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MACRA for Critical Access Hospitals Tuesday, July 26, 2016 Webinar

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Page 1: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA for Critical Access Hospitals

Tuesday, July 26, 2016

Webinar

Page 2: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA presenters

8Carol Wagner, Sr. Vice President,

Patient Safety

Claudia Sanders, Sr. Vice President,Policy Development

Harold D. Miller, President & CEOCHQPR

Andrew Busz, Policy Director,Finance

Page 3: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

Based on what you know about MACRA so far, what is your impression of the likely impacts of MACRA on your organization?

Page 4: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA

Explanation and Implications

Harold D. Miller, President & CEO – Center for Healthcare Quality

and Payment Reform (CHQPR)

Page 5: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

What is MACRA?

How Will It Affect Rural Hospitals?

Harold D. MillerPresident and CEO

Center for Healthcare Quality and Payment Reform

www.CHQPR.org

Page 6: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

2© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What is MACRA and

Who Should Care About It?• What is MACRA?

– The Medicare Access and CHIP Reauthorization Act of 2015(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16, 2015

Page 7: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

3© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What is MACRA and

Who Should Care About It?• What is MACRA?

– The Medicare Access and CHIP Reauthorization Act of 2015(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16, 2015

• Who does it directly affect?– Physicians and other clinicians who are paid under the Medicare

Physician Fee Schedule (Part B payments)

– Hospitals and medical groups that bill for physician services under the Medicare Fee Schedule (including CAH Method II payments)

Page 8: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

4© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What is MACRA and

Who Should Care About It?• What is MACRA?

– The Medicare Access and CHIP Reauthorization Act of 2015(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16, 2015

• Who does it directly affect?– Physicians and other clinicians who are paid under the Medicare

Physician Fee Schedule (Part B payments)

– Hospitals and medical groups that bill for physician services under the Medicare Fee Schedule (including CAH Method II payments)

– Does NOT apply to physicians/clinicians in Rural Health Clinics who do not bill for services under the Medicare Physician Fee Schedule or physicians whose Part B billings fall below a minimum threshold

Page 9: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

5© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What is MACRA and

Who Should Care About It?• What is MACRA?

– The Medicare Access and CHIP Reauthorization Act of 2015(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16, 2015

• Who does it directly affect?– Physicians and other clinicians who are paid under the Medicare

Physician Fee Schedule (Part B payments)

– Hospitals and medical groups that bill for physician services under the Medicare Fee Schedule (including CAH Method II payments)

– Does NOT apply to physicians/clinicians in Rural Health Clinics who do not bill for services under the Medicare Physician Fee Schedule or physicians whose Part B billings fall below a minimum threshold

• Who can it indirectly affect?– Hospitals, skilled nursing facilities, or other healthcare providers that

deliver services to Medicare beneficiaries who are treated by a physician paid through the Medicare Physician Fee Schedule

Page 10: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

6© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Topics Covered

• What the law (MACRA) says

• What the proposed regulations issued by CMS say (and where they might change)

– Proposed regulations were issued in April

– Comments closed on June 27, 2016

– Final regulations required by November 1, 2016

• The likely and potential implications for hospitals

Page 11: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

7© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Physicians Faced Significant Cuts

Under “Sustainable Growth Rate”

FFS

$

FFS FFS FFS FFS FFS FFS FFSFFS FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

SGRCut

-21%

Potential for Additional SGR Cuts in Future

Page 12: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

8© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bipartisan Action to Repeal SGR

FFS

$

FFS FFS FFS FFS FFS FFS FFSFFS FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

SGRCut

-21%

Medicare Access and CHIP Reauthorization Act of 2015(MACRA)

• Repealed Sustainable Growth Rate formula (SGR)

Page 13: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

9© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bipartisan Action to Repeal SGR

FFS

$

FFS FFS FFS FFS FFS FFS FFSFFS FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

SGRCut

-21%

• Repealed Sustainable Growth Rate formula (SGR)

• Stabilized physician fee levels for next decade

• Required new forms of “value-based payment” in Medicare

Medicare Access and CHIP Reauthorization Act of 2015(MACRA)

Page 14: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

10© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bipartisan Action to Repeal SGR

FFS

$

FFS FFS FFS FFS FFS FFS FFSFFS FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

SGRCut

-21%

• Repealed Sustainable Growth Rate formula (SGR)

• Stabilized physician fee levels for next decade

• Required new forms of “value-based payment” in Medicare

• Replaced existing MU, PQRS, and VM programswith a new “Merit-Based Incentive Payment System” (MIPS)

• Encouraged development and use of “Alternative Payment Models” (APMs)

Medicare Access and CHIP Reauthorization Act of 2015(MACRA)

Page 15: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

11© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bipartisan Action to Repeal SGR

FFS

$

FFS FFS FFS FFS FFS FFS FFSFFS FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

SGRCut

-21%

• Repealed Sustainable Growth Rate formula (SGR)

• Stabilized physician fee levels for next decade

• Required new forms of “value-based payment” in Medicare

• Replaced existing MU, PQRS, and VM programswith a new “Merit-Based Incentive Payment System” (MIPS)

• Encouraged development and use of “Alternative Payment Models” (APMs)

• Required new ways to code physician services

• Many other changes

Medicare Access and CHIP Reauthorization Act of 2015(MACRA)

Page 16: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

12© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MACRA Repealed SGR &

Stabilized Payment Rates

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS FFS FFSFFS FFS FFS

0.25%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

Part 1: Stable Payments

Page 17: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

13© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Updates Will Be Very Small

for the Next Decade

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS FFS FFSFFS FFS FFS

0.25%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

Fees 2.3% Higher in 2025 Than 2014

Page 18: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

14© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MACRA Also Requires

“Value-Based Payment”

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS FFS FFSFFS FFS FFS

0.25%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

Part 1: Stable Payments

Part 2: Value-Based Pmt

Value-Based Payment

Page 19: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

15© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Default: Merit-Based Incentive

Payment System (MIPS)

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS FFS FFSFFS FFS FFS

0.25%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

-4%

+4x%

-5%

+5x%

-9%

+9x%

-9%

+9x%

-9%

+9x%

-7%

+7x%

-9%

+9x%

-9%

+9x%+10% +10% +10% +10% +10% +10%

Part 1: Stable Payments

Part 2: Value-Based Pmt

a. MIPS

Page 20: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

16© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MIPS Bonuses & Penalties Are

Determined Annually

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS FFS FFSFFS FFS FFS

0.25%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

+4x%

-5%

+2%-1%

+3%

+10%

Part 1: Stable Payments

Part 2: Value-Based Pmt

a. MIPS

Whether a physician gets a bonus/penalty,and the amount of that bonus/penalty,

can vary from year to year

-9%

Page 21: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

17© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Congress Encouraged Use of

“Alternative Payment Models”

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS

FFS

FFS FFS

FFS

FFS FFS

0.75%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

+5% +5% +5% +5% +5%

25%APM

25%APM

50%APM

50%APM

75%APM

75%APM

75%APM

75%APM

Part 1: Stable Payments

Part 2: Value-Based Pmt

a. MIPS

or

b. APMs

+5%0.25%

Page 22: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

18© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Choice of Two Options

For Payments in Future Years

Page 23: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

19© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Physicians Are Exempt from MIPS

Whenever They Meet APM Criteria

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS FFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

-4%

+4x%

-5%

+5x%

-7%

+7x%

+10% +10% +10%

FFS

FFS FFS FFS FFS

0.75%+5% +5% +5%

50%APM

75%APM

75%APM

75%APM

75%APM

MIPS APM

Page 24: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

20© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Physician Returns to MIPS

If APM Eligibility Is No Longer Met

FFS

$

0.25%0.5%

FFS

0.5%

FFS

0.5%

FFS

0.5%

FFS

FFSFFS

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

FFS

Chart Not Drawn to Scale

+5% +5% +5%

25%APM

25%APM

50%APM

50%APM

+5%

FFS FFS FFS FFS

0.25%

-9%

+9x%

-9%

+9x%

-9%

+9x%

-9%

+9x%

+10% +10%

APM MIPS

Page 25: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

How MIPS Will Work

Page 26: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

22© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Value-Based Payment for

Physicians Isn’t New in Medicare

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

2015 2016 2017 2018

2017Meaningful Use: 3% Penalties

Physician Quality Reporting (PQRS): 2% Penalties

Value-Based Modifier: 4% Penalties or Bonuses

TOTAL Potential Penalties: 9% Penalty

2018Meaningful Use: 4% Penalties

Physician Quality Reporting (PQRS): 2% Penalties

Value-Based Modifier: 4+% Penalties or Bonuses

TOTAL Potential Penalties: 10+% Penalty

Page 27: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

23© Center for Healthcare Quality and Payment Reform www.CHQPR.org

But Value Modifier Will First Hit

Small Practices (<10) Next Year

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

2015 2016 2017 2018

2015 2016 2017 2018

100+Docs

100+Docs

10-99Docs

100+Docs

10-99Docs

1-9Docs

100+Docs

10-99Docs

1-9Docs

Chart Not Drawn to Scale

2017Meaningful Use: 3% Penalties

Physician Quality Reporting (PQRS): 2% Penalties

Value-Based Modifier: 4% Penalties or Bonuses

TOTAL Potential Penalties: 9% Penalty

2018Meaningful Use: 4% Penalties

Physician Quality Reporting (PQRS): 2% Penalties

Value-Based Modifier: 4+% Penalties or Bonuses

TOTAL Potential Penalties: 10+% Penalty

Small

Practices

Start 2017

NPs,PAs

Page 28: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

24© Center for Healthcare Quality and Payment Reform www.CHQPR.org

3 Existing P4P Programs

Consolidated into 1 MIPS Program

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

FFS

-4%

+4x%

FFS

-5%

+5x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-7%

+7x%

FFS

-9%

+9x%

FFS

-9%

+9x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10% +10% +10% +10% +10% +10%

TODAY• Meaningful Use (MU)

• Quality Reporting (PQRS)

• Value Modifier (VM)

MIPS• “Advancing Care Information” (EHR Use)

• Quality Performance Program

• Resource Use

• Clinical Practice Improvement

Page 29: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

25© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MIPS Penalties Lower and

Bonuses Higher Than Current

$

FFS

-10%

+x%

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%

TODAY• Meaningful Use (MU)

• Quality Reporting (PQRS)

• Value Modifier (VM)

MIPS• “Advancing Care Information” (EHR Use)

• Quality Performance Program

• Resource Use

• Clinical Practice Improvement

MIPSMU+

PQRS+

VM

Page 30: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

26© Center for Healthcare Quality and Payment Reform www.CHQPR.org

10% Bonuses

Are Capped and Temporary

$

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%

• Only for practices with very high scores

• Limited to $500 million per year

• Only available from 2019 to 2024

Page 31: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

27© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What Does “+4x%” Mean?

$

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%

Page 32: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

28© Center for Healthcare Quality and Payment Reform www.CHQPR.org

2019 Bonuses Could Range

Between 0% and 12% (4%x3)

$

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%+12% (4% x3)

<1% (4% x 0)

Page 33: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

29© Center for Healthcare Quality and Payment Reform www.CHQPR.org

2022 Bonuses Could Range

Between 0% and 27% (9%x3)

$

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%+12% (4% x3)

<1% (4% x 0)

FFS

-9%

+9x%

+10%

+27% (9% x3)

<1% (4% x 0)

Page 34: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

30© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bonuses and Penalties

Must Be Budget Neutral

• If many practices receive large penalties, then more money is available for bonuses

• If few practices qualify for bonuses, then the (large amount of) bonus money is divided among that small number of practices, generating large bonuses per practice. MACRA limits the bonus to 3 times the statutory amount.

Page 35: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

31© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bonuses and Penalties

Must Be Budget Neutral

• If many practices receive large penalties, then more money is available for bonuses

• If few practices qualify for bonuses, then the (large amount of) bonus money is divided among that small number of practices, generating large bonuses per practice. MACRA limits the bonus to 3 times the statutory amount.

• If few practices receive large penalties, then little money is available for bonuses

• If many practices qualify for bonuses, then the (small amount of) bonus money is divided among that large number of practices, generating small bonuses per practice.

Page 36: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

32© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bonuses and Penalties

Must Be Budget Neutral

• If many practices receive large penalties, then more money is available for bonuses

• If few practices qualify for bonuses, then the (large amount of) bonus money is divided among that small number of practices, generating large bonuses per practice. MACRA limits the bonus to 3 times the statutory amount.

• If few practices receive large penalties, then little money is available for bonuses

• If many practices qualify for bonuses, then the (small amount of) bonus money is divided among that large number of practices, generating small bonuses per practice.

• The size of the rewards to high performing physician practices depends not on good they are, but on how many poor quality practices there are

Page 37: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

33© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Payment Adjustments Under

PQRS & VM for 2016No Quality

Report Low Quality Average Quality High Quality

Low Cost

Average

Cost

High Cost

No Quality

Report

Page 38: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

34© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Many (Small) Physician Practices

Were Penalized for Not ReportingNo Quality

Report Low Quality Average Quality High Quality

Low Cost

Average

Cost

High Cost

No Quality

Report

-2%

(5,418)

Page 39: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

35© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Most Physicians Who Did Report

Were “Average” on Cost & QualityNo Quality

Report Low Quality Average Quality High Quality

Low Cost0%

(6)

Average

Cost

0%

(7,351)

High Cost0%

(1)

No Quality

Report

-2%

(5,418)

Page 40: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

36© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Over 800 Practices Were Eligible

for PenaltiesNo Quality

Report Low Quality Average Quality High Quality

Low Cost

Average

Cost

-1%*

(644)

0%

(7,351)

High Cost-2%*

(39)

-1%*

(226)

0%

(1)

No Quality

Report

-2%

(5,418)

*Penalties did not apply to 10-99 Clinician Practices in 2016

Page 41: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

37© Center for Healthcare Quality and Payment Reform www.CHQPR.org

A Small Number of Practices

Received Very Large BonusesNo Quality

Report Low Quality Average Quality High Quality

Low Cost0%

(6)

2x% = 31.84%

(38)

1x% = 15.92%

(35)

3x% = 47.76%

(0)

2x% = 31.84%

(0)

Average

Cost

-1%*

(644)

0%

(7,351)

2x% = 31.84%

(20)

1x% = 15.92%

(35)

High Cost-2%*

(39)

-1%*

(226)

0%

(1)

No Quality

Report

-2%

(5,418)

*Penalties did not apply to 10-99 Clinician Practices in 2016

Page 42: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

38© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Bonuses Were High Because

Many Practices Received PenaltiesNo Quality

Report Low Quality Average Quality High Quality

Low Cost

128Large

PerformanceBonuses

Average

Cost

High Cost

909Performance

Penalties

No Quality

Report

5,418Non-Reporting

Penalties

*Penalties did not apply to 10-99 Clinician Practices in 2016

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39© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Most Practices Received

Neither Bonus Nor PenaltyNo Quality

Report Low Quality Average Quality High Quality

Low Cost

128Performance

Bonuses

Average

Cost

7,358No Changein Payment

High Cost

909Performance

Penalties

No Quality

Report

5,418Non-Reporting

Penalties

*Penalties did not apply to 10-99 Clinician Practices in 2016

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40© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Size of Penalties is More

Predictable Than Size of Bonuses

$

FFS

-4%

+4x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10%Summary:

• Very Good Performance: 10-22% increases

• Good Performance: 0-12% increases

• Poor Performance: 0-4% cuts in pay

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41© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Current VBP Programs: All Part B

Providers Required to Participate

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

2015 2016 2017 2018

2015 2016 2017 2018Chart Not Drawn to Scale

2015 2016 2017 2018

100+Docs

100+Docs

10-99Docs

100+Docs

10-99Docs

1-9Docs

100+Docs

10-99Docs

1-9Docs

NPs,PAs

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42© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MIPS: Exemptions Based on

Number of Patients & Revenues

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

FFS

-4%

+4x%

FFS

-5%

+5x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-7%

+7x%

FFS

-9%

+9x%

FFS

-9%

+9x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10% +10% +10% +10% +10% +10%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

>$x

&/or>

y pts

>$x

&/or >

y pts

>$x

&/or>

y pts

>$x

&/or>

y pts

>$x

&/or >

y pts

>$x

&/or>

y pts

>$x

&/or>

y pts

>$x

&/or >

y pts

Low Volume Threshold & Other Exemptions

Chart Not Drawn to Scale

100+Docs

100+Docs

10-99Docs

100+Docs

10-99Docs

1-9Docs

100+Docs

10-99Docs

1-9Docs

NPs,PAs

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43© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

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44© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

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45© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

• Providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/45%/70% in APMs

– # of patients in APMs

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46© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

• Providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/45%/70% in APMs

– # of patients in APMs

• First year of MedicarePart B participation

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47© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

• Providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/45%/70% in APMs

– # of patients in APMs

• First year of MedicarePart B participation

• 2019-2020: Other non-physician providers

– PT/OT/Speech pathologists, audiologists, nurse midwives, clinical social workers, clinical psychologists, dieticians

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48© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Exemptions from

MIPS Payment Adjustments

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

• Providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/45%/70% in APMs

– # of patients in APMs

• First year of MedicarePart B participation

• 2019-2020: Other non-physician providers

– PT/OT/Speech pathologists, audiologists, nurse midwives, clinical social workers, clinical psychologists, dieticians

What Proposed Regs Say

• Low volume threshold:– ≤100 Medicare patients/year

– $10,000 Medicare payments

• Qualified APM Participant (QPs):providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/35%/50% of patients in APMs

• Partially-Qualified APM Participant (Partial QPs):

– 20%/40%/50% in APMs

– 10%/25%/35% of patients in APMs

• First year of MedicarePart B participation

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49© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Pressure to Increase Thresholds

for Exemption

What MACRA Says

• Below low volume threshold:– # of beneficiaries treated

– # of services provided

– $ amount billed

• Providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/45%/70% in APMs

– # of patients in APMs

• First year of MedicarePart B participation

• 2019-2020: Other non-physician providers

– PT/OT/Speech pathologists, audiologists, nurse midwives, clinical social workers, clinical psychologists, dieticians

What Proposed Regs Say

• Low volume threshold:– ≤100 Medicare patients/year

– $10,000 Medicare payments

Pressure to increase thresholds

• Qualified APM Participant (QPs):providers with minimumlevel of participation in Alternative Payment Models

– 25%/50%/75% in APMs

– 20%/35%/50% of patients in APMs

• Partially-Qualified APM Participant (Partial QPs):

– 20%/40%/50% in APMs

– 10%/25%/35% of patients in APMs

• First year of MedicarePart B participation

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50© Center for Healthcare Quality and Payment Reform www.CHQPR.org

CMS Bases Penalties/Bonuses…

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

FFS

-4%

+4x%

FFS

-5%

+5x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-7%

+7x%

FFS

-9%

+9x%

FFS

-9%

+9x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10% +10% +10% +10% +10% +10%

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51© Center for Healthcare Quality and Payment Reform www.CHQPR.org

CMS Bases Penalties/Bonuses…

…on Performance 2 Years Earlier

FFS

$

-4.5%

+x%

FFS

-6%

+x%

FFS

-9%

+x%

FFS

-10%

+x%

FFS

-4%

+4x%

FFS

-5%

+5x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-9%

+9x%

FFS

-7%

+7x%

FFS

-9%

+9x%

FFS

-9%

+9x%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

+10% +10% +10% +10% +10% +10%

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026Chart Not Drawn to Scale

Bad

Good

Bad

Good

Bad

Good

Bad

Good

Bad

Good

Bad

Good

Performance Measures

Bad

Good

Bad

Good

Bad

Good

Bad

Good

Bad

Good

Bad

Good

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52© Center for Healthcare Quality and Payment Reform www.CHQPR.org

2 Year Lag Means 2019 MIPS $

Will Be Based on Scores Next Year

$

FFS

-4%

+4x%

2017 2019

+10%

2017

Bad

Good

Performance Measures

Underproposed

CMS rules,performancemeasurementfor 2019 MIPS

and APMsstarts in

January 2017

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53© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Performance (Measurement) Year

for MIPS Payment Adjustments

What MACRA Says• “The Secretary shall establish

a performance period (or periods) [to determine the MIPS payment adjustments that will be made in a particular year]…Such performance period (or periods) shall begin and end prior to the beginning of such year and be as close as possible to such year.”

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54© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Performance (Measurement) Year

for MIPS Payment Adjustments

What MACRA Says• “The Secretary shall establish

a performance period (or periods) [to determine the MIPS payment adjustments that will be made in a particular year]…Such performance period (or periods) shall begin and end prior to the beginning of such year and be as close as possible to such year.”

What Proposed Regs Say• The performance period is the

full calendar year that is two years prior to the year in which MIPS adjustments are made.

• Specifically, the first year of MIPS adjustments is 2019, so the performance year is Jan. 1, 2017 – Dec. 31, 2017

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55© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Performance (Measurement) Year

for MIPS Payment Adjustments

What MACRA Says• “The Secretary shall establish

a performance period (or periods) [to determine the MIPS payment adjustments that will be made in a particular year]…Such performance period (or periods) shall begin and end prior to the beginning of such year and be as close as possible to such year.”

What Proposed Regs Say• The performance period is the

full calendar year that is two years prior to the year in which MIPS adjustments are made.

• Specifically, the first year of MIPS adjustments is 2019, so the performance year is Jan. 1, 2017 – Dec. 31, 2017

There is a lot of pressure to:

• delay the start date of the program to July 1, 2017 or January 1, 2018

• move the performance period closer to the payment year

• use performance periods shorter than one year

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56© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What Are MIPS

Bonuses/Penalties Based On?

Quality

Resource Use

“Clinical Practice Improvement

Activities”

“Advancing Care

Information”

(EHR Use)

2019

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57© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What Are MIPS

Bonuses/Penalties Based On?

Quality

Resource Use

“Clinical Practice Improvement

Activities”

“Advancing Care

Information”

(EHR Use)

2019

Four Separate

Measurement Silos,

Not a Coordinated

Measure of Value

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58© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Resource Use Will Become Much

More Important Over Time

Quality

Resource Use

“Clinical Practice Improvement

Activities”

“Advancing Care

Information”

(EHR Use)

50%

10%

25%

15%

Quality

Resource Use

“Clinical Practice Improvement

Activities”

“Advancing Care

Information”

(EHR Use)

30%

30%

25%

15%

2019 2021+

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59© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Quality Measures

• 6 quality measures, selected from available measures(reduction from 9 measures in current PQRS/VM program)

– 1 cross-cutting measure, e.g.• % of patients with advanced care plan

• Documentation of medications in medical record

• Tobacco cessation

– 1 outcome measure

(or high-priority measure if outcome is unavailable), e.g.,• Readmissions

• Mortality

• Optimal asthma control

– 4 other measures• Traditional primary care measures (process & outcome)

• Specialty specific measures (process & outcome)

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60© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Resource Use

Performance Measures• Average of all applicable resource use measures

– Total Per Capita Costs (total spending per patient per year)• Dropped condition-specific groups currently used in Value Modifier

– Medicare Spending Per Beneficiary (spending in hospital + 30 days)

– ~41 episode measures, e.g.,• Spending during and after admission for exacerbation of heart failure

• Spending during surgery and rehabilitation for knee replacement

• Spending during treatment and rehabilitation for stroke

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61© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Resource Use

Performance Measures• Average of all applicable resource use measures

– Total Per Capita Costs (total spending per patient per year)• Dropped condition-specific groups currently used in Value Modifier

– Medicare Spending Per Beneficiary (spending in hospital + 30 days)

– ~41 episode measures, e.g.,• Spending during and after admission for exacerbation of heart failure

• Spending during surgery and rehabilitation for knee replacement

• Spending during treatment and rehabilitation for stroke

• Measures are calculated from claims data, attributed to physicians based on measure-specific attribution formulas, and used for MIPS if there are a minimum number of cases– Total Per Capita Costs attributed to PCP with most office visits

– Medicare Spending Per Beneficiary (MSPB) attributed to hospital physician with most physician billings during hospital stay

– Episodes attributed based on physician who billed for trigger event

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Most Spending on a Doctor’s

Patients Doesn’t Go to the Doctor

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63© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Physicians’ Pay Will Be Affected

by What Other Providers Do

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64© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Physicians Will Be Penalized if

Hospital & Post-Acute $ Is High

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65© Center for Healthcare Quality and Payment Reform www.CHQPR.org

“Standardized Pricing” Used

in Resource Measures

• Admissions at Critical Access Hospitals are “priced” at the same rates as IPPS hospitals for the purposes of MIPS resource measures – so physicians are not penalized if their patients are admitted to higher cost rural hospitals

• Swing bed stays at Critical Access Hospitals are “priced” at their actual Medicare payment amounts – so physicians can be penalized if their patients are admitted to higher cost rural hospital swing beds for post acute care

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66© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Clinical Practice

Improvement Activity (CPIA)

• Maximum credit achieved with 60 points (requires 1-6 activities)– 60 points for certification as a patient-centered medical home

– 30 points for participation in an Alternative Payment Model(but not at a participation level which exempts physician from MIPS)

– 20 points for participation in “high weight” activities

– 10 points for participation in each “medium weight” activity

– 30 points for each activity of any type by small and rural practices

• Categories of Clinical Practice Improvement Activities– Expanded practice access

– Beneficiary engagement

– Population management

– Patient safety and practice assessment

– Care coordination

– Achieving health equity

– Emergency preparedness and response

– Integrated behavioral and mental health

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What Does a “Clinical Practice

Improvement Activity” Look Like?• 90 proposed options listed in proposed regulation

• Examples:

– Expanded Practice Access• 20 points: 24/7 access for advice about urgent/emergent care

• 10 points: telehealth specialty consults

– Population Management• 20 points: Anticoagulant management

• 10 points: Engaging rural health clinics in quality measurement

– Care Coordination• 10 points: Partnering with hospital-based transitional care services

• 10 points: Care coordination agreements with consulting physicians

– Beneficiary Engagement• 20 points: Collection and follow-up on patient experience data

• 10 points: Participation in a Qualified Clinical Data Registry

– Patient Safety and Practice Assessment• 10 points: Use of tools such as Surgical Risk Calculator

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68© Center for Healthcare Quality and Payment Reform www.CHQPR.org

What Does a “Clinical Practice

Improvement Activity” Look Like?• 90 proposed options listed in proposed regulation

• Examples:

– Expanded Practice Access• 20 points: 24/7 access for advice about urgent/emergent care

• 10 points: telehealth specialty consults

– Population Management• 20 points: Anticoagulant management

• 10 points: Engaging rural health clinics in quality measurement

– Care Coordination• 10 points: Partnering with hospital-based transitional care services

• 10 points: Care coordination agreements with consulting physicians

– Beneficiary Engagement• 20 points: Collection and follow-up on patient experience data

• 10 points: Participation in a Qualified Clinical Data Registry

– Patient Safety and Practice Assessment• 10 points: Use of tools such as Surgical Risk Calculator

Clinical Practice

Improvement Activities

could represent

opportunities for

physicians to benefit

from initiatives that

could also benefit

the hospital

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69© Center for Healthcare Quality and Payment Reform www.CHQPR.org

“Advancing Care Information”

(aka Meaningful EHR Use)

• 100 points needed for maximum credit in this category

• 50 point “base score” for participation on 6 things– Protect patient health information (“yes” required)

– Electronic prescribing (data submission only required)

– Patient electronic prescribing (data submission only required)

– Coordination of care through patient engagement (data submission

only)

– Health Information Exchange (data submission only required)

– Public health and clinical data registry reporting (“yes” required)

• 80 points for performance on measures from 3 categories– Patient electronic access

– Coordination of care through patient engagement

– Health information exchange

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Reporting Options

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71© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Reporting Options

• Report as individual– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how that individual physician scored on the quality and resource use measures

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Reporting Options

• Report as individual– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how that individual physician scored on the quality and resource use measures

• Report as a group– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how the entire group of physicians scored on the quality and resource use measures

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Reporting Options

• Report as individual– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how that individual physician scored on the quality and resource use measures

• Report as a group– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how the entire group of physicians scored on the quality and resource use measures

• Report as a “virtual group”(Authorized in MACRA, not defined in CMS proposed regs)– If the physician is not part of a multi-physician practice or is part of a

group of less than 10 physicians, the physician or practice can agree to report together with other independent physicians or small practices, and the individual physician’s bonus/penalty then depends on how the entire virtual group scored on the quality and resource use measures

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74© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Reporting Options

• Report as individual– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how that individual physician scored on the quality and resource use measures

• Report as a group– If the physician is part of a multi-physician practice, the individual

physician’s bonus/penalty depends on how the entire group of physicians scored on the quality and resource use measures

• Report as a “virtual group”(Authorized in MACRA, not defined in CMS proposed regs)– If the physician is not part of a multi-physician practice or is part of a

group of less than 10 physicians, the physician or practice can agree to report together with other independent physicians or small practices, and the individual physician’s bonus/penalty then depends on how the entire virtual group scored on the quality and resource use measures

Virtual Groupsmay represent an opportunity

for a hospital to help independent physicianswork together without

the need for the hospitalto employ the physicians

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How is the MIPS

Bonus/Penalty

Determined?

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76© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Step 1: Performance Measurement

in Each MIPS Category• Quality Measurement

– Physician receives 1-10 points on each individual quality measure– Number of points is based on which decile the physician falls into on the

distribution of performance for all physicians during the prior year

• If performance is better than 90% of physicians, physician receives 10 points

• If 90% of physicians performed better, physician receives 1 point– MACRA requires that credit be given to improvement, not just absolute

performance, but proposed regs would not give improvement credit in Year 1

• Resource Use Measurement– Physician receives 1-10 points on each applicable resource use measure

– Number of points is based on which decile the physician falls into on the distribution of performance for all physicians during the current year (this requirement in CMS regulations may not meet statutory requirements)

• Clinical Practice Improvement– Physician receives points for participation in each improvement initiative

– Not completely clear how “participation” will be defined/measured

• Advancing Care Information (EHR Use)– 50 “base points” are all or nothing

– Additional points based on relative performance in individual categories

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Multiple Episode Measures

Averaged For Each Physician

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78© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Step 2: Composite

Performance Measurement• Scores in all four categories combined into a Composite Performance

Score (CPS) from 0-100 using the weights for the categories

• A Performance Threshold is established based on how all physicians performed in the prior year on the CPS

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Step 2: Composite

Performance Measurement• Scores in all four categories combined into a Composite Performance

Score (CPS) from 0-100 using the weights for the categories

• A Performance Threshold is established based on how all physicians performed in the prior year on the CPS

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Step 3: Performance Measurement

Translated to Bonuses/Penalties

Physician Composite Performance Score

Relative to Performance Threshold

MIPS Bonus/Penalty

CPS ≤ 25% of Performance Threshold Maximum Penalty

CPS Below Performance Threshold Penalty

CPS At or Slightly Above Threshold No Bonus or Penalty

CPS Above Threshold Bonus

CPS ≥ 75th percentile of values above

Performance Threshold

Additional bonus (up to 10%)

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Implications for Hospitals

• Independent Physicians May Seek Hospital Help in Compliance

• Independent Physicians Will Focus on Ways to Reduce Use of Hospital Services and Post-Acute Care

– Total Per Capita Cost Measure and some episode measures will penalize physicians whose patients have:

• High rates of testing and imaging• High rates of referrals to other physicians• High rates of ED visits and hospitalizations• High rates of readmissions and post-acute care costs

– Medicare Spending Per Beneficiary Measure and many episode measures will penalize physicians who manage inpatient admissions if there are:

• High use of other consultants• High rates of readmissions• High use of SNF beds or use of expensive SNF beds (e.g., CAHs)

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Critical Access Hospitals

Could Be Harmed by MIPS

• Quality Measures– Small volumes of patients and safety net services could make

quality measures for physicians look poor compared to those at other hospitals

• Resource Use Measures– PCPs may be penalized for practicing in communities without the ability

to provide care management and in-home services for patients with chronic disease

– Surgeons will be penalized if their patients use higher-cost post-acute care services delivered by Critical Access Hospitals

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How APMs Will Work

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MACRA Encourages

Use of APMs Instead of MIPS

• Physicians are encouraged to participate in approved Alternative Payment Models (APMs) at a minimum level:– They are exempt from MIPS

– They receive a 5% lump sum bonus

– They receive a higher annual update (increase) in their FFS revenues

– They receive the benefits of participating in the APM

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Why Should Hospitals Care

About APMs?• For physicians they employ or bill for under Part B:

– Avoids revenue uncertainty of bonuses/penalties under MIPS

– Avoids costs associated with complying with quality reporting, clinical practice improvement activities, and EHR use requirements

– Improves revenues via 5% bonuses and higher updates

– APMs could enable hospitals to redesign care delivery for higher margins without constraints of current fee-for-service system

• For other physicians:– Some physicians may not want to work in the community if they have to

participate in MIPS or can’t participate in Alternative Payment Models

– If physicians participate in APMs without the hospital as a partner, the hospital could lose significant revenue (the biggest opportunity for savings in many APMs will come from reducing ED visits, avoidable admissions, & unnecessary/unnecessarily-expensive post-acute care)

– APMs could enable hospitals to redesign care delivery for higher margins without constraints of current fee-for-service system

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What Does MACRA Require

for an APM?

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What Does MACRA Require

for an APM?• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

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What Does MACRA Require

for an APM?• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

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What Does MACRA Require

for an APM?• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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What Exactly is an “APM?”

• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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Principal Focus of APMs

is to Save Money

• Innovation Center– The Secretary shall select models to be tested where there is evidence that the

model addresses a defined population for which there are deficits in care leading to poor clinical outcomes or potentially avoidable expenditures. The Secretary shall focus on models expected to reduce program costs while preserving or enhancing the quality of care.

– The Secretary shall terminate or modify the design and implementation of a model unless the Secretary determines that the model is expected to: (i) improve the quality of care without increasing spending; (ii) reduce spending without reducing the quality of care; or (iii) improve the quality of care and reduce spending.

• Shared Savings Program– Payments to an ACO shall be established in a manner that does not result

in spending more for such ACO for such beneficiaries than would otherwise be expended for such ACO for such beneficiaries for such year if the model were not implemented, as estimated by the Secretary.

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Current CMS

Alternative Payment Models• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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Many APMs Focus Specifically

on Reducing Spending on Hospitals• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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Some APMs Focus Specifically

on Reducing Post-Acute Spending• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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Two APMs Have Components

Focused on Rural Hospitals• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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What Else Does MACRA Require

for an APM to Replace MIPS?• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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Requirements for APM Use of

EHRs and Quality Measures

What MACRA Says• APM “requires participants in

such model to use certified EHR technology”

What Proposed Regs Say• APM must require at least 50%

of eligible clinicians in the APM entity to use Certified EHR Technology to document and communicate clinical care in 2019

• At least 75% must do so in subsequent years

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Requirements for APM Use of

EHRs and Quality Measures

What MACRA Says• APM “requires participants in

such model to use certified EHR technology”

• APM “provides for payment for covered professional services based on quality measures comparable to measures under [MIPS”

What Proposed Regs Say• APM must require at least 50%

of eligible clinicians in the APM entity to use Certified EHR Technology to document and communicate clinical care in 2019

• At least 75% must do so in subsequent years

• APM must base payment on quality measures comparable to MIPS

• No minimum number of measures, but must have at least one outcome measure if there is an appropriate outcome measure available

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What Else Does MACRA Require

for an APM to Replace MIPS?• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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Requirements for Financial Risk

in APMs

What MACRA Says

• APM Entity must

– “bear financial risk for

monetary losses under

such alternative payment

model that are in excess of

a nominal amount;” or

– be a medical home

expanded by the

Innovation Center

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Requirements for Financial Risk

in APMs

What MACRA Says

• APM Entity must

– “bear financial risk for

monetary losses under

such alternative payment

model that are in excess of

a nominal amount;” or

– be a medical home

expanded by the

Innovation Center

What Proposed Regs Say• The APM Entity is required to

repay Medicare when spending on patients exceeds expected amounts, up to:

• 5% of the entity’s total revenue, if the entity is a primary care practice with 50 or fewer clinicians (2.5% in 2017, 3% in 2018, 4% in 2019)

• 4% of total Medicare spendingfor all other physician practices or health systems

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Widespread Opposition to CMS

Definition of “Nominal Risk”

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Only 16% of Medicare Spending

Goes to Physicians

Physicians:16%

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4% of Medicare Spending =

Huge Risk for Average Physician

Physicians:16%

4% of Total Medicare Spending

25% ofPhysicianRevenues

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4% of Spending Could Be

100% of Physician’s Revenue

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CMS Calls APMs Meeting All These

Criteria: “Advanced APMs”• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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Current CMS

Alternative Payment Models• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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Few APMs Qualify as “Advanced”

APMs Under Proposed Rule• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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The APMs Most Physicians Are

Participating In Don’t Qualify• Bundled Payments for Care Improvement (BPCI)• Comprehensive Care for Joint Replacement (CJR)• Comprehensive ESRD Care – Large Dialysis Organization• Comprehensive ESRD Care – Small Dialysis Organization• Comprehensive Primary Care Plus• Frontier Community Health Integration Program• Home Health Value Based Purchasing Model• Independence at Home Demonstration• Medicare Value-Based Insurance Design Model• Part D Enhanced Medication Therapy Management Model• Reducing Hospitalizations Among Nursing Home Residents• Intravenous Immune Globulin Demonstration• Maryland All-Payer Hospital Model• Medicare Part B Drug Payment Model• Medicare Care Choices Model• Medicare Shared Savings Program (ACO) – Track 1• Medicare Shared Savings Program (ACO) – Track 2• Medicare Shared Savings Program (ACO) – Track 3• Million Hearts Cardiovascular Risk Reduction Model• Next Generation ACO Model• Oncology Care Model – Track 1• Oncology Care Model – Track 2

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CMS Defines Non-Advanced APMs

as “MIPS APMs”• Requirements for Physician

– 2019: 25% of Medicare payments from an “alternative payment entity”

– 2021: [50% of Medicare payments] or [25% Medicare & 50% of total payments] from an alternative payment entity

– 2023: 75% of Medicare or total payments from an alternative payment entity

– Option to count % of patients instead of % of payments

• Requirements for Alternative Payment Entity

– Participate in an Alternative Payment Model

– Bear financial risk for monetary losses under the APM“in excess of a nominal amount” ORbe designated as a medical home expanded by the Innovation Center

• Requirements for an Alternative Payment Model

– Be a model defined in the Innovation Center language under ACA, be part of the shared savings (ACO) program, or be a Medicare demonstration

– Require participants to use certified EHR technology

– Base payment on quality measures “comparable” to MIPS

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What Good is a MIPS APM?

• Good: Exempt from “regular” MIPS requirements; follow the

quality and resource use measures in the APM itself

• Bad: Physicians participating in a MIPS APM wouldn’t qualify

for the 5% bonus under MACRA or the higher payment update

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Problems with APM Regulations

But Also with CMS APMs

• Problems with Regulations

– Regulations set an excessively high bar for risk when Congress only required “more than nominal financial risk”

• Problems with CMS Alternative Payment Models

– Most CMS APMs are “shared savings” payment models that do not change the underlying payment system for providers and potentially encourage stinting on care to patients

– Most CMS APMs try to hold providers accountable for total cost of care whether they can control all costs or not

– Many CMS APMs do not adequately adjust payments for differences in patient needs

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CMS “Comprehensive

Care for Joint Replacement”

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

EPISODE PAYMENT FOR SURGERIES

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Principal Goal of CMS Proposal

Is Reducing Post-Acute Care Cost

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

Hospital Costsfor Surgery

Post-Acute CareReadmits SAVINGS

EPISODE PAYMENT FOR SURGERIES

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Proposed Structure Encourages

Lower Spending, Not Better Care

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

Hospital Costsfor Surgery

Post-Acute CareReadmits SAVINGS

EPISODE PAYMENT FOR SURGERIES

• No risk adjustment – target spending amount is the same for high-risk, poor functional status patients as low-risk patients

• No flexibility to deliver different types of post-acute care orto be paid differently – no change in current payment systems

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Hospitals at Risk for Total Cost

With Everyone Still Paid the Same

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

CMS

Hospital

Physiciansand

Post-AcuteCare

Hospital Costsfor Surgery

Post-Acute CareReadmits SAVINGS

EPISODE PAYMENT FOR SURGERIES

• No risk adjustment – target spending amount is the same for high-risk, poor functional status patients as low-risk patients

• No flexibility to deliver different types of post-acute care orto be paid differently – no change in current payment systems

• Hospital is at risk for higher post-acute care spending

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Over Time, CMS Keeps More of

the Savings, If There Are Any

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

Hospital Costsfor Surgery

Post-Acute CareReadmits SAVINGS

EPISODE PAYMENT FOR SURGERIES

CMS

Hospital

• No risk adjustment – target spending amount is the same for high-risk, poor functional status patients as low-risk patients

• No flexibility to deliver different types of post-acute care orto be paid differently – no change in current payment systems

• Hospital is at risk for higher post-acute care spending

• Target spending is reduced every year to match lower FFS spending

Physiciansand

Post-AcuteCare

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If There Are Fewer Surgeries,

CMS Keeps ALL of the Savings

PATIENTHospital Costs

for SurgeryPost-Acute Care(IRF, SNF, HH)Readmits

Hospital Costsfor Surgery

Post-Acute CareReadmits SAVINGS

EPISODE PAYMENT FOR SURGERIES

CMS

Hospital

Non-Surg.Treatment SAVINGS

Physiciansand

Post-AcuteCare

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119© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Critical Access Hospitals

Could Be Harmed by CJR

• Hospitals will be penalized if their patients use higher-cost

post-acute care services

• If CAH cost per SNF/swing day is higher than other hospitals,

CJR hospitals could avoid using the CAH for post-acute care

services

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120© Center for Healthcare Quality and Payment Reform www.CHQPR.org

CMS Proposing Same Approach for

AMI, CABG, and Hip Fracture

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121© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Innovation Center Authorized to

Implement Other/Better APMs(i) Promoting broad payment and practice reform in primary care, including patient-centered medical home models for high-need applicable individuals, medical homes that address women’s unique health care needs, and models that transition primary care practices away from fee-for-service based reimbursement and toward comprehensive payment or salary-based payment.(ii) Contracting directly with groups of providers of services and suppliers to promote innovative care delivery models, such as through risk-based comprehensive payment or salary-based payment.(iii) Utilizing geriatric assessments and comprehensive care plans to coordinate the care (including through interdisciplinary teams) of applicable individuals with multiple chronic conditions and at least one of the following:

(I) An inability to perform 2 or more activities of daily living.(II) Cognitive impairment, including dementia.

(iv) Promote care coordination between providers of services and suppliers that transition health care providers away from fee-for-service based reimbursement and toward salary-based payment.(v) Supporting care coordination for chronically ill applicable individuals at high risk of hospitalization through a health information technology-enabled provider network that includes care coordinators, a chronic disease registry, and home tele-health technology.(vi) Varying payment to physicians who order advanced diagnostic imaging services (as defined in section 1834(e)(1)(B)) according to the physician’s adherence to appropriateness criteria for the ordering of such services, as determined in consultation with physician specialty groups and other relevant stakeholders.(vii) Utilizing medication therapy management services, such as those described in section 935 of the Public Health Service Act.(viii) Establishing community-based health teams to support small-practice medical homes by assisting the primary care practitioner in chronic care management, including patient self-management, activities.(ix) Assisting applicable individuals in making informed health care choices by paying providers of services and suppliers for using patient decision-support tools, including tools that meet the standards developed and identified under section 936(c)(2)(A) of the Public Health Service Act, that improve applicable individual and caregiver understanding of medical treatment options.(x) Allowing States to test and evaluate fully integrating care for dual eligible individuals in the State, including the management and oversight of all funds under the applicable titles with respect to such individuals.(xi) Allowing States to test and evaluate systems of all-payer payment reform for the medical care of residents of the State, including dual eligible individuals.(xii) Aligning nationally recognized, evidence based guidelines of cancer care with payment incentives under title XVIII in the areas of treatment planning and follow-up care planning for applicable individuals described in clause (i) or (iii) of subsection (a)(4)(A) with cancer, including the identification of gaps in applicable quality measures.(xiii) Improving post-acute care through continuing care hospitals that offer inpatient rehabilitation, long-term care hospitals, and home health or skilled nursing care during an inpatient stay and the 30 days immediately following discharge.(xiv) Funding home health providers who offer chronic care management services to applicable individuals in cooperation with interdisciplinary teams.(xv) Promoting improved quality and reduced cost by developing a collaborative of high-quality, low-cost health care institutions that is responsible for—

(I) developing, documenting, and disseminating best practices and proven care methods;(II) implementing such best practices and proven care methods within such institutions to demonstrate further improvements in quality and efficiency; and(III) providing assistance to other health care institutions on how best to employ such best practices and proven care methods to improve health care quality and lower costs.

(xvi) Facilitate inpatient care, including intensive care, of hospitalized applicable individuals at their local hospital through the use of electronic monitoring by specialists, including intensivists and critical care specialists, based at integrated health systems.(xvii) Promoting greater efficiencies and timely access to outpatient services (such as outpatient physical therapy services) through models that do not require a physician or other health professional to refer the service or be involved in establishing the plan of care for the service, when such service is furnished by a health professional who has the authority to furnish the service under existing State law.(xviii) Establishing comprehensive payments to Healthcare Innovation Zones, consisting of groups of providers that include a teaching hospital, physicians, and other clinical entities, that, through their structure, operations, and joint-activity deliver a full spectrum of integrated and comprehensive health care services to applicable individuals while also incorporating innovative methods for the clinical training of future health care professionals.(xix) Utilizing, in particular in entities located in medically underserved areas and facilities of the Indian Health Service (whether operated by such Service or by an Indian tribe or tribal organization (as those terms are defined in section 4 of the Indian Health Care Improvement Act)), telehealth services—

(I) in treating behavioral health issues (such as post-traumatic stress disorder) and stroke; and(II) to improve the capacity of non-medical providers and non-specialized medical providers to provide health services for patients with chronic complex conditions.

(xx) Utilizing a diverse network of providers of services and suppliers to improve care coordination for applicable individuals described in subsection (a)(4)(A)(i) with 2 or more chronic conditions and a history of prior-year hospitalization through interventions developed under the Medicare Coordinated Care Demonstration Project under section 4016 of the Balanced Budget Act of 1997 (42 U.S.C. 1395b–1 note).(xxi) Focusing primarily on physicians’ services (as defined in section 1848(j)(3)) furnished by physicians who are not primary care practitioners(xxii) Focusing on practices of 15 or fewer professionals.(xxiii) Focusing on risk-based models for small physician practices which may involve two-sided risk and prospective patient assignment, and which examine risk-adjusted decreases in mortality rates, hospital readmissions rates, and other relevant and appropriate clinical measures.(xxiv) Focusing primarily on title XIX, working in conjunction with the Center for Medicaid and CHIP Services;

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122© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Good Ways and Bad Ways to

Define Alternative Payment Models

Medicare and

Health Plans

Define

Payment Systems

Providers Have

To Change Care

to Align With

Payment Systems

Patients and

Providers

May Not

Come Out Ahead

Providers

Redesign Care

and Identify

Payment Barriers

Payers Change

Payment to

Support

Redesigned Care

Patients Get

Better Care and

Providers Stay

Financially Viable

THE RIGHT WAY TO DESIGN PAYMENT REFORMS

HOW PAYMENT REFORMS ARE DESIGNED TODAY

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123© Center for Healthcare Quality and Payment Reform www.CHQPR.org

APMs Can Be Win-Win-Wins for

Patients, Doctors, Hospitals, Payers

• APMs can be designed to protect hospital margins when admissions and services decrease

• APMs can be designed to ensure payments for physicians and hospitals are adequate for patients with higher needs

• APMs can be designed to facilitate and encourage collaboration between primary care physicians, specialists, hospitals, and skilled nursing facilities rather than pitting them against each other

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124© Center for Healthcare Quality and Payment Reform www.CHQPR.org

MACRA Creates the “PTAC” to

Encourage Provider-Driven APMs

• Physician-Focused Payment Model Technical Advisory

Committee (PTAC)

– Eleven members appointed by the Comptroller General

– Reviews proposals for “physician-focused payment models”

– Makes recommendations to HHS/CMS on which to implement

– HHS is required to respond to recommendations,

but it is not required to implement what the PTAC recommends

– PTAC and CMS are working to develop a joint set of criteria for

approving alternative payment models that can be implemented quickly

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125© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Examples of Specialty Society

Physician-Focused APM Concepts• ASCO Patient-Centered Oncology Payment (PCOP)

– Basic model: New service codes in addition to E&M/infusion codes– Option A: Bundled codes replacing E&M and infusion codes– Option B: Bundled payment for medical oncology treatment

• AAN Patient-Centered Epilepsy and Headache Payment– One-time or monthly bundled payment codes replacing E&M– New service codes in addition to E&M for low-acuity patients– Optional bundled payments for total treatment costs

• ASTRO Payment for Palliative Radiation Care for Bone Metastases and Radiation Treatment of Breast Cancer– Bundle based on patient need instead of type/number of treatments

• ACC Payment for Testing/Treatment of Stable Angina (SMARTCare)– Bundle based on patient risk instead of types of tests/interventions

• AGA Colonoscopy Bundled Payment– Episode payment for procedure, anesthesia, facility, complications

• SGO/STS/ACS/ASA Surgical Episode Payments– Bundled/episode payments for surgical procedures

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126© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Three Paths to Value-Based

Payment Under MACRA

CMS-DESIGNEDALTERNATIVE

PAYMENT MODELS (APMs)

MERIT-BASED INCENTIVE

PAYMENT SYSTEM (MIPS)

PROVIDER-DESIGNEDALTERNATIVE

PAYMENT MODELS (APMs)

MACRA

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127© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Other Parts of MACRA

• $20 million/year from 2016-2020 for technical assistance to small practices on MIPS and APMs

• Authority for “Qualified Entities” to use Medicare claims data to help physician practices and other providers develop APMs

• Development of improved ways of measuring resource use

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128© Center for Healthcare Quality and Payment Reform www.CHQPR.org

Learn More About MACRA and

Alternative Payment Modelswww.PaymentReform.org

Page 133: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

For More Information:

Harold D. MillerPresident and CEO

Center for Healthcare Quality and Payment Reform

[email protected]

(412) 803-3650

www.CHQPR.org

www.PaymentReform.org

Page 134: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

WSHA Resources

Page 135: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

Claudia Sanders, Sr. Vice President, Policy Development

Andrew Busz, Policy Director, Finance

WSHA Advocacy

139

Page 136: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA comments to CMS- Concerns

• Need for alignment with hospital measures

• Barriers to EHR meaningful use in rural areas

• List of approved Alternative Payment Models too limited

• Limited capacity for small providers to accept significant downside risk

• Recognition of quality improvement already obtained due to Partnership for Patients and other efforts

Advocating for reasonableness and alignment of quality measures

between MACRA, Healthier Washington (including WHRAP and RHC

APM-4), and commercial payors

WSHA Advocacy

140

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MACRA IN ACTIONCarol Wagner

Senior Vice President Patient Safety

Page 138: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA Principles - Washington

• Washington and Oregon physicians maximize their financial opportunities in MACRA.

• At the end of 2017 physicians will have an understanding, plan, and implementation process in progress.

• MACRA is delayed, but will be put into effect. Delay is part of refinement.

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Page 140: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

MACRA Principles - Washington

• MACRA is ultimately about patient care – this should remain a focus.

• Mindset of what needs to happen versus what is happening.

• Leaning from best practices across the country.

• Linkage with Healthy Doctors, Healthier Patients.

Page 141: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

Next Steps from WSHA and WSMA

• Understanding that MACRA is ultimately a clinical quality issue.• This is about what physicians already care about.

• Pay for value based on outcomes not processes.

• Demonstrate value across membership.

Page 142: MACRA for Critical Access Hospitals...(MACRA) was approved on a bipartisan basis by Congress (House vote 392-37, Senate vote 92-8) and signed into law by the President on April 16,

Next Steps from WSHA and WSMA

• General education on MACRA

• Create a crosswalk of measures between:• MACRA

• Choosing Wisely

• HCA Performance Measures

• WSHA Patient Safety

• Other State and Federal initiatives.

• Crosswalk the measures across multi-specialties based on national specialtyassociations.

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Next Steps from WSHA and WSMA

• Synergistic measures list.• Create a resource guide for measures.

• Create Improvement strategies best practices.

• Utilize best practice webinars?

• Survey meaningful use preparedness• Based on findings create checklist for meeting.

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Working Together

• Washington and Oregon

• WSHA and WSMA

• Qualis

• Healthier Washington

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Please give us your rating from 1-10 on this informational MACRA session

(1 is low and 10 is high)

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Which aspect of MACRA would you like to know more about from WSHA?

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Questions & Answers

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Thank you for your participation

Claudia Sanders – [email protected] Wagner – [email protected] Busz – [email protected]