Class 2 Flashcards
Value
Defined as outcomes relative to costs
Value = outcomes/costs
We can increase value by improving outcomes or lowering costs
Value-Based Care
High value, cost-conscious care that aims to assess the benefits, harms, and cost of interventions and consequently to provide care that adds value
Improved health outcomes
Lower mortality and morbidity
Better experience of care/satisfaction
Goal of value based Care
To have people live longer, healthier lives at a sustainable cost
Shared Characteristics of Organizations Delivering High Value care
Importance of primary and preventive care •Focus on keeping people out of hospital •Emphasis on innovation and change •Focus on quality measures •Electronic health record systems
Current Payment Model: FFS
More Services = More $$$
Danger for Overuse = Higher spending and unnecessary services
Alternative to FFS: Capitation
Provider is paid a fixed amount on a PMPM basis
Less services = more money for provider
Danger for underuse, withholding appropriate care + increased risk for reducing overall quality of care
The shift to VBP
- NYS Medicaid: 80-90% VBP by 2020
- Federal Medicare HHS: 90% Medicare FFS to VBP by 2018
Medicaid Access and CHIP Reauthorization Act (MACRA)
- Repeals Medicare sustainable growth rate (SGR) formula that calculated payment cuts for physicians
- Creates new framework for rewarding physicians for providing higher quality of care and incentivizing value over volume
- Streamlines multiple quality program and provides bonus payments by establishing 2 tracks (MIPS and AAPMs)
MACRA track: Merit-based Incentive Payment Systems (MIPS)
A single MIPS composite performance score in 4 weighted performance categories:
• Quality
• Meaningful Use
• Resource Use (Cost)
• Clinical Practice Improvement Activities
Exclusions to MIPS
- Newly enrolled Medicare clinicians for the first year
- Clinicians who are below the low volume threshold: (1) Medicare Part B allowed charges less or equal to will factor in performance $30K OR (2) 100 or fewer Medicare Part B patients
- Clinicians significantly participating in Advanced APMs
MACRA track: Advanced Alternative Payment Models (AAPM)
APM is a payment approach that changes the way CMS pays for care under Medicare. AAPMs are a subset of APMs that offer greater rewards.
AAPM characteristics
- Participants must take on two sided risk
- Move from volume to value
- Medicare revenue requirements apply
- Bonus of 5% for 2019-2024
Examples of AAPM
- Certain ACOs
- Comprehensive Care Plus (CPC+) Program
- Certain Bundled Payment arrangements
Why DSRIP
NYS 2010 Medicaid crisis:
- unsustainable growth rate at > 10% while outcomes lagging
- Costs per patient double national average
- 50th in country for avoidable hospital use
- 21st for overall health system quality