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Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

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Page 1: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

Why Not the Best? Towards A High Performance Health System

Cathy Schoen

Senior Vice President, The Commonwealth Fund

Alaska Health Summit

December 6, 2006

Page 2: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

2

Presentation Overview

• High Performance Health System– The Commonwealth Fund Commission on a High

Performance Health System– What Constitutes A High Performance System?

• Where Are We Now? Performance and Achievable Benchmarks

• Levers for Change to Improve Performance: States in Action

• Moving Forward

THE COMMONWEALTH

FUND

Page 3: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

3

The Commonwealth Fund Commission on a High Performance Health System

Objective:

• Move the U.S. toward a higher-performing health care system that achieves better access, improved quality, and greater efficiency, with particular focus on the most vulnerable due to income, gaps in insurance coverage, race/ethnicity, health, or age

Commission Members, including James J. Mongan, MD, Chairman; Alan Weil, JD; and others

Page 4: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

4

Key Dimensions of a High Performance Health System

EFFICIENT CARE

HIGH QUALITY CARE

EQUITY

ACCESS and Affordability

LONG,HEALTHY, ANDPRODUCTIVE

LIVES

SYSTEM INNOVATION AND IMPROVEMENT

THE COMMONWEALTH

FUND

Page 5: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

5

Achieving a High Performance Health System Requires:

• Committing to a clear, coherent strategy and establishing a process to implement and refine that strategy

• Enabling universal participation • Delivering care through models that emphasize

coordination and integration• Implementing payment systems that support and

encourage high quality, efficient, and accessible care• Developing information systems and

establishing/tracking metrics for health outcomes, quality, access, and efficiency

THE COMMONWEALTH

FUND

Page 6: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

6

National and State Performance:National and State Performance:Where We Are Now and Achievable Where We Are Now and Achievable

BenchmarksBenchmarks

THE COMMONWEALTH

FUND

Page 7: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

7

Scorecard on U.S. Health System• National scorecard including spanning core domains of

performance– Benchmarks based on achieved performance. Top states,

regions, providers or countries– Overall score of 66 reflects pervasive shortfalls

• The U.S. falls far short on each of the core goals for health

system performance – Wide gaps and variation within U.S.

• The consequence is needlessly lost lives, wasted health care expenditures, and lower economic productivity

• Given that the U.S. spends more than any other country, we should expect to lead on access, quality and efficiency– High value: benchmarks provide targets for improvement

• With cost and coverage moving in the wrong direction, action to achieve better performance is of great urgency THE

COMMONWEALTH FUND

Page 8: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

8

Mortality Amenable to Health Care

97 97 99106 107 109 109

115 115

129 130 132

7584 88 88 88

81

92

0

50

100

150

Deaths per 100,000 population*

110

7884

90

103

119

134

Percentiles

Internationalvariation, 1998

State variation,2002

* Countries’ age-standardized death rates, ages 0–74; includes ischemic heart disease.See Technical Appendix for list of conditions considered amenable to health care in the analysis.Data: International estimates—World Health Organization, WHO mortality database (Nolte and McKee 2003);State estimates—K. Hempstead, Rutgers University using Nolte and McKee methodology.

Mortality from causes considered amenable to health care is deaths before age 75 that are potentially preventable with timely and appropriate medical care

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

LONG, HEALTHY & PRODUCTIVE LIVES 8

Page 9: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

9

7.0

5.65.3

6.0

7.1

8.1

9.1

Infant Mortality Rate, 2002

* 2001.Data: International estimates—OECD Health Data 2005;State estimates—National Vital Statistics System, Linked Birth and Infant Death Data (AHRQ 2005a).

2.2

3.0 3.03.3 3.5

4.1 4.1 4.1 4.2 4.2 4.4 4.4 4.5 4.55.0 5.0 5.0 5.0 5.1 5.2 5.4 5.6

7.0

0

5

10

Infant deaths per 1,000 live births

Percentiles

International variation State variation

LONG, HEALTHY & PRODUCTIVE LIVES

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

9

Page 10: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

10

States Vary In Quality of Care – Medicare IndicatorsAlaska Ranks in Third Quartile on Provision of Appropriate Care

First

Third

Fourth

Source: S.F. Jencks, E.D. Huff, and T. Cuerdon, “Change in the Quality of Care Delivered to Medicare Beneficiaries, 1998–1999 to 2000–2001,” Journal of the American Medical Association 289, no. 3 (Jan. 15, 2003): 305–312.

Second

WA

OR

ID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SC

TNNC

KY

FL

VA

OH

MI

WV

PA

NY

AK

MD

MEVT

NH

MA

RI

CT

DE

DCCO

GAMS

OK

NJ

SD

Quartile Rank

Note: State ranking based on 22 Medicare performance measures.

2000–2001

THE COMMONWEALTH

FUND

Page 11: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

11

Receipt of Recommended Screening and Preventive Care for Adults, by Family Income and Insurance Status, 2002

31

46

52

39

48

56

49

0 50 100

Uninsured All Year

Uninsured Part Year

Insured All Year

<200% of Poverty

200-399% of Poverty

400%+ of Poverty

National

Percent of adults (ages 18+ yrs) who received all recommended screening and preventive care within a specific time frame given their age and sex*

*Recommended care includes: blood pressure, cholesterol, Pap, mammogram, fecal occult blood test or sigmoidoscopy/colonoscopy, and flu shot.Data: Columbia University analysis of 2002 Medical Expenditure Panel SurveySOURCE: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: RIGHT CARE

Page 12: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

12

Preventive Care Visits for Children, 2003

35

63

70

58

62

48

73

55

59

48

49

0 50 100

Uninsured

Private insurance

<100% of poverty

400% + of poverty

Hispanic

Black

White

Bottom 10% states

Top 10% states

Alaska

U.S. average

Data: 2003 National Survey of Children’s Health (HRSA 2005; retrieved from Data Resource Center for Child and Adolescent Health database at http://www.nschdata.org).

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: THE RIGHT CARE 12

Percent of children (ages <18) received BOTH a medical and dental preventive care visit in past year

Page 13: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

13

Immunizations for Young Children, 2003

75

87

79

83

89

80

79

77

77

73

71

0 50 100

<100% of poverty

400%+ of poverty

AI/AN

Asian/PI

Hispanic

Black

White

Bottom 10% states

Top 10% states

Alaska

U.S. average

* Recommended vaccines include: 4 doses of diphtheria-tetanus-pertussis (DTP), 3+ doses of polio, 1+ dose of measles-mumps-rubella, 3+doses of Haemophilus influenzae type B, and 3+ doses of hepatitis B vaccine.PI = Pacific Islander; AI/AN = American Indian or Alaskan Native. Data: National Immunization Survey (AHRQ 2005a, 2005b).

Percent of children (ages 19–35 months) who received all recommended doses of five key vaccines*

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: THE RIGHT CARE 13

Page 14: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

14

Heart Failure Patients Given Written Instructions or Educational Materials When Discharged, by Hospitals and States, 2004

50

37

6460

49

3326

87

9

0

50

100

NationalAverage

Alaska Top 10% Top 25% Median Bottom25%

Bottom10%

90th %ile 10th %ile

Percent of heart failure patients discharged home with written instructions or educational material*

* Discharge instructions must address all of the following: activity level, diet, discharge medications, follow-up appointment, weight monitoring, and what to do if symptoms worsen.Data: National and hospital estimates—A. Jha and A. Epstein, Harvard University analysis of data from Hospital Quality Alliance national reporting system; State estimates—Retrieved from Hospital Compare database at http://www.hospitalcompare.hhs.gov.

HospitalsStates

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: COORDINATED CARE 14

Page 15: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

15

* Child had 1+ preventive visit in past year; access to specialty care; personal doctor/nurse who usually/always spent enough time and communicated clearly, provided telephone advice or urgent care and followed up after the child’s specialty care visits.Data: 2003 National Survey of Children’s Health (HRSA 2005; retrieved from Data Resource Center for Child and Adolescent Health database at http://www.nschdata.org).

23

53

58

39

53

36

60

38

46

30

31

0 50 100

Uninsured

Private insurance

<100% of poverty

400%+ of poverty

Hispanic

Black

White

Bottom 10% states

Top 10% states

Alaska

U.S. average

Children with a Medical Home, 2003

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: COORDINATED CARE

Percent of children who have a personal doctor or nurse and receive care that is accessible, comprehensive, culturally sensitive, and coordinated*

15

Page 16: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

16

Nursing Homes: Hospital Admission and Readmission RatesAmong Nursing Home Residents, per State, 2000

16

89

12

19

21

0

10

20

30

Median Beststate

10th%ile

25th%ile

75th%ile

90th%ile

Percent

12

78

10

13

16

0

10

20

30

Median Beststate

10th%ile

25th%ile

75th%ile

90th%ile

Hospitalization rates Re-hospitalization rate (within 3 months of

nursing home admission)

Data: V. Mor, Brown University analysis of Medicare enrollment data and Part A claims data for all Medicare beneficiaries who entered a nursing home and had a Minimum Data Set assessment during 2000.

Percent

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: COORDINATED CARE 16

Page 17: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

17

Hospital-Standardized Mortality Ratios, 2000–2002

8593 94 97 100 103 106 106

112118

0

20

40

60

80

100

120

140

1 2 3 4 5 6 7 8 9 10

Ratio of actual to expected deaths in each decile (x 100)

Decile of hospitals ranked by actual to expected deaths ratios

See Technical Appendix for methodology.Data: B. Jarman analysis of Medicare discharges from 2000 to 2002 for conditions leading to 80 percent of all hospital deaths.

Standardized ratios compare actual to expected deaths, risk-adjusted for patient mix and community factors. Medicare national average for 2000 = 100

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: SAFE CARE 17

Page 18: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

18

13 13

89

16

19

24

1415

2223

18

0

15

30

High-risk residents

Pressure Sores Among High-Risk and Short-Stay Residentsin Nursing Facilities

Percent of nursing home residents with pressure sores

AI/AN = American Indian or Alaskan Native.Data: Nursing Home Minimum Data Set (AHRQ 2005a, 2005b).

Short-stay residents

High-risk residents

Short-stay residents

White 13% 21%

Black 17 26

Hispanic 15 25

Asian 12 22

AI/AN 17 23

State distribution, 2004 By race/ethnicity, 2003

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: SAFE CARE 18

Page 19: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

19

Percent of Uninsured Adults Ages 18–64 is IncreasingAlaska’s Rate Average 22 to 23%

Data: Two-year averages 1999–2000 and 2004–2005 from the Census Bureau’s March 2000, 2001 and 2005, 2006 Current Population Surveys. Estimates by the Employee Benefit Research Institute.

WA

ORID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SCTN

NCKY

FL

VA

OH

MI

WV

PA

NY

AK

MD

MEVTNH

MARI

CT

DE

DC

HI

CO

GAMS

OK

NJ

SD

WA

ORID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SCTN

NCKY

FL

VA

OH

MI

WV

PA

NY

AK

ME

DE

DC

HI

CO

GAMS

OK

NJ

SD

19%–22.9%

Less than 14%

14%–18.9%

23% or more

1999–2000 2004–2005

MA

RI

CT

VTNH

MD

NH

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

ACCESS: UNIVERSAL PARTICIPATION 19

Page 20: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

20

States Average Employer Health Insurance Premiums, 2004 -- Employee-only Annual

3,8823,705

3,1193,3423,4143,534

3,7813,8584,116

4,379

$0

$1,000

$2,000

$3,000

$4,000

$5,000

A laska Maine New

J ersey

New Y ork T exas U.S .

average

C ali fornia A labama North

Dakota

Hawaii

Source: AHRQ, 2004 MEPS-IC; Retrieved from MEPS State-level Insurance Component Summary Tables at http://www.meps.ahrq.gov/mepsweb/data_stats/quick_tables_search.jsp?component=2&subcomponent=2

Dollars

THE COMMONWEALTH

FUND

Page 21: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

21

International Comparison of Spending on Health, 1980–2004

0

1000

2000

3000

4000

5000

6000

7000 United StatesGermanyCanadaFranceAustraliaUnited Kingdom

Data: OECD Health Data 2005 and 2006.

0

2

4

6

8

10

12

14

16

United StatesGermanyCanadaFranceAustraliaUnited Kingdom

Average spending on healthper capita ($US PPP)

Total expenditures on healthas percent of GDP

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EFFICIENCY 21

Page 22: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

22

Ambulatory Care Sensitive (Potentially Preventable)Hospital Admissions for Select Conditions, 2002

498

241188

258

13774

631

299 297

0

100

200

300

400

500

600

700

Congestive heart failure Diabetes Pediatric asthma

National average Top 10% states Bottom 10% states

Adjusted rate per 100,000 population

* Combines four diabetes admission measures: uncontrolled, short-term complications, long-term complications, and lower extremity amputations. Data: National estimates—Healthcare Cost and Utilization Project, Nationwide Inpatient Sample; State estimates—State Inpatient Databases; not all states participate in HCUP (AHRQ 2005a).

*

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EFFICIENCY 22

Page 23: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

23

Medicare Hospital 30-Day Readmission Rates and Associated Costs, by Hospital Referral Regions, 2003

18

1614

16

2022

0

5

10

15

20

25

30

Nationalmean

Alaska 10th 25th 75th 90th

35

2724

30

34

45

0

10

20

30

40

50

Nationalmean

Alaska 1 2 3 4

Rate of hospital readmission within 30 days

Readmission reimbursement as percent of total reimbursement for all admissions

Quartile of regions rankedby readmission rates

Data: G. Anderson and R. Herbert, Johns Hopkins University analysis of 2003 Medicare Standard Analytical Files (SAF) 5% Inpatient Data.

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EFFICIENCY

Percentiles

23

Page 24: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

24

0.80

0.90

1.00

1.10

1.20

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000

Relative Resource Use**

Qu

alit

y o

f C

are*

(1

Yea

r S

urv

ival

In

dex

, M

edia

n =

70%

)

Quality and Costs of Care for Medicare Patients Hospitalized for Heart Attacks, Colon Cancer and Hip Fracture, by Hospital

Referral Regions, 2000-2002

Median Relative Resource Use = $25,995

* Indexed to risk-adjusted 1 year survival rate (median = 0.70).** Risk-adjusted spending on hospital and physician services using standardized national prices.Data: E. Fisher and D. Staiger, Dartmouth College analysis of data from a 20% national sample of Medicare beneficiaries.

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EFFICIENCY 24

Page 25: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

25

Percent of National Health Expenditures Spent on Insurance Administration/Overhead, 2003

*Includes claims administration, underwriting, marketing, profits and other administrative costs. Data: OECD Health Data 2005SOURCE: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

Net costs of health administration and health insurance as percent of national health expenditures

1.9 2.1 2.12.6

3.34.0 4.1 4.2

4.8

5.6

7.3

0

2

4

6

8

France

Finla

nd

Japan

Canad

a

Unite

d Kin

gdom

Nether

lands

Austri

a

Austra

lia

Switzer

land

Germ

any

Unite

d Sta

tes

a

a2002 b1999

b

c2001

c *

EFFICIENCY

Page 26: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

26

Physicians’ Use of Electronic Medical Records, U.S. Compared to Other Countries, 2000/2001

90 88

6258 56 55 52

4842

3730 29 28

25

17 1714

9 6 5

0

50

100

Sweden

Netherl

ands

Denmark

United K

ingdom

Finland

Austria

New Zealand*

Germany

Belgium

Italy

Luxembourg

EU Average

Ireland

Australia

*

Greec

e

United States*

Canada*

Spain

France

Portugal

Percent of physicians

*2000Data: 2001 European Union EuroBarometer and 2000 Commonwealth Fund I Survey of Physicians (Harris Interactive 2002)SOURCE: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EFFICIENCY

Page 27: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

27

Receipt of All Three Recommended Services for Diabetics, 2002

45

55

54

46

50

61

55

53

54

47

24

38

0 50 100

Rural

Urban

Uninsured

Private

<100% of poverty

100% –199% of poverty

200% –399% of poverty

400% + of poverty

Hispanic

Black

White

Total

Percent of diabetics (ages 18+) who received HbA1c test, retinal exam, and foot exam in past year

* Insurance for people ages 18–64.** Urban refers to metropolitan area >1 million inhabitants; Rural refers to noncore area <10,000 inhabitants.Data: 2002 Medical Expenditure Panel Survey (AHRQ 2005a).

*

**

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

EQUITY: THE RIGHT CARE 27

Page 28: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

28Keys to Transforming the U.S. Health Care

System1. Guarantee affordable health insurance coverage2. Implement major quality and safety improvements3. Develop more organized delivery systems that emphasize

patient-centered primary and preventive care 4. Increase transparency and reporting on quality and costs5. Expand the use of interoperable information technology6. Reward performance for quality and efficiency 7. Encourage public-private collaboration to simplify and achieve

more effective change

THE COMMONWEALTH

FUND

Page 29: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

29

1. Guarantee Affordable Health Insurance Coverage

THE COMMONWEALTH

FUND

Guarantee Affordable Health Insurance Coverage

Page 30: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

30

Massachusetts Health Plan

• MassHealth expansion for children up to 300% FPL; adults up to 100% poverty

• Individual mandate, with affordability provision; subsidies between 100% and 300% of poverty

• Employer mandatory offer, employee mandatory take-up

• Employer assessment ($295 if employer doesn’t provide health insurance)

• Connector to organize affordable insurance offerings through a group pool

Source: John Holahan, “The Basics of Massachusetts Health Reform,” Presentation to United Hospital Fund, April 2006.

THE COMMONWEALTH

FUND

Page 31: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

31

Maine’s Dirigo Health: Knitting Together Public, Private and Employer Insurance

• New insurance product; sliding scale deductibles and premiums below 300% poverty

• Employers pay fee covering 60% of worker premium

• Began Jan 2005; Enrollment 14,700 as of 4/30/06

• Combined with expanded public

* After discount and employer payment (for illustrative purposes only).

300600

8881188

1488

1250

0

1000

750

500

250

0$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

MaineCare <150% <200% <250% <300% >300%

Deduc tible amountEmployee share of annual premium

Annual expenditures on deductible and premium

$550

$0

$1,100

$1,638

$2,188

$2,738

THE COMMONWEALTH

FUND

Page 32: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

32

Vermont Health Care Affordability Act Enacted May 2006

• Coverage expansion– Catamount Health Plans

• Targets those w/o access to work-based coverage • Premium subsidies based on sliding scale up to 300%

FPL • Comprehensive benefit package including primary,

chronic, acute care & other services • No patient cost-sharing for preventive or chronic care• Builds upon Wagner’s Chronic Care Model

• Financing– Employer assessment– Increase in tobacco taxes– Federal matching funds from Medicaid waiver

• Quality improvement initiatives– Public-private collaboration– Collection of health care data from all payers

• Rules to publicly report price & quality informationTHE

COMMONWEALTH FUND

Page 33: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

33

Illinois All-Kids

• Effective July 1, 2006• Available to any child uninsured for 6 months or more• Cost to family determined on a sliding scale• Linked to other public programs - FamilyCare & KidCare • Federal and state funds

– Children <200% of FPL covered by federal funds– Children 200%+ of FPL funded by state savings from

Medicaid Primary Care Case Management Program • All-Kids Training Tour

– Public outreach program to highlight new and expanded healthcare programs

THE COMMONWEALTH

FUND

Page 34: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

34

New Jersey Raises Age of Dependent Status for Health Insurance

• As of 5/2006, NJ requires all state insurers to raise dependent age limit to 30

– Highest age limit in country – Covers uninsured, unmarried

adults with no dependents who are NJ residents or FT students

– Premium capped at 102% of amount paid for dependent’s coverage prior to aging out

• 200,000 young adults expected to receive coverage

11.2 11.812.7 13.4 13.7

0

5

10

15

2000 2001 2002 2003 2004

Source: S.R. Collins, C. Schoen, J.L. Kriss, M.M. Doty, B. Mahato, “Rite of Passage? Why Young Adults Become Uninsured and How New Policies Can Help,” Commonwealth Fund issue brief, May 2006. (Analysis of the March 2001–2005 Current Population Surveys)

Millions uninsured, adults ages 19–29

THE COMMONWEALTH

FUND

Page 35: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

35

Implement Major Quality and Safety Improvements

2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

THE COMMONWEALTH

FUND

Page 36: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

36

Rhode Island:Five-Point Strategy

1. Creating affordable plans for small businesses & individuals2. Increasing wellness programs 3. Investing in health care technology 4. Developing centers of excellence 5. Leveraging the state’s purchasing power

• RI Quality Institute – Non-profit coalition -- hospitals, providers, insurers, consumers,

business, academia & government– Partnered with “SureScripts” to implement state-wide electronic

connectivity between all retail pharmacies and prescribers in the state

• Health Information Exchange Initiative– Statewide public/private effort– AHRQ contract 5 yr/ $5M– Connecting information from physicians, hospitals, labs,

imaging & other community providersTHE

COMMONWEALTH FUND

Page 37: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

37

Work Towards Coordinated and Patient-Centered Delivery of Care With A Focus on

Primary Care3. Emphasize Patient-

Centered Primary, and Preventive

Care

1. Guarantee Affordable Health Insurance Coverage

2. Implement Major Quality and Safety Improvements

THE COMMONWEALTH

FUND

Page 38: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

38

Importance of Primary Care• US has fewer primary care physicians

per capita, no designated medical home, higher out-of-pocket costs, better financial rewards for specialty care

• Better access to primary care lowers total cost, improves outcomes– Starfield et al, Milbank Quarterly

2005– Fisher analysis of Medicare

expenditures and patient outcomes• New primary care payment models

need to be tested• Health plans should exempt preventive

and primary care from deductibles, and

• Encourage enrollees to designate medical home

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Page 39: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

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Utah’s Primary Care Network Section 1115 Medicaid Waiver

• Targets uninsured adults (19–54) with family income less than 150% FPL

• Provides primary care and preventive care services– Physician office visits– Immunizations– Emergency care– Lab, X-ray, medical equipment & supplies– Basic dental care– Hearing & vision screening– Prescription drugs

• Hospitals provide $10 million in charity care for PCN participants

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Page 40: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

40

Helping Patients Become Informed and Active Partners in Their Care

• www.howsyourhealth.org - Online surveys of patient experiences with feedback to community groups and physicians

• Primary Care Development Corporation New York – advanced access collaborative

• Shared decision-making

• Resident-centered care in nursing homes

• Family-centered care in Healthy Steps & ABCD

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Page 41: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

41

Center for Shared Decision-Making Dartmouth-Hitchcock Medical Center

• Provides tools to help patients understand trade-offs of medical vs. surgical treatment given their preferences

• Assist with health care decisions (e.g., videotapes, booklets, websites)

• Provides follow-up counseling with skilled staff

• Results in lower rates of invasive procedures, such as low-back surgery

Kate Clay, BA, MSN, Program Director

THE COMMONWEALTH

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Page 42: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

42

7063 60

93 91100

7974 70

6152 49

0

50

100

Staff managed pain well Staff responded when needed help Staff explained medicines and side effects

Average Best hospital 90th % ile hospitals 10th % ile hospitals

Patient-Centered Hospital Care: Staff Managed Pain, RespondedWhen Needed Help, and Explained Medicines, by Hospitals, 2005

Percent of patients reporting “always”

* Patient’s pain was well controlled and hospital staff did everything to help with pain.** Patient got help as soon as wanted after patient pressed call button and in getting to the bathroom/using bedpan.*** Hospital staff told patient what medicine was for and described possible side effects in a way that patient could understand.Data: CAHPS Hospital Survey results for 254 hospitals submitting data in 2005. National CAHPS Benchmarking Database.

* *****

Source: Commonwealth Fund National Scorecard on U.S. Health System Performance, 2006

QUALITY: PATIENT-CENTERED, TIMELY CARE 42

Page 43: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

43Transitional Care ReducesRehospitalization for Heart Failure Patients

61

48

0

20

40

60

80

100

162

104

0

50

100

150

200

$12,481

$7,636

$0

$4,000

$8,000

$12,000

$16,000

Percentage of patients who were rehospitalized or died

Number ofhospital readmissions

Average cost of care

Source: Medical records and patient interviews (N=239) (Naylor et al. 2004), S. Leathermanand D. McCarthy, Quality of Health Care for Medicare Beneficiaries: A Chartbook, 2005,The Commonwealth Fund. www.cmwf.org/usr_doc/MedicareChartbk.pdf.

Usual care group Intervention group

Resource use among congestive heart failure patients ages 65+ treated atsix Philadelphia hospitals during 1997–2001 who were randomly assignedto receive a three-month transitional care intervention or usual care

Page 44: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

44

Increase Transparency and Reporting on Quality and Costs

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

Page 45: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

45

Wisconsin

• Wisconsin Collaborative for Healthcare Quality

– Voluntary consortium formed in 2003 -- physician groups, hospitals, health plans, employers & labor

– Develops & publicly reports comparative performance information on physician practices, hospitals & health plans

– Includes measures assessing ambulatory care, IT capacity, patient satisfaction & access

• Wisconsin Health Information Organization

– Coalition formed in 2005 to create a centralized health data repository based on voluntary sharing of private health insurance claims, including pharmacy & laboratory data

– Wisconsin Dept of Health & Family Services and Dept of Employee Trust Funds will add data on costs of publicly paid health care through Medicaid THE

COMMONWEALTH FUND

Page 46: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

46

Expand the Use of Interoperable Information Technology

5. Expand the Use of Interoperable Information Technology

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

Page 47: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

47Primary Care Doctors Use of Electronic Patient

Medical Records, 2006

79

23

42

92 89

28

98

0

25

50

75

100

AUS CAN GER NET NZ UK US

Percent

Source: 2006 Commonwealth Fund International Health Policy Survey of Primary Care Physicians

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Page 48: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

48

Value of Electronic Medical Records and Information Systems

• Reduce duplicate tests• Reduce hospital admissions with information

accessible to ER• Improve patient care• Decision support for physicians and patients• Facilitate “referrals”, secure transfer of

responsibility• Reduce medical errors• Better management of chronic conditions

and care coordination– Registries– Performance information– Reminder and alerts– Facilitated by interoperability

• Saves physician and staff time on paperwork; redirects to patients

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Page 49: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

49

Information Exchange:States In Action

• Rhode Island Quality Institute Information Exchange – Provide access to patient data (as permitted) to all providers initially

through secure web-based portal – future integration into EHRs– Create the ability to aggregate and utilize data for public health

purposes (e.g., population-based analysis, biosurveillance)

• MidSouth e-health Alliance: Memphis, TN– State-wide data exchange with initial focus on EDs

• Utah Health Information Network– Secure exchange of health care data using standardized transactions

through a single portal

• New York State Health Information Technology (HIT) initiative– Under the Health Care Efficiency and Affordability Law for New Yorkers,

$52.9 million awarded to 26 regional health networks to expand technology in NY health care system and support clinical data exchange; Commonwealth Fund-supported evaluation underway

Source: Evolution of State Health Information Exchange, AHRQ, Publication No. 06-0057, January 2006.

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Page 50: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

50

Reward Performance for Quality and Efficiency

6. Reward Performance for Quality and Efficiency

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

5. Expand the Use of Interoperable Information Technology

Page 51: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

51

Building Quality Into RIte CareHigher Quality and Improved Cost Trends

• Quality targets and $ incentives

• Improved access, medical home

– One third reduction in hospital and ER

– Tripled primary care doctors

– Doubled clinic visits

• Significant improvements in prenatal care, birth spacing, lead paint, infant mortality, preventive care

Source: Silow-Carroll, Building Quality into RIte Care, Commonwealth Fund, 2003. Tricia Leddy, Outcome Update, Presentation at Princeton Conference, May 20, 2005.

Cumulative Health Insurance Cost Trend

Comparison

0

20

40

60

80

100

120

140

160

RI Commercial Trend

RIte Care Trend

Percent

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Page 52: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

52

New York State Medicaid Pay-for-Performance

• 1997 — NYS began transition to mandatory statewide Medicaid managed care. Currently > 2.5 million enrollees (including Family Health Plus)

• 2002 — NYS DOH incorporated quality incentive into computation of Medicaid managed care capitation rates

– Incentive tied to performance on 10 quality of care measures and 5 consumer satisfaction measures

– Initial incentive up to an additional 1% of monthly premium; as of April 2005, maximum incentive increased to 3%

• 2005 — incentive payments totaled $40 million

• Commonwealth Fund supporting Dr. Robert Berenson (Urban Institute) to evaluate impact of quality incentive program — qualitative analysis (interviews/site visits of participating plans) and quantitative analysis of measures

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Page 53: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

53

Medicare Physician Group Practice Demonstration

• The Everett Clinic (WA)• Deaconess Billings Clinic• Park Nicollet Health Services

(MN)• Marshfield Clinic (WI)• St. John’s Health System (MO)

Source: “Medicare Physician Group Practice Demonstration,” www.cms.gov, January 31, 2005.

• Univ. of Michigan Faculty Group Practice

• Geisinger Health System (PA)• Forsyth Medical (NC)• Middlesex Health (CN)• Dartmouth-Hitchcock Clinic

• 10 physician group practices

• 3-year project, began April 2005

• Bonus pool based on savings relative to local area

• Practices expected to save 2%, keep up to 80% of additional savings

• Actual bonuses depend on savings and quality targets

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54

14.813.6 13.1

11.6

15.4

0

5

10

15

20

Bottom

quality

quartile

26–50% 51–75% 76–90% Top quality

dec ile

Medicare Premier Hospital Demonstration: Higher Quality Hospitals Have Fewer Readmissions

Readmission Rates by Pneumonia Quality Ranking (Percent)

© 2005 Premier, Inc.Source: Stephanie Alexander, “CMS/Premier Hospital Quality Incentive Demonstration Project:1st Year Results,” Presentation at IOM P4P Subcommittee Meeting, November 30, 2005

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Page 55: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

55California Integrated HealthCare Association

Pay for Performance Initiative

2003 2004 2005

Clinical 50% 40% 50%

Patient Experience 40% 40% 30%

IT Investment 10% 20% 20%

Patient Experience domain:

•Communication with doctor

•Overall ratings of care

•Care coordination

•Specialty care

•Timely access to care

Source: Tom Williams, “California Pay for Performance (P4P): A Case Study.”

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Page 56: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

56Encourage Public-Private Collaborationto Achieve Simplification,

More Effective Change

7. Encourage Public-Private Collaboration

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

6. Reward Performance for Quality and Efficiency

5. Expand the Use of Interoperable Information Technology

Page 57: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

57

Minnesota Smart-Buy Alliance

• Initiated in 2004 – alliance between state, private businesses, and labor groups

• Purchase health insurance for 70% of state residents ~3.5 million people

• Pool purchasing power to drive value in health care delivery system

• Set uniform performance standards, cost/quality reporting requirements & technology demands

• Four key strategies:

1. Reward or require “best in class” certification

2. Adopt and utilize uniform measures of quality and results

3. Empower consumers with easy access to information

4. Require use of information technologyTHE

COMMONWEALTH FUND

Page 58: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

58

Washington State Puget Sound Health Alliance

• Founded in 2004 as independent non-profit organization

• Five-county partnership among employers, physicians, hospitals, consumers, health plans and others

• Multi-prong approach to improving care and “systemness”

– Developing evidence-based guidelines for physicians, hospitals and other health care professionals

– Designing tools for consumers and patients to support decision making & self management of chronic conditions

– Producing regional reports on quality, cost & value to be made publicly available by end of 2006

– Promoting data sharing across health plans & providers with the goal of a shared data repository

– Building regional infrastructure to support and sustain QI, including workforce development & training

THE COMMONWEALTH

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Page 59: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

59

West Virginia Small Business PlanLeveraging Purchasing Power

• Enacted March 2004

• Partnership between WV Public Employees Insurance Agency (PEIA) & private market insurers

• Small business insurers pay providers at same rates negotiated by PEIA

THE COMMONWEALTH

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Page 60: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

60

Several States Looking to More Comprehensive Health Reform Statewide

• Maine, Maine, Vermont, Rhode Island have quality initiatives built into coverage expansions

• Maine

– Created Maine Quality Forum to advocate for high quality health care and help each Maine citizen make informed health care choices.

• Massachusetts

– Cost and Quality Council formed

• Vermont

– Quality improvement initiatives

• Public-private collaboration

• Collection of health care data from all payers

• Provides rules to publicly report price & quality information THE

COMMONWEALTH FUND

Page 61: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

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Moving ForwardMoving Forward

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Page 62: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

62

National Legislative Proposals to Facilitate State Health Insurance Innovations

• Baldwin-Price: Health Partnership through Creative Federalism– State proposals for coverage, quality and

efficiency and information technology. Statewide or multi-state

– Commission to review

• Voinovich-Bingaman: Health Partnership Act– State grants for innovation, priority to coverage

and access– Commission to establish performance measures

and goals and review proposals

• Multiple proposals to expand federal match for coverage to higher poverty levels and adults THE

COMMONWEALTH FUND

Page 63: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

63What States Can Do Promote a High Performance

Health System: Strategies to Expand Coverage

• Develop blueprints toward more universal coverage

• Expand public programs and “connect” with private

• Provide financial assistance for affordability – premium assistance; “buy-in” provisions

• Assure benefit designs that cover primary, preventive and essential care

• Pool risk and purchasing power, partnerships with employers

• Pool purchasing power

• Efficient insurance arrangements

• Develop reinsurance programs to make coverage more affordable, pool risk and stabilize group rates

• Mandate that employers offer and/or individuals purchase coverage THE

COMMONWEALTH FUND

Page 64: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

64What States Can Do to Promote a High Performance

Health System: Strategies to Improve Quality and Efficiency

• Promote

• Evidence-based medicine

• Effective chronic care management

• Transitional care post-hospital discharge

• Encourage data transparency and performance reporting

• Promote/practice value-based purchasing

• Promote the use of health information technology

• Encourage selection of medical home and improved access to primary care and preventive services

• Simplify and streamline public program eligibility and re-determination; Insurance

• Promote wellness and healthy livingTHE

COMMONWEALTH FUND

Page 65: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

65

Laboratories for ChangeLaboratories for ChangeContinue to Lead the Way to Achieving a Continue to Lead the Way to Achieving a

High Performance Health System!High Performance Health System!

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Selected Commonwealth Fund Publications

• The Commonwealth Fund Commission on a High Performance Health System, Framework for a High Performance Health System for the United States, The Commonwealth Fund, August 2006

• The Commonwealth Fund Commission on a High Performance Health System, Why Not the Best? Results from a National Scorecard on U.S. Health System Performance, The Commonwealth Fund, September 2006

• C. Schoen and S.K.H. How, National Scorecard on U.S. Health System Performance: Complete Chartpack and Chartpack Technical Appendix, The Commonwealth Fund, September 2006.

• S. Silow-Carroll and F. Pervez, States in Action: A Quarterly Look at Innovations in Health Policy, The Commonwealth Fund, Summer 2006, Vol. 5.

• Forthcoming: State Scorecard on Health System Performance

All publications are available at http://www.cmwf.org

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Page 67: Why Not the Best? Towards A High Performance Health System Cathy Schoen Senior Vice President, The Commonwealth Fund Alaska Health Summit December 6, 2006

67

Acknowledgements

Stephen C. Schoenbaum

Executive Vice President and Executive Director, Commission of a High Performance Health System

Karen Davis

President

Ilana Weinbaum

Program Associate

Sabrina How

Research Associate

Alyssa Holmgren

Research Associate

THE COMMONWEALTH

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Anne Gauthier

Senior Policy Director, Commission of a High Performance Health System