healthcare leadership network of the delaware valley: physician alignment june 2015 christine winn,...

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Healthcare Leadership Network of the Delaware Valley: Physician Alignment June 2015 Christine Winn, FACHE Senior Vice President, MD Anderson Cooper Cancer Institute and Cooper Physician Alignment

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Healthcare Leadership Network of the Delaware Valley:

Physician Alignment

June 2015Christine Winn, FACHE

Senior Vice President, MD Anderson Cooper Cancer Institute and Cooper Physician Alignment

Overview

• Why is this important?• What has happened in the past?• Variety of Physician Alignment Models and

Preparation Tactics– Local Impact

• Necessary items for your “journey”

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Why is this important

• Operating costs will need to be reduced by 15 percent to 25 percent to ensure continued viability in the value environment

• Physicians are a driver of costs and are THE major partner needed to reduce those costs

• Current alignment activities can prepare Healthsystems to be cost competitive in new models

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ACHE Focus on Physicians• New Physician Executive Forum• Physician Leadership “Boot Camp” Pilots • Career Development Task Force

– Physicians as members• New Strategic Plan – Desired Outcomes

– Increased membership and participation across the spectrum of healthcare leadership

– Higher levels of member engagement and satisfaction– Increased brand awareness and perceived value among

members and key constituents– Greater impact in advancing effective and efficient healthcare

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What has happened in the past with our physician colleagues?

• BUYING SPREE• Not what we expected….loyalty cant be

bought?• Healthsystem and physician alignment

– Co Management– Gainsharing

• Value Based Collaboration Models

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VARIETY OF ALIGNMENT MODELS AND PREPARATION TACTICS

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Building a Successful Physician Alignment Strategy

Source: Healthcare Strategy Group

Mutual Success

Clinical Integration

Building Common Vision and Culture

Physician Employment Strategy

Economic Alignment Options

Medical Staff Growth and Development

Physician Manpower Planning

Strategy

Planning

Alignment

Integration

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Kurtsalomon, 2013

Focus Areas for Alignment Activities

• Volume Based Care– Focused on Employment – Fixed Compensation– Committee Service

Compensation– Defend Market– Competitive Advantage

with subspecialists

• Value Based Care– Promotes Integration

and alignment of incentives

– Focus on quality across continuum

– Need for common IT platforms

– Preparation for Bundled Payments and ACO’s

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What are key Physician/Healthsystem Collaboration Forces Now?

• Pay for performance reimbursement approaches • Regulatory requirements are increasing • Migration of physicians from inpatient to outpatient settings (loss of

connection)• Need to recruit additional physicians places a risk on existing

physicians • Newer physicians want predictable hours and an income guarantee • Practice expense stress financial viability of independent practices• Large employers and Medicare are moving to bundled payments,

single price contracting, and pay-for-performance • Long-term success of the healthcare system

Source: Nick Fabrizio, PhD, FACMPE, FACHE, MGMA consultant 11

LOCAL IMPACTS – COOPER EXPERIENCE

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Employees4,666 full-time, 1,337 part-time

6,003

Patient encounters 1.3M+

Admissions 26,624

ED visits 81,075

Outpatient visits 1.2M

Medical Staff 1,004

Employed physicians 541

Community physicians 266

Allied Health professionals 197

Residents and Fellows 313

Licensed bedsIncludes 35 NICU and Transitional Newborn Bassinets

635

Cooper Fast Facts

Cooper Medical School of Rowan University

• Opened in 2012 on the Health Sciences Campus in Camden, New Jersey.

• The first new medical school in New Jersey in over 35 years and the only four-year MD-granting medical school in South Jersey.

• CMSRU has quickly become a sought after medical school in the country because of its focus on community.

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• CMSRU addresses the physician shortage locally and nationally, and its students and faculty continually work to find innovative improvements to health care throughout the region.

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The need to meet our academic mission remains while we strive to address the triple aim

High competition for fixed population

Amidst a cultural shift

The Delaware River

Partnerships

beyond

M&A

Industry is

in flux

Academic mission:Education & research

QUALITYImprove the health of the population

COSTReduce the

cost of care per capita

SERVICEEnhance the patient

experience

Triple Aim

1 2

3

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Academic Medical Centers like Cooper walk afine line to strike a balance between volume and value

The Balancing Act COMMODITIZED CAREDESTINATION CARE

VOLUME (Old Order) VALUE (New Order)

• Health system business models focused on high margin, high-tech inpatient care

• Fee-for-service payment for activity volume and “carve outs”

• Advanced subspecialty care for the complications of advanced disease

• Specialty focus on care innovation

• Health system business models focused on quality and efficiency of care management across the full continuum

• Bundled/global payments and incentives for outcomes

• Proactive health management• Innovation around process

integration across providers

Product & Services Differentiation

Operational EfficiencyCustomer Service

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Health System Trends: Volume to Value

Timing Matters

Premature Well-Timed LaggingContracts before sufficient

capabilities to be successful on new arrangements

Transition contracts strategically while building capabilities.

Delay building capabilities andfocus on fee for service – and risk

being caught unprepared

Capabilities for Value-Based Care

Value-Based Contracts

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Cooper aims to be the partner of choice

Making Cooper the partner of choice….

…allows us to pursue a range of collaboration options

Cost Advantage

Efficient Product

Quality Outcomes

Payor Contracts

Tertiary Care Capabilities

Service excellence

1. Clinical affiliation

2. Regional collaborative

3. Accountable Care Organization

4. Clinically integrated network

5. Merger or acquisition Ri

sks

and

rew

ards

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iOnly Academic Med Ctr (AMC)

in South NJ

Programs of Distinction

Supportive partnership

position

Building relationships

with community hospitals

Expense reduction

Improved quality Transforming

the culture

Focus on quality and access

Cost advantage among peers

Payor contracts

Shifting improvement

focus to Ambulatory

COMMODITIZED CARE

Product & Services Differentiation

Operational EfficiencyService Excellence

DESTINATION CARE The Balancing Act

Cooper continues to position itself for the future

Checklist for Necessary Physician Alignment Items

MapMenuStopwatch“Spidy Sense”TeamCatcherYoga MatWatering Can

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THANK YOU! [email protected]

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