting care and providing risk
adjustment opportunities
Adjusting your MLR labels so that you get payment for
health care costs that then fund your quality programs


Marrying qualitative goals with quantitative goals


Providers and health plans inïŹ‚uencing each other’s
star ratings: How high is high enough to lift up that
poor performer and how low is low enough to squeeze
them out?


Tying your satisfaction surveys to CAHPS surveys –
using the same language in your in-house surveys to
groom your members for positive feedback and
helpful mock results


Whether or not to absorb the member’s co-pay if that
prevents them from getting care and providing risk
adjustment opportunities
Risk       lity
       Qua
we
                                                        are
                                                        here




from: missclaudiawong.blogspot.com (January 30, 2011)
4x4   healthcare
4processes
 x

4
dimensional
data
communication


anticipation                       collaboration
                       Case
                     Managers



          Patients                 PCPs

                     Specialists




       coordination
quality
process
riskadjustment
process
patient   doctor   documentation
patient   doctor   documentation


          same
quality: CMS 5 STAR
risk adjustment: HCC
$$$$$$
revenuemanagement
whatabout
theexpense
management?
whatabout
medical
management?
whatabout
care
coordination?
Adjusting your MLR labels so that you get payment for
health care costs that then fund your quality programs


Marrying qualitative goals with quantitative goals


Providers and health plans inïŹ‚uencing each other’s
star ratings: How high is high enough to lift up that
poor performer and how low is low enough to squeeze
them out?


Tying your satisfaction surveys to CAHPS surveys –
using the same language in your in-house surveys to
groom your members for positive feedback and
helpful mock results


Whether or not to absorb the member’s co-pay if that
prevents them from getting care and providing risk
adjustment opportunities
Adjusting your MLR labels so that you get payment for
health care costs that then fund your quality programs


Marrying qualitative goals with quantitative goals


Providers and health plans inïŹ‚uencing each other’s
star ratings: How high is high enough to lift up that
poor performer and how low is low enough to squeeze
them out?


Tying your satisfaction surveys to CAHPS surveys –
using the same language in your in-house surveys to
groom your members for positive feedback and
helpful mock results


Whether or not to absorb the member’s co-pay if that
prevents them from getting care and providing risk
adjustment opportunities
network
considerations
network
management
behavior
change
put hot triggers
 in the path of
motivated people
                             BJ Fogg, PhD
      Director, Persuasive Technology Lab
                        Stanford University
incentive
alignment
incentive
timing
Have you seen
 ANSWERS?




 6-month old lab mix
  well-trained to do
   old tricks, not so
 good with new tricks
healthplans
healthcareproviders
hospitals
physicians
NO
Adjusting your MLR labels so that you get payment for
                       health care costs that then fund your quality programs


                       Marrying qualitative goals with quantitative goals


                       Providers and health plans inïŹ‚uencing each other’s
                       star ratings: How high is high enough to lift up that
                       poor performer and how low is low enough to squeeze
it’srelative   them out?


                       Tying your satisfaction surveys to CAHPS surveys –
                       using the same language in your in-house surveys to
                       groom your members for positive feedback and
                       helpful mock results


                       Whether or not to absorb the member’s co-pay if that
                       prevents them from getting care and providing risk
                       adjustment opportunities
Adjusting your MLR labels so that you get payment for
                       health care costs that then fund your quality programs


                       Marrying qualitative goals with quantitative goals


                       Providers and health plans inïŹ‚uencing each other’s
                       star ratings: How high is high enough to lift up that
                       poor performer and how low is low enough to squeeze
it’srelative   them out?


                       Tying your satisfaction surveys to CAHPS surveys –
                       using the same language in your in-house surveys to
                       groom your members for positive feedback and
                       helpful mock results


                       Whether or not to absorb the member’s co-pay if that
                       prevents them from getting care and providing risk
                       adjustment opportunities
If we haven’t provided you with
     EXCELLENT SERVICE
      today, please tell the
            manager
If we haven’t provided you with
     EXCELLENT SERVICE
      today, please tell the
            manager
       because his bonus
depends on your survey answers
Adjusting your MLR labels so that you get payment for
                       health care costs that then fund your quality programs


                       Marrying qualitative goals with quantitative goals


                       Providers and health plans inïŹ‚uencing each other’s
                       star ratings: How high is high enough to lift up that
                       poor performer and how low is low enough to squeeze
it’srelative   them out?


                       Tying your satisfaction surveys to CAHPS surveys –
                       using the same language in your in-house surveys to
                       groom your members for positive feedback and
                       helpful mock results


                       Whether or not to absorb the member’s co-pay if that
                       prevents them from getting care and providing risk
                       adjustment opportunities
Adjusting your MLR labels so that you get payment for
                       health care costs that then fund your quality programs


                       Marrying qualitative goals with quantitative goals


                       Providers and health plans inïŹ‚uencing each other’s
                       star ratings: How high is high enough to lift up that
                       poor performer and how low is low enough to squeeze
it’srelative   them out?


                       Tying your satisfaction surveys to CAHPS surveys –
                       using the same language in your in-house surveys to
                       groom your members for positive feedback and
                       helpful mock results


                       Whether or not to absorb the member’s co-pay if that
                       prevents them from getting care and providing risk
                       adjustment opportunities
Adjusting your MLR labels so that you get payment for
                       health care costs that then fund your quality programs


                       Marrying qualitative goals with quantitative goals


                       Providers and health plans inïŹ‚uencing each other’s
                       star ratings: How high is high enough to lift up that
                       poor performer and how low is low enough to squeeze
it’srelative   them out?


                       Tying your satisfaction surveys to CAHPS surveys –
                       using the same language in your in-house surveys to
                       groom your members for positive feedback and
                       helpful mock results


                       Whether or not to absorb the member’s co-pay if that
                       prevents them from getting care and providing risk
                       adjustment opportunities
alignment
engage
it’s
not
just
about
data
it’saboutthepatient
If this talk hasn’t provided you
            with some
       EXCELLENT IDEAS,
       please let me know
Thank you!
  wpan@ppmsi.com




WWW.SNOOPY.COM

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Integrating risk and quality 18 jan12

  • 1. Integrating Risk Qua lity Risk and Quality BeneïŹts of this Critical Merger Wayne Pan, MD, MBA Chief Medical OfïŹcer PaciïŹc Partners Management Services, Inc. Medicare Revenue Management ‱ The Reach Resort, Key West ‱ January 18, 2012
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  • 6.
  • 7. ?
  • 8. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 9. MLR: medical loss ratio medical expenses premiums collected
  • 10. MLR: medical loss ratio medical expenses admin expenses premiums collected + premiums collected = 1
  • 11. MLR: medical loss ratio medical expenses admin expenses premiums collected + premiums collected = 1
  • 12. Limits premiums: 118% of medical losses (85%) 125% of medical losses (80%)
  • 14. MLR: medical loss ratio medical expenses admin expenses premiums collected + premiums collected = 1
  • 15. admin expenses: admin ratio + proïŹt margin
  • 16. MLR: medical loss ratio medical expenses admin expenses premiums collected + premiums collected = 1
  • 17. medical expenses: incurred claims expenditure + “activities that improve healthcare quality”
  • 20. quality: case management/care coordination chronic disease management medication/care plan compliance reduction of disparities quality reporting/documentation accreditation fees directly related to quality hospital readmission prevention/discharge planning patient education and counseling promotion of patient safety and error reduction prospective drug utilization review wellness and health promotion programs wellness assessments/coaching rewards to members
  • 21. the argument for quality
  • 22. What does 2 qualitymean you?
  • 31. think what program fro m in si de how process ou t why patient adapted from Simon Sinek, “Start with Why,” (2009)
  • 33. “how will the patient beneïŹt from this?” “does this make it easier for the patient?”
  • 34. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 35. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 36. Risk lity Qua
  • 37. we are here from: missclaudiawong.blogspot.com (January 30, 2011)
  • 38.
  • 39. 4x4 healthcare
  • 41. communication anticipation collaboration Case Managers Patients PCPs Specialists coordination
  • 44. patient doctor documentation
  • 45. patient doctor documentation same
  • 46. quality: CMS 5 STAR risk adjustment: HCC
  • 52.
  • 53. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 54. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 55.
  • 59. put hot triggers in the path of motivated people BJ Fogg, PhD Director, Persuasive Technology Lab Stanford University
  • 60.
  • 63. Have you seen ANSWERS? 6-month old lab mix well-trained to do old tricks, not so good with new tricks
  • 68. NO
  • 69.
  • 70. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze it’srelative them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 71. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze it’srelative them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 72.
  • 73. If we haven’t provided you with EXCELLENT SERVICE today, please tell the manager
  • 74. If we haven’t provided you with EXCELLENT SERVICE today, please tell the manager because his bonus depends on your survey answers
  • 75. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze it’srelative them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 76. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze it’srelative them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 77. Adjusting your MLR labels so that you get payment for health care costs that then fund your quality programs Marrying qualitative goals with quantitative goals Providers and health plans inïŹ‚uencing each other’s star ratings: How high is high enough to lift up that poor performer and how low is low enough to squeeze it’srelative them out? Tying your satisfaction surveys to CAHPS surveys – using the same language in your in-house surveys to groom your members for positive feedback and helpful mock results Whether or not to absorb the member’s co-pay if that prevents them from getting care and providing risk adjustment opportunities
  • 78.
  • 81.
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  • 94. If this talk hasn’t provided you with some EXCELLENT IDEAS, please let me know
  • 95. Thank you! wpan@ppmsi.com WWW.SNOOPY.COM