a model for co-management 4-19-2011

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    Presented by:

    Dr. Stephen Taylor, PresidentWest Hospital Ortho Co-Management

    Laurie M. Johnson, RNExecutive Director - Orthopaedics

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    Total Joint Replacement (TJR) has been the

    most effective treatment for advancedarthritis since the 1970s

    Goal of TJR Quality Results

    Relieve Pain

    Restore Function

    Long Lasting (>25 years)

    Avoid Complications

    More than 700,000 TJRs arecurrently performed each year

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    INCREASING DEMAND FOR

    TOTAL JOINT REPLACEMENT

    Increasing senior population

    Greater desire for active lifestyle

    Greater acceptance of TJR bypopulation

    700% increase in TJR inthe next 20 years

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    INCREASED DEMAND FOR TJR

    Success Requires:

    1) Adequate physician supply

    2) More efficient care process3) Care process must emphasize VALUE

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    Reality:

    Healthcare dollars spent

    must be controlled and

    appropriately allocated

    Allocation must be determinedby value of product or service

    In TJR we must maintain andimprove quality, but we mustalso control costs

    VALUE IN TOTAL JOINT

    REPLACEMENT

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    IOWA HEALTH-DES MOINES

    COMMITMENT

    IH-DM committed to meet the increased patient

    need for TJR

    Current facilities at IMMC couldnt meet growingdemand for ORs and patient beds

    MWH was designed to

    emphasize orthopaedictotal joint care dedicating

    4 of the 6 ORs and 50%

    of the patient beds

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    MWH ORTHOPAEDIC SERVICES

    Focused, specialized care

    Mutual project between IH-DM and

    Des Moines Orthopaedic Surgeons, PCAligned incentives of both organizations

    to improve QUALITY and VALUE for our

    patientsCo-Management organization was

    formed to manage the entire process

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    WEST HOSPITAL ORTHOPAEDIC

    CO-MANAGEMENT COMPANY, LLC

    The WHOCC oversees the entire

    orthopaedic service line at MWH

    emphasizing quality, patient safety &

    convenience, efficiency and

    cost containment

    Equal representation from IH-DM & DMOS

    Medical Director from DMOS

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    WHOCCMANAGEMENT

    ACTIVITIES

    Developcomprehensiveplan of care forall orthopaedic

    patientsImplement anddirect strategic,

    financial andoperational plans

    Assist infacilities

    management

    Evaluate andrecommendequipmentpurchases

    Assist indeveloping

    operational andcapital budgets

    Superviseand/or train

    managementstaff

    Develop andoversee all cost

    containmentactivities

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    WHOCC BUSINESS MODELExecutive Committee

    Meets bi-weekly

    Working committee

    Includes the OrthoExecutive Director

    Reports to the

    Governing Board

    Finance Committee

    Meets quarterly

    Reviews financialsand makes

    recommendations

    Reports to theGoverning Board

    WHOCC GOVERNING BOARDOversees all committee activities

    Reviews & approves meeting minutes

    Makes final decisions

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    WEST HOSPITAL ORTHOPAEDIC

    CO-MANAGEMENT COMPANY

    Initial project was to interview and select thefollowing key personnel:

    Orthopaedic service-line Executive Director

    Inpatient department Nurse Manager

    Surgical Services department Nurse Manager

    Physical Therapy department Manager

    All personnel are employees of IH-DM

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    All physicians expected

    to comply at MWHNo significant exceptionsare allowed

    All physicians are invitedand encouraged to

    participate in the process

    WHOCC TEAM REVIEWS

    AND SETS ALL PROCESSES

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    STANDARDIZED, UNIFORM

    PROCESSES AND PROCEDURES

    Rationale: Repetitive, focused process andprocedures maximizes efficiency and minimizes therisk of error or oversight.

    Examples:OR nurses comfortable working with any surgeon due tostandardized draping, supplies and instructions

    Nursing unit care doesnt vary by physician (common pain

    management regimen, blood transfusion protocol, dressing,etc)

    One standard Physical and Occupational therapy regimenfor all surgeons that can be tailored to the individual needsof each patient

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    EXAMPLES OF UNIFORM PROCESSES

    CREATED AND IMPLEMENTED BY WHOCC1. Pre-op medical clearance request form

    2. Standardized scheduling process and form

    3. Pre-op orders

    4. Regional anesthesia

    5. Demand matching of implants

    6. Comprehensive uniform post-op orders,

    including pre-emptive multi-modal painmanagement

    7. Uniform activity and physical therapy goals

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    WHOCC ACTIVITIES

    VALUE IN TJR

    New techniques, equipment and implants must

    be critically evaluated by hospital and physicians

    Those new techniques or implants that add cost

    without significant improvement in quality should

    be avoided

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    Is there enoughscientific

    evidence towarrant a trial?

    Trial withdefined

    evaluation andresults

    Review bycommittee to

    assessquality and

    value oftechnique

    Confirm ordeny use of

    technique orproduct

    EVALUATION OF NEW TECHNIQUES

    AND SURGICAL PRODUCTS

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    EVALUATION PROCESS EXAMPLES

    Floseal deny (evidence didnt support) V-lock suture confirm (all use)

    Participated in Draping Boot Camp tostreamline, trial and standardize surgical

    drapes confirm (all use) Surgical prep (Chloraprep) confirm (all use)

    Eliminated many trays by developing commoninstrument sets for all physicians by procedure confirm (all use)

    Covaderm Surgical Dressing future trial

    Cold therapy/DVT wrap future trial

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    1. Base Management Fee

    Hourly at Fair Market Value

    2. Incentives Quality of service

    Operational efficiency

    Financial/budgetary

    New program development

    WHOCC PHYSICIAN COMPENSATION

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    Measurable Controllable

    Realistic Bound bytime limits

    INCENTIVE COMPENSATION DEVELOPMENT

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    2010 INCENTIVES

    Quality of Service (50%)

    SCIP Core Measures

    Patient Satisfaction

    Demand Matching

    Operational Efficiency (20%)

    On-time starts

    OR turnaround time

    Financial/Budgetary(20%)

    Length of StayCost per Case

    New Program

    Development (10%)Expanded Patient Education

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    2011 INCENTIVES

    Quality of Service (50%)

    SCIP Core Measures

    Patient Satisfaction

    Demand Matching

    Financial/Budgetary(30%)

    Cost per case (Goal4%)

    Vendor negotiations for

    spinal implants

    New Program Development (20%)

    Hip and Knee scoring

    Infection rates (within 60 days)Readmission rate (within 30 days)

    Revision rate (within 1 year)

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    INCENTIVE STRUCTURE

    2011 INCENTIVE FOR SCIP CORE MEASURES (15% OF TOTAL)RANGE FROM: TO: ANNUAL PAYOUT:

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    1. All implants placed in category basedon technology Cemented femoral stem

    Tapered non-cemented stem

    Revision stem2. Each category included substantially

    similar implants

    3. Target price established by WHOCC

    4. All vendors allowed to participate

    VENDOR NEGOTIATIONS

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    5. Implants that meet target price for eachcategory become preferred andpermitted to use at MWH

    6. Use of outliers is strongly discouraged

    7. In a few select categories competitivebidding utilized only one implant fromsingle vendor allowed

    eg. Modular revision femoral stem (onevendor, one price for all components)

    eg. Revision segmental hinged knee

    VENDOR NEGOTIATIONS,

    continued

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    DEMAND MATCHING

    All implants categorized by

    Quality Level and Cost

    A Level Lowest cost

    B Level Intermediate costC Level High cost

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    DEMAND MATCHING cont

    Three Patient Variables Considered

    1. Patient Age

    2. Patient Health

    3. Patient EXPECTED activity level

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    (scanned copy of form here)

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    DEMAND MATCHING cont

    >90% Compliance expected

    Results are reported by

    Individual Physician

    All Physicians

    Transparency is a great motivator!

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    WHOCC - SUMMARY

    1. Aligned incentives of hospital andsurgeons that are required for success

    2. Emphasis on Quality and Cost = Value

    3. Recognize importance and contributionof ALL team members:Surgical Techs & Nurses Therapists

    Patient Care Facilitators Patient Care Techs

    Management Staff Physicians

    Ultimate winners:

    Patients All team members

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    WEST HOSPITAL ORTHOPAEDIC

    CO-MANAGEMENT COMPANY

    OUR COMPANY

    Is COMMITTED toFRESH THINKING

    and

    INNOVATIVE CARE

    THAT ADDS

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    DATA COLLECTION

    Information received monthly from various systems Finance Purchasing

    ORSOS Clinical Quality

    Review, calculate and report Incentive Metric datamonthly to Executive Committee

    Determine if there is other data outside of the metricsthat needs to be reported On-time starts, turnover times, and Average Length of Stay

    (ALOS) are not part of the 2011 metrics, but continue to bemonitored monthly for significant changes

    Volume and cost data from broken, lost and (not) foundinstruments in Central Sterile is reported to the ExecutiveCommittee & the staff each month

    The cost of implants that are opened but unused are reported inconjunction with the demand-matching metrics

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    DATA COLLECTION continued

    Whenever possible, total volumes are reviewed rather than

    randomized selections 100% of all total joint procedures are reviewed for correct implants

    Over 90% of all eligible patients are included in the SCIP Core Measure

    data review

    In addition to the overall patient

    satisfaction score, each physiciansscores are calculated and reported

    Direct variable cost-per-case is

    reported/reviewed by surgeon

    All data is presented as an

    overall score and also byeach physician and procedure

    Transparency has been a key motivator for physician change

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    QUALITY OF SERVICE 2010 GOAL2010

    ACTUAL2011 GOAL

    2011

    CURRENT

    DVT Prophylaxis within 24 hours

    before/after surgery99.8% 100%

    Appropriate antibiotics within

    1 hour prior to surgery98.7% 99.4%

    Antibiotics stopped within 24 hours

    after surgery ends98.8% 100%

    % of patients who are normothermic

    after 15 minutes in PACUn/a n/a 85%

    SCIP Overall Average 97% 99.3% 97% 96.1%

    Patient Satisfaction 87 91.2 92.3 90.4

    Implant Demand Matching 90% 88.7% 90% 89.2%

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    NEW PROGRAM

    DEVELOPMENT

    2010 GOAL2010

    ACTUAL

    2011 GOAL2011

    CURRENT

    Expand Patient EducationAll total joints patients at MWH

    New program written by Patient

    Care Facilitatorsn/a n/a

    Hip and Knee ScoringPrimary hips & knees only

    n/a n/aForms have been developed,

    data collection begins 5/1/2011

    Infection rates (w/in 60 days)Primary hips & knees only n/a Still calculating

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    AVERAGE

    LENGTH OF STAY2008 2009 2010

    2011

    CURRENT

    Primary total hip and knee

    pts, commercial payers only4.17 days 3.94 days 2.81 days 2.84 days

    4.17

    3.94

    2.81 2.84

    2.5

    3

    3.5

    4

    4.5

    2008 2009 2010 2011

    current

    2010 goal

    3.45 days

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    8,7038,847

    8,959 8,972

    8,772

    8,573

    8,186

    7,834 7,720

    7,400

    7,800

    8,200

    8,600

    9,000

    9,400

    2008 2009 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11

    DIRECT VARIABLE

    COST-PER-CASE2008 2009 2010

    2011

    CURRENT

    2011

    GOAL

    Primary total hip and

    knee pts, commercialpayers only

    $8,703 $8.847 $8,186 $7,720 $7,939

    2010 goal

    $8,1962011 goal

    $7,939

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    SUMMARY

    DO recognize that consistent, substantiated data is a key factor in

    engaging the physicians and staff to achieve success DONT underestimate the value of immersing yourself in the details

    DOplan to be in this for the long haul Success doesnt happen overnight

    DONT hesitate to build relationships with people who can help you

    The advantage of a large organization is that many people are there toassist, but you may have to search for them

    DO communicate results regularly with front-line staff They will be very engaged in the process

    They can have a big impact on achieving positive outcomes

    DONT overlook the small successes These are most important when things are progressing slowly

    DO celebrate every milestone along the way, and DONTforget to have fun!

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