Adoption of fully electronic transactions varies significantly according to Key Bank’s white paper “From Crawl to Walk to Run”. From Streamlining business processes with new tools abounding, there are five questions CEOs should ask about their current payment management strategies. You can also educate the healthcare consumer with five strategies for improving patient relations in the front office.
Look for best practices for communicating with patients about prices, billing and payments. Ultimately, you will be able to lower the cost of staff time formerly devoted to largely fruitless pursuit of mostly small balance accounts after the procedure is completed.
Learn more about how to do this from Key Bank in the link below:
Automation to Optimize Receivables Healthcare White Paper
Thanks to our sponsor, Melissa Whitmer, Senior Vice President, Healthcare Banking, Key Bank, for providing the above white paper.
Melissa can be reached at:
SIM recruits final cohort, prepares practices for success with APMs
Sustainable healthcare reform requires new skills and a different understanding of how practices articulate their unique value to succeed in alternative payment models that reward the value (not volume) of care delivered. The Colorado State Innovation Model (SIM), which is recruiting for its third and final cohort, helps practices integrate behavioral and physical health, use data in actionable ways and retool processes to provide team-based, patient-centered care. One example of how this federally funded, governor’s office initiative helps practices prepare for success with alternative payment models (APMs): SIM practices have a “glidepath” with the new Health First Colorado APM.
SIM practices that are designated primary care medical providers don’t have to submit quality measures for the first year of the Medicaid APM and get full credit on the Medicaid APM point scale. Please encourage primary care practices to apply for the last SIM cohort by Jan. 19 to get the coaching and support they need to succeed in APMs, deliver whole-person care and use data more effectively: http://bit.ly/sim3application.
Dea Robinson, FACMPE
Independent Healthcare Consultant
Colorado State University
Organizational Learning, Performance & Change
“NO REPEAL. NO REPLACE. HOW ABOUT WE AGREE TO AMEND?”
Either way, “Obamacare” will most likely change in the near future and while there have been speakers, debates and numerous articles on what could happen, there are other factors that are being neglected. To this point, let’s just go with what the last speaker, T.R. Reid said at the last Denver Medical Study Group meeting. T.R. predicted that the US healthcare industry will end up with a single payer system. And, to my point, regardless of what the system is from a leadership and administrative lens for healthcare, business as usual is, well, business.
Healthcare is personal, and healthcare is a business and this is where we have a rub. Some forget that choosing a plan to offer employees affects the person making the recommendation and choice and must balance the decision within the parameters of an accountable budget to owners or a board of directors. One fiscal reality is as healthcare expenditure continues to rise, we see employees who ‘work for benefits’. So, instead of working for a paycheck, workers are working for healthcare coverage. Just imagine if workers did not work for benefits, and instead worked because they wanted to and healthcare coverage was just as normal as having a latte on Monday morning. A recent Health Affairs blog provides a good overview of Obamacare and the differences between the two plans, but let’s suspend some of the unknowns for some knowns We know the Baby Boomer generation and Generation X will continue to consume more healthcare services as they age, and the next generation (Millennials) will continue to push the healthcare consumer needle into places we haven’t been before that will require healthcare leaders to consider different staffing, utilization, and reimbursement models. As we continue with our suspended unknown mindset, let’s discuss what we know.
Generational forces. In a recent MGMA Stat poll of 1,487 respondents that asked the question regarding telehealth services, 74% of medical practice administrators respondents reported their personal physicians did not provide this type of service, but were willing to use the service (49%) if offered. Of note, the MGMA data provided earlier was not stratified so we could not soft test respondent demographics in the respondent sample, but this is the kind of information needed for forward thinking healthcare leaders need to consider. The next generation of healthcare consumers are the Millennial generation, a cohort birthed when the internet was implemented (born between 1981 -1995). This group of individuals defines their generation by technology use (Hershatter & Epstein, 2010). It is possible that the demand for telehealth services has not matured in practice because the patients most comfortable with this practice do not constitute most of healthcare patients -yet.
How to get paid and for what. A shift in technology-driven healthcare requires a shift in mental models for healthcare system leaders to let go of old payment models for physicians and staff leading to more knowledge work. The payment models in place today are still predominantly based on a per patient or RVU model combined with hours spent in an office. We may always have a bricks-and-mortar place for patients to go and I think this is a good thing, but here is the challenge. Could we starting to think creatively on how to use RVU’s and hours worked as part of reimbursement instead of the only metrics of production? I have had numerous private discussions with colleagues over the ‘value’ issue in healthcare. Typically, the conversation ends with submission to what HHS will decide what value will be, or what the hospital decides it will be, and so on. What is value in your healthcare system? What do your patients value and are you rewarding the right people or teams? Typically, the answer is, yes, but if you can’t measure it, it doesn’t exist. I get it and my response is look to ‘patient experience’ for some ideas and your internal medical staff for the other half of value. Are you rewarding poor behavior because RVU’s are high but no one wants to work as a team because of the culture in your organization? Let’s also not forget that patients typically file malpractice claims based on how they were treated by the physician, not the medical outcome. What is value for your patients, employees, physicians, and staff?
Patient record disconnectedness. Given the mobility telehealth delivery provides, services can be delivered from any global location and this trend will challenge tightly held ways of working for providers. Are you ready to manage people you don’t see? Are you ready to pay people you don’t see when healthcare services happen in a cloud? And, are you ready to assess effectiveness and outcomes of virtual medical teams? Baby Boomers have done some great things for healthcare delivery. They insist on living longer and doing more as they age and their lifestyles reflect expectations of their health. A few years ago, I heard Atul Gawande, MD talk about healthcare complexity and one of the takeaways from his talk was about the challenges of systems. He claimed one of the biggest challenges to healthcare is the complexity of systems to ‘talk’ to one another. While some of the biggest advances have been in technology; alternatively, some of the biggest obstacles to care and customer service are also the result of technology.
I recently observed an orthopedic surgeon dictate into his Dragon dictation system and it was one of the most painful displays of human-technology interaction I have experienced in a long time. (Full disclosure: I was a medical transcriber for many years to put myself through college and it is a struggle not to grab the keyboard and just type the words.) He had great coping skills, however, as administration had provided a little stuffed animal to squeeze and throw in the air when his ‘Dragon’ didn’t work. And then, when the dictation system started to transcribe his words, his computer shut down to restart and install new software. Sound farfetched? This is the kind of ground-level, front line frustrations that can prevent us from moving forward to providing the right care, at the right time.
Obamacare will morph and change, but we have things we can address now in a proactive way to move the healthcare needle on our own.
A Group of Leading Private Sector Companies Is Working to Fix a Broken Health Care System
The Private Sector Won’t Wait
-Health Transformation Alliance Now Has 38 of America’s Largest Companies on Board-
New Partnership for Prescription Drugs; Focus on Converting Data into Insights; Creation of Medical Networks to Begin
(New York, NY – March 7, 2017) – As government officials consider their next steps in health care reform, a large and growing group of America’s leading corporations is moving ahead with major changes in how millions, and potentially tens of millions, of workers get their health care.
“Fixing health care is something everyone is talking about,” said Kevin Cox, chairman of the Health Transformation Alliance and chief human resources officer for American Express. “The employer-provided health care marketplace, which supplies a substantial portion of the profit margins to the entire health care system, is looking for meaningful change. We’re moving ahead to help companies take better care of the people who take care of us.”
Just one year after 20 corporations united to build a new way of delivering quality health care for their workers, millions of employees will soon benefit from a new partnership these companies are putting in place to purchase prescription drugs, the first of three major reforms the newly formed Health Transformation Alliance is undertaking. The other two reforms focus on translating big data into cognitive insights and setting up new medical networks.
Through a partnership with IBM Watson Health, the HTA will leverage data, analytics, and cognitive insights to support its transformational initiatives. Better understanding data, trends, and results, the HTA believes, has the potential to predict and prevent disease, improve outcomes, increase the value of health care for its members and employers, and enable the integration and collaboration of all stakeholders in the health care ecosystem. These three reforms (Pharma, Big Data/Cognitive Insights, and Medical Networks) are all expected to be in place beginning in 2018.
Today, 38 companies belong to the HTA, up from 20 last year, and collectively they spend more than $24 billion a year to provide health care to more than 6 million employees and family members, up from 4 million covered lives last year. Through the HTA, these companies have forged alliances with a variety of companies in the health care sector to change how health care is delivered to employees—and lower costs.
“Our job is to fix our broken health care system,” said Cox. “While it’s not yet clear what actions the federal government will take, we are working together toward a clear path to positively change health care for tens of millions of people in the private sector.”
Rob Andrews, CEO of the HTA, said, “We recognized last year that privately provided health care can’t go on the way it’s been. While costs for non-health care related expenses have risen 40 percent since 1999, costs for employer-provided coverage are up 191 percent and employer contributions for premiums are up 213 percent over the same period. If private sector companies don’t change the system, employer-provided health care is at risk of becoming unaffordable for companies, and for their employees and families.”
New Pharmaceutical Partnerships
In February, HTA launched partnerships with CVS Health and OptumRx to change how companies provide prescription drug benefits through prescription plan management companies, known as pharmacy benefit managers (PBMs).
Rather than having individual companies contract with these PBMs, HTA forged an innovative approach with CVS and OptumRx that focuses on partnerships and transparency, resulting in lower prices for the same medicines and allowing HTA members to achieve considerable savings. These changes go beyond what group purchasing coalitions have been able to achieve. It’s a path-breaking approach for the way companies deliver prescription drug benefits to their workers.
In addition, the HTA will work with its PBM partners to create better formularies, which list the prescription drugs commonly agreed to be used by the medical profession and the insurance industry. The solutions will not only result in increased savings to HTA member companies, but also help individuals select the most appropriate and cost-effective prescriptions to meet their medical needs.
“Beginning January 1, 2018, these prescription drug reforms alone are projected to save participating HTA member companies, their workers and, in some cases, retirees, at least $600 million over three years,” said Andrews. “We are moving ahead with similar reforms in payments for other medical care and are confident that the HTA can change the way health care is priced so our members and workers can benefit.”
Changing Medical Outcomes with Medical Networks
In addition to Pharma, HTA is focused on working in partnership with some of the nation’s leading health care provider systems to improve medical outcomes. HTA selected United Healthcare and Cigna as partners in administering this effort.
HTA’s medical reforms, scheduled for launch in 2018, will focus on the best treatments for several conditions that contribute greatly to health care spending, including Type 2 diabetes, hip and knee replacements, and treatment for back pain. These four conditions are among the most commonly treated ailments, accounting for as much as 40 percent of health care spending of HTA companies.
“The goal of these initiatives,” said HTA Vice Chairman Dr. Glenn Steele, “is to combine what HTA is doing with data and prescription drugs to create new medical networks that provide top-quality care for workers, retirees and their family members. These better health outcomes will reduce costs for families as well as employers, all while improving the health and well-being of employees.”
Dallas/Fort Worth, Phoenix and Chicago have been selected as the first markets in which these new networks will be created.
The HTA selected IBM Watson Health as its data and analytics partner. The HTA will use the IBM Watson Health cloud-based cognitive platform to aggregate data from across the participating members and provide descriptive, predictive and cognitive analytics. The insights from these data and analytics are expected to help HTA members lower the costs of care, reduce waste, and improve health outcomes and experiences for the population, including their employees, dependents and retirees.
Analytic priorities will focus on medical and pharmacy utilization, predictive insights for more proactive health management, and risk-based segmentation to identify appropriate opportunities to improve employee health care. When viewed collectively, these insights let employers approach the market collectively to truly transform the way care is delivered.
“A playbook for ‘personalized population health management’ is emerging, replacing outdated care management approaches, performance measures, and payment models,” said Deborah DiSanzo, general manager for IBM Watson Health. “This monumental shift creates an entirely new dynamic among employers and their employees, providers and payers. Working with the HTA, Watson Health has the opportunity to transform health by applying IBM’s distinct blend of domain knowledge, which includes a 360-degree perspective of health care; a century of experience managing large, complex data projects; and Watson cognitive computing.”
“The private sector can’t afford to wait to get this done,” said Cox. “Through the HTA, we can change health care for the better, in a way that none of us would be able to do as individual companies. Employer-provided health care is important to our employees and retirees. We’re proud of what we’ve done in just a year, and we look forward to delivering for our workers, retirees and their families.”
Five things I think I think about the next phase of health care reform
March 28, 2017 at 1:13 PM
Photo by Jon Collier
This is not the end of Obamacare; it’s the beginning
In a surprising move, Paul Ryan pulled the American Health Care Act, the Republican ACA repeal and replace bill, last Friday. It had become clear that there was no movement to the left or the right that would garner enough votes to allow passage in the House. Even if it had passed in the House by moving right, much of that movement was likely to be stripped out in the Senate, where the Republican majority is slimmer, but no less internally conflicted. The president has stated he is moving on to other issues like tax reform and infrastructure building.
So you might think that health care reform on the federal level is done for now. Whether that is true or not, it is also pretty clear to me that there is still a great deal of work to do to stabilize and improve the ACA. Cost constraints are still lacking, and insurance marketplaces at the state level are still suffering from shrinking insurer participation. While coverage has vastly improved under the ACA, affordability remains elusive if you don’t qualify for a subsidy.
Where are we going next? Some (including me) are hoping that this opens the door to real bipartisan negotiation. Here’s the theory. The Trump administration cares about the appearance of winning, not ideology. If you can’t work over the Freedom Caucus to get the votes, you go to the Tuesday Group, a group of moderate Republicans. Perhaps they’ll even appeal to the next group over from them, moderate Democrats, to get onboard for something.
Here are five things I observed from this last round of negotiations:
- The Freedom Caucus has a literal interpretation of the phrase “repeal and replace”. All the rhetoric about removing Obamacare “branch and root”? Turns out it wasn’t simply rhetoric for them. They believe that Medicaid expansion to childless adults must be removed entirely, because it is enabling able-bodied citizens to get care without working for it. All the headlines about 24 million more uninsured shocked many of us, but for conservatives was actually not a bad thing, and for some a desired outcome, judging from the rhetoric surrounding the debate.
- Loss aversion works. One of the truisms of behavioral economics is that fear of loss is about three times as motivating as desire for gain. This has been shown over and over again by people like Amos Teversky and Danny Kahnemann in psychology experiments. Thus, some people didn’t like the Affordable Care Act until they faced the possibility that they would lose coverage if it was repealed. For the first time in years, public approval of the ACA is greater than disapproval. (By the way, now that the immediate threat of repeal is gone, I predict those numbers will reverse again.) If you want people to value something, don’t try to sell it to them; give it to them and then try to take it away (the Classic Coke strategy).
- Trying to sneak legislation through in the age of Twitter is like trying to sneak to the bathroom in your pajamas through Grand Central Station. Hiding stuff so you don’t get criticized for it doesn’t work. Nor does speeding up timelines for the same purpose. We may have to do this a few more times before people get it, but the old days of passing legislation that hasn’t been dissected under a microscope I think are gone. There are too many smart people out there with time on their hands and a Twitter following to feed. They have an immediate platform to do the Roman thumbs up or down on literally everything in view, and are just waiting for something to tweet about.
- The emerging centrist view is that we need to maintain coverage for everybody who has it now, but get to cost containment to make the system sustainable. In a previous post, I talked about the hard truths that both sides are avoiding by blaming the other guy. But what do we do to control costs? The conservative answer is market forces, and the progressive one is government regulation. Neither one has a great track record when it comes to health care. So what’s an industrial superpower to do? There was funding in the ACA to set up CMMI, and much of their work has been on alternative payment models intended to bend the cost curve over time. But pragmatically the experience has been mixed for medical homes, bundled payment, and population-based payment. Rollout has been slower than many would like, and affect too few providers to declare it a success. I would love to see a real and thoughtful bipartisan discussion on some hybrid possibilities.
- And there is no guarantee the next move is toward bipartisanship. Winston Churchill said, “Americans will always do the right thing—after exhausting all the other possibilities.” If the last twenty years teaches us anything, it’s that governing from the extremes doesn’t work very well. So you’d think that the next move would be to try to govern from the center. But this is one of those Clayton Christiansen moments. Christiansen says that the winners of the last game are unlikely to be the inventors of the new game, since the new game displaces the old one. The existing game goes like this:
- Point out what’s wrong with any plan offered by your opponents, which is much easier to figure out than how to make things work (boring). It also gets a lot more attention on Twitter. And, the bonus is that you get to go home to your district and tell people you stood on principle, and that everyone else has the morals of a used car salesman.
- Foment anger and frustration, and promise that you are the only person capable of breaking through the mess. Do this, while you are all the while perpetuating the mess.
- Repeat, and fund-raise.
Both parties have had the chance to be in the majority and the minority in the last two decades, and both have gotten pretty good at the existing game. It will take a sea change to find the next game that rewards centrist compromise. Here’s hoping we exhaust all the other possibilities sooner rather than later.
NOTE: Permission to share the above blog from Want Healthcare LLC granted by Jay Want, MD.
Below is the link to an article recently published in The Hill on March 2, 2017. It was written by Ceci Connolly, CEO of the Alliance of Community Health Plans and former national health correspondent for the Washington Post, Dr. Denis Cortese, Director of the Healthcare Delivery and policy Program, Arizona State University and Emeritus CEO of Mayo Clinic and Robert Smoldt, Associate Director of the Healthcare Delivery and Policy Program, Arizona State University and Emeritus CAO, Mayo Clinic.
The article shares with us history that major social policy change seldom succeeds without the backing of both parties. It is a great “read” to help us understand that “Obamacare” and “Trumpcare” won’t work for our country until leaders of both parties stand together to become, as the article says, “the effective salve to health system woes that Americans deserve”.