legal issues in medical home development presented by: gerry hinkley davis wright tremaine llp...

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LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP [email protected]

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Page 1: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT

Presented by:

Gerry Hinkley Davis Wright Tremaine LLP

[email protected]

Page 2: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Session goals

Understand the translation of Medical Home goals into a legally enforceable structure

Address some contracting issues – provider to provider; payor to provider

Consider antitrust risk Weigh privacy and security concerns Look at implications for the standard of care in

negligence actions

Page 3: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Transforming the model into a system

The Model’s general goals Personal physician Physician directed medical practice Whole person orientation Quality and safety Enhanced access Supportive payment

Page 4: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Components of a system Home provider – a professional or group of professionals Elements of care and care coordination -- detailed

description of the program: patient and provider selection and participation care paths and protocols reporting and improvement grievance resolution

Determination of costs to provide this level of care Documentation

Employment, home provider contracts Program plan and protocols Payor contracts Referral provider contracts HIT procurement and maintenance

Page 5: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Payor contracts Payor business and financial support is key In exchange for support, home providers commit

to Quality measures: third party (NCQA), payor-specific Programmatic measures

Staffing Care protocols Reporting outcomes and patient/provider satisfaction

Payor participation takes the form of payment and care management

Page 6: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Payor contracts – specific terms

Payment PMPM Patient attribution methodology

Evaluation Utilization expectations Quality measures Patient and provider satisfaction

Termination Dispute resolution Consequences for provider status

Page 7: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Antitrust compliance

Sherman Act – prohibiting unreasonable restraints on trade Is setting a range of reimbursement horizontal price-

fixing? Is it a permissible restraint ancillary to a legitimate joint

arrangement Do procompetitive benefits outweight potential bad

consequences? Eliminates “free riders” Benefits consumers Reduces costs Improves quality

Implications of “State Action” to avoid antitrust violation

Page 8: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Privacy and security More sharing of information than in typical model Most communications between providers should

be for “treatment” or “payment” and not require HIPAA authorization

HIPAA compliant authorization required to transmit out of the system – e.g. PHRs

State law may require specific consents Consider appropriateness of enhanced or

coordinated privacy policies for “trust”

Page 9: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Standard of care The professional must render care with the

same degree of care as a reasonable member of that profession in similar circumstances would render in the community

Some courts have considered “resource restraints” to lower the standard

Will “resource expansion” push the standard to higher levels?

Page 10: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Is this concierge medicine? Prohibition on additional charges to patients for

covered services (Medicare and perhaps HMO contracts) – can’t charge an “access fee” for Medicare covered services (and maybe for commercial services)

Do payors have a right to offset payments received from secondary paryors (COB)

Page 11: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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Thank You for Participating

Gerry HinkleyPartner

Davis Wright Tremaine LLP [email protected]

415.276.6530www.dwt.com

Page 12: LEGAL ISSUES IN MEDICAL HOME DEVELOPMENT Presented by: Gerry Hinkley Davis Wright Tremaine LLP gerryhinkley@dwt.com

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The purpose of this presentation is to inform and comment upon transactions in the health care industry. It is not intended, nor should it be used, as a substitute for specific legal advice as legal counsel may only be given in response to inquiries regarding particular situations.

(c) Davis Wright Tremaine LLP 2009