how to develop alternative payment models: a guide to ...€¦ · case study: oriah behavioral...
TRANSCRIPT
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www.openminds.com n 15 Lincoln Square, Gettysburg, Pennsylvania 17325 n 717-334-1329 n [email protected]
How To Develop Alternative Payment Models: A Guide To Building
Successful Bundled Payment Models
T h e 2 0 1 9 O P E N M I N D S S t r a t e g y & I n n o v a t i o n I n s t i t u t e
T u e s d a y J u n e 4 , 2 0 1 9 1 1 : 4 5 a m – 1 : 0 0 p m
D a v i d E . W a w r z y n e k , M S , M B A S e n i o r A s s o c i a t e , O P E N M I N D S
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© 2019 OPEN MINDS
AgendaI. Bundled Payment Models – Overview
II. Developing Your Rate – Core Competencies To Build Your Financial Model
III. Case Study: BestSelf Behavioral Health, Inc
Elizabeth Woike-Ganga LCSW-R Chief Operating Officer
IV. Case Study: Oriah Behavioral Health, Inc
Tony Rajiv Juneja, M.D., MS, Founder/CEO of Manage Addiction Lifeline
V. Questions & Discussion
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© 2019 OPEN MINDS© 2019 OPEN MINDS
Bundled Payment Models - Overview
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© 2019 OPEN MINDS
Transition From Volume To Value Payments For Provider Organizations
4
Capitation + Performance
-Based Contracting
CapitationShared RiskShared Savings
Bundled & Episodic
Payments
Performance-Based
Contracting
Fee-for-service
Compensation By Level Of Financial Risk
No Financial Accountability Moderate Financial Accountability Full Financial Accountability
Passive Involvement Provider Engaged Provider Active In Management Provider Assumes Accountability
Management Via 100% Case By
Case External Review
Internal Ownership Of Performance
Using Internal Data Management
Small % Of Financial Risk Moderate % Of Financial Risk Large % Of Financial Risk
Bundled payments reflect a
moderate level of provider risk and
accountability for outcomes within
the contracted bundled rate.
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© 2019 OPEN MINDS
What Is A Bundled Payment Rate?
5
• Example: Monthly rate for Assertive Community Treatment Services
Bundled Rate – a single comprehensive payment for a
group of related services
• Example: Behavioral Health Home per diem rate
Case Rate – a form of bundled payment to cover services of a specific consumer based on the
average cost of all services
• Example: Comprehensive payment for an entire MAT course of treatment
Episodic Rate – includes payment for services for
treatment of a specific condition over time in one rate
A single payment
for a specific
“episode of care”
for a specific
treatment, or
services during a
defined period of
time
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© 2019 OPEN MINDS© 2019 OPEN MINDS
Developing Your Rate – Build Your Financial Model
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© 2019 OPEN MINDS
Developing Your Rate – Build Your Financial Model
7
Define the Service
Build the components
Identify your cost drivers
Link drivers to actual
cost
Calculate the unit rate
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© 2019 OPEN MINDS
Building Your Financial Model: Steps 1 & 2
Staffing ratio
Credentialing
Authorization & Billing
Reporting
Collaboration & Integration
Intake & Access
Marketing
8
Define The Service Requirements Build The Components
Determine types of positions required, the number of staff necessary and calculate the salary and benefit costs
Estimate the position specific cost: mileage and technology
Determine other operating costs: supplies, office space, program support, and management & general expense
Assure that you properly cost out all specific service requirement's
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© 2019 OPEN MINDS
Building Your Financial Model: Steps 3 & 4
Driver Jan Feb Mar Apr
Clients 50 75 100 125
Salary 7,360 7,360 13,960 13,960
Fringe 2,355 2,355 4,467 4,467
Operating 560 760 1,050 1,150
Overhead 1,541 1,541 2,922 2,937
Total 11,816 12,046 22,399 22,514
9
Identify Your Cost Drivers Link Drivers To Actual Cost
Create Your Model
Driver Jan Feb Mar Apr
Clients 50 75 100 125
LCSW 1 1 2 2
Care
Manager
1 1 1.5 1.5
Mileage 125 200 250 300
Technology 1 1 2 2
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© 2019 OPEN MINDS
Building Your Financial Model: Step 5
10
Calculate The Unit Rate: What is the basis of the unit rate?
- Clients served per month? – Per member per month?
- Hours by CPT code?
- Bundled or Episodic rate based upon time period (day, month)?
Description Start-up Period (average per
month)
Fully Implemented (average
per month)
Costs $17,200 $46,312
Clients 87.5 250
Cost per member per month $196.50 $185.25
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© 2019 OPEN MINDS
Key Considerations
If your bundled model includes new or additional services carefully plot out the volume,
frequency and costs of these services
Understand the assumptions you made regarding care practices and monitor actual
activity against your benchmark
Although you may be paid for a bundle of services you will still need to capture the
number and cost of the services in your bundle
Identify your high users of services and assure that your plan of care addresses their
unique needs
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© 2019 OPEN MINDS
Estimating Volume Define your episode and use your current experience to project service
utilization
Model to average utilization but plot out your utilization patterns to
assure you understand the distribution of your high and low utilizers
Determine if there may be changes that might increase the number of
high utilizers and account for that in your volume estimates
Once a bundled model in implemented monitor utilization closely, watch
for adverse shifts in utilization
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© 2019 OPEN MINDS© 2019 OPEN MINDS
Case Study: BestSelf Behavioral Health, Inc
Elizabeth Woike-Ganga LCSW-R Chief Operating Officer
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Who is BestSelf Behavioral Health
• Largest Community-based Behavioral Health Organization serving all ages in WNY
• Created June 2017 when Child & Adolescent Treatment Services & Lake Shore Behavioral Health merged
• Annual Budget: $60 million
• Employees: 900+
• In 2018 Served: 20,000+ children, adolescents & adults
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What We Do:
• Mental Health Counseling & Rehabilitation
• Substance Use Disorders & Recovery Supports
• Community & Mobile Treatment Services
• School-Based Prevention & Treatment
• Medicaid Health Home for Children & Adults
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Certified Community Behavioral Health Clinics
CCBHC is a 2-year pilot program created to provide fully
integrated behavioral health care for children, adolescents & adults
under strict criteria, certified by states.
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BestSelf CCBHC Clinics provide:
• Immediate Access
• Personalized Care
• “No Wrong Door” Approach
• Evidence-Based Practice
• Integrated care
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CCBHC services must include:
• Mental Health Disorders
• Substance Use Disorders (including
ambulatory detox and MAT)
• Health Assessment & Monitoring
• Targeted Case Management
• Peer support
• Psychiatric rehab – vocational, educational
• 24 hour Crisis coverage
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How are CCBHCs different?
• New provider type in Medicaid
• Direct service delivery model: trauma-informed recovery outside of the traditional 4 walls
• New cost-based Prospective Payment System (PPS)
• Requirement to provide care coordination and collaborate with other organizations
• Requirement to provide all services to all ages
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Prospective Payment System
• Add all costs of providing required services
• Daily or monthly rate – State determines
• Divide by projected number of services over year
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New costs included in rate• True cost of staff - allows for retention, recruitment of
psychiatrists etc.
• Interpretation
• Training costs – evidence based practices
• Business intelligence – dashboards, data analytics
• Quality Improvement – risk stratification
• New innovative services to meet client needs
• Ability to address social determinants of health
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Challenges of Cost Based Rate
• Need to accurately estimate duplicate services
• Multiple services in one day
• Need accurate reporting
• Overestimating - risk of takebacks, major rebasing
• Underestimating - risk of deficits
• Costs are higher – states may baulk
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Challenges of Cost Based Rate• Need to focus on outcomes to prove value
• Change management internally with staff
• Increased clinical requirements
• Need for new workflows, same day services, new types of services
• Uncertainty around sustainability due to pilot status
• Managing rapid growth –infrastructure
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Change management
• CCBHC at same time as a merger
• Involvement at various levels of the agency – Workgroups
• Quality improvement
• Development of workflows
• Internal communication
• In-person meetings with leadership
• Company Newsletter
• Videos
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Mobile Mental Health Services
• Seeing people in the community for treatment
• Counseling & medication services provided in home
• Helps those with limitation that is a barrier to treatment
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Early Intervention for Young Adults with Schizophrenia
Evidence-based Interventions:
• Illness management/coping strategies
• Supported Education & Employment
• Family Education & Support
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What we do:
• Fully mobile teams including nurses, counselors,
peers & telemedicine
• Seeing high risk people in the community for
treatment
• Use of peers to assist those who previously could
not link or stay linked to treatment
• Rapid Access to Medicated Assisted Treatment
Recovery Connections Mobile SUD Treatment
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BestSelf’s CCBHC Data July 2017 – March 2019
• 288,425 Services Provided
• 18,968 Distinct Clients Served
• 13 CCHBC locations with walk-in and same day appointments
• 100+ New Employees hired since CCBHC started
• BestSelf produced savings of $2.6 million from reduced inpatient
Admissions & ER Visits in the 1st year of the CCHBC pilot.
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BestSelf’s CCBHC Data (SUD)July 2017 – March 2019
• Since 2016, clients enrolled in Substance Use Disorder programs has increased 46%
• 12 NEW Prescribers hired to provide Medication Assisted Treatment (MAT) to people with Opioid Use Disorders.
• 1800+ Buprenorphine slots available.
• A new CCBHC program allows BestSelf to offer 24-hour access to MAT
• 65% of clients who are currently on MAT would LOSE their treatment if the CCBHC project is not continued. (As of 4/30/19, 562 clients are on MAT medication)
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Thank You
BestSelf Behavioral Health255 Delaware Ave, Buffalo NY 14202
BestSelWNY.org | 716-884-0888
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© 2019 OPEN MINDS© 2019 OPEN MINDS
Case Study: Oriah Behavioral Health, Inc
Tony Rajiv Juneja, M.D., MS, Founder/CEO of Manage Addiction
Lifeline
34
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Case Study: Oriah
Behavioral Health, Inc.
Tony Rajiv Juneja, M.D., M.S.
Founder/CEO of Manage Addiction
LifelineHow to Develop Alternative Payment Models: A Guide to Building Successful
Bundled Payment Models
The 2019 OPEN MINDS Strategy & Innovation Institute
Tuesday June 4, 2019
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Introduction
• Manage Addiction Lifeline is part of the Oriah Behavioral Health, Inc.
company
• Offers a remote, mobile on demand opioid addiction treatment
platform
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Our Bundled Rate Project
Medication assisted treatment (MAT): medication in addition to services such as: counseling, cognitive behavioral therapies, and recovery support
+
Telemedicine: high performing, richly featured, and tightly secured mobile application
=
Comprehensive approach to the treatment of substance use disorders
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Insurance Companies
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Track 1: Naltrexone (Vivitrol)
Members will receive (at minimum) every month:
Service Quantity
Monthly injection (and/or Naltrexone Trial) 1
Psychiatrist/Addictionologist appointments 2
Counseling/Therapy appointments* 4
Family Therapy appointments* 2
Group Therapy appointments* 2
Urine Drug Screenings 1
* Can be delivered via telemental health
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Track 2: Buprenorphine
(Suboxone)
Members will receive (at minimum) every month:
Service Quantity
Buprenorphine induction 1
Psychiatrist/Addictionologist appointments for prescription 4
Counseling/Therapy appointments* 4
Family Therapy appointments* 2
Group Therapy appointments* 2
Urine Drug Screenings 1
* Can be delivered via telemental health
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Bundled Monthly Rate
Structure
“Provider agrees to bill UBH ... Provider will be reimbursed an all-inclusive
monthly rate of $XXXX per Member enrolled in MAT ... costs for enhanced
services are included in the monthly rate ...”
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How/Why?
• A need to innovate
• Getting our foot in the door: it’s who
you know, relationship building
• Solution: quality, working product
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Interacting With The Payors
• Sharing our value
• Opioid addiction crisis
• Having an elevator pitch
• A unique and different solution
• A demo & a prototype
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Where We Are In The Process
• Finalized contracts
• Enrolling patients
• Treating several patients
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Impact On The Organization
• UBH Group Participation/Provider Agreement
• Aetna Contract
• Corning, Inc. pilot
• ACO’s
• State MATrx
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Advice/Feedback
1. Too much focus on the pitch
2. Multiplying really big numbers by 1%
3. Scaling too fast
4. Too much focus on forming
“partnerships”
5. Too much domination
6. Too many pitch slides
7. Proceeding serially
8. Too much desire to retain control
9. Reliance on filing patents
10. Hiring in your own image
Taken from Guy Kawasaki’s 10 Mistakes by Entrepreneurs
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Thank you!
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