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THE COMMONWEALTH FUND Why Not the Best? Why Not the Best? How States Can Lead Us Toward a High How States Can Lead Us Toward a High Performance Health System Performance Health System Karen Davis President, The Commonwealth Fund National Academy for State Health Policy Annual Policy Conference October 16, 2006

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Page 1: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

THE COMMONWEALTH

FUND

Why Not the Best? Why Not the Best? How States Can Lead Us Toward a High How States Can Lead Us Toward a High

Performance Health SystemPerformance Health System

Karen DavisPresident, The Commonwealth Fund

National Academy for State Health PolicyAnnual Policy Conference

October 16, 2006

Page 2: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

2

THE COMMONWEALTH

FUND

The Commonwealth FundThe Commonwealth Fund Commission on a High Performance Health Commission on a High Performance Health

SystemSystem

Objective:

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

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

Page 3: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

3

THE COMMONWEALTH

FUND

Vision:Vision:What Constitutes a High What Constitutes a High

Performance Health System?Performance Health System?

Page 4: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

4

THE COMMONWEALTH

FUND

The Commonwealth FundThe Commonwealth Fund Commission on a High Performance Health System Commission on a High Performance Health System

EFFICIENT CARE

HIGH QUALITY CARE

EQUITY

ACCESS FOR ALL

LONG,HEALTHY, ANDPRODUCTIVE

LIVES

SYSTEM INNOVATION AND IMPROVEMENT

Page 5: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

5

THE COMMONWEALTH

FUND

Achieving a High Performance Health Achieving a High Performance Health System Requires:System Requires:

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

• Delivering care through models that emphasize coordination and integration

• Establishing and tracking metrics for health outcomes, quality of care, access, disparities, and efficiency

Page 6: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

6

THE COMMONWEALTH

FUND

State Performance:State Performance:Where We Are Now and Where We Are Now and Achievable BenchmarksAchievable Benchmarks

Page 7: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

7

Mortality Amenable to Health CareMortality Amenable to Health Care

97 97 99106 107 109 109

115 115

129 130 132

7584

88 88 8881

92

0

50

100

150

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

Deaths per 100,000 population*

110

8490

103

119

134

International Variation, 1998 State Variation, 2002

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

LONG, HEALTHY & PRODUCTIVE LIVES

Page 8: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

8

7.0

5.3

6.0

7.1

8.1

9.1

Infant Mortality RateInfant Mortality Rate

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

2.2

3.0 3.03.3 3.5

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

7.0

0

5

10

Infant deaths per 1,000 live births

International variation, 2002 State variation, 2002

LONG, HEALTHY & PRODUCTIVE LIVES

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

Page 9: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

9

States Vary In Quality of CareStates Vary In Quality of Care

First

Third

Fourth

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

Second

WA

OR

ID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SC

TNNC

KY

FL

VA

OH

MI

WV

PA

NY

AK

MD

MEVT

NH

MA

RI

CT

DE

DCCO

GAMS

OK

NJ

SD

Quartile Rank

Note: State ranking based on 22 Medicare performance measures.

2000–20012000–2001

Page 10: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

10

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

Preventive Care Visits for Children, by Top and Bottom States, Preventive Care Visits for Children, by Top and Bottom States, Race/Ethnicity, Family Income, and InsuranceRace/Ethnicity, Family Income, and Insurance

35

63

70

58

62

48

73

59

48

49

0 50 100

Uninsured

Private insurance

<100% of poverty

400% + of poverty

Hispanic

Black

White

Bottom 10% states

Top 10% states

U.S. average

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

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

QUALITY: THE RIGHT CARE

Page 11: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

11

89

81 7977

69

77

0

50

100

White Black Hispanic

400%+ of poverty <100% of poverty

Immunizations for Young Children, by Top and Bottom States, Immunizations for Young Children, by Top and Bottom States, Race/Ethnicity, and Family IncomeRace/Ethnicity, and Family Income

75

87

79

83

89

79

77

77

73

71

0 50 100

<100% of poverty

400%+ of poverty

AI/AN

Asian/PI

Hispanic

Black

White

Bottom 10% states

Top 10% states

U.S. average

* Recommended vaccines include: 4 doses of diphtheria-tetanus-pertussis (DTP), 3+ doses of polio, 1+ dose of measles-mumps-rubella, 3+doses of Haemophilus influenzae type B, and 3+ doses of hepatitis B vaccine.PI = Pacific Islander; AI/AN = American Indian or Alaskan Native. Data: National Immunization Survey (AHRQ 2005a, 2005b). Data is from 2003.

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

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

QUALITY: THE RIGHT CARE

Page 12: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

12

13

89

1618

19

1415

2223

0

15

30

High-risk residents

Pressure Sores Among High-Risk and Short-Stay Residents in Pressure Sores Among High-Risk and Short-Stay Residents in Nursing Facilities Nursing Facilities

Percent of nursing home residents with pressure sores

Data: Nursing Home Minimum Data Set (AHRQ 2005a).

Short-stay residents

High-risk residents

Short-stay residents

White 13% 21%

Black 17 26

Hispanic 15 25

Asian 12 22

AI/AN 17 23

State distribution, 2004 By race/ethnicity, 2003

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

QUALITY: SAFE CARE

Page 13: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

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Percent of Adults Ages 18–64 Uninsured by StatePercent of Adults Ages 18–64 Uninsured by State

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

WA

ORID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SCTN

NCKY

FL

VA

OH

MI

WV

PA

NY

AK

MD

MEVTNH

MARI

CT

DE

DC

HI

CO

GAMS

OK

NJ

SD

WA

ORID

MT ND

WY

NV

CAUT

AZ NM

KS

NE

MN

MO

WI

TX

IA

ILIN

AR

LA

AL

SCTN

NCKY

FL

VA

OH

MI

WV

PA

NY

AK

ME

DE

DC

HI

CO

GAMS

OK

NJ

SD

19%–22.9%

Less than 14%

14%–18.9%

23% or more

1999–2000 2004–2005

MA

RI

CT

VTNH

MD

NH

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

ACCESS: UNIVERSAL PARTICIPATION

Page 14: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

14States with Highest and LowestStates with Highest and LowestAdjusted Health Plan PremiumsAdjusted Health Plan Premiums

Employee-only adjusted premiumsEmployee-only adjusted premiums

3,582

2,9812,717

2,8332,9543,203

3,5443,621

4,001

0

1,000

2,000

3,000

4,000

5,000

Wyoming Maine Wiscons in Wes t

V irginia

U.S .

average

A labama Oregon C ali fornia Hawaii

Adapted from J. Gabel, R. McDevitt, L. Gandolfo et al., “Generosity and Adjusted Premiums in Job-BasedInsurance: Hawaii Is Up, Wyoming Is Down,” Health Affairs, May/June 2006 25(3):832–43. Data is from 2002.

Dollars

Page 15: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

15

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

498

241188

258

13774

631

299 297

0

100

200

300

400

500

600

700

Congestive heart failure Diabetes Pediatric asthma

National average Top 10% states Bottom 10% states

Adjusted rate per 100,000 population

* Combines four diabetes admission measures: uncontrolled, short-term complications, long-term complications, and lower extremity amputations. Data: National estimates—Healthcare Cost and Utilization Project, Nationwide Inpatient Sample; State estimates—State Inpatient Databases; not all states participate in HCUP (AHRQ 2005a). Data is from 2002.

*

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

EFFICIENCY

Page 16: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

16

Hospital Admission RatesHospital Admission RatesAmong Nursing Home Residents, by StateAmong Nursing Home Residents, by State

16

8 9

12

1921

0

10

20

30

M edian B es t s tate 10th %ile 25th %ile 75th %ile 90th %ile

Percent

16

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

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

QUALITY: COORDINATED CARE

Page 17: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

17

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

23

53

58

39

53

36

60

46

30

31

0 50 100

Uninsured

Private insurance

<100% of poverty

400% + of poverty

Hispanic

Black

White

Bottom 10% states

Top 10% states

U.S. average

Children with a Medical Home, by Top and Bottom States, Children with a Medical Home, by Top and Bottom States, Race/Ethnicity, Family Income, and InsuranceRace/Ethnicity, Family Income, and Insurance

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

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

QUALITY: COORDINATED CARE

Page 18: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

18

Diabetes: Receipt of All Three Recommended Services,Diabetes: Receipt of All Three Recommended Services,by Race/Ethnicity, Family Income, Insurance, and Residenceby Race/Ethnicity, Family Income, Insurance, and Residence

45

55

54

46

50

61

55

53

54

47

24

38

0 40 80

Rural

Urban

Uninsured

Private

<100% of poverty

100% –199% of poverty

200% –399% of poverty

400% + of poverty

Hispanic

Black

White

Total

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

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

*

**

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

EQUITY: THE RIGHT CARE

Page 19: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

19

• Environmental scan of state-level policies that promote or impede high performance

– Qualitative companion to Commission's quantitative National Scorecard

– Mechanism for identifying innovative states for future Commission site visits

– Four Commission members serve on advisory committee

• Products to date– Data information collection plan completed– Survey drafted -- will probe broadly the policy

domains of coverage, quality/efficiency/value, and infrastructure supports

– Data collection to begin September 2006 – Health policy community notified at Academy Health

June 25, 2006

State Health Policies Aimed at Promoting State Health Policies Aimed at Promoting Excellent Systems (SHAPES)Excellent Systems (SHAPES)

Alan Weil,NASHP

Catherine Hess,

NASHP

Page 20: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

20Keys to Transforming the U.S. Health Care Keys to Transforming the U.S. Health Care

SystemSystem1. Guarantee affordable health insurance coverage2. Implement major quality and safety improvements3. Work toward a more organized delivery system that

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

simplification, more effective change

Page 21: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

21

THE COMMONWEALTH

FUND

Guarantee Affordable Health Insurance Guarantee Affordable Health Insurance CoverageCoverage

1. Guarantee Affordable Health Insurance Coverage

Page 22: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

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THE COMMONWEALTH

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Massachusetts Health PlanMassachusetts Health Plan

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

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

• Employer mandatory offer, employee mandatory take-up

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

• Connector to organize affordable insurance offerings through a group pool

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

Page 23: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

23

THE COMMONWEALTH

FUND

Retaining and Expanding Employer Retaining and Expanding Employer Participation: Maine’s Dirigo HealthParticipation: Maine’s Dirigo Health

• New insurance product; $1250 deductible; sliding scale deductibles and premiums below 300% poverty

• Employers pay fee covering 60% of worker premium

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

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

300600

8881188

1488

1250

0

1000

750

500

250

0$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

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

Deductible amountEmployee share of annual premium

Annual expenditures on deductible and premium

$550

$0

$1,100

$1,638

$2,188

$2,738

Page 24: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

24

THE COMMONWEALTH

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Vermont Health Care Affordability Act Vermont Health Care Affordability Act Enacted May 2006Enacted May 2006

• Coverage expansion– Catamount Health Plans

• Targets those w/o access to work-based coverage • Premium subsidies based on sliding scale up to 300% FPL • Comprehensive benefit package including primary, chronic,

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

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

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

– Rules to publicly report price & quality information

Page 25: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

25

THE COMMONWEALTH

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Illinois All-KidsIllinois All-Kids

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

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

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

– Public outreach program to highlight new and expanded healthcare programs

Page 26: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

26

THE COMMONWEALTH

FUND

New Jersey Raises Age of Dependent Status New Jersey Raises Age of Dependent Status for Health Insurancefor Health Insurance

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

– Highest age limit in country – Covers uninsured, unmarried

adults with no dependents who are NJ residents or FT students

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

• 200,000 young adults expected to receive coverage under the law

11.2 11.812.7 13.4 13.7

0

5

10

15

2000 2001 2002 2003 2004

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

Millions uninsured, adults ages 19–29

Page 27: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

27

THE COMMONWEALTH

FUND

Implement Major Quality and Safety Implement Major Quality and Safety ImprovementsImprovements

2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

Page 28: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

28

THE COMMONWEALTH

FUND

Rhode Island:Rhode Island:Five-Point StrategyFive-Point Strategy

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

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

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

connectivity between all retail pharmacies and prescribers in the state• Health Information Exchange Initiative

– Statewide public/private effort– AHRQ contract 5 yr/ $5M– Connecting information from physicians, hospitals, labs, imaging & other

community providers

Page 29: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

29

THE COMMONWEALTH

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Work Toward a More Organized Delivery System Work Toward a More Organized Delivery System that Emphasizes Patient-Centered Primary and that Emphasizes Patient-Centered Primary and

Preventive CarePreventive Care3. Emphasize Patient-

Centered Primary, and Preventive

Care

1. Guarantee Affordable Health Insurance Coverage

2. Implement Major Quality and Safety Improvements

Page 30: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

30

THE COMMONWEALTH

FUND

Helping Patients Become Informed and Helping Patients Become Informed and Active Partners in Their CareActive Partners in Their Care

Patient-centered care:

• www.howsyourhealth.org

• PCDC – advanced access collaborative

• Shared decision-making

• Resident-centered care in nursing homes

• Family-centered care in Healthy Steps & ABCD

Page 31: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

31

Resident-Centered Nursing Home Care for Resident-Centered Nursing Home Care for Frail EldersFrail Elders

• Green House in Tupelo, Mississippi, featured in New York Times and AARP Bulletin; Commonwealth supported evaluation in progress

• Ohio project finds high correlation between resident and family satisfaction and nursing home clinical quality

• New York state – analysis of use of hospitals by nursing home residents

Page 32: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

32

Utah’s Primary Care Network Utah’s Primary Care Network Section 1115 Medicaid Waiver Section 1115 Medicaid Waiver

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

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

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

Page 33: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

33

State Initiatives Investing in Children’s Preventive State Initiatives Investing in Children’s Preventive CareCare

MN

CA

IA

ILUT

WA

NC

NY

ABCD I States (4) Improvement Partnership States (5)

BCAP States (10))ABCD II States (5)

AZ

GA

FL

SC

DC

WI

ARNM

MO

TN

MN

NE

TX

OK

NV

VT

RI

NC Model States(5)

MI

CO

PHDS SLN States (4)

OH

MI

LA

VA

Page 34: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

34

THE COMMONWEALTH

FUND

Increase Transparency and Reporting on Increase Transparency and Reporting on Quality and CostsQuality and Costs

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

Page 35: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

35

THE COMMONWEALTH

FUND

WisconsinWisconsin

• Wisconsin Collaborative for Healthcare Quality – Voluntary consortium formed in 2003 -- physician groups, hospitals,

health plans, employers & labor

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

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

• Wisconsin Health Information Organization– Coalition formed in 2005 to create a centralized health data

repository based on voluntary sharing of private health insurance claims, including pharmacy & laboratory data

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

Page 36: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

36

THE COMMONWEALTH

FUND

Expand the Use of Interoperable Information Expand the Use of Interoperable Information TechnologyTechnology

5. Expand the Use of Interoperable Information Technology

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

Page 37: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

37

THE COMMONWEALTH

FUND

Value of Electronic Medical Records Value of Electronic Medical Records and Information Systemsand Information Systems

• Reduce duplicate tests• Reduce hospital admissions by

having information accessible to ER physicians

• Improve patient care• Decision support for physicians

and patients• Facilitate “referrals”, secure

transfer of responsibility• Reduce medical errors• Better management of chronic

conditions and care coordination– Registries– Performance information– Facilitated by interoperability

Page 38: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

38

THE COMMONWEALTH

FUND

Information Exchange:Information Exchange:States Leading the WayStates Leading the Way

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

web-based portal – future integration into EHRs– Create the ability to aggregate and utilize data for public health purposes (e.g.,

population-based analysis, biosurveillance)

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

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

portal

• New York State Health Information Technology (HIT) initiative– Under the Health Care Efficiency and Affordability Law for New Yorkers, $52.9 million

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

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

Page 39: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

39

THE COMMONWEALTH

FUND

Reward Performance for Quality and Reward Performance for Quality and EfficiencyEfficiency

6. Reward Performance for Quality and Efficiency

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

5. Expand the Use of Interoperable Information Technology

Page 40: THE COMMONWEALTH FUND Why Not the Best? How States Can Lead Us Toward a High Performance Health System Karen Davis President, The Commonwealth Fund National

40

THE COMMONWEALTH

FUND

Building Quality Into RIte CareBuilding Quality Into RIte CareHigher Quality and Improved Cost TrendsHigher Quality and Improved Cost Trends

• Quality targets and $ incentives

• Improved access, medical home

– One third reduction in hospital and ER

– Tripled primary care doctors

– Doubled clinic visits

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

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

Cumulative Health Insurance Cost Trend

Comparison

0

20

40

60

80

100

120

140

160

RI Commercial Trend

RIte Care Trend

Percent

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New York State Medicaid New York State Medicaid Pay-for-PerformancePay-for-Performance

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

• 2002 — NYS DOH incorporated quality incentive into computation of Medicaid managed care capitation rates– Incentive tied to performance on 10 quality of care measures and

5 consumer satisfaction measures– Initial incentive up to an additional 1% of monthly premium; as of

April 2005, maximum incentive increased to 3%

• 2005 — incentive payments totaled $40 million

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

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Assisting States in the Design of Medicaid Assisting States in the Design of Medicaid Pay-for-Performance ProgramsPay-for-Performance Programs

CHCS/Stephen Somers, Jul 06–Jun 08CHCS/Stephen Somers, Jul 06–Jun 08

OverviewOverview

StatusStatus

• Develop Pay-for-Performance Purchasing Institute Technical Assistance Series for 6 state Medicaid teams

– Two in-person training institutes– Follow-up technical assistance

• Conduct environmental scan on P4P lessons learned in the public/private sectors focusing on the provider level

– Draft report expected Sep 2006

• Synthesis of lessons learned and best practices– Draft report expected May 2008

• 1st training institute scheduled for October 12–13, 2006• State Participants: Arizona, Connecticut, Idaho, Massachusetts,

Missouri, Ohio, & West Virginia

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Encourage Public-Private CollaborationEncourage Public-Private Collaborationto Achieve Simplification, to Achieve Simplification,

More Effective ChangeMore Effective Change

7. Encourage Public-Private Collaboration to Achieve Simplification, More Effective Change

4. Increase Transparency and Reporting on Quality and Costs

3. Emphasize Primary,

Preventive, and Patient-Centered

Care2. Implement Major Quality and Safety Improvements

1. Guarantee Affordable Health Insurance Coverage

6. Reward Performance for Quality and Efficiency

5. Expand the Use of Interoperable Information Technology

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Minnesota Smart-Buy Minnesota Smart-Buy AllianceAlliance

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

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

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

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

• Four key strategies:1. Reward or require “best in class” certification2. Adopt and utilize uniform measures of quality and

results3. Empower consumers with easy access to

information4. Require use of information technology

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Washington State Washington State Puget Sound Health AlliancePuget Sound Health Alliance

• Founded in 2004 as independent non-profit organization

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

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

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

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

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

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

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

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West Virginia Small Business PlanWest Virginia Small Business PlanLeveraging Purchasing PowerLeveraging Purchasing Power

• West Virginia (WV) Small Business Plan– Enacted March 2004– Partnership between WV Public Employees

Insurance Agency (PEIA) & private market insurers

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

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Moving ForwardMoving Forward

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What States Can Do to Promote a High Performance What States Can Do to Promote a High Performance Health System: Health System:

Strategies to Expand CoverageStrategies to Expand Coverage

• Expand public programs• Provide financial assistance to workers and employers

to afford coverage• Promote partnerships with employers• Pool purchasing power and promote new benefit

designs to make coverage more affordable• Mandate that employers offer, and/or individuals

purchase, coverage; subsidize those with low incomes• Develop reinsurance programs to make coverage

more affordable in the small group and individual markets

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What States Can Do to Promote a High Performance What States Can Do to Promote a High Performance Health System: Health System:

Strategies to Improve Quality and EfficiencyStrategies to Improve Quality and Efficiency

• Promote evidence-based medicine• Promote effective chronic care management• Promote transitional care post-hospital discharge• Encourage data transparency and reporting on performance• Promote/practice value-based purchasing• Promote the use of health information technology• Promote wellness and healthy living• Encourage selection of medical home and improved access to

primary care and preventive services• Simplify and streamline public program eligibility and re-

determination

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Continue to Lead the Way to Continue to Lead the Way to Achieving a High Performance Achieving a High Performance

Health System!Health System!

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Selected Commonwealth Fund PublicationsSelected Commonwealth Fund Publications

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

• C. Schoen et al., “U.S. Health System Performance: A National Scorecard,” Health Affairs Web Exclusive, September 20, 2006.

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

• Forthcoming –– State Scorecard on Health System Performance

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Thank You!Thank You!Stephen C. Schoenbaum, M.D., Executive Vice President and Executive Director, Commission on a High Performance Health System

Anne Gauthier, Senior Policy Director, Commission on a High Performance Health System

Karen B. Adams, Program Officer, State Innovations Program

Alyssa L. Holmgren, Research Associate

Cathy Schoen, Senior Vice President for Research and Evaluation

Sign up for States in Action newsletter and forward to colleagues – www.cmwf.org

Jennifer L. Kriss, Program Assistant