value-based health care delivery: core concepts · health care problem remains a global issue....

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This presentation draws heavily on Professor Porter’s research in health care delivery including Redefining Health Care (with Elizabeth Teisberg), What is Value in Health Care, NEJM, and The Strategy That Will Fix Health Care, HBR (with Thomas Lee). A fuller bibliography is attached. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of Michael E. Porter. For further background and references on value-based health care, see the website of the Institute for Strategy and Competitiveness. Value-Based Health Care Delivery: Core Concepts Professor Michael E. Porter Harvard Business School Partners HealthCare Residents and Fellows Course Boston, MA Wednesday, January 15, 2020

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  • This presentation draws heavily on Professor Porter’s research in health care delivery including Redefining Health Care (with Elizabeth Teisberg), What is Value in Health Care, NEJM, and The Strategy That Will Fix Health Care, HBR (with Thomas Lee).A fuller bibliography is attached. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying, recording, or otherwise — without the permission of MichaelE. Porter. For further background and references on value-based health care, see the website of the Institute for Strategy and Competitiveness.

    Value-Based Health Care Delivery: Core Concepts

    Professor Michael E. PorterHarvard Business School

    Partners HealthCare Residents and Fellows CourseBoston, MA

    Wednesday, January 15, 2020

  • Copyright 2020 © Professor Michael E. Porter

    Disclosure

    2

    Michael Porter

    I have a relevant financial relationship with the following companies:

    Company RoleAllscripts AdvisorAZTherapies Advisor, InvestorAmerican College of Surgeons Speaker, HonorariumAscent Biomedical Ventures InvestorBiopharma Credit Investments InvestorAdvanced Aesthetic Tech. InvestorMerck & Co. InvestorMerrimack Pharmaceuticals Former Board Member, InvestorMolina Healthcare Advisor, InvestorRoyalty Pharma InvestorThermo Fisher Scientific Former Board Member, Investor

  • Copyright 2020 © Professor Michael E. Porter

    Health Care Problem Remains a Global IssueHealth Care Spending vs GDP and Income

    Wages: Average annual wages per full-time and full-year equivalent employee in the total economySource: EIU GDP (USD), Average Wages (USD) and Healthcare expenditure (USD) from 1990-2018; ECIPE Article 2011

    Average Wage Gross Domestic Product (GDP) Health Care Spending

    100

    200

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    500

    1990 1994 1998 2002 2006 2010 2014 2018

    USIndex(1990=100) HC expenditure 2018:17.2% of GDP

    100

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    500

    1990 1994 1998 2002 2006 2010 2014 2018

    UKIndex(1990=100)

    HC expenditure 2018:9.8% of GDP

    100

    200

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    400

    500

    1990 1994 1998 2002 2006 2010 2014 2018

    SIndex(1990=100)

    HC expenditure 2018:8.9% of GDP

    100

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    300

    400

    500

    1990 1994 1998 2002 2006 2010 2014 2018

    FIndex(1990=100)

    100

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    1990 1994 1998 2002 2006 2010 2014 2018

    DIndex(1990=100)

    100

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    1990 1994 1998 2002 2006 2010 2014 2018

    IIndex(1990=100)

    HC expenditure 2018:11.2% of GDP

    HC expenditure 2018:11.5% of GDP

    HC expenditure 2018:9.3% of GDP

    3

  • Copyright 2020 © Professor Michael E. Porter4

    Incremental “Solutions” Have Had Limited Impact

    Restructuring health care delivery is needed, not incremental improvements

    • Evidence-based medicine• Accountability for process metrics• Safety/eliminating errors• Prior authorization• Patients as paying customers• Electronic medical records• “Lean” process improvements

    • Care coordinators• Retail clinics / urgent care• Programs to address high cost areas• Mergers and consolidation• Personalized medicine• Population health• Analytics and big data

  • Copyright 2020 © Professor Michael E. Porter

    Solving the Health Care Problem

    5

    Value =Health outcomes that matter to patients

    Costs of delivering these outcomes

    • The fundamental goal and purpose of health care is to deliver high and rising value for patients

    • Delivering high value health care is the definition of success

    • Value is the only goal that can unite the interests of all system participants

    • Improving value is the only real solution to reducing the burden of health care on citizens and governments

    • The questions are how to design a health care delivery system that substantially improves patient value, and to shift competition to competing on value

  • Copyright 2020 © Professor Michael E. Porter

    1. Re-organize care around patient conditions (or groups of related conditions) into integrated practice units (IPUs), covering the full cycle of care

    − For primary and preventive care, IPUs should serve distinct patient segments

    2. Measure outcomes and costs for every patient, in the line of care

    3. Move to value-based reimbursement models, and ultimately bundled payments for conditions

    4. Integrate and coordinate care across multi-site care delivery systems

    5. Expand or affiliate across geography to reinforce excellence

    6. Build an enabling information technology platform 6

    Creating a Value-Based Health Care Delivery SystemThe Strategic Agenda

  • Copyright 2020 © Professor Michael E. Porter

    Organize around the patient’s condition, or family of related conditions, over the full care

    cycle into an Integrated Practice Unit (IPU)

    Affiliated Imaging Unit

    West GermanHeadache Center

    NeurologistsPsychologists

    Physical Therapists“Day Hospital”

    Essen Univ.

    HospitalInpatient

    Unit

    PrimaryCare

    Physicians

    Affiliated “NetworkNeurologists”

    Source: Porter, Michael E., Clemens Guth, and Elisa Dannemiller, The West German Headache Center: Integrated Migraine Care, Harvard Business School Case 9-707-559, September 13, 2007

    Organize by department, specialty, and discrete service

    Re-organize Care Around Patient Medical ConditionsHeadache Care in Germany

    Care by Individuals

    ImaginingCenters

    OutpatientPhysical

    Therapists

    OutpatientNeurologists

    OutpatientPsychologists

    Primary Care

    Physicians

    Inpatient Treatmentand Detox

    Units

    Care by a Team 7

  • Copyright 2020 © Professor Michael E. Porter8

    Integrating Across the Care CycleRole of Surgeons Beyond the Operating Room

    Medical Management

    Preoperative Care

    Surgical Intervention Postoperative

    Care Rehabilitation Surveillance

    • Partner with medical specialists to manage complex cases and the ongoing evaluation of need for surgery

    • Develop non-surgical options with other providers (e.g. physical therapists)

    • Collaborate with primary care &anesthesiologist to prepare the patient for successful surgery

    • Be accessible to patient and primary care team for pre-operative care questions

    • Optimize the surgical process and results

    • Co-develop best practices with PACU team

    • Lead integrated multidisciplinarypost-operative teams to optimize the hospital stay

    • Shift post-acute care to the appropriate setting (e.g. home, rehab)

    • Extended clinic hours and after-hours hotline

    • Educate home health providers and PTs on best practices

    • Ongoing monitoring of patients for recurrence

    • Measure longer term outcomes

    Prevention & Detection

    • Work with primary care to slow/manage disease progression

    • Advise primary care on accurate diagnoses and timely referrals

    DownstreamUpstream

  • Copyright 2020 © Professor Michael E. Porter

    The Playbook for Integrated Practice Units (IPUs)9

    1. Organized around a medical condition, or groups of closely related conditions.

    2. Care is delivered by a dedicated,multidisciplinary team devoting a significant portion of their time to the condition− Involved dedicated staff and affiliated staff with

    strong working relationships3. ͏Co-located in dedicated facilities.

    4. Takes responsibility for the full cycle of care

    5. A hub and spoke structure with that allocates care to the right site

    6. Addressing common complications and comorbidities, as well as patient education, engagement, adherence, follow-up, and prevention are integrated into the care process

    7. The IPU has a clear clinical leader, a common scheduling and intake process, and a unified financial structure (single P + L)

    8. A physician team captain, clinical care manager or both oversees each patient’s care

    9. The IPU routinely measures outcomes, costs, care processes, and patient experience using a common platform

    10. The team accepts joint accountability foroutcomes and costs

    11. The team regularly meets formally and informally to discuss individual patient care plans, process improvements, and how to improve results.

  • Copyright 2020 © Professor Michael E. Porter10

    • Patient segment: older adults with lower-income, living in under-servedurban communities

    • Co-located in dedicated facilities

    • Explicit processes to engage patients, address social and economic determinants of health, and provide free rides/home-visits, in-house pharmacy and selected events for community residents

    • Selected in-house services in the most relevant specialties for this patient segment such as behavioral health and podiatry and close relationships with outside specialists

    • Meet daily and weekly to discuss each patient’s care plans, and process improvement

    • Measurement and accountability for outcomes, cost, and patient experience

    • Single full-risk value-based payment covering overall care– Including specialty and post-acute care– Medicare Advantage

    Value-Based Primary CareOak Street Health

  • Copyright 2020 © Professor Michael E. Porter

    IPU Volume Enhances Value

    Better Outcomes, Adjusted for Risk

    Rapidly AccumulatingExperience

    Rising Process Efficiency

    Better Information/Clinical Data

    More Tailored Facilities

    Rising Capacity for

    Sub-Specialization

    More Fully Dedicated Teams

    Faster Innovation

    Greater Patient Volume with the

    Medical Condition

    Improving Reputation

    Costs of IT, Measure-ment, and ProcessImprovement Spread

    over More Patients

    Wider Capabilities in the Care Cycle, Including Patient Engagement

    Mechanisms

    The Virtuous Circle of Value

    Greater Leverage in Purchasing, Securing

    Value-Based Payments

    Better Utilization of Capacity

    11

  • Copyright 2020 © Professor Michael E. Porter

    Patient Experience/

    Engagement/ Adherence

    E.g., PSA, Gleason score, surgical margin

    Protocols/Guidelines

    Patient Initial Conditions,Risk Factors

    Processes Indicators

    Structure

    E.g., Staff certification, facilities standards

    Measure Outcomes for Every PatientThe Quality Measurement Landscape

    Outcomes

    12

  • Copyright 2020 © Professor Michael E. Porter

    Patient Experience/

    Engagement/ Adherence

    E.g., PSA, Gleason score, surgical margin

    Protocols/Guidelines

    Patient Initial Conditions,Risk Factors

    Processes Indicators

    Structure

    E.g., Staff certification, facilities standards

    Measure Outcomes for Every PatientThe Quality Measurement Landscape

    Outcomes

    Without outcomes measurement, the value of

    measuring other quality dimensions is greatly

    diminished

    13

  • Copyright 2020 © Professor Michael E. Porter

    Principles of Outcome Measurement• Outcomes should be measured by condition or primary care

    segment– Not for specialties, procedures, or interventions

    • Outcomes cover the full cycle of care • Outcomes are always multi-dimensional and include what matters

    most to patients (and families), not just to clinicians – Patient reported outcomes are important in every condition

    • Outcome measurement includes initial conditions/risk factors to control for patient differences

    • Outcomes should be standardized for each condition, to maximize comparison, learning, and improvement

    • Outcomes should be measured in the line of care

    • Value-based measurement differs from the historical focus on measuring provider behavior and overall patient success

    14

  • Copyright 2020 © Professor Michael E. Porter

    Survival

    Degree of health/recovery

    Time to recovery and return to normal activities

    Sustainability of health/recovery and nature of recurrences

    Disutility of the care or treatment process (e.g., diagnostic errors and ineffective care, treatment-related discomfort, complications, or adverse effects, treatment

    errors and their consequences in terms of additional treatment)

    Long-term consequences of therapy (e.g., care-induced illnesses)

    Tier1

    Tier2

    Tier3

    Health Status Achieved

    or Retained

    Process of Recovery

    Sustainability of Health

    Source: NEJM Dec 2010

    • Achieved clinical status• Achieved functional status

    • Care-related pain/discomfort• Complications• Re-intervention/readmissions

    • Long-term clinical status• Long-term functional status

    • Time to diagnosis and treatment • Time to return home• Time to return to normal activities

    15

    The Outcome Measures Hierarchy

  • Copyright 2020 © Professor Michael E. Porter

    Source: ICHOM

    16

    9.2%

    17.4%

    95%

    43.3%

    75.5%

    94%

    Incontinence after one year

    Severe erectile dysfunction after one year

    5 year disease specific survival

    Average hospital Best hospital

    Measuring Multiple Outcomes Prostate Cancer Care in Germany

    Source: ICHOM

    Source: ICHOM

    Chart1

    Incontinence after one yearIncontinence after one year

    Severe erectile dysfunction after one yearSevere erectile dysfunction after one year

    5 year disease specific survival5 year disease specific survival

    Best hospital

    Average hospital

    0.092

    0.433

    0.174

    0.755

    0.95

    0.94

    Sheet1

    Best hospitalAverage hospital

    Incontinence after one year9.2%43.3%

    Severe erectile dysfunction after one year17.4%75.5%

    5 year disease specific survival95%94%

    To update the chart, enter data into this table. The data is automatically saved in the chart.

  • Copyright 2020 © Professor Michael E. Porter

    Source: ICHOM

    17

    9.2%

    17.4%

    95%

    43.3%

    75.5%

    94%

    Incontinence after one year

    Severe erectile dysfunction after one year

    5 year disease specific survival

    Average hospital Best hospital

    Measuring Multiple Outcomes Prostate Cancer Care in Germany

    Source: ICHOM

    Source: ICHOM

    Chart1

    Incontinence after one yearIncontinence after one year

    Severe erectile dysfunction after one yearSevere erectile dysfunction after one year

    5 year disease specific survival5 year disease specific survival

    Best hospital

    Average hospital

    0.092

    0.433

    0.174

    0.755

    0.95

    0.94

    Sheet1

    Best hospitalAverage hospital

    Incontinence after one year9.2%43.3%

    Severe erectile dysfunction after one year17.4%75.5%

    5 year disease specific survival95%94%

    To update the chart, enter data into this table. The data is automatically saved in the chart.

  • Copyright 2020 © Professor Michael E. Porter

    40

    50

    60

    70

    80

    90

    100

    0 200 400 600 800 1000

    Source: Scientific Registry of Transplant Recipients, http://www.srtr.org

    Adult Kidney Transplant Outcomes1987 - 1989

    18

    Percent 1-year Graft

    Survival

    Number of Transplants 1987 – 1989 (Three Year Period)

    Number of centers: 219Number of transplants: 19,5881 Year Graft Survival: 79.6%

    16 Greater than expected graft survival (7%)20 Worse than expected graft survival (10%)

  • Copyright 2020 © Professor Michael E. Porter

    40

    50

    60

    70

    80

    90

    100

    0 200 400 600 800 1000

    94.7%

    Number of programs included: 209Number of transplants: 38,3701 Year Graft Survival:

    4 Greater than expected graft survival (1.9%)5 Worse than expected graft survival (2.4%)

    Percent 1-year Graft

    Survival

    Number of Transplants 2011 – 2013 (Three Year Period)

    Adult Kidney Transplant Outcomes2011 - 2013

    19

  • Copyright 2020 © Professor Michael E. Porter

    30. Overall Adult Health31. Pediatric Health32. Hand and Wrist33. Neonates34. Congenital Heart Disease35. Depression and Anxiety in

    Children and Young People36. Psychotic Disorders 37. Personality Disorders38. Substance Misuse39. Autism Spectrum Disorder

    * Published Thus Far in Peer-Reviewed

    Journals (19)

    1. Localized Prostate Cancer *2. Lower Back Pain *3. Coronary Artery Disease *4. Cataracts *5. Parkinson’s Disease *6. Cleft Lip and Palate *7. Stroke *8. Hip and Knee Osteoarthritis *9. Macular Degeneration *10.Lung Cancer *11.Depression and Anxiety *12.Advanced Prostate Cancer *

    Completed Standard Sets(2013-14)

    13. Breast Cancer *14. Dementia15. Frail Elderly16. Heart Failure17. Pregnancy and Childbirth

    18. Colorectal Cancer *19. Overactive Bladder20. Craniofacial Microsomia21. Inflammatory Bowel

    Disease *

    Completed Standard Sets(2015-16)

    22. Chronic Kidney Disease *23. Congenital Upper Limb

    Malformations

    24. Pediatric Facial Palsy *25. Inflammatory Arthritis *26. Hypertension *27. Oral Health28. Diabetes29. Atrial Fibrillation

    Completed Standard Sets (2017-19)

    Committed/In Process

    Standardizing Outcome SetsICHOM

  • Copyright 2020 © Professor Michael E. Porter21Source: Kaplan, Robert and Michael E. Porter, “The Big Idea: How to Solve the Cost Crisis in Health Care”, Harvard Business Review, September 1. 2011

    Measure Cost for Every Patient Principles

    • Cost is the actual expense of patient care, not the sum of charges billed or collected

    • Properly measuring the cost of care requires different cost accounting methods than prevailing approaches in health care, such as departmental, charge-based, or RVU-based costing

    • Cost should be measured for each patient by condition, over the full cycle of care

    • Cost is created by the use of the resources involved in a patient’s care (people, facilities, supplies, and support services)

    – Cost depends on time and actual costs of resource use, not arbitrary allocations

    • Understanding costs requires mapping the care process

  • Copyright 2020 © Professor Michael E. Porter22

    Mapping Resource UtilizationMD Anderson Cancer Center – New Patient Visit

    Registration and VerificationReceptionist, Patient Access

    Specialist, Interpreter

    IntakeNurse,

    Receptionist

    Clinician VisitMD, mid-level provider, medical

    assistant, patient service coordinator, RN

    Plan of Care DiscussionRN/LVN, MD, mid-

    level provider, patient service coordinator

    Plan of Care Scheduling

    Patient Service Coordinator

    Decision Point

    Time (minutes)

    Source: HBS, MD Anderson Cancer Center

  • Copyright 2020 © Professor Michael E. Porter

    Major Cost Reduction Opportunities in Health Care• Utilize physicians and skilled staff at the top of their licenses (people ~65% of costs)• Reduce process variation that increases complexity and raises cost• Eliminate low- or non-value added services or tests• Reduce cycle times across the care cycle, which expands capacity• Invest in additional services (e.g. extra visits, telemedicine), or higher costs inputs that will

    lower overall care cycle cost• Reduce service duplication and volume fragmentation across sites• Rationalize redundant administrative and scheduling units• Move uncomplicated services out of highly-resourced facilities• Increase cost awareness in clinical teams, (e.g. costs of inputs (sutures vs. staples))• Improve the efficiency and automation of claims management and billing processes• The number one way to reduce costs is through better outcomes• Many cost improvements also improve outcomes

    • Our work with numerous providers reveals typical cost reduction opportunities of 30+%23

  • Copyright 2020 © Professor Michael E. Porter

    Move to Value-Based Payment Models

    Capitation/Population Based Payments

    Bundled Payment

    Pay for care for a life

    Pay for care for conditions(acute, chronic) or for primary care patient segments

    • Both approaches create positive incentives for reducing costs and separate payment from performing particular services

    • Capitation at the hospital or system level can coexist with bundle payment at the condition level

    Fee for Service

    Global Budgets

    Volume Value

    Budget for a defined period of time that covers all presenting service needs

    24

  • Copyright 2020 © Professor Michael E. Porter

    • Accountable for costs and outcomes patient by patient, and condition by condition

    • A single risk-adjusted payment for the overall care for a life

    Emerging Value-Based Payment ModelsCapitation (Population-Based) Bundled Payment

    • Responsible for all needed care in the covered population

    • Accountable for population level quality metrics

    • At risk for the difference between the sum of payments for the population and overall spending

    − Providers take on disease incidence risk, not just execution/outlier risk

    • Accountable for overall cost and population level quality measures

    • A single risk adjusted payment for the overall care for a condition− Not for a specialty, procedure, or short

    episode

    • Covers the full set of services needed over an acute care cycle, or a defined time period for chronic care or primary care

    • Contingent on condition-specificoutcomes− Including responsibility for avoidable

    complications

    • At risk for the difference between the bundled price and the actual cost of all included services− Limits of responsibility for unrelated care

    and outliers

    25

  • Copyright 2020 © Professor Michael E. Porter

    Partnerships:Cleveland Clinic (OH)

    Geisinger (PA)

    Kaiser Permanente (CA)

    Johns Hopkins (MD)

    Mayo Clinic (MN)

    Memorial Hermann (TX)

    Northeast Baptist (TX)

    Virginia Mason (WA)

    Emory (GA)

    Bundled Payments: Walmart Centers of Excellence

    Conditions:• Cardiac Surgery• Cancer• Joint replacement

    • Spine• Organ Transplant• Weight loss

    Source: Compiled from news.Walmart.com and through publically available news and press releases . 26

    Note: Not all providers participate in every Walmart condition

  • Copyright 2020 © Professor Michael E. Porter

    Shifting The Strategic Logic of Health Systems

    Clinically Integrated Care Delivery

    System

    Confederation of Standalone

    Units/Facilities

    • Increase volume

    • More clout in contracting and purchasing

    • Spreading “fixed overhead” costs

    • Use owned or affiliated primary care practices to “guarantee” referrals

    • Increase value

    • Value-based delivery models

    • Concentrate, allocate, and integrate care across appropriate sites

    • The system is more than the sum of its parts

    27

  • Copyright 2020 © Professor Michael E. Porter

    The Geography of Care and Value • The Traditional Care Geography Model− Care organized around specialties and interventions at each site− Duplication of services across sites/facilities− Sites provide care for multiple acuity levels− Limited integration of care across sites− Traditional Model reinforced by fee-for-service payments and siloed IT

    systems• Geography and Value: Strategic Principles− Organize care by condition in IPUs (the hubs)

    − Multi-disciplinary teams− Responsibility for full care cycle

    − IPUs allocate services across the care cycle to sites based on: site capabilities, care complexity, patient risk, cost, and patient convenience

    − Incorporating telemedicine, home services, and affiliated provider sites into the care cycle

    − IPUs developing formal systems to direct patients to the most appropriate site28

  • Copyright 2020 © Professor Michael E. Porter

    Delivering the Right Care at the Right LocationRothman Institute, Philadelphia

    Lowest ComplexityLow ComplexityMedium ComplexityHighest Complexity

    Facility Capability

    Price of Total Hip Replacement: ~$12,000 USD

    Price of Total Hip

    Replacement ~$45,000 USD

    Patient Risk Factors: Age, Weight, Expected Activity, General Health, and Bone Quality

    Ambulatory Surgery Center

    Rothman Orthopaedic Specialty Hospital

    Bryn MawrCommunity Hospital

    Jefferson University Academic Medical Center

    29

  • Copyright 2020 © Professor Michael E. Porter

    Primary Care Practices

    Specialty Care Centers

    Specialty Care Center, Surgery Center & After-Hours Urgent Care

    Specialty Care & Surgery Centers

    Specialty Care Center, Surgery Center, After-Hours Urgent Care & Home Care

    Wholly-Owned Outpatient Units

    Community Inpatient PartnershipsCHOP Newborn Care

    CHOP Pediatric Care

    CHOP Newborn & Pediatric Care

    Hospital & Integrated Specialty Program

    Allocate and Integrate Care Across Sites Children’s Hospital of Philadelphia Care Network

    30

  • Copyright 2020 © Professor Michael E. Porter

    Build an Enabling IT PlatformAttributes of a Value-Based IT Platform

    1. Combines all types of data for each patient’s condition across the full care cycle (notes, lab tests, imaging, costs) using standard definitions and terminology

    2. Tools to capture, store, and extract structured data and eliminate free text

    3. Data is captured in the clinical and administrative workflow

    4. Data is stored and easily extractable from a common warehouse. Capability to aggregate, extract, run analytics and display data by condition and over time

    5. Platform is structured to enable the capture and aggregation of outcomes, costing parameters, and bundled payment eligibility/billing

    6. Leverages mobile technology for scheduling, PROMs collection, secure patient communication and monitoring, virtual visits, access to clinical notes, and patient education

    7. ͏Full interoperability allowing data sharing within and across networks, EMR platforms, referring clinicians, and health plans31

  • Copyright 2020 © Professor Michael E. Porter

    A Mutually Reinforcing Strategic Agenda

    Organize into Integrated Practice

    Units (IPUs)

    Measure Outcomes

    and Cost For Every Patient

    Move to Bundled

    Payments for Care Cycles

    Integrate Care

    Delivery Systems

    Expand Geographic

    Reach

    Build an Integrated Information Technology Platform

  • Copyright 2020 © Professor Michael E. Porter

    The Health Care Transformation is Well Underway• We know the path forward

    • Value for patients is True North

    • Value based thinking is restructuring care organization, outcome measurement, payment models, and health system strategy

    • Standardized outcome measure sets and new costing practices are beginning to accelerate value improvement

    • Employers, suppliers, and insurers can be the next accelerators

    • Government policy is beginning to reinforce value improvement in many countries

    • We are excited to work with all of you in accelerating this transformation• We invite every one of you to get started on this path

    33

  • Copyright 2020 © Professor Michael E. Porter

    y = 7E-214e0.248xR² = 0.9751

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    1990 1995 2000 2005 2010 2015 2020

    Journal Articles

    Related to Value-Based Health Care

    Year

    From: PubMed; accessed December 2019, Patrick Clapp, Baker Research Services, Harvard Business School

    2019Redefining Healthcare

    ICHOM Founded

    Value-Based Health Care Thinking and Practice Are Rapidly Diffusing Peer Reviewed Literature 1990-2019

    34

  • Copyright 2020 © Professor Michael E. Porter

    NEJM Catalyst Innovations in Care Delivery is a new digital, peer-reviewed journal from NEJM Group, the publisher of The New England Journal of Medicine.

    Publishing six issues each year, NEJM Catalyst Innovations in Care Delivery aims to accelerate health care delivery transformation by publishing real-world examples and practical solutions so that health care leaders can address today’s urgent care delivery challenges and shape the future of health care delivery across the globe.

    Quick Facts:Frequency: Bimonthly (6x/year)Launch Date: January 2020Format: Online onlyIndexed: Anticipate indexing in

    PubMed and MEDLINEAudience: Health care executives, clinical

    leaders, clinicians, academics,industry analysts, consultants, policy makers, government officials

    Editorial Leadership:Co-Chair —Michael Porter, PhD, Bishop William Lawrence University Professor, Harvard Business School

    Co-Chair and Editor-in-Chief —Tom Lee, MD, MSc, Chief Medical Officer, Press Ganey; Professor, Harvard Medical School, TH Chan School of Public Health; Internist, Brigham & Women’s Hospital

    35

  • @[email protected] @meporter.hbs

    www.isc.hbs.edu

    Follow on Social Media

    36

    Presentation Posted At:

  • Copyright 2020 © Professor Michael E. Porter

    Selected References on Value-Based Health CareValue-Based Health Care• Porter, M.E., Teisberg, E. (2006). Redefining Health Care: Creating Value-Based Competition on Results. Harvard Business Publishing

    Integrated Practice Units and Primary Care• Porter, ME, Lee T. (2018) What 21st Century Health Care Should Learn from 20th Century Business. New England Journal of Medicine Catalyst (September 5, 2018)

    • Ying A., Feeley T., Porter M. (2016) Value-based Health Care: Implications for Thyroid Cancer. International Journal of Endocrine Oncology 3:115–129, 2016.

    • Porter, M.E. and Lee, T.H. (2013). The Strategy that Will Fix Health Care. Harvard Business Review. October 2013.

    • Porter, M.E., Pabo, E.A., Lee, T.H. (2013). Redesigning Primary Care: A Strategic Vision To Improve Value By Organizing Around Patients’ Needs. Health Affairs; 32: 516‐525

    Outcome Measurement• Porter M.E., Larsson S., Lee, T.H. (2016). Standardizing Patient Outcomes Measurement. New England Journal of Medicine 374:504-506, 2016.

    • Porter, M.E. (2010). What Is Value in Health Care? New England Journal of Medicine 363:2477-81, 2010. and Measuring Health Outcomes, in Supplementary Appendix 2

    Cost Measurement• Tseng P, Kaplan RS , Richman B, Shah MA, and Schulman KA. (2018) Administrative Costs Associated With Physician Billing and Insurance-Related Activities

    at an Academic Health Care System. Journal of American Medical Association 319:691-97, 2018.

    • Kaplan, R S., Witkowski ML, Abbott M, Guzman A, Higgins L , Meara J, Padden E, Shah A, Waters P, Weidemeier M, Wertheimer S, and Feeley TW. (2014)"Using Time-Driven Activity-Based Costing to Identify Value-Improvement Opportunities in Healthcare." Journal of Healthcare Management 59:399–413, 2014

    • Kaplan, R.S and Porter, M.E. (2011). How to Solve the Cost Crisis in Health Care. Harvard Business Review. September 2011

    Reimbursement • Feeley, TW., and Mohta N. (2018) "Transitioning Payment Models: Fee-for-Service to Value-Based Care." (2018) New England Journal of Medicine Catalyst (November 8, 2018).

    • Spinks T, Walters R, Hanna E, Weber R, Newcomer L, and Feeley TW.(2018) Development and Feasibility of Bundled Payments for the Multidisciplinary Treatment of Head and Neck Cancer: A Pilot Program." Journal of Oncology Practice 14:e103–e121, 2018

    • Porter M.E. and Kaplan R.S. (2016) How to Pay for Health Care. Harvard Business Review. July 2016

    • Witkowski M., Hernandez A., Lee T.H., Chandra A., Feeley T.W., Kaplan R.S. and Porter, M. E. The State of Bundled Payments, Working Paper. Unpublished. May 2017.

    Regional and National Expansion• Cosgrove T. The Cleveland Clinic Way. McGrawHill, New York, 2014

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    • Carberry K., Landman Z., Xie M., Feeley T. (2015) Incorporating Longitudinal Pediatric Patient-Centered Outcome Measurement into the Clinical Workflow using a Commercial Electronic Health Record: a Step toward Increasing Value for the Patient. Journal of American Medical Informatics Association

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    Slide Number 1Slide Number 2Slide Number 3Incremental “Solutions” Have Had Limited ImpactSlide Number 5Creating a Value-Based Health Care Delivery System�The Strategic AgendaSlide Number 7Integrating Across the Care Cycle�Role of Surgeons Beyond the Operating RoomSlide Number 9Value-Based Primary Care�Oak Street HealthIPU Volume Enhances ValueSlide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Mapping Resource Utilization�MD Anderson Cancer Center – New Patient VisitMajor Cost Reduction Opportunities in Health CareMove to Value-Based Payment ModelsSlide Number 25Bundled Payments: Walmart Centers of ExcellenceSlide Number 27Slide Number 28Delivering the Right Care at the Right Location�Rothman Institute, PhiladelphiaSlide Number 30Build an Enabling IT Platform�Attributes of a Value-Based IT PlatformA Mutually Reinforcing Strategic AgendaThe Health Care Transformation is Well UnderwayValue-Based Health Care Thinking and Practice Are Rapidly Diffusing �Peer Reviewed Literature 1990-2019Slide Number 35Slide Number 36Selected References on Value-Based Health Care