Power Point Presentation made to a major pharmaceutical manufacturer in 1998. Identifies cause of Medical Crisis and how Pharm mfgrs can use regulations to add value to their contracts with MCOs.
4. NATIONAL HEALTH EXPENDITURES AS A PERCENT OF GROSS NATIONAL PRODUCT BY YEAR 16 15 14 13 Percent 12 11 10 9 8 National Health expenditures as a percent of gross national product. 7 6 1970 1975 1980 1985 1990 1995 2000 Calendar Year Source: Health Care Financing Administration, Office of the Actuary. Data from the Division of National Cost Estimates.
5. Cost of Medical Care The issue is not the cost of Coronary Surgery The issue is the cost of diagnosing and treating Chest Pain
6. Sample of Actual Medical Knowledge (Tested Knowledge) 100% Knowledge Test Score 100% 75% 75% B 50% C 50% 25% 25% D A 0% 0% 20 40 60 80 100 0 Age (years) Theoretical Test Scores “Changes over time in the knowledge base of practicing internists”Paul G. Ramsey et al, JAMA, August 28, 1991 - Vol 266, No8 pp 1103 C D A B B C
7. 100% Efficient Health Care* A Judgment Alone Maximum quality attainable using memory based system Quality of Care - Memory Base System TIME * Most cost efficient, medically necessary, effective and best expected result for the patient.
8. COMMUNITY HEALTH STATUS vs.UTILIZATION and EXPENDITURE RATE H ConservativeStyle ElaborativeStyle HEALTH STATUS of the POPULATION C B D A Range ofAcceptable Practice Underservice Overservice $/C SERVICES and EXPENDITURES PER CAPITA Source: Booz, Allen and Hamilton Inc.
9. EPIPHANY A spiritual event in which the essence of a truth appears to the subject as in a sudden flash of recognition
10. A New ParadigmThe Hypotheses isan Iconoclasm It is impossible for physicians to make appropriate medical decisions using the present memory-based system The information is too great and the medical knowledge too broad for the mind to manage All physicians are on Mission Impossible
11. TONS Tons of Paper Printed in Medical Journals Not Shinola Growth of Medical Publishing Growth of Medical Knowledge Shinola TIME
12. Managed Care Managed care is not the cause of the physician’s problems, it is a response to the cost and quality issues resulting from the failure of the memory based medical decision making process. Managed care is not simply another iteration of insurance or administration. It is the major catalyst and driving force behind the most significant, positive changes in the American medical delivery system in this century. It is the agent of change which will fundamentally alter how medicine is delivered.
13. 100% Efficient Health Care* B Judgment & Feedback Augmented memory based system Outcomes + Other Feedback A Judgment Alone Maximum quality attainable using memory based system Quality of Care - Memory Base System TIME * Most cost efficient, medically necessary, effective and best expected result for the patient.
14. PLATEAU OF COMPARABLE OUTCOMES O PRESSURE TO CONTROL COST B C PRESSURE TO SATISFY PATIENTS D A Q Q = QUANTITY OF MEDICAL SERVICES CONFLICTING PRESSURES ON THEHEALTH SERVICE DELIVERY SYSTEM O = CLINICAL OUTCOME
15. Malpractice The “Malpractice Crisis” is not caused by the litigious society or too many lawyers. It is the response of the patient to the errors which result from the failure of the memory based medical decision making process. Half of the medical care delivered in America ($500 Billion Dollars) is unnecessary, inappropriate, ineffective or harmful. “Defensive Medicine” is no defense as excessive testing and procedures do not result in better decision making and could do harm to the patient. The solution is through electronic decision support tools applied in real time.
17. Quality Assurance Model STRUCTURE PROCESS OUTCOME Are the right Are variables monitored Are the results of people in the and reports evaluated treatments monitored proper positions by the right people or recommendations with the appropriate and are appropriate followed up and authority to recommendations made? re-evaluated? evaluate care? Credentials Committees Catastrophes
24. The management of all employee benefits (medical, workers comp, EAP, disability, etc.) will be awarded to a single full service financially sound entity
25. Purchasers are willing to pay for quality & value for the employee - if the health plan has the lowest price
26. Business awarded based on proof the MCO can deliver quality care at low cost (NCQA certification, HEDIS data, recommendations from Consultants -RFP/RFI*) * RFP/RFI = questions consultants pirate from NCQA & HEDIS
27. An Introduction to Total Quality Management( TQM )and theDeming Philosophy Roger H. Strube, M.D. Managed Care Consultant
28. The Study of Quality is the First Step in the Never Ending Journey of Continuous Quality Improvement TQM is a set of enabling components and a value system applied by the people in an organization which leads to a cycle of continuous improvement of the quality of the processes and and resulting outputs (outcomes) of the entity. A tool for organizational learning - the way an organization re-engineers their business to meet customer needs and expectations.
38. W. Edwards DemingContinuous Quality ImprovementManagement Theoryfor theTRANSFORMATION OF BUSINESS THROUGHAPPLICATION OF THE FOURTEEN POINTS Roger H. Strube, M.D. Managed Care Consultant
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40. invited back in 1950 by JUSE to consult on improving the quality of Japanese exports
41. Dr. Deming provided the quality improvement roadmap an promised, if followed, they would dominate world trade
44. Look at the long term view for the organization
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46. Your goal should be to provide your “customers” with the best possible care in the most appropriate setting
47. Use industry standards and guidelines (“emenarem”*) to fulfill your customers’ reasonable expectations and constantly improve the services you provide* “emenarem” derived from the Milliman & Robertson criteria sets, as in “The director of cost containment told the UR nurse to ‘emenarem’ out of the hospital.”
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49. Quality comes not from inspection but from improvement of the process.”- W. Edwards Deming
50. POINT FOUREnd the practice of awarding business on the basis of price tag. Instead, minimize total medical cost (eliminate unnecessary procedures.) Reduce the number of suppliers for any one service (limited provider network) on the basis of a long-term relationship of loyalty and trust.
57. SEVEN QUALITY CONTROL TOOLS Cause and Effect Diagrams (Fish Bone diagram) Flow Chart ( How work gets done ) Pareto Chart ( y = # , x = type ) Run Chart ( y = measure, x = time ) Histogram ( y = #, x = measurement ) Control Chart ( y = #, x = time + SD limit lines ) Scatter Diagram ( v1 vs v2, plot the dots - trend? )
63. Fear of being powerless goals to control the aspects of 4 Poor supervision your professional life 5 Lack of operational because of the following: definitions 6 Not knowing the job 7 Being blamed for system problems
64. POINT NINE Break down barriers between departments.People in research, design, sales, enrollment, claims processing, information systems, medical management, and delivery of care (providers) must work as a team, to foresee problems of production and in use that may be encountered with the product or service.
75. POINT ELEVEN 11a. Eliminate work standards (quotas -- days/K, claims/hour, etc.) on the factory floor (insurance company or HMO production areas). Substitute leadership. 11b. Eliminate management by objective, Eliminate management by numbers, numerical goals. Substitute leadership.
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77. 12b. Remove barriers that rob people in management and delivery of care of their right to pride of workmanship. This means complete abolishment of the annual or merit rating and of management by objective, management by numbers
78. Deming believed that performance appraisals destroy teamwork and focus on the short term
79. People must be viewed as the most valuable resource a company possesses
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82. Management should drive out fear and eliminate other inhibitors and barriers to quality improvement
83. Quality improvement must be proceeded first by education of employees on what quality means and the needs of the customers
93. Quality Management Viewpoint Analysis Grid CQI QA Medical Focus Customer Standards of Patient needs expectations practice Goals Standards and Identification and Diagnosis and process improvement elimination of errors treatment of illness MethodsStatistical analysis Disaster Analysis Memory based decision making Management Participative line Staff Activity Hierarchical line Style Activity activity Data Analysis Statistical analysis Individual case Outcome analysis of process review
105. The data will define potential (acceptable) outcomes
106. The knowledge based computer programs will present alternatives (cook book)
107. The physician must negotiate the ambiguities with the patient (informed consent)
108. The patient and the physician will agree on the most acceptable treatment (disease state management)
109. The outcome of the interaction will become part of the disease state data base (determine best practices)
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113. Quality comes not from inspection but from improvement of the process.”
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115. NCQA AccreditationThe Plan’s PerspectiveA Walter Mitty* StoryFantasy vs RealityRoger H. Strube, M.D. * “The Secret Life of Walter Mitty” -- James Thurber
164. NEW TECHNOLOGIES Low Cost Alternatives for Satisfying NCQA Requirements to Assess and Incorporate New Technologies or How to be Successful Using OPM* * OPM - Other People’s Money
165. Guideline Definition Systematically developed guides to assist providers and patients in making appropriate health care decisions in specific clinical circumstances
183. Experimental / Investigational The benefit exclusion for investigational treatment plans is made based on federal law passed after the Nuremberg trials and the American Tuskegee experiment. The provider is required by law to inform the patient of the status of the treatment. Failure to properly inform the patient could lead to malpractice litigation and failure to properly inform the medical department could be considered fraud on the part of the member and / or provider. The decision to apply the benefit exclusion is based on the medical determination made by the provider.
184. Guideline Sources Rand USPHSTF * ACP * HAYES Medical Directory Specialty Organizations AMA VHS “Home Grown” Many New Sources * Opportunity for access to medical director
193. NCQAReview of Delegation There is a written description of: the delegated activities; the delegate’s accountability for these activities; the frequency of reporting to the managed care organization; and the process by which the delegation will be evaluated. . There is evidence of approval of the delegate’s QI program and evaluation of regular specified reports.
194. NCQAReview of Delegation RED FLAGS Carve Outs Hospitals Mental Health Physical Therapy Home Health Agencies Vision Care Chiropractic Skilled Nursing Facilities Multispecialty Groups IPAsAncillary Services Single Specialty Networks
224. QI 13.0 Delegation of QI Activity If the MCO delegates any QI activities, there is evidence of oversight of the contracted activity. QI 13.2 There is evidence that the managed care organization: QI 13.2.1 evaluates the delegated agency’s capacity to perform the delegated activities PRIOR to delegation; QI 13.2.2 approves the delegated agency’s QI work plan and QI program description annually; QI 13.2.3 evaluates regular reports as specified in QI 13.1.3; and QI 13.2.4 evaluates annually whether the delegated agency’s activities are being conducted in accordance with the managed care organization's expectations and NCQA standards.
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228. NCQA AccreditationThe Plan’s Perspective Credentialing Roger H. Strube, M.D. Medical Director of Quality Improvement PHP Companies, Inc.
229. Cr 1.0 CredentialingPolicies and Procedures The MCO Documents the mechanism for the credentialing and recredentialing of MDs, Dos, DDSs, DPMs, DCs, and other licensed independent practitioners who fall under its scope of authority and action
230. Credentialing Standards CR 2.0 The MCO designates a credentialing committee that makes recommendations regarding credentialing decisions CR 3.0 The MCO documents primary source verification or attestation of credentials and past history CR 4.0 The applicant completes an application for membership attesting to fitness to practice
231. Initial Credentialing CR 3.0 At the time of credentialing, the managed care organization verifies information from primary sources CR 3.1 Current valid license to practice CR 3.2 Clinical privileges at a network hospital CR 3.3 Valid DEA or CDS certificate CR 3.4 Graduation from medical (dental, podiatric, chiropractic) school and completion of a residency or board certification CR 3.5 Board certification if the practitioner states he/she is board certified on the application CR 3.6 Work history CR 3.7 Current, adequate malpractice insurance according to the MCO policy CR 3.8 Professional liability claims history
232. Initial Credentialing CR 4.0 Applicant completes an application for membership. The application includes a statement by the applicant regarding: CR 4.1 Reasons for any inability to perform the essential functions of the position CR 4.2 Lack of present illegal drug use CR 4.3 History of loss of license and/or felony convictions CR 4.4 History of loss or limitation of privileges or disciplinary activity CR 4.5 Attestation to the correctness / completeness
233. Initial Credentialing CR 5.0 Evidence the MCO requests information on the practitioner from recognized monitoring organizations, that the information has been received PRIOR to making the credentialing decision CR 5.1 National Practitioner Data Bank CR 5.2 State Board of Medical Examiners, Federation of State Medical Boards, or the Department of Professional Regulations (if available) CR 5.3 Review for prior sanction by Medicare & Medicaid
234. Initial Credentialing CR 6.0 There is an initial visit to the offices of all potential PCPs and OB/GYNs CR 6.1 Documentation of a structured site review per MCO standards CR 6.2 Documentation of compliance with the MCO’s record keeping standards
235. CR 7 Recredentialing Standards There is a formal process for periodic verification of credentials (recredentialing, reappointment, or recertification) that is ongoing, up-to-date and occurs every two years, minimally. The process includes the same primary source verification as credentialing where applicable. Data from member complaints, quality reviews, UM and member satisfaction is considered.
236. CR 7 Recredentialing Standards CR 7.0 Every two years the MCO shall formally recredential all practitioners through verification of information from primary sources: CR 7.1 current valid license to practice; CR 7.2 clinical privileges at a network hospital; CR 7.3 valid DEA or CDS certificate; CR 7.4 board certification if the practitioner states he/she is board certified on the application; CR 7.5 current, adequate malpractice insurance as per MCO policy; CR 7.6 history of professional liability claims that resulted in settlements or judgments paid; and CR 7.7 a current, signed attestation statement by the applicant: CR 7.7.1 reasons for inability to perform essential functions, and CR 7.7.2 lack of present illegal drug use.
237. CR 8 Recredentialing Standards CR 8.0 Evidence the MCO requests information on the practitioner from recognized monitoring organizations, that the information has been received PRIOR to making the recredentialing decision. CR 8.1 National Practitioner Data Bank CR 8.2 State Board of Medical Examiners, Federation of State Medical Boards, or the Department of Professional Regulations (if available) CR 8.3 Review for prior sanction by Medicare & Medicaid
238. CR 9 Recredentialing Standards The MCO incorporates the following data in its recredentialing decision-making process for PCPs: CR 9.1 member complaints; CR 9.2 information from quality improvement activities; CR 9.3 utilization management; CR 9.4 member satisfaction; CR 9.5 medical record reviews conducted as part of MR 2.1; and CR 9.6 the site visits conducted as part of CR 10.1
239. CR 10 Recredentialing Standards There is a visit to the offices of all the PCPs, all OB/GYNs, and all High Volume Specialists CR 10.1 Documentation of a structured site review per MCO standards CR 10.2 Documentation of compliance with the MCO’s record keeping standards
240. Altering the Conditions of Practitioner Participation Standard CR 11 The managed care organization has policies and procedures for altering the practitioner’s participation with the managed care organization based on issues of quality of care and service. These policies and procedures define the range of actions that the managed care organization may take to improve performance prior to termination.
241. Altering the Conditions of Practitioner Participation Standard CR 11 CR 11.1 The MCO has procedures for, and evidence of implementation of, as appropriate, reporting of serious quality deficiencies that could result in a practitioner’s suspension or termination to appropriate authorities. CR 11.2 The managed care organization has an appeal process for instances in which the managed care organization chooses to alter the conditions of practitioner’s participation based on issues of quality of care and/or service. The managed care organization informs practitioners of the appeal process.
242. CR 12 Initial Credentialing The MCO has written policies and procedures for the initial and ongoing assessment of organizational providers with which it intends to contract. Providers include hospital, home health agencies,skilled nursing facilities and nursing homes, and free-standing surgical centers CR 12.1 The MCO confirms standing with state & federal regulators; and CR 12.2 The MCO confirms accrediting body approval; or CR 12.3 If no accrediting body approval, the MCO develops and implements standards of participation. CR 12.4 Confirmation by the MCO at least every three years that the provider remains in good standing with state, federal and accrediting bodies.
243. CR 12 Initial Credentialing CR 12.1 The MCO should confirm review & certification by a recognized accrediting body, and is in good standing with state and federal regulatory bodies; and CR 12.2 Confirms that the provider has been approved by an accrediting body confirms that the provider has been reviewed and approved by an accrediting body; or CR 12.3 If the provider has not been approved by an accrediting body, the managed care organization develops and implements standards of participation CR 12.4 At least every three years, the managed care organization confirms that the provider continues to be in good standing with the state and federal regulatory bodies and, if applicable, is reviewed and approved by an accrediting body.
244. CR 13 Delegated Credentialing If the managed care organization delegates any credentialing and recredentialing activities, there is evidence of oversight of the delegated activity CR 13.1 A mutually agreed upon document describes: CR 13.1.1 the responsibility of the managed care organization and the delegated agency; CR 13.1.2 the delegated activities; the process by which the managed care organization evaluates the delegated agency’s performance; CR 13.1.3 the process by which the managed care organization evaluates the delegated agency’s performance; and CR 13.1.4 the remedies, including revocation of the delegation; available to the managed care organization if the delegated agency does not fulfill its obligations.
245. CR 13 Delegated Credentialing If the managed care organization delegates any credentialing and recredentialing activities, there is evidence of oversight of the delegated activity CR 13.2 MCO retains the right to approve new providers & sites, and to terminate or suspend individual providers. CR 13.3 There is evidence that the managed care organization: CR 13.3.1 evaluates the delegated agency's capacity to perform the delegated activities PRIORto delegation; and CR 13.3.2 evaluates annually whether the delegated agency’s activities are being conducted in accordance with the MCO’s expectations and NCQA standards.
256. Love - Hate relationship between the “Medical Management” and “Member Services” departments.
257. Member Services director reports to Claims V.P. reports to Sr. V.P. of Operations (where MIS usually reports)
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260. Contract exclusions and limitations easy to administer -- “medical necessity” based on criteria and standards of care more difficult -- sometimes decisions (approval or denial) not justifiable in the contract or medical criteria (Good ol’ boy decision making)
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262. Member services performs satisfaction and accountability studies and generates reports - knows the skeletons
273. The Lightat the End of the Tunnelis not a TrainComing the Other Way or Is There Indemnity After Managed Care After Indemnity?
274. ParticipatoryWork Group Session Determine Tactics to use in Strategically Applying CQI and NCQA Principles to the Schubert’s “Unfinished Symphony”
276. NCQAandThe Evolving Role of Information Technology Roger H. Strube, M.D. Managed Care Consultant
277. NCQA Accreditation The Plan’s Perspective Medical Records Roger H. Strube, M.D. Managed Care Consultant
278. NCQA Medical Records Standards Medical Records are maintained in a manner that is current, detailed, organized, and permits effective patient care and quality review. The records reflect all aspects of patient care, including ancillary services. Records are available to health care practitioners at each encounter and to NCQA reviewers.
279. NCQA Medical Records Standards The MCO sets standards for medical records, systematically reviews the records for conformance, and institutes corrective action when standards are not met. Documentation of items on the NCQA Medical Record Review Summary Sheet demonstrates that medical records are in conformity with good professional medical practice and appropriate health management.
280. Medical RecordsThe State of the Art The vast majority of physicians world wide use recording tools and techniques which are hundreds, if not thousands of years old. Whether using a feather quill pen, a Mont Blanc fountain pen or a lap top computer, the format has not changed much in several hundred years. The power of the new tools (the computer) has not been tapped and the computer has not significantly changed the way we work. The present applications have merely provided us with chaos at light speed and a more efficient way to detect human error.
281. Medical RecordsThe State of the Art The knowledge base of medicine is so large no human can master the knowledge needed to make proper medical decisions. Physicians seldom take the time to gather and record the needed information from the patient even if they could integrate that information with the medical knowledge base so that a proper decision regarding the care of the patient could be made. The literature suggests that half of medical care delivered in the USA in unnecessary, ineffective or harmful. There is $500 Billion to be saved in America.
282. Medical RecordsThe State of the Art NCQA is attempting to move medical care into the 21st century by demanding ever more complex CQI statistical analysis of the system as the first step. Most of the payor industry is not capable of providing sound data. The medical record keeping of most physicians would have been state of the art 100 years ago. To satisfy the needs of NCQA, an army of record reviewers is needed to collect the data. The data is needed, the reports will be generated and the system will evolve, but...to what? and at what cost?
298. Selection of Treatment Paths, drugs, procedures presented electronically to physician and patient
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300. NCQAValue Added Partnering Do not wait to be asked by your MCO for documentation of activities you know are required by NCQA. Provide the information regularly and before you are asked.
301. NCQAValue Added Partnering Work toward a Total Quality Management (TQM) corporate culture using Continuous Quality Improvement (CQI) process improvement techniques. Your activities will be directly applicable to your business need to cooperate with the NCQA requirements placed on your partner MCO. Learn and apply as much as you can about the Quality Improvement Process. The success of your company and your personal security depend on it.
302. NCQAValue Added Partnering Learn as much as you can about the basic benefit plan of your MCO partners. Do not offer opinions about what the patient’s health care plan “should” cover. Refer the patient to the MCO member service department for benefit clarification. If a service is limited or denied feel free to discuss the medical necessity decision with the medical director. Direct the patient to the member services department to discuss the appeals process. Patient advocacy is OK. Do not become an adversary to the MCO.
303. 100% Efficient Health Care* A Judgment Alone Maximum quality attainable using memory based system Quality of Care - Memory Base System TIME * Most cost efficient, medically necessary, effective and best expected result for the patient.
304. 100% Efficient Health Care* B Judgment & Feedback Augmented memory based system Outcomes + Other Feedback A Judgment Alone Maximum quality attainable using memory based system Quality of Care - Memory Base System TIME * Most cost efficient, medically necessary, effective and best expected result for the patient.
305. 100% Efficient Health Care* C Judgment & Computer Physician Judgment + Computer decision support Computer Assisted Physician Judgment B Judgment & Feedback Augmented memory based system + Other Feedback Outcomes A Judgment Alone Maximum quality attainable using memory based system Quality of Care - Memory Base System TIME * Most cost efficient, medically necessary, effective and best expected result for the patient.