Cooperation not Cooperation not Competition:Competition:

Working together to Build a Working together to Build a True Integrated Delivery True Integrated Delivery

SystemSystemPat Koelling, RNPresident and CEOAtlantiCare Health Plans

Taking You Well Into The Future

What’s in a name?What’s in a name? Everything.Everything.

• Atlantic City Medical Center• Heart Institute at Atlantic City

Medical Center• Joint & Spine Institute at Atlantic

City Medical Center• RNS Regional Cancer Center at

Atlantic City Medical Center• Regional Trauma Center at

Atlantic City Medical Center• Regional Neonatal Intensive Care

Unit at Atlantic City Medical Center

• Center for Surgical Weight Loss & Wellness at Atlantic City Medical Center

• AtlantiCare Women’s Health & Wellness

• AtlantiCare Urgent Care Center• AtlantiCare Surgery Center• AtlantiCare/duPont Children’s

Health Program• AtlantiCare Kids• AtlantiCare Behavioral Health• Atlantic City Medical Center

Hospice• AtlantiCare Occupational

Medicine• AtlantiCare Clinical Laboratories• AtlantiCare Home Medical

Equipment• Kessler/AtlantiCare Home Health• AtlantiCare Clinical Associates• AtlantiCare Foundation• AtlantiCare Health Plans

Get to know the AtlantiCare family of services:

C ity D iv is io n

M a in la n d D iv is ion

A m b u la to r y C a re

A T L A N T IC C IT YM E D IC A L C E N T E R

F u n d R a is ing

H e a lth S ta tu sIm p r o ve m e n t

H e a lth y C ities

E q u ita b le H ea lthc a re

A T L A N T IC A R EF O U N D A T IO N

A tla n tiC a r e C lin ic alL a b o r a to ry

A tla n tiC a r e K ids

C lin ic a l A sso c ia tes

H o m e C a re

H o m e M ed ic alE q u ip m e nt

S u rg e r y C en ter

B u sin e ssD e v e lop m e n t

K e ss ler /A tla n tiC a reH o m e H e a lth

U r g e nt C a re

H o sp ice

P r im a ry C a re

A T L A N T IC A R EH E A L T H S E R V IC E S

A d o lesc e ntS e rv ic es

C o r n er sto ne

F a m ily C e n te rs

N o r th S tar

O u t-p a tie n tS e rv ic es

P r ov id en ceH o u se

A T L A N T IC A R EB E H A V IO R A L H E A L T H

H o r izo n JV

H e alth M a in te na n ceO r g a n iz a tio n (H M O )

P r e fe r re d Pr o vid erO r g a n iz a tio n (P P O )

W o r ke r's C o m pP r o du ct

A T L A N T IC A R EH E A L T H P L A N S

In fo r m a tionT e c h no lo gy

V o iceC o m m u nic a tio ns

IN F O S H A RE

J o in t P u r c ha s ingC o o p er a tive

C O O P E R A T IV EH E A L T H C A R ES E R V IC E S O F

S O U T H JE R S E Y

A T L A N T IC A R E

Note: 4000 Associates – 85% Clinical

Joint VentureJoint VentureAtlantiCare / HorizonAtlantiCare / Horizon

Why

• Combine the strengths of both organizations to develop capabilities that neither company could perform alone.

• Form a laboratory to develop and execute new ideas in a small area (Atlantic, Cape May and Cumberland counties).

• Both companies believed there had to be a better option than the annual “contracting dance”.

Horizon Blue Cross Blue Shield of Horizon Blue Cross Blue Shield of New JerseyNew Jersey

AtlantiCare Joint VentureAtlantiCare Joint VentureValue Statement

The Horizon Blue Cross Blue Shield of New Jersey/AtlantiCare Joint Venture will bring together the very best health care products, providers, services and capabilities from both organizations and create a better way to manage and improve the delivery of health care in our community. By responding to the needs of all customers-including employers, plan members and physicians-this joint venture will bring to the community:

• Improved access to high quality, cost effective health care through the most comprehensive local, regional and national physician and hospital networks available.

• Increased choice by offering consumers the widest selection of premier health care products available.

• Cost Effectiveness through excellent pricing, low administrative costs and effective medical management.

• Enhanced quality of care through a unique collaboration of payers and health care providers who agree to deliver superior care in the most appropriate, patient-friendly setting, and focus on superior medical outcomes and overall improvement of health status.

• “World class” customer service by offering both members and providers local customer service, delivered by neighborhood people who understand and share the same concerns about quality service and responsiveness.

• Stability and customer loyalty through management’s support of customer advocacy and a balanced approach to health care that strives to keep all parties focused on the same mission and goals.

Horizon Blue Cross Blue Shield of Horizon Blue Cross Blue Shield of New JerseyNew Jersey

AtlantiCare Joint VentureAtlantiCare Joint VentureValue StatementValue Statement

ContinuedContinued

Joint VentureJoint VenturePost-ConversionPost-Conversion

Horizon BCBSNJ

Horizon BCBSNJ/AHPJoint Venture

AtlantiCare HP

Innovation Laboratory

Description of JVDescription of JV

• Governed by a separate Board 50% Horizon and 50% AtlantiCare Executives.

• Each company performs certain services for employers domiciled in the three counties (employees can reside anywhere).

– Claims processing– Medical Management / Case Management– Provider Services– Membership Services

Critical Success Critical Success FactorsFactors

• Collaboration on new ideas/processes with Cross Functional Teams

• Engagement and Active Discussion

• Profit!

• Elimination of “us and them mentality” we

• “Failure not an Option”

Who is the customer?Who is the customer?

• Our customers are the 150,000 individuals covered by benefits offered by AtlantiCare Health Plans or offered by Horizon Blue Cross Blue Shield of New Jersey via the Joint Venture agreement

Who is the customer?Who is the customer?•They are mothers, fathers, sisters, brothers, grandparents. They are old or they are young. They are sick, they are healthy, rich or poor. They are from various ethnic and religious backgrounds.

•31% are under age 20*•27% are between 21 – 40*•20% are between 41 – 50*•22% are over age 51*•52% are Female – 71% of whom are adult “Decision Makers”*

•81% live in the tri-county area, with the majority in Atlantic County

The one unifying affiliation is they hold an AtlantiCare or Horizon Insurance Identification Card.

**Data source: Hammonton Service Center databaseData source: Hammonton Service Center database

Consumers (in general) are Consumers (in general) are shifting…shifting…

•From Isolated to Connected•From Unaware to Informed•From Passive to Active

TREND: Consumers challenge healthcare providers more aggressively and participate more fully in treatment modalities.

Horizon BCBSNJ’SHorizon BCBSNJ’SStrategic PlanStrategic Plan

• As part of our strategic plan, Horizon BCBSNJ developed and launched the World Class Clinical Quality initiatives (WCCQ) in 2002

WCCQ StrategyWCCQ Strategy

• Preventive Health• Disease

Management• Quality Metrics• Information Sharing• Health Policy• Research• Quality Partnerships• Awards/Speakers

Health PolicyHealth Policy• Identify the key

issues that affect the health and wellbeing of all residents in our geographic region

• Develop a strategy to address these issues and design programs whose results are: Quantifiable Reproducible Sustainable

Creation ofCreation of

Epidemic of HealthEpidemic of Health

Tipping PointTipping Point

InnovationInnovation

JV JV LaboratoryLaboratory

Create an epidemic of Create an epidemic of health...health...• By helping patients understand their

disease and empowering them to better manage their condition and behaviors, we can create clinical changes to improve patient health.

• By using an integrated and co-ordinated process, using science, technology, research, data and partners (such as Pfizer and Dr. Tango), we will effect a more robust approach, focused on management of the health continuum in our community.

• Rising Healthcare Costs with no sustaining solution.

• Diversity Issues

– New Jersey

1990 - 2000 35% Latino

74% Asian

• Published reports of Disparity related to minority health issues.

Why

• Increase in chronic disease, especially in minority population.

Note: * 45% of Healthcare expenditures related to

obesity, diabetes, cardiac disease and

depression.

* 10% of population accounts for half of the

nation’s healthcare cost. 1

• Consumerism - will become more engaged in their healthcare.

1. Source - American Healthways

• Healthcare - Delivery and Insurance is considered a commodity Commodity Hell

– Buying decisions based on price

– No information to differentiate choices

– Poor value add

– External pressures towards commoditization

• AtlantiCare has “wall to wall” clinical capabilities for intervention, including community coalitions.

• Horizon BCBSNJ has volume of members in JV area and an established DSM program.

Attention AreasAttention Areas

• Increase in community awareness increases the demand for community liaisons and services

• Those who are uninsured or underinsured will seek greater access to services

• Internal knowledge deficits about cultural nuances will perpetuate the problem

Important conceptsImportant concepts• Cultural competency is a required skill

for providing safe and effective patient care

• Recruitment and retention of minority healthcare workers

• Language, communication and clinical research are fundamental elements of the patient care experience

• Support community health workers and multicultural health teams

DeliveriesDeliveries• Workforce Health and wellness Recruitment and retention Career advancement• Patient Care Patient assessment/plan Patient education (communication) Discharge plan (education)• Community Healthcare without walls Common language

Customer Partnerships Customer Partnerships as a Two Lane Highway as a Two Lane Highway

in DSMin DSM

• Lane 1

– Customer wants and needs in real time

• Lane 2

– Health relationship

(Participation in Epidemic of Health)

In order to Build the Two-Lane Highway

We Must Move From

Zones of Comfort

To

Zones of Opportunity

Focus - Initial PhaseFocus - Initial Phase

A. Obesity

B. Heart Disease

C. Diabetes

1. Horizon’s Health & Wellness Education Program (aka Disease Management)

with

2. AtlantiCare’s Weight Management Program

Focus - cont.Focus - cont.Key Points

• Clinical and Outcome Measurements

• Community Outreach using

– AtlantiCare Service Lines

– AtlantiCare Foundation

– Established Community Coalitions

– Congregational Health Coordinator

• Partnerships (Doctor Tango and Pfizer)

ProgressProgress• Discussions with at least 30 internal and external

stakeholders

• Two Mayors have committed to a leadership role in improving health and wellness in their communities

• Pilot to begin in Pleasantville

• Diabetes stakeholder group under construction

• Discussion with American Healthways regarding outreach for “non adoption” solutions

• Contracts with Pfizer and Dr. Tango

1. Create a positive intimate member experience.

2. Create winning strategy for customer loyalty.

3. Create a healthier community and optimal intervention with metrics.

4. Create collaborative learning to redesign activities for better outcomes.

5. Better management of healthcare costs.

Ideal WorldIdeal WorldThe successful collaborative efforts of Horizon and AtlantiCare to produce overall improvement in the JV community’s healthcare status will be rewarded with improved retention and increased market share.

Tomorrow will not look Tomorrow will not look like yesterday and like yesterday and yesterday’s success is yesterday’s success is not a predictor of not a predictor of future success.future success.