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Better Health, Better Care, Lower Costs Working Together for a Healthier Washington Dorothy Teeter, HCA Director Nathan Johnson, HCA Chief Policy Officer All Alliance Meeting June 9, 2015

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Page 1: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Working Together for a Healthier Washington

Dorothy Teeter, HCA Director

Nathan Johnson, HCA Chief Policy Officer

All Alliance Meeting

June 9, 2015

Page 2: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

By 2019, we will have a Healthier

Washington. Here’s how.

Page 3: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Improve how we

pay for services

• Measure, improve and

report common

statewide performance

measures.

• As purchaser for Apple

Health and state

employees, drive

market toward value-

based models.

Ensure health

care focuses on

the whole person

• Integrate physical and

behavioral health care

in regions as early as

2016, with statewide

integration by 2020.

• Spread and sustain

effective clinical models

of integration.

• Make clinical and claims

data available to

securely share patient

health information.

Build healthier

communities

through a

collaborative

regional approach

• Fund and support

Accountable

Communities of Health.

• Use data to drive

community decisions

and identify community

health disparities.

Implementation tools:

State Innovation Models grant, state funding, potential 1115 Medicaid waiver, philanthropic support

Legislative support: HB 2572, SB 6312

The plan for a Healthier Washington

Page 4: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Strategy 1: Build healthier

communities through a

collaborative regional approach

Page 5: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Accountable Communities of Health

“Regionally governed, public-private collaborative

tailored by region to align actions and initiatives

of a diverse coalition of players in order to

achieve healthy communities and populations.”

—State Health Care Innovation Plan

Page 6: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

No single sector can do it alone

• No single sector or organization in a

community can create transformative, lasting

change in health and health care alone

• Accountable Communities of Health (ACHs) will:

• Facilitate collaborative decision-making across

multiple sectors and systems

• Engage in state-community partnership to

achieve transformative results

Page 7: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

ACH boundaries and pilot ACHs

Pilots: Cascade Pacific: • Backbone Support –

CHOICE Regional Health Network

North Sound ACH: • Backbone Support –

Whatcom Alliance for Health Advancement

Aligning sectors, resources, and strategies around community and state priorities

Page 8: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Partner in Purchasing

8

Payers and Delivery Systems within the Region

• Apple Health MCOs / BHOs

• PEB plans • NEW PEB ACP • Delivery Systems

and Providers

Value-Based Purchasing

Resources

Criteria & Designation

Shared Data

State Government

Shared Data

ACH

Hospital

Business

Education

Tribes

Public Health

Local Government

Food Systems

Philanthropy

Consumers

Social Services

Community & Faith-Based

Organizations

Transportation

Housing

Health Care Providers

Mutually

Reinforcing Membership

Health Plans

Page 9: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

ACH Timeline and Milestones

Pilot and Design Regions Selected

Q1 2015

• ACH staff hired

• Technical Assistance RFP and Selection

• Statewide ACH Leadership Convening

Q2 2015

• ACH Evaluation led by GHRI Begins

• ACH Designation Opportunities Leading to Statewide Designation

Q3-Q4 2015

ACHs are designated and continually evolving

2016 – 2018

Page 10: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Strategy 2: Ensure health care

focuses on the whole person

Page 11: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Integrating Physical and Behavioral

Health

“Governor Jay Inslee has articulated a vision of full

integration of mental health, chemical

dependency and physical health care to improve

health, advance care quality and control costs.”

—Office of the Governor, November 2013

statement, A New Approach to Behavioral Health

Purchasing

Page 12: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

• Senate Bill 6312 integrates physical health,

mental health, and chemical dependency in a

managed care health system for Medicaid

clients by 2020.

• Regional Service Areas (RSAs) establish a

common regional purchasing approach.

• Shared savings incentives (payments targeted

at 10 percent of savings realized by state) in

Early Adopter regions begin in April 2016.

Integrating Physical and Behavioral

Health

Page 13: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Regional Service Areas

A common regional purchasing approach:

• Recognizes that health and health care are local.

• Promotes shared accountability within each region

for the health and well-being of its residents.

• Empowers local and county entities to develop

bottom-up approaches to transformation that apply

to community priorities

• Aligned with Accountable Communities of Health

Page 14: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Regional Service Areas

Page 15: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Medicaid integration pathway

2020: Fully Integrated Managed

Care System Across the State

Behavioral Health

Organizations

Apple Health Managed Care

Plans 2016

Transition Period

Regional

Service Areas (RSAs)

Integrated Purchasing in “Early Adopter” RSAs, with shared savings incentives

2014 Legislative Action: 2SSB 6312 By January 1, 2020, the community behavioral health program must be fully integrated in a managed care health system that provides mental health services, chemical dependency services, and medical care services to Medicaid clients

Page 16: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Strategy 3: Improve how we pay

for services

Page 17: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Four payment redesign models

• Model Test 1: Early Adopter of Medicaid Integration

Test how integrated Medicaid financing for physical and behavioral health

accelerates delivery of whole-person care

• Model Test 2: Encounter-based to Value-based

Test value-based payments in Medicaid for federally qualified health centers

and rural health clinics; pursue new flexibility in delivery and financial

incentives for participating Critical Access Hospitals

• Model Test 3: Puget Sound PEB and Multi-Purchaser

Through existing PEB partners and volunteering purchasers, test new

accountable network, benefit design, and payment approaches

• Model Test 4: Greater Washington Multi-Payer

Test integrated data platform capacity to allow providers to coordinate,

share risk and engage a sizeable population across multiple payers

Page 18: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

• Medicaid Regional Service Area designation in November 2014

• Counties requested early adopter transition to fully integrated managed care purchasing for medical, mental health and substance use disorder services

• Southwest WA (Clark, Skamania) formally committed to becoming Early Adopter region April 2016; Klickitat will transition by 2020

• North Central region considering options – decision to be made by Jun 15 • Broad collaboration on early adopter model design – fully integrated

managed care and regional crisis system

• Letters of interest to Early Adopter RFP in SW WA received from all Medicaid MCOs

• RFI on Behavioral Health Administrative Services Organization interest in managing crisis system in SW WA

• Common core performance measures selected for early adopter contracts

Payment Redesign

Model 1: Early Adopter

18

Page 19: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Payment Redesign - Model 1: Early Adopter

19 Contracts start 4-1-16

Fully Integrated Managed Care Contracts 2015 Dates

Medicaid contract reviewed by stakeholders (~1,000 comments) May 27

Non-Medicaid contract released for stakeholder comment Jun 4

MCOs RFP distributed Aug 6

MCO RFP responses due Sep 25

Successful MCO bidders announced Nov 2015

Crisis and Other Services Contract

Administrative Services Organization contract released for stakeholder comments

Aug 7

RFP distributed Sep 18

RFP responses due Nov 4

Successful bidders announced Nov 2015

Page 20: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Payment Redesign

Model 2: Encounter to Value Overview

Federally Qualified Health Centers (FQHC) and

Rural Health Clinics (RHC)

• Scope:

– Develop alternative payment methodology (APM) that encourages the

use of team-based care models and moves from volume-based

reimbursement model to one tied to achievement of improved

outcomes.

– Payments will be predictable and comply with federal standards.

• Status:

– Building capacity and contracting for modeling expertise, assessing

clinic participation criteria and partnering with clinic systems in

discovery, design and development.

– Gathering and analyzing the landscape of current approaches and

application of APM in other states: CA, MD, MN and OR.

Page 21: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Payment Redesign

Model 2: Encounter to Value cont.

Critical Access Hospitals (CAH)

• Scope:

– Payment approaches for CAHs that help meet changing community

needs and ensure sustainability

– Aligned to degree possible with RHCs due to strong affiliation with CAHs

– Looking at other state models and pilots as a framework for a new

delivery model

• Status:

– Working with the Washington Rural Health Access Preservation (WRHAP)

Initiative coordinated by the Washington State Hospital Association and

the Washington State Department of Health

– Have identified 11 - 14 CAHs for potential demonstration

– Have begun to outline potential models

Page 22: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs 22

RFI

• Assessed WA market value-based readiness & capacity

• 13 Providers • 15 Health Plans • Everyone on the

value-based road. Some further along

WHA Tools & Support

- Purchaser Affinity Group ACO Checklist

- Community Checkup

- Alliance support for Innovation Grant

RFA

- Public Request for clinically integrated networks accountable for costs, quality, member experience - 6 submissions

ACP

2 Networks selected: • UW • PSHVN - Available to PEBB

members in Puget Sound region starting 1/1/16

Payment Redesign

Model 3: Accountable Care Program

“Without a strong, purchaser-driven countervailing force, value-based payment reform often reverts to a ‘least common denominator,’ low-risk model.” - WHA, blog

Page 23: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Payment Redesign

Model 3: Accountable Care Program

• Best in class design

• High-quality and timely services at a lower cost

• Integrated physical, mental, and substance abuse

• Financial and clinical accountability for a defined population

• Competitive bidding process and negotiations resulted in two

ACP vendors

• University of Washington Accountable Care Network

• Puget Sound High Value Network LLC

• Initially offered in five counties (Snohomish, King,

Kitsap, Pierce and Thurston)

• Plan to expand purchaser participation in accountable care

networks, starting in 2017, using WHA Purchaser Affinity Group

ACO Checklist

Page 24: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

ACP Value Based Reimbursement

PEBB ACP

Page 25: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

None of this can happen without

some key foundational elements

Page 26: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Support providers across the state to effectively

coordinate care, increase capacity, and adapt to

value-based reimbursement strategies.

• Help providers with integration of physical and

behavioral health.

• Help providers move from volume to value-based

care.

• Help build broader community clinical linkages in

service of the whole person.

Practice Transformation Support Hub

Page 27: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Measurement and transparency

• Measures must be transparent for consumers,

providers, and purchasers to ensure improved

quality and informed decision making

• HCA will leverage measures to provide

transparency to statewide reporting on cost and

quality performance.

Page 28: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Better Health, Better Care, Lower Costs

Learning and evaluation

• Continuous rapid-cycle

evaluation to learn,

adjust, and improve in

real time.

• Evaluation led by the

University of Washington.

Check

Act

Plan

Do

Page 29: Working Together for a Healthier Washingtonwahealthalliance.org/.../06/All-Alliance-Mtg-06092015_Healthier-WA.pdf · Working Together for a Healthier Washington Dorothy Teeter, HCA

Join the Healthier

Washington

Feedback

Network:

[email protected]

Learn more:

www.hca.wa.gov/hw

The project described was supported by Funding Opportunity Number CMS-1G1-14-001 from the U.S Department of Health and Human Services, Centers for Medicare & Medicaid Services. The contents provided are solely the responsibility of the authors and do not necessarily represent the official views of HHS or any of its agencies.