Learning Community Integrated Health Care for Older Adults

Similar documents
Managed Care Contracting

Evolving Health Care Marketplace

Adam Falcone JD, MPH Feldesman Tucker Leifer Fidell LLP

New York State Behavioral Health Medicaid Managed Care Contracting Overview.

ACO: Shared Savings Model

Behavioral Health Value Based Payment Readiness

What to Expect When Contracting with MCOs

The Four Knows and Tips of Contracting with Managed Care Organizations October 7, 2012

Population-Based Healthcare: Structural Models and Options

Medicaid Prospective Payment System Checklist: Promising Practices #12. January 2014

BECOMING BEST FRIENDS: CCBHCs AND DESIGNATED COLLABORATING ORGANIZATIONS. Susannah Vance Gopalan Feldesman Tucker Leifer Fidell LLP March 7, 2016

Clinical Integration:

Workshop Office Hour

Coordinating Care Moving Beyond Concepts & Operationalizing the New Healthcare Environment

Approved Models to Align Incentives between Hospitals and their Physicians

March 23-25, 2011 San Francisco, CA

THE $10,000 QUESTION: TACKLING THE COMPLEXITIES OF VALUE-BASED PHYSICIAN COMPENSATION

Antitrust Rules for Provider Collaboration: How to Form and Operate a Network of Competing Providers

CARECOUNSEL TIPS SELECTING A HEALTH PLAN. Step 1: Gather Basic Information. Step 2: Assess Your Needs

Developing Your Value Proposition. Timothy P. McNeill, RN, MPH

SIM Update. State Innovation Model

HIV Contracting for Public Health Departments

10/17/2014 Risk-Based Payment Methodologies A National Perspective Art Jones, MD. AccountableCareInstitute.com

Enhanced PCMH Payment Models and Mechanisms

P r e p a r i n g f o r G l o b a l P a y m e n t : W h a t Yo u S h o u l d B e D o i n g N o w

Managed Care Contracting The Plan Perspective

Checkup on Health Insurance Choices

Evaluating the Fair Market Value of Pay for Performance

CF Health Advisors: Partner Biographies

A Checklist For Reviewing Managed Care Contracts

Fee for Service: Paying for Volume, Not Value

MANAGED CARE READINESS TOOLKIT

A Practical Discussion of Value and Quality Based Payments What Do I Do Now?

The Sliding Fee Discount Program: Transitioning from Policy Guidance to Every Day Operations

An ACO Success Story: The Path to Market Leadership

Summary of proposed rule provisions for Accountable Care Organizations under the Medicare Shared Savings Program

evaluating the fair market value of pay for performance

Health Care Reform Potential Impact. Presentation to NAADAC. John O Brien Senior Advisor on Health Financing SAMHSA

CURRENT DEVELOPMENTS IN VALUE BASED PAYMENT (VBP): Part 1 Recent Initiatives

Session 115IF, Provider Risk-Sharing Arrangements in Medicaid. Presenters: Puneet Budhiraja, ASA, MAAA Michael Minor Sudha Shenoy, FSA, MAAA, CERA

Date: February 21, 2018 TO: Interested Parties. RE: Continuity of Care through transition to new managed care arrangements

New payment models: Withholds

Introduction & Overview

Common Managed Care Terms & Definitions

MAINE MEDICAL ASSOCIATION PAYMENT REFORM READINESS: A LEGAL TOOLKIT FOR PHYSICIANS

New Opportunities, With ACA & QHI Support

All About APMs: What Will It Take for Physicians to Earn the APM Bonus Under MACRA?

Robert Resnik MD MBA

INFORMATION ABOUT YOUR OXFORD COVERAGE

Medicare Program; Medicare Shared Savings Program: Accountable Care Organizations Proposed Rule

Responding to Reduced Reimbursement

Adopting Multi-Payer and All- Payer Payment Models in States OCTOBER 25, 2016 WASHINGTON MARRIOTT WARDMAN PARK HOTEL WASHINGTON, DC

CRE. Expanding & Implementing. Ryan White HIV/AIDS Program Core Medical Providers. EIGHT ESSENTIAL ACTIONS for A GUIDE DEVELOPED FOR

Value-Based Purchasing for Managed Long- Term Services and Supports (MLTSS)

Session 75 OF, Advantages & Challenges for Provider Led Health Plans. Moderator: LuCretia Leola Hydell, ASA, MAAA

Medicaid FQHC APMs What are they and what do they mean for health centers? Alex Harris, MSPH Deputy Director, Transformation Policy

Ambetter and Allwell 1 st Quarterly Webinar April 12 th, 2018

December COMMUNITY CHECKUP CHART PACK

Moving to Medicaid Managed Care. David C. Marshall, Esq. Steven M. Montresor, Esq. Latsha Davis & McKenna, P.C.

Glossary of Terms. Adjudication: The way a health plan decides how much it will pay for certain expenses.

A CONSUMER S GUIDE TO CANCER INSURANCE

Predictive Modeling in the Context of Healthcare Reform: Issues and Opportunities Jonathan P. Weiner, DrPH

Health Plan Payments to Non-Contracted Providers. James F. Doherty, Jr. Pecore & Doherty, LLC Columbia, Maryland

Configuration of Network and Financial Management Systems to Support Multiple Value Based Reimbursement Models

Is There a Role for the Orthopaedic Surgeon in ACOs?

MEDICARE ADVANTAGE MA Plans. to $28 per month 46% HOW HEALTH SYSTEMS CAN THRIVE WITH. Developing Your Medicare Advantage Strategy PRODUCT

Ready, Set, Go! The Readiness Review Process for Care Coordination and Provider Network Adequacy in Tennessee

COMPENSATING EMPLOYED PHYSICIANS Tax Law, Stark and Anti-Kickback Implications. AHLA Tax Issues for Healthcare Organizations October 20-22, 2013

Risk Contracting: What to Know About Stop Loss Insurance KATHRYN A BOWEN, EXECUTIVE VICE-PRESIDENT OCTOBER 27, 2016

Network Adequacy Standards Constance L. Akridge July 21, 2016

Structuring 340B Contract Pharmacy Arrangements: Meeting Legal and Regulatory Requirements

Health Care Reform in the United States

ACOs, IPAs, CINs and PHOs: Legal Issues Behind the Acronyms

Interactive Crash Course Long Range Financial Planning and Implications of Changes in Key Performance Drivers

Copyright Scottsdale Institute All Rights Reserved.

Operationalizing HRSA s Sliding Fee Discount Program Requirements. Marcie H. Zakheim Partner

Oklahoma Health Care Authority

Cutting Edge Issues Related to. April 16, Payments to Physicians Under P4P Compensation Models

Medicaid Managed Care 101: Building a Common Understanding for the Healthy Students, Promising Futures Learning Collaborative

10 Best Practices For Payer Contracting: A Roadmap for Successful Negotiations

10 Best Practices For Payer Contracting:

Avoiding Regulatory Land Mines in Commercial ACOs

Health Insurance Terms You Need To Know

Agenda. 4. ACO Relationships: Department of Justice/Federal Trade Commission Policy on Contracting Robert McCann

Aetna s value based payment models aim to pay for value delivered, not services rendered

Redefining Health Care: Creating Value-Based Competition on Results

Trends in Physician Compensation Arrangements: Compliance Tips and FMV Health Care Compliance Association. April 22, :30-5:30

CAPG April Symposium Capitated Risk Contracts: Must-Have Provisions. April 22, 2016 Stephen J. Linesch, SVP, CAPG

9/23/2016. Our Services. Transitioning from Fee-for-Service to Value-based Reimbursement. Key Trends and Strategies for Rural Health Providers

Is Your Governing Board HRSA-Compliant?

Achieving Value-based Care in Rural Populations through Provider-Sponsored Health Plans. February 11, 2014

Bundled Payments for Care Improvement: ADLS # 5 Contractual and Governance Issues Among Providers in Bundled Payments

Society of Professors of Child and Adolescent Psychiatry. Michael Jellinek, M.D. May 9, 2013

Information About Your Oxford Coverage

CHCS. Technical Assistance. Tool. Implementing the Medicaid Primary Care Rate. Increase: A Roadmap for States. Center for Health Care Strategies, Inc.

GLOSSARY OF USEFUL HEALTH INSURANCE TERMS

Washington, DC Washington, DC 20510


Eight Indispensable Financial Considerations of Shifting from Volume to Value Reimbursement

Shared Savings Program ACOs and Payors: Opportunities and Challenges in a New Era of Accountable Care

Transcription:

Learning Community Integrated Health Care for Older Adults Aligning with New Payors for Integrated Services: Emerging provisions in contracting for integrated care services presented by: Adam J. Falcone, Esq. of

Health Services Marketplace (Today) Buyer Seller Physician Services Managed Care Organization Hospital Services Behavioral Health Services

Fee-for-Service System Payor FFS FFS Human Services Agencies FFS FFS FFS Hospital and Specialists Behavioral Health Primary Care Rehab and LTC 3

The Challenge: Aligning Financial Incentives BUYERS PROVIDERS PAYORS HEALTHIER PEOPLE 4

Accountable Care Organization (ACO) Primary care Hospitals Behavioral Health 5

What Does Delivery System Reform Look Like? ACO 1 Payor ACO 2 ACO 3 6

Accountable Care The patient-centered medical home may be at the heart of accountable care.. The patient-centered medical home (PCMH) model emphasizes holistic, integrated primary care in order to improve patient outcomes and decrease health care costs. but behavioral health and human services organizations are valuable partners in the PCMH. Such organizations often have experience in serving populations with complex needs, employing a community-based approach, and reducing negative impact of social determinants of health. 7

Accountable Care Organization: In Theory Hospitals Human Services Agencies Behavioral Health Patient Centered Medical Home Rehab and LTC Specialists ACO 8

Accountable Care Organization: In Reality Human Services Agencies Primary Care Providers Hospital Specialists Behavioral Health Rehab and LTC ACOs may actually feel more like this. ACO 9

ACO Financial Incentives 10

ACO: Shared Savings Model Payor FFS ACO Shared Savings FFS Human Services Agency Behavioral Health Distribution of Shared Savings Primary Care Specialty and Hospital Care Rehab and LTC 11

ACO: Full Risk Capitation Model Payor Cap Human Services Agencies Behavioral Health ACO FFS? Profit Distribution Primary Care Specialty and Hospital Care Rehab and LTC 12

Negotiating From a Position of Strength Assessing Leverage Competing Based on Value Establishing a Provider Network 13

Assessing Leverage Assessing leverage is a key component of a successful negotiation If the MCO if required by law to include the services in its network, and there are few providers offering those services, then the MCO is more likely to respond positively to proposed contract modifications Keep in mind (and make sure that the MCO is aware of) your internal strengths and abilities ability to deliver cost-effective, quality services promptly and reliably access to target populations ability to monitor and control utilization, costs and quality assurance

Negotiating Collectively Because of antitrust concerns, providers may not negotiate together as a group with MCOs No Talking! Providers must make independent, unilateral decisions on whether to accept contractual terms Under certain circumstances, providers can increase leverage through size and negotiate as a single unit as: IPAs and networks Group practices Integrated delivery systems

Past Performance Past performance of the MCO If applicable, gather information about past experience of the provider with this MCO: Did the MCO meet its payment obligations on time? Was the number of denied claims excessive? Did the MCO give the provider a role in the development of policies, such as utilization review? Was the MCO responsive to the provider s requests?

Competing on Value What is the Value Agenda? 1) Organize into Integrated Practice Units 2) Measure Outcomes and Costs for Every Patient 3) Move to Bundled Payments for Care Cycles 4) Integrate Care Delivery Across Separate Facilities 5) Expand Excellent Services Across Geography Michael Porter and Thomas H. Lee, The Strategy that Will Fix Health Care, Harvard Business Review, October 2013. Michael Porter and Elizabeth Teisberg, Redefining Health Care (2006). 17

Strategic Positioning Inventory strengths/capabilities Temperament to accept risk? Ability to manage risk? Board support? Identify potential partners Primary Care/Behavioral Health Integration Medicaid Managed Care Plans, Safety-Net Plans, Commercial Plans Formulate potential collaborations Review financial, operational and legal considerations Make proposal to Partners and/or Payors 18

Types of Provider Networks IPA Physician Hospital Organization Network Medical Group A Physicians Medical Group A Medical Group B Hospitals Behavioral Health Organization Physician Hospital 19

Functions of an IPA / Network / ACO Network participants might consider forming a network to engage in any of the following activities: Shared Support Services IT Support for Electronic Health Record (EHR) Health Information Exchange (HIE) Credentialing practitioners; exclusion/debarment background checks Third-Party Billing Managed care contracting Marketing network of health care providers Facilitating managed care contracting Negotiating capitated risk contracts Negotiating shared savings arrangements 20

Legal Structure Full Integration System owns hospitals and employs salaried physicians Partial Integration Joint ownership or joint control of new legal entity (e.g., IPA, PHO) Joint Venture Contractual relationships (e.g., affiliation) Joint governance committee 21

Easily Overlooked Provisions and Problematic Clauses Enrollee Assignment Patient Steering Change of Providers Collection of Co-Payments All Products Clauses Scope of services Covered Services Referral Policies Gag Clauses Access Standards Termination Breach and Cure Coordination of benefits / Third Party Liability Post-termination responsibilities Amendments Governing law 22

Scope of Services MCOs typically contract with a range of providers, each of which furnishes a subset of the full range of services that the MCO is responsible for covering on behalf of the payor. The scope of services section of the contract specifies which covered plan services the provider is responsible for providing. 23

Covered Services It is important to distinguish the scope of services included in the provider s contract with the MCO, from covered services (the services available to the enrollee under the MCO s plan). Sometimes, groups of enrollees have different benefits plans; not every service falling in the provider s scope of service under the contract is covered under a particular enrollee s benefit plan. The contract should make clear that the provider may treat enrollees as private-pay patients for purposes of providing noncovered services. 24

How Services Are Provided The contract should clearly state any limits on how services can be provided by the provider, including Limitations on which types of clinicians may provide certain services Limitations on the provider s ability to arrange for services through subcontract 25

Access Standards These standards define the required level and availability of care from a patientcentered perspective Access standards in managed care contracts commonly address required hours and days of operation and coverage (including evening and weekend business hours) after-hours coverage and on-call coverage when a designated health care professional is unavailable maximum waiting times for establishing an appointment for various categories of services required intervals for providing specific services, such as well child checkups maximum waiting-room times 26

Regulatory Penalty Provisions MCO contracts are frequently holding a provider liable for any fines or penalties assessed against the MCO by a state or federal regulatory agency resulting from the provider s action or inaction. Providers should consider whether to accept such penalties if it does not have the ability to appeal or dispute the regulatory agency s findings. 27

What are Risk-Based Payment Methods? Risk versus non-risk contracts Common feature of risk contracts is that provider is not guaranteed that payment for services under the contract will fully cover the provider s costs Spectrum of risk: No risk: provider is reimbursed on a cost basis (unheard-of in managed care) Limited risk: payments to the provider are based on a preestablished fee schedule ( fee for service payment) Full risk: provider is paid a monthly lump sum per patient ( capitation payment) Cost Reimbursement Fee for Service Capitation No Risk Limited Risk Full Risk 28

Provider Reimbursement Methods: Care Management Fees Primary care medical home (PCMH) model: each patient has a relationship with a PCP who serves as patient s first contact PCMH programs encourage PCPs to provide care management and other enabling services Recent years have also seen rise in disease management programs in which PCP is required to implement plan of care addressing chronic condition A per-member-per-month fee often used by payors or MCOs for care management services when the provider is otherwise paid on fee-for-service basis 29

Provider Reimbursement Methods: Shared Savings Shared savings programs use incentive payments to reward provider s reduced costs for a population MCO or payor establishes baseline annual anticipated expenditures per enrollee; if average cost per patient is lower than the baseline, provider receives incentive payment To ensure that incentive does not negatively impact care, shared savings payment may be contingent on satisfying quality standards 30

Concluding Thoughts Assess your strengths and weaknesses in the context of a changing marketplace What value do you bring to the system? Who benefits from that value and would pay for it? Pursue collaborations with local providers and provider networks to integrate primary and behavioral health care But carefully analyze: Potential risks and rewards Financial incentives for each party Engage providers, networks, and payors about new payment approaches that support and reward the value of your services 31

Questions? Adam J. Falcone, Esq. afalcone@ftlf.com Feldesman Tucker Leifer Fidell LLP 1129 20th Street, NW 4th Floor Washington, DC 20036 (202) 466-8960 www.ftlf.com 32