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Navigating the new world of value based payment A community oncology business perspective This presentation includes statements of personal opinion. Statements made throughout this presentation should not be assumed to reflect official positions or policies of Tennessee Oncology.

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Page 1: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Navigating the new world of value based payment

A community oncology business perspective

This presentation includes statements of personal opinion. Statements made throughout this presentation should not be assumed to reflect official positions or policies of Tennessee Oncology.

Page 2: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

From the practice perspective:

Two decisions:1. MIPPS or APM?

2. Advanced APM or MIPPS APM?

MACRA

APM

scoring

MIPPS APM

Advanced APM

MIPPS

scoring

OCM risk upside only OCM downside & upside risk

Page 3: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

What’s OCM?

The Oncology Care Model is CMS’s first widely accessible, voluntary, experimental payment model for medical oncology.

Upside only risk option = MIPPS APM

Two-sided risk option = Advanced APM

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Page 4: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Fundamental revenue and cost structure of OCM participation

1) Monthly Enhance Oncology Services (MEOS) payments• $156.80 per qualifying

Medicare beneficiary

2) Performance-based payments (PBPs)• Variable based on

performance

1) Program requirementsA. IOM Care PlanningB. Care NavigationC. Others (EBM tx, 24/7 access to

clinicians, use of EHRs, etc.)

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Revenue Costs

2) Total cost of care reduction

3) QM performance

Page 5: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

MIPPS vs upside only OCM

MIPPS Scoring MIPPS APM Scoring

QM, ACI & IA reporting requirements

9 self reported measures + 3 claims based + ACI + IA (included in program requirements)

No guaranteed revenue increase $156.80 PBPM per attributed episode

Heavily codified in regulation Experimental payment model

Budget neutral payment adjustments No financial penalties

Excessive program requirements

Page 6: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

MIPPS APM vs Advanced APM

APM (upside risk only OCM) AAPM (downside & upside risk)

Upside only20% stop loss

Cost of new drugs

156.80 PBPM 5% of all Part B prof. service fees

OCM & ACI QM reporting Reduced QM reporting burden

Page 7: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Why not A-APM?

Page 8: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Safest bet?

OCMUpside risk only

Page 9: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Overview of performance based payments (PBP)

% of risk adjusted quality measure points earned

Risk adjusted savings

(in excess of 7.2% hurdle retained by Medicare)

PBP Revenue

Page 10: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Major OCM-related initiatives*

1. Pathways program

2. Improved triage processes

3. Access to & utilization of palliative care

4. Improved care coordination

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* Initiatives that will reduce overall cost of care (gate-keeper for OCM performance based payments)

Page 11: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Source: Journal of Oncology Practice, November 2015.

How to approach practice transformation?

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Page 12: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Keys to success:

• “Box checking does not, by itself, improve care…it might be as simple as reforming telephone triage.”

• Successful practices have focused on:1. Pathways

2. Telephone triage

3. Same day appointments as problems arise

4. EOL discussions

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Page 13: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

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Page 14: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

• “Data collection at baseline period showed 48% of symptom management calls being addressed within 2 hours. Staffing changes resulted in an improvement to 68%, and an additional improvement to 73% after implementation of the case management system.”

• “Data collection at baseline period showed that 35% of calls routed to the triage nurse were not appropriate calls for triage nursing. This improved to under 1% after implementation of the case management system.”

Results to date from triage process improvement initiative

Page 15: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Definition of care coordination

Triage protocols

Distress screening

New patient intake

Enhanced patient education

Access to palliative care

Closing the loop on symptomatic patients

Urgent care visits

Post discharge planning

Survivorship planning

Total Cost of Care Reduction

= Everything we do for patients outside of their office visit interactions with the provider

Page 16: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Success requires culture shift

1. Reduce hospitalization and ER visits

2. Patient-centered processes that improve patient satisfaction

3. Focus on overall health of the patient (including comorbidities, psychosocial problems)

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Source: Journal of Oncology Practice, November 2015.

Page 17: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

We know the FFS world, how long will the transition to VBP take?

Clinicalpractice

Care coordination

Learning curve?

Information systems mgmt

Finance, operations & mgmt science

Page 18: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

What to expect over the next few years?

“Medicare Accountable Care Organization Results For 2015: The Journey To Better Quality And Lower Costs Continues,” Health Affairs Blog, Sep. 2016.

Page 19: Navigating the new world of value based payment · 2020. 4. 16. · Navigating the new world of value based payment A community oncology business perspective This presentation includes

Questions?

Aaron LyssEmail: [email protected]: 314.306.4483