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The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California, Price School of Public Policy Author, Readmission Prevention: Solutions Across The Provider Continuum Founder, National Readmission Prevention Collaborative Founder, National Readmission Prevention Collaborative

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Page 1: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

The Health System of the Future: Surviving and Profiting in a Patient Centered Model

JOSH LUKE, PH.D., FACHEUniversity of Southern California, Price School of Public Policy

Author, Readmission Prevention: Solutions Across The Provider Continuum

Founder, National Readmission Prevention Collaborative

Founder, National Readmission Prevention Collaborative

Page 2: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

The Health System of the Future: Surviving and Profiting in a Patient Centered Model

JOSH LUKE, PH.D., FACHEFounder, National Readmission Prevention Collaborative

University of Southern California, Price School of Public Policy

Author, Readmission Prevention: Solutions Across The Provider Continuum

National Advisor, Strategic Transformation, Health Dimensions Group

Page 3: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

About Your Presenter:Josh Luke, PhD, FACHE

• Hospital CEO

‒ Memorial Hospital of Gardena

‒ Western Medical Center Anaheim

‒ Anaheim General Hospital

• VP, Post Acute at Torrance Memorial Health System

‒ Home health and hospice oversight

‒ Developed award-winning post acute network

• CEO for HealthSouth Las Vegas Rehab Hospital

• SNF Administrator/AL Executive Director

‒ Kindred, Windsor/SNF Management, California Friends Homes,

AIT for Life Care Centers of America

32015

Page 4: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Presentation Objectives

• Delivery model of the future: Discharge Home

• New readmission penalty: Medicare Spending Per

Beneficiary (MSPB)

• Post-acute provider guidelines for success

4

Let’s get off the starting line and

skate to where the puck will be!

It’s time to innovate and transform!

2015

Page 5: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

1998—It Was a Very Good Year

52015

Page 6: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

1998—It Was a Very Good Year

62015

Page 7: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

7

Grandma BelvaMarch 1920–July 2002

2015

Dementia & Congestive Heart FailureThe Summer of 2002

Home $0

Hemet Valley Medical Center $48,000

LTACH $52,000

Nursing Home $12,000

Home with Home Health $4,000

Hemet Valley Medical Center* $36,000

Nursing Home $18,000

Assisted Living with Home Health $4,000

Hemet Valley Medical Center* $42,000

Nursing Home $24,000

Hemet Valley Medical Center* $58,000

$298,000*Readmission

Page 8: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Services for Dementia Patients in 1999-2002

• Limited Outpatient support for dementia

• Over-prescribing of pscyhotropics

• Emergency Department as gatekeeper

• Inpatient acute psychiatric unit for elevated symptoms

(geropsychiatric unit)

• Skilled Nursing Facility

‒ Dementia Unit, locked unit or secured unit

• Assisted living, group home or home-based care taker

2015 8

Page 9: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Career Change

• Entered AIT program for Life Care Centers of America

‒ The best leadership lessons of my career

• Became a hospital CEO two years later

2015 9

Page 10: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Are You Ready for the Truth?

• Affordable Care Act is not a request, but a MANDATE

• Goal is to create a model for individuals to age and heal at

home

• The truth is that my job is not to teach you how to prevent

readmissions, it’s to teach you to prevent…admissions

• Welcome to the world of…

ADMISSION PREVENTION

102015

Page 11: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

The Transformation of the Acute Hospital: The C-suite Must Take Action

Coordinating care for improved

outcomes:

• Hospitals must act like

health systems

• Health systems must act like

managed care organization

• Thus, the hospital must act like a

managed care organization as well

11

Hospital

Health

System

Managed Care

2015

Page 12: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

What Does This Mean for You?

Hospitals = Last resort

SNF = Second-to-last resort; increase capability to handle medical-surgical level patients

Home health = Networks will be narrowed

Winners = Home care, private duty, and assisted living

122015

Page 13: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Tommy Olmstead v LCU.S. Supreme Court Decision, June 1999

U.S. Supreme Court concluded:

“Patients in an acute hospital have the right to be discharged

to the least restrictive environment when the care team

determines that community placement is appropriate and the

patient does not oppose the transfer.”

“Continued institutionalization of patients who may be placed

in less restrictive environments often constitutes

discrimination based on disability.”

2015 13

Page 14: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Tommy Olmstead v LCU.S. Supreme Court Decision, June 1999 (continued)

U.S. Supreme Court further concluded:

“Operationally, this means that both

physicians and hospital case managers

must first rule out the least restrictive

environment as a safe discharge

before considering institutionalizing a

patient for post acute services.”

14

What do you think CMS

would say about this?

MSPB?

2015

Page 15: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Many Reasons to Coordinate Care

1. ACO’s volume expected to triple by 2020 (passed with ACA in 2010)

2. Bundled payment initiatives (2010)

3. Value-based initiatives (2010)

4. Readmission penalties (2010)

5. RAC audits (2010)

6. MSPB (2014)

7. IMPACT (2014)

8. Better, smarter, healthier: In January 2015, HHS announced goal for 30% of Medicare spending in ACO/Bundle by 2016 and 50% by 2018 (2015)

9. CCJR – Mandated Orthopedic Bundles (2015)

10. Coming soon…. (2015 or 2016)

11. It’s a matter of fact…. (2015 or 2016)

152015

Page 16: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Alignment with Home Health

• SNF’s MUST align with hospital based home health

‒ Hospital owned are usually sub par

‒ Great opportunity to engage the hospital in conversation on this topic

‒ With growth the home health will need two other agencies to extend

reach

• If hospital does not own a home health, ask their top 3

‒ The home health your SNF doctor uses may NOT be one of their top

three

‒ Example: UCSD aligning exclusively with Accent for home health

2015 16

Page 17: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Milestones for Care Coordination in 2015

1. Better, Smarter, Healthier in January 2015

‒ 30% of Medicare payments by 2016; or 85% attached to quality

‒ 50% of Medicare payments by 2018; or 90% attached to quality

2. Modern Healthcare, May 9, 2015

By Melanie Evans

Hospitals Select Preferred SNFs to Improve Post-Acute Outcomes

3. UCSD/AccentCare; Marina Del Rey/24HR Home Care joint ventures

4. Comprehensive Care for Joint Replacement (CCJR Mandate),

- 75 markets nationwide; no downside risk in year one

172015

Page 18: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

More Recent “I told you so’s…” (recommendations)

1. TCC codes, Chronic care codes, end of life codes

2. ACO/Bundle Fraud and Abuse Waivers to narrow

3. Bundle Models and Next Generation ACO’s requiring

‒ Narrowing of SNF network

‒ Partnering with 5 star and 4 star SNF’ s

‒ Three midnight rule waiver

182015

Page 19: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

What’s Hot? What’s Happening this Month?

• Health systems calling to request help narrowing their network

of SNF’s and home health

• Three hurdles to health systems narrowing their post acute

network

1. Legal: Will compliance department sign-off?

2. Criteria: What criteria do we use to select providers who will be in the

network and how many get in?

3. Operationalize: Implementing new, sustainable care management

process

Hint: The hurdles are getting lower and lower by the week

2015 19

Page 20: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Transitional Care, Wellness, and Revenue Streams

• Direct-to-SNF transfers from the ED

• Remote monitoring at home and in SNF

• Home visits

• Expansion of home health to ambulatory case managers

• Track 3 ACO’s – 3 midnight waiver

• CCJR – waiver at 3 star or above

20

Home

SNF

Home Health

Dr. Office

Everyone is being incentivized to avoid the hospital

Hospital

2015

Page 21: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

SNF Providers: Are You Ready for the New Normal?

What if, on December 31, 2015, you received a notification

from CMS advising you that…

212015

…And also, what about SNF Avoidance?

Page 22: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Obama, AlaskaHypothetical New City

Health System of the

Future

Home

Doctor’s office

Wellness clinic/gym

OP/Ancillary services

Assisted living

SNF

Hospital

222015

Page 23: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Obama, AlaskaThe System of Old—The Fee-for-Service Free-for-All

Hospital

23

Home

Doctor’s office

Wellness clinic/gym

OP/Ancillary services

Assisted living

SNF

Insert Hospital Here!

2015

Page 24: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Story TimeOnce Upon a Time…

24

The Fee-for-Service

Free-for-All Era

Post-ACA Era

Old Hospital = 290 beds

New Hospital =

249 beds

Hospital Bed

Capacity

2015

Page 25: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Medicare Spending Per Beneficiary (MSPB): The New Readmission Penalty

• Effective October 1, 2014, MSPB episode includes all

Medicare Part A and Part B claims paid:

‒During the 3 days prior to the index admission

‒During the index admission

‒During the 30 days after hospital discharge

• Within these three time periods, average episode spending

levels are further broken down into seven provider types

(e.g., inpatient, outpatient)

2015 25

3 days prior 30 days after discharge

Page 26: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

MSPB: Hospital Sample 1

Medicare.gov, Hospital Compare

During Index Hospital Stay Inpatient $ Spent Percent

Hospital A $7,889 29.70%

State $8,910 45.36%

National $8,534 45.63%

Complete Episode (MSPB) Total Spending Percent

Hospital A $26,560 100.00%

State $19,642 100.00%

National $18,704 100.00%

262015

Page 27: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

MSPB: Hospital Sample 2

Medicare.gov, Hospital Compare

1–30 Days After Inpatient $ Spent Percent

Hospital A $8,967 33.00%

State $2,476 12.60%

National $2,532 13.54%

27

• Inpatient includes LTACH, IRF, and readmissions

• Readmission rate is only .04%, so there is LTACH and IRF utilization

2015

Page 28: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

IMPACT: Improving Medicare Post-Acute

Transformation Act of 2014

• IMPACT Act of 2014 takes a crucial step toward

modernization of Medicare payments to post-acute care

(PAC) providers

• Who wins? Maybe no one; it appears to be more

documentation to prove medical necessity

• Three midnight rule:

‒Recommendation by October

‒My opinion?

oWhy have they not already changed it? The free-for-all,

of course…

282015

Page 29: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

What’s the Future of Long-Term Acute Care & Acute Rehab? Alt Acute

• These services were originally created to serve unmet

niche’s—CMS aims to keep it that way

• Freestanding facilities will not survive in dual initiative

markets or if coordinated care models grow past 50% of

MCR spending

• Smaller, on-campus (HIH) may survive:

• LTACH must focus on Alternative Acute Strategies

‒ moving to sub-acute (still post acute)

• IRF: Specialty cases

292015

Page 30: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

The Super SNF Lets take a Tour

• Stop looking at competitors within the SNF industry for the

answers and start innovating

• Hospital-based SNFs within a mile of your facility get paid

$800–$1,100 a day for SNF patients; why don’t you?

302015

Page 31: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Examples of Value-Added Innovation

Care Management • Community integration model

• Medline bringing continuum together

• MediGram Mobile App for Caretakers

Innovation• Sensiotec: virtual medical assistant system

• MedTainer – cost efficient, safe pill crushing

• Alt Acute

31

These are all MSPB solutions as well

2015

Page 32: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Post-Acute Expectations

1. POLST

2. SBAR

3. Stop and watch

4. Return to acute log (emergency department)

5. Return to ED root cause analysis

6. Technology differentiators:

a. Predictive software/electronic quality data

b. Nutritional focus

c. Wireless telemetry

322015

Page 33: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Key Action Items

• Outreach to your referral partners consistently

‒ On the 15th of each month: Share the tools below!

• Submit your case study

‒ Innovate and differentiate

‒ Readmission tool kits

• Providers must become certified to stand out

‒ Certified Readmission Prevention Professional program (for individuals)

‒ Certified Readmission Prevention Partner program (for teams)

332015

Page 34: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

The Next Chapter: 2010

34

My Mom’s Journey

2015

Page 35: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Services for Dementia Patients in 1999-2002 2015

• Limited Outpatient support for dementia

• Over-prescribing of pscyhotropics

• Emergency Department as gatekeeper

• Inpatient acute psychiatric unit for elevated symptoms (geropsychiatric unit)

• Skilled Nursing Facility

‒ Dementia Unit, locked unit or secured unit

• Assisted living, group home or home-based care taker

Its not just the behavioral health sector,

this is consistent across the entire delivery system

2015 35

Page 36: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

My Legacy: Going Purple for My Mom

36

•Passion

•Empathy

•Fight

•Use your gifts

•Legacy

Values

2015

Page 37: The Health System of the Future · The Health System of the Future: Surviving and Profiting in a Patient Centered Model JOSH LUKE, PH.D., FACHE University of Southern California,

Josh Luke, Ph.D., FACHE

[email protected]

Go Purple to Fight

Alzheimer’s Disease!

NRPC Aims to

donate $25k in 2015!

372015

Available at ACHE.org/publications

www.NationalReadmissionPrevention.com

www.NationalBundledPaymentCollaborative.com