Cost of Care Trends and Strategies [DRAFT]

Similar documents
Competition and Strategies in Minnesota s Provider and Payer Markets

APPENDIX. Methodology COST AND UTILIZATION 2018 REPORT MN Community Measurement. All Rights Reserved.

Total Cost of Care in Oregon s Commercial Market. February 24, 2017

Clinic Comparison Reporting. June 30, 2016

Total Cost of Care in Oregon s Commercial Market. March 2, 2017

Health Care Cost Transparency in Minnesota

Utah Partnership for Value: Update on Total Cost of Care Reports in Utah

2019 UCARE. Group Medicare. Minneapolis School Retirees

2018 UCare for Seniors

Medicaid Payment and Delivery System Innovation: Minnesota s Experience

Revenue Recognition PREPARE NOW. Presented By Michael Whitten, Senior Manager April 23, 2018

Revenue Recognition PREPARE NOW. Presented By Mary Jalbert, Principal Michael Whitten, Senior Manager October 3, 2017

Aetna Group Medicare Advantage Frequently Asked Questions

Strategies for Assessing Health Plan Performance on Chronic Diseases: Selecting Performance Indicators and Applying Health-Based Risk Adjustment

Presentation to the IOM Committee on Core Metrics Tom Williams, Dr PH, President & CEO, IHA January 7, 2014, Irvine, California

You must pay all the costs up to the deductible amount does not apply to services with a co-pay. Deductible does apply to

Integrated Health Partnerships Demonstration

Risk Adjusted Episodes as Benchmarks for ACOs: A Society of Actuaries Sponsored Study

MultiCare Health System Year End 2012 Results December 31, 2012

Embracing the Future of Care Delivery: What have we learned?

BENEFITS ANNUAL ENROLLMENT

Inspiration Health by HealthEast MN %

Coverage for: Individual/Family Plan Type: PPO

Chart 4.1: Percentage of Hospitals with Negative Total and Operating Margins,

Risk, Capitation, and

Inspiration Health by HealthEast MN % City of Minneapolis Coverage Period: Beginning on or after 1/1/2017 Summary of Benefits and Coverage:

Medical Plan Options - Retirees Age 65 or Over/ Disabled Participants with Medicare Coverage

Rate Component Overview

COPAY PLANS. PreferredOne.com. Welcome to PreferredOne. Health Insurance for Individuals & Families 2014

Campus Forum November 15, 2016 Agenda

2016 COPAY AND DEDUCTIBLE PLANS

HEALTHCARE FINANCIAL MANAGEMENT A SSOCIAT ASSOCIA ION

Coverage for: Individual/Family Plan Type: PPO

Announcing Important Plan Changes Effective January 1, 2011

& BAS Health Bronze Plan page 1/5 Coverage Period: 2015 Coverage for Employee & Family

Rochester Public Schools Independent School District 535 Summary of Benefits and Coverage: What this Plan Covers & What You Pay For Covered Services

Temple University Health System Q2 FY Investors Update Conference Call. March 19, 2019

2016 COPAY AND DEDUCTIBLE PLANS

CHILDREN'S HOSPITAL AND HEALTH SYSTEM, INC. AND AFFILIATES CONSOLIDATED FINANCIAL REPORT MARCH 2017

Blue Select Policy Comparison Chart Effective January 1, 2018 Blue Select Part A Hospital Insurance Covered Services

National APM Data Collection Frequently Asked Questions for 2018

Third Quarter Fiscal Year Financial Report (Unaudited Statements)

Fairview Health Services Years Ended December 31, 2017, 2016, and 2015 With Report of Independent Auditors

FLORIDA MEDICAID DRAFT REFORM CAPITATION RATES FOR CONTRACT YEAR SEPTEMBER 23, 2011

CRP Value Base Pilot: An Update

BlueCare Policy Comparison Chart Effective January 1, 2019 BlueCare Part A Hospital Insurance Covered Services

U of MN Elect/Essential Coverage Period: 1/1/2017 through 12/31/2017 Summary of Benefits and Coverage: What this Plan Covers & What it Costs

Standard Life And Accident Insurance Company: PremiumSaver

I LJ~LEY MEDICAL CENTER

Chartbook Section 1. Minnesota Health Care Spending and Cost Drivers

BEFORE THE DEPARTMENT OF JUSTICE FOR THE STATE OF MONTANA ) ) ) ) ) ) SECTION ONE

2013 Milliman Medical Index

MANAGEMENT S DISCUSSION OF FINANCIAL AND OPERATING PERFORMANCE

340B Guardian Model Overview

Subject: FINANCIAL POLICY

Garden Grove Unified School District. Retiree Health and Welfare Benefits

RRU Frequently Asked Questions

New Employee Benefits Enrollment Workshop

UTILIZATION AND PAYOR MIX

Coverage for: Individual/Family Plan Type: PPO

Medicare 101. Decluttering the Medicare Confusion. Richard W. Feder

Glossary. Adults: Individuals ages 19 through 64. Allowed amounts: See prices paid. Allowed costs: See prices paid.

CITY OF JONESBORO. PPO $600 Deductible

Important Questions Answers Why this Matters:

Cleopatra Hospitals Company Posts 1Q2016 Results Recording EGP 210 million in Consolidated Revenue

Health Care Reform Update

THE NEW YORK STATE DSRIP PLAN: SUMMARY OF KEY ELEMENTS

Healthcare Affordability: Data is the Spark, Collaboration is the Fuel

2018 SavingsPlus HSA Plan Overview

Health Plans Dashboard

news FOR IMMEDIATE RELEASE

Third Quarter Fiscal Year 2017 Financial Report (Unaudited Statements)

First Quarter Fiscal Year Financial Report (Unaudited Statements)

MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR ASCENSION

For the RRU Index Ratio, an EXC is displayed if the denominator is <200 for the condition or if the calculated indexed ratio is <0.33 or >3.00.

Medical Plan Summary: PPO Core Plan

September 30, 2018 Fiscal Year Financial Report (Unaudited Statements)

Garden Grove Unified School District. Health and Welfare Benefits

MN Medica with Mayo Clinic Bronze HSA (On)

Coverage Period: 01/01/ /31/2019 Coverage for: Individual + Family Plan Type: PPO

Annual Notice of Changes for 2019

UNIVERSITY OF MISSOURI. Benefits Summary for Full-Time Faculty & Staff

The Case For Value ACA to MACRA to MIPS

All Payer Hospital System Modernization Payment Models Workgroup. Meeting Agenda

MN DEPARTMENT OF HEALTH PROVIDER PEER GROUPING (PPG) ADVISORY GROUP DEFINING PARAMETERS ANN ROBINOW

QUICK HITTING SURVEY: The Academy. Corporate Cost Allocation. Executive Summary

Controlling Healthcare Costs through Innovative Methods - Analytics

Consumer-Driven Health Plans:

Corrective June 30, 2017 Audited Financial Statements Filing

news FOR IMMEDIATE RELEASE

RIDGEVIEW MEDICAL CENTER AND CLINICS

Coverage Period: Beginning on or after 01/01/2018 Coverage for: Individual + Family Plan Type: PPO

Group Health Choice 500. Schedule of Benefits. Intended For GuideStone Participant Use Only

NANTICOKE HEALTH SERVICES OBLIGATED GROUP COMBINING BALANCE SHEET September 30, Nanticoke Alternative Care

The Health Insurance Market in Virginia. Maureen Dempsey, MD, MSc, ACC, FAAP Anthem Blue Cross and Blue Shield June 8, 2017

Quarterly Report As of December 31, 2018 and for the three and six months ended December 31, 2018

All Payer Hospital System Modernization Payment Models Workgroup. Meeting Agenda

MINNESOTA STATE UNIVERSITY, MANKATO BENEFITS SUMMARY for ADMINISTRATORS

Basic, Including 100% Part B Coinsurance. Part B Coinsurance. Coinsurance* 50% Skilled Nursing Facility Coinsurance. Skilled Nursing Facility

Cook County Health & Hospitals System. Finance Committee Meeting November Ekerete Akpan CFO

Transcription:

Cost of Care Trends and Strategies [DRAFT] Allan Baumgarten Health Care Policy Consultant Gunnar Nelson Health Economist MN Community Measurement 1

2016 Total Cost of Care Variation $1,000 Risk Adjusted Cost Per Patient Per Month By Medical Group Commercial Patients $900 $800 $700 $600 $500 $400 $300 2

Variation In Price $60 Cost to read the Eye Chart $40 $20 $0 Allowed per Medical Group Average Commercial Medicaid Fee 3

Variation In Utilization Emergency Room Visits per 1,000 Patients per year Observed Expected Difference Group A 102 159-57 Group B 91 141-50 Group C 294 152 142 Group D 312 159 153 4

Total Cost of Care; all costs for patient attributed (assigned) to the appropriate medical group. Evaluation of medical groups if all had the same patient mix Relative Resource Use; A comparison of the average amount of resources used. Comparison of medical groups if all had the same patient mix and same fee schedule Price Index; A comparison of the relative pricing of all medical costs. Assessment of medical groups if all had the same patient mix and practice patterns Utilization Metrics; An observed to expected ratio of 20 common utilization metrics; A medical groups utilization rate compared to the market if the market had the group s patient mix Average Cost Per Procedure; Cost of 90 frequent office based procedures and events, not adjusted for risk 4

Methodology Review Commercial Patients, 2016 Dates of Service Based on health plan claims Assign Patients to a healthcare provider Requirement of at least 600 patients for a medical group Include all reported costs per patient Adjust costs for medical risk and outliers Johns Hopkins Adjusted Clinical Groupings (ACG) Weights based on costs from 1,500,000 local patients Compare the average cost per patient to the market Total Cost Index Replace costs with a standard fee schedule Resource Use Index 6

Utilization Ratios Actual: Counts of utilization for patients attributed to TCOC report in 2015 Expected: Market wide average of utilization for patients with same risk score, age band and gender Per 1000: Actual and Expected normalized to per 1000 patients in a 12 month period Used to compare medical groups of different patient population sized 7

Analysis: Overall Trend Total Cost of Care Yearly change 10% 9% 5% 6% 6% 6% 6% 1% 1% 3% 2.3% 3% 3% -1% Inpatient 0% Outpatient Physician Pharmacy Total 2013-2014 2014-2015 2015-2016 8

Variation in Total Cost of Care 9

Variation in Emergency Room Visit Rates 2 Emergency Room Use Observed / Expected 2016 Commercial Patients 1.5 1 0.5 Willmar Ortonville 0

Price vs Utilization 1.6 1.4 High Price, Low Resource use High Price, High Resource use Relative Pricing 1.2 1 Low Price, Low Resource use Low Price, High Resource use 0.8 0.8 0.9 1 1.1 1.2 1.3 1.4 1.5 1.6 Relative Utilization 11

Price Vs Utilization 12

Driver of Variation: Physician Fees 2 Physician Fees Compared to Total Cost Index Physician Relative Price Index 1.8 1.6 1.4 1.2 1 0.8 R² = 0.4778 0.6 0.7 0.9 1.1 1.3 1.5 1.7 1.9 Total Cost Index 1.0=Average 13

Driver of Variation: Outpatient Surgery 2 Outpatient Surgery (OS) Utilization Compared to Total Cost Index OS Utilization Actual/Expected 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 R² = 0.2265 0 0.7 0.9 1.1 1.3 1.5 1.7 1.9 Total Cost Index 1.0=Average 14

Driver of Variation: ER Use ER Utilization Actual/Expected 2.1 1.9 1.7 1.5 1.3 1.1 0.9 0.7 Emergency Room (ER) Utilization Compared to Total Cost Index R² = 0.2545 0.5 0.7 0.9 1.1 1.3 1.5 1.7 1.9 Total Cost Index 1.0=Average 15

Consolidation in Market 66% of patients at nine medical groups Patients HealthPartners Park Nic 20% All Others 34% AllinaHealth 15% Entira 2% Children's 2% Sanford Health 3% Mayo Health 4% CentraCare 4% Essentia 4% Fairview HealthEast 12% 16

Conclusion Commercial Patients in Minnesota 3% increase from 2014 2015 Price explains more of variation than utilization patterns Hospital Outpatient is seeing largest growth year after year Drivers of variation in total cost of care Physician Fees Outpatient Surgery Use Emergency Room Use 17

Contact Information and Agenda For more information, contact us at tcoc@mncm.org [TBD] 18