Leavitt Partners on ACO Growth and Dispersion: An Update

By Gregg A. Masters, MPH

Per Leavitt Partners:

A ‘Growth and Dispersion of Accountable Care Organizations: August 2013 Update.’

The Leavitt Partners Center for Accountable Care Intelligence releases new white paper entitled “Growth and Dispersion of Accountable Care Organizations: August 2013 Update”Growth and Dispersion of ACOs August 2013.Screen shot 2013-08-15 at 12.09.40 PM

Salt Lake City, August 15, 2013 — Drawing from an ongoing study by Leavitt Partners, The Center for Accountable Care Intelligence has released an ‘August 2013 Update’ to the previously acclaimed white paper: Growth and Dispersion of Accountable Care Organizations.

The report details how the growth and proliferation of accountable care initiatives has unabatedly continued over the last twelve months. The broad adoption of accountable care paired with the emergence of preliminary results has provided some clarity to the overall accountable care movement.

Analysis of the current accountable care landscape highlights three significant findings:

The number of accountable care entities is increasing. Leavitt Partners is currently tracking 488 accountable care entities through the end of July 2013, more than double the number from June 2012.

Medicare ACOs are growing faster than non-Medicare ACOs. Medicare ACOs now comprise more than half of all accountable care contracts nationwide.

There are many different models of accountable care. No single model has emerged as most successful and as accountable care expands, we continue to see variety in organization and execution.

About Leavitt Partners

Leavitt Partners is a health care intelligence business. The firm delivers collaborative, high-value intelligence that helps clients transition to new models of care. Through its member-based collaboration called Health Intelligence Partners™ and direct services to clients, the consulting firm provides the best available window to the future of American health care. For more information visit LeavittPartners.com or call (801) 538-5082.

The ACO Innovation Summit

By Gregg A. Masters, MPH

One of the few ACO gatherings I’ve missed since the birth of the industry (and there have been quite a few since there are ‘experts’ everywhere), but the line-up NEHI put together is well worth a look.

Both Steven Shortell and Molly Coye are definitely change agents on the front lines as is the balance of the faculty. Molly is pulling levers of a major institution with, some might say, an impossible reinvention agenda given its governance complexity and cost efficiency obstacles – unlike many other private institutions similarly challenged, while Shortell has a pulse on the healthcare ecosystem DNA, the macro policy dynamics of managed competition, and the empirics of business or service delivery models that work.

 

Thanks to the organizational initiative of NEHI staff. A bit of a delay (this is raw footage), but fast forward to 9:10 mark for introductory remarks by NEHI President Wendy Everett, ScD. About NEHI:

‘…NEHI is a nonprofit, health policy institute focused on enabling innovation that will improve health care quality and lower health care costs. Working in partnership with members from across the health care system, NEHI brings an objective, collaborative and fresh voice to health policy. We combine the collective vision of our diverse membership and our independent, evidence-based research to move ideas into action.’

As discussed elsewhere the battle at the moment is for the narrative on ACOs and by proxy the Affordable Care Act aka “Obamacare”. For context see: The ACO Narrative: ‘Accountable Care 2.0 is a Journey, Not a Program’ or ‘ObamaCare is Toast’? 

 

Key take-aways from the summit included:

  • ACOs necessitate thinking about “packaged” innovations – the organizational culture, process improvements, and payment models that surround a particular innovation.
  • Bundled payments, global budgets and other new ACO payment innovations are beginning to create the “markets for health” that will move the system from a culture of care to a culture of wellness.
  • In an ACO world, physicians require comparative effectiveness research, real world evidence, and ongoing guidance from industry to achieve improved patient outcomes.
  • ACOs are transforming the research landscape by turning previously unintegrated health systems into research organizations.
  • ACOs have created new opportunities for cross-sector partnerships to share data and enhance the pace of innovation.

Accountable Care, ACOs and the ‘New OS’: An Emerging Zeitgeist?

By Gregg A. Masters, MPH

…or might the movement just be the very oxygen essential to achieve the triple aim?

We’ll get one man’s take on the Wednesday July 24th 2013 broadcast at 12 noon Pacific/3PM Eastern when my special guest is thought leader, deep thinker and advocate for patient centric healthcare Leonard Kish, aka @LeonardKish progenitor of the ‘Patient Engagement is the Blockbuster Drug of Century‘ characterization by Dave Chase.

To listen, go to ‘This Week in Accountable Care‘. This Week in Accountable Care | @ACOwatch | Hosted by Gregg A. Masters

I’ve titled the interview: Leonard Kish On Accountable Care and the ‘New OS’. In a recent blog post Leonard equated the push into Accountable Care (generically speaking and ACOs as one subset) as the equivalent of the ‘new, new thing’ or even zeitgeist shift as the ‘new OS’ required to move the needle forward on our paths towards ‘triple aim’.

Tieing comments from @lumeris VP Jim Hansen on the disruptive nature of ACOS, i.e., ‘Value-based care is a transformational journey, not a backend contract driven program that you overlay onto your existing delivery system organization’s people, processes and technologies and expect different results” to a Microsoft PC/software era value proposition analogy made by Tim O’reily Leonard notes:

..the OS abstracts away the difficulty in managing all the devices and processes the computer runs so applications can focus on what the user wants to do. When Microsoft entered the market in the 80s that was their value proposition, simplicity for developing new applications by abstracting away the other processes. Health care, under value-based payment, will soon have the same opportunity.’Leonard is a deep and insightful thinker in the space, our previous discussion of his take was in the form of ‘dark matter in healthcare: patient goals.

We shall see if the ‘OS’ metaphor holds traction for the transformaton.

To join us live or via archived replay click here.

The ACO Narrative: ‘Accountable Care 2.0 is a Journey, Not a Program’ or ‘ObamaCare is Toast’?

Earlier today we spoke with Dr Jerry Penso, Chief Medical and Quality Officer for the American Medical Group Management Association (AMGA), and Jim Hansen, Vice President at the Accountable Delivery Systems Institute (ADSI) a unit of Lumeris.

To listen to the broadcast click on the ‘This Week in Accountable Care’ graphic below:

This Week in Accountable Care | @ACOwatch | Hosted by Gregg A. MastersThe context for the chat was the release by CMS of year one results reported by the 32 participants in the ACO Pioneer program.

For Jim Hansen’s thoughts on the ‘journey’ noted above, see: Accountable Care 2.0: It’s a Journey, Not a Program. Jim’s noteworthy highlights include the metrics reported below:

‘CMS released a long-awaited checkpoint status on its Pioneer ACO program. Of the 32 entities enrolled in the program, according to CMS:

  • 2 (6%) will leave the CMS ACO program altogether
  • 7 (22%) will eliminate the down-side risk component by reapplying under the MSSP program
  • 32 (100%) improved quality of patient care & rated highly on patient satisfaction scores
  • 18 (56%) achieved some cost savings, 13 (41%)saved enough to share savings with Medicare
  • 2 (6%) cost Medicare more and will owe $4M back
  • 12 (38%) did not achieve significant savings•
  • $140M in total savings, $52.4M in total losses, $76M in shared shavings to be returned to 13 (41%)Pioneers
  • $33M in net savings for the Medicare Trust Funds.’

For additional context – both narrative and ‘moving the needle’ transformational – with links to the original CMS announcement, see: ‘Pioneers Take Arrows While Settlers’ Get the Land?’ or Michel Millenson‘s informed, witty and dead on accurate take on ‘This Week in Health Innovation’. To quote Michael, per the attributed impact of the ACA irrespective of the relentless attempts to appeal ‘ObamaCare’:

we’re finally moving the iceberg…

‘Pioneers Take Arrows While Settlers’ Get the Land?’

At the ACO Summit in Washington DC in June 2012 Elliott Fisher, MD arguably one of the admitted father’s of the ACO movement opined perhaps prophetically from a panel including Mark McClellan, MD and former Health Affairs Editor, now RWJF Senior Health Policy Advisor Susan Dentzer the above wisdom.Richard Gilfillan MD

Today, CMS via the Center for Medicare and Medicaid Innovation (CMMI) released their eagerly anticipated results for the Pioneer class, i.e., that risk savvy group of participants most likely to make the accountable care vision work. Unfortunately as was the case in the predecessor Physician Group Practice (PGP) demonstration sample, the results where well ‘mixed’ with several exiting the program entirely while other’s chose to default to the ‘tamer’ Medicare Shared Savings Program.

According to Modern Physician:

Seven Medicare Pioneer accountable care organizations that didn’t produce savings in the first year of the Obama administration’s most ambitious test of the accountable care model have told the CMS they will leave the Pioneer program and enter the Medicare Shared Savings Program model, while another two participants have indicated they will leave Medicare accountable care entirely, the federal agency announced Tuesday.

The American Medical Group Association (AMGA) also released the following statement:

…regarding the announcement from the Centers for Medicare & Medicaid Services (CMS) on first-year results from the Center for Medicare and Medicaid Innovation’s Pioneer ACO Program (25 of the 32 health systems in the program are AMGA members):

“AMGA member groups are in the forefront of transforming the nation’s healthcare delivery system to achieve coordinated, affordable, high-quality care. AMGA is always proud to highlight the groundbreaking and innovative steps our members have taken, and continue to take, in order to improve the quality of our nation’s healthcare system, but today we are particularly pleased to congratulate members in the Pioneer ACO program for improving patient care and in some cases lowering the cost of care. All of these groups are to be applauded for their leap of faith and their continued dedication to advancing the role of high-performing health systems in America. ”

As with any ambitious effort of this scale, the movement to value-based, accountable, coordinated care for patients is an evolutionary process. Programs like ACO initiatives will take many years to mature, especially because they are creating and testing new models for payment and care delivery. AMGA is encouraged by the achievements of the Pioneer ACO participants in the first year of the program. We also pledge our continued support of our members that are committed to promoting better health care at lower costs in the Pioneer ACO and Medicare Shared Savings programs. ”

Many AMGA medical groups, and in particular the ACO Pioneers, are laying the foundation for future programs and innovative payment arrangements. These medical groups will continue to invest in improvements in care processes and infrastructure that will provide patients with better health outcomes, enhanced care experience, and lower costs well into the future. AMGA commends all of our members who have undertaken this journey. – Donald W. Fisher, Ph.D., CAE, AMGA President and Chief Executive Officer

The CMMI announcement reads in part as follows:

Today, the Centers for Medicare & Medicaid Services (CMS) announced positive and promising results from the first performance year of the Pioneer Accountable Care Organization (ACO) Model, including both higher quality care and lower Medicare expenditures. Made possible by the Affordable Care Act, the Pioneer ACO Model encourages providers and caregivers to deliver more coordinated care for Medicare beneficiaries. This model, launched by the CMS Innovation Center, is part of the Affordable Care Act’s efforts to realign payment incentives, promoting high quality, efficient care for Medicare beneficiaries. ACOs, including the Pioneer ACO Model and the Medicare Shared Savings Program, are one way CMS is providing options to providers looking to better coordinate care for patients and use health care dollars more wisely.

“These results show that successful Pioneer ACOs have reduced costs for Medicare and improved the quality of care for their patients,” said CMS Administrator Marilyn Tavenner. “The Affordable Care Act has given us a wide range of tools to realign payment incentives in Medicare and Medicaid, and these efforts are already paying off.”

For the complete CMMI announcement with exit rational and implications for the program, click here.

4th National ACO Summit: Some Contextual Reflection

By Gregg A. Masters, MPH

When ‘Acting Administrator’ of CMS Don Berwick gleefully announced the final rule guiding the development and Federal certification of Accountable Care Organizations (ACOs) on October 20th, 2011, he thereby officially unleashed the power of the largest single payer for healthcare services in the United States to simultaneously govern while informing the future of healthcare transformational business models.


For the ‘red letter day’, upbeat announcement, see: Accountable Care: Reports from the Front.

Since the release of the final rule, sentiment has been somewhat of a challenge to gauge and report accurately. Unlike the HMO era, the ACO market is not a homogenous one, since you have the ‘book of business’ associated with Medicare Shared Savings Program, as well as the commercial (i.e., private market) derivative book organizing under ‘accountable care collaborations’ and even patient centered medical homes.

So while a relatively small subset of the Affordable Care Act the sections specific to ACOs represent a disproportionate yield in terms of the transformational upside of the Act to deliver on it’s promises of the ‘triple aim’ (whether planned and realized via intended as well as the ‘meta unintended consequences’ of unleashing both statutory and pilot/demonstration fueled innovation).

Thus the context, if not the metrics associated with the results reported to date, of the 4th National ACO Summit leads this observer to conclude that the ACO market sentiment has shifted from skepticism to the outright bullish determination to get in the game.

Indecision is a decision….with increasing market risk.

4th National ACO Summit Day 2

By Gregg A. Masters, MPH

Shannon Brownlee Panel

Day two for me started in Track 6: Engaging Patients in their Medical Care, titled ‘Patient Engagement in Healthcare Decision Making‘ breakout session moderated by Shannon Brownlee (@ShannonBrownlee), Senior Vice President, Lown Institute; Former Acting Director Health Policy Program, The New America Foundation; Author, Overtreated: Why Too Much Medicine is Making Us Sicker and Poorer, Washington, DC AND indisputable superstar in the documentary ‘Escape Fire‘.

The panel included:

Glyn Elwyn, BA, MB, BCh, MSc, FRCGP, PhD (@GlynElwyn) – Visiting Professor and Senior Scientist, The Dartmouth Center for Health Care Delivery Science, Hanover, NH

Judith H. Hibbard, DrPH – Senior Researcher, Health Policy Research Group and Professor Emerita, Department of Planning, Public Policy and Management, University of Oregon, Portland, OR

L. Gordon Moore, MD (@lgordonmooreMD) – Chief Medical Officer, Treo Solutions, LLP; Founder of the Ideal Medical Practices, Troy, NY

Chris Saigal, MD, MPH – Associate Professor and Vice Chair, Director of Health Services Research, UCLA Department of Urology, Institute of Urologic Oncology, Los Angeles, CA

I know I was in the right room when in response to one of the presenter opening comments, @shannonbrownlee adds:

‘I’m not my diseases and I don’t want to be managed…I want to be helped’

More later…

Day 2 4th National ACO Summit

By Gregg A. Masters, MPH

Year four for the annual DC gathering of the best and brightest minds in the ACO space, convened yesterday in pre-conference sessions at the Hyatt Regency, DC. Day 2 kicks off with a keynote by Senator Ron Wyden @RonWyden, followed by a power packed tour de force of ACO operatives:

Opening Panel 4th National ACO
Complete agenda and schedule is available here.

Yesterday was a light ‘twitterstream’ but analytics are here and the transcript is here.

The 4th National ACO Summit

By Gregg A. Masters, MPH

Following two days of the Bundled Payment and Healthcare Innovation Summits, Wednesday June 11th kicks off the pre-conference sessions for the 4th National ACO Summit.

4th National ACO SummitThe program is packed with health policy wonks, clinicians on the leading if not bleeding edge of the movement, as well as consultants, lawyers and a constellation of other stakeholders watching, participating or aspiring entry into the reinvention of healthcare delivery, finance and organization.

After all, if not ACOs what’s next, single payor? So literally, ‘it’s showtime..’. Either innovative public/private partnerships play out as envisioned by Don Berwick’s triple aim, or game over.

A complete program schedule is available here. The summit is a hybrid session both in person and via the web. There is still time to participate remotely by registering here.

We’ll be interviewing some of the leaders presenting at the Summit and will post them here and on Health Innovation TV shortly.

The hashtag for the Summit is #ACOsummit. To follow the tweets checkout the @symplur registered digital dashboard. Ping me if you’re on site and want to get on camera.

Busy Week in DC

By Gregg A. Masters, MPH

Last week it was xx in health, followed by the Health Datapalooza and winding down at Medcity News Engage: Unlocking Patient Engagement Through Innovation where I moderated the panel: ‘Patient Engagement in An ACO World‘:

This week it’s back to back sessions beginning Monday, June 10th at the National Bundled Payment Summit, followed by the National Healthcare Innovation Summit and concluding with the 4th National ACO Summit.

In this morning’s session I was struck by Andrew Osterman of The Advisory Board admonition suggesting the Bundled Payment Care Improvement (BPCI) may be a more suitable gateway drug into the ACO theater than the MSSP. Osterman suggested the MSSP financial incentives were probably not the most effective means to attract participation in the program at least from a hospital’s ‘lost revenue’ opportunity perspective that would likely not be offset by a 50% gain sharing arrangement with CMS.

But the line that really captured my attention as this speaks to the underlying schizophrenia between health policy and law via the Affordable Care Act and present day volume based financial incentives:

Success in risk based contracts requires hospitals to understand their volumes through the lens of episodes of care. Today, hospitals’ have no incentives to create systems which can analyze what care falls within an episode of care

There is more to come, so stay tuned!

For the complete set of CMS innovation including the four models of Bundled Payment program, click here.