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Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert Mechanic Senior Fellow Brandeis University Third National ACO Congress October 31, 2012

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Page 1: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

A View Into Accountable Care

Risk Contracting and Operating Practices in 21 Organized Delivery Systems

Robert MechanicSenior Fellow

Brandeis University

Third National ACO CongressOctober 31, 2012

Page 2: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Research Questions

• How much risk contracting is really out there?

• How have medical groups prepared for payment reform?

• What do medical groups see as the largest hurdles?

The Study:Survey and interviews of 21 large medical groups

Page 3: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Surveyed Groups (Fall 2011)

Atrius Health

Group Health Physicians 

Mayo Clinic

Austin Regional Clinic

Health Care Partners 

Oschner Health System

Billings Clinic

HealthPartners Medical Group

Palo Alto Medical Foundation

Dean Health System

Henry Ford Medical Group 

Scott & White Healthcare

The Everett Clinic

Intermountain Medical Group 

Sharp Rees‐Stealy Med Group

Fallon Clinic 

Kaiser Permanente Med Group

Virginia Mason Medical Group

Geisinger Health System 

Marshfield Clinic 

Wenatchee Valley Med Center

Page 4: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Number of FTE Physicians by Type

Note: Excludes the Permanente Medical Group.

Page 5: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Facility and Health Plan Ownership

Source: Self-reported survey data from 21 CAPP medical groups.

Page 6: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Payment Profile

Page 7: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Type of contract as a percent of total patient revenue

Note: Calculated as a simple (unweighted) average (n= 21).

Page 8: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

2010 Patient Revenue by Contract Type

Source: Self-reported survey data from 21 CAPP medical groups.

FFS-based Risk-based

Page 9: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Operating Characteristics

Page 10: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

2010 PCP Compensation Method

Source: Self-reported survey data from 21 CAPP medical groups.

FFS-based Risk-based

Page 11: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Group Payment vs. MD Compensation

Page 12: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Page 12

Dean Clinic transition toward a value- based compensation plan (specialty)

FFS/VolumeBased

ValueBased Source: Craig Sammit,,MD

One example:

Page 13: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

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98%

2%

95%

60%

20%

15%

10%10%

40%

20%

20%

15%

10%10%

0%

20%

40%

60%

80%

100%

2009 2010Option A

2010Option B

Future?

Dean PCMH Compensation Model Transition

Efficiency

Quality

Service

Panel Size

RVUs - 5%

RVUs

Salary

95% 115% 115%100%

Dean Clinic Realignment of Primary Care Compensation

Source: Craig Sammit,,MD

One example (continued)

Page 14: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

System Assets by Type of Group

Source: Self-reported survey data from 21 CAPP medical groups.

Page 15: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Data Management Capacity

Source: Author’s analysis of self-reported survey data from 21 CAPP medical groups.

Percent of Groups Reporting “Fully Implemented”

Page 16: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Performance Improvement Initiatives

Source: Author’s analysis of self-reported survey data from 21 CAPP medical groups.

Percent of Groups Reporting They are “Far Along”

Page 17: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Attitude toward expanding future risk contracting (n=15)• All expect expanded risk contracting• 11 groups seeking new risk contracts• 3 were preparing for payment

system change• 1 group not interested

Page 18: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

What are the largest challenges to increasing your revenue from alternative payment contracts? (N=14)

Source: Author’s analysis of self-reported survey data from 21 CAPP medical groups.

Page 19: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Conclusions and Issues• “Many large medical groups will need

to acquire new skills and tools to be ready for payment reform”, Health Affairs Sept 2012

• Significant challenges and cost to implement these changes broadly

• Sources of capital for infrastructure?– Insurers?– Hospitals?– Government?

Page 20: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Hospital-Physician Alignment

Page 21: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Provider-Insurer Alignment

Page 22: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Page 23: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Expert Perspectives

Jay Crosson, MDVice President of Professional Satisfaction

– Care Delivery and PaymentAmerican Medical Association

Don Rebhun, MDRegional Medical DirectorHealthcare Partners

Page 24: A View Into Accountable Care - Global Health Care · Brandeis University A View Into Accountable Care Risk Contracting and Operating Practices in 21 Organized Delivery Systems Robert

Brandeis University

Thank You

Robert MechanicSenior Fellow

Heller School for Social Policy & Mgmt.Brandeis University

[email protected]:/healthforum.brandeis.edu