Health System Priorities:
Strategies for PharmaScott Hayworth, MD, President & CEO, CareMount Medical Group
John Strapp, Jr., Co-Founder & Chairman, The Kinetix Group
New York Pharma Forum
April 25th, 2016
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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Overview
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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Key Drivers
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Aging Population and High Costs are Key
Drivers for Reform
CATASTROPHIC CONDITIONSExtremely heavy healthcare userswith advanced/critical illness
MULTIPLE CHRONIC CONDITIONSHeavy users of healthcare system, mostly for more than one chronic disease
AT RISK FOR MULTIPLE CHRONIC CONDITIONS Fairly heavy users of healthcare system who are at risk of becoming more ill
STABLEGenerally healthy, with light use of healthcare services
HEALTHYGenerally healthy, often not using healthcare system
48.8%
27.4%
PATIENTS
12.4%
7.9%
3.5%
7.2%
17.7%
COST
19.0%
22.6%
33.5%
5
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CATASTROPHIC CONDITIONSExtremely heavy healthcare userswith advanced/critical illness
MULTIPLE CHRONIC CONDITIONSHeavy users of healthcare system, mostly for more than one chronic disease
AT RISK FOR MULTIPLE CHRONIC CONDITIONS Fairly heavy users of healthcare system who are at risk of becoming more ill
STABLEGenerally healthy, with light use of healthcare services
HEALTHYGenerally healthy, often not using healthcare system
PATIENTS COST
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Small Number of Patients Driving the
Disproportionate Healthcare Costs
As the Baby Boomers reach retirement age, healthcare costs have become unsustainable
48.8%
27.4%
7.2%
17.7%
23.8%PATIENTS
75.1%OF
OVERALL
COST
Current Landscape
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Pioneer ACO
Model• Align payment model with value
• Implement: performance
measurement, internally
distributing shared savings
payments, and clinical leadership
• Invest in population health and
care management system, and
integrate with EHR
AAAHCIOM Report
Crossing the
Quality Chasm
Medicare
Modernization Act
Crossing the
Quality Chasm
First PCMH
Accreditation
Program
Patient Protection and
Affordable Care Act
Transition of Healthcare to Triple Aim
Medicare and Medicaid Reform
• Medicaid demonstration models
created around bundled payments,
global capitated payments, and ACOs
• Medicare payments to hospitals for
preventable readmissions reduced
Full CMS
Finalized
Domains and
Measures/Dimens
ions Implemented
• Efficiency
• Outcomes
• Clinical Process
• Patient
Experience
of Care
Health Market Place Exchange
• Coverage begins in state-based
insurance exchanges
• Established Independent Payment
Advisory Board on Medicare Spending
Timeline of Change: Policy Reform Reflects
Shift from Volume to Value and Risk Mitigation
Development of
Physicians to
Group Practices
CMS
Comparative
Effectiveness
Research (CER):
HITECH Act
Private Sector
Historical
Medicare
CCM Billing
Push for
Meaningful Use
Use of Fee for
Service (FFS) for
all reimbursements
Begin Using
Bundled Payment
CMS grant to PCORI
Greater financial
risk, more shared
savings rewards
New reimbursement
for chronic care
management providers
Moody’s Reacts
Recognition of emerging
trend towards value
Pilot bundled-
payment programPatient-Centered Outcomes
Research Institute (PCORI)
Established
CMS Center for
Innovation established
Next Generation
ACO Model
MACRA Legislation
Alternative Payment
Models (APMs) and
streamlined quality
measures to track
performance
2000 – 2008 2009 2010 2011 2012 2013 2014 2015 2016 – BEYOND
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The New Value Models Include Financial Risk
and Are Expected to Become the Norm
Represents vast majority Medicare,
Medicaid & commercial payments in U.S. Paid to IDNs,
hospitals, IPAs, medical groups
ACOs, clinically integrated networks, contracts between
commercial payers & providers, MSSPs &
Pioneers
FINANCIAL RISK TO ACHIEVE VALUE:Payment models are changing as payers demand that providers, as well as consumers,
have some “skin in the game” – that they accept new reimbursement models
Unsustainable Ultimate goalCurrent focus
Small Risk Moderate Risk Large Risk
Fee-for-serviceP4P & PCMH
Bonuses
Shared Savings
Partial Risk
Capitation
Capitation + Quality
Bonuses Or Penalties
Volume based
Value based
Focus of new systems of care
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30%
85%
50%
90%
Traditional FFS payments tied to quality or value
• ACOs
• Bundles
Medicare payments tied to quality or value
• Hospital value-based purchasing
• Hospital readmissions reduction programs
2016 2018
CMS Accelerates the Tipping Point for AllThe Movement towards Value Continues
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ACO Participation is Growing Rapidly Similar increases are seen in public and commercial ACOs
744 ACOs23 Million Lives
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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REDUCE
PER CAPITA
COST OF
HEALTHCAR
E
IMPROVE
INDIVIDUAL
EXPERIENC
E
OF CARE
IMPROVE
HEALTH OF
POPULATION
S
The Triple Aim
Strategic Initiatives
What Keeps Customers Up at NightHow to Achieve The Triple Aim
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The Triple Aim: A Value Care Delivery Approach
Better PatientOutcomes
Improve
population
health
Better PatientExperience
Improve patient
experience of care
(including quality
and satisfaction)
LowerCost
Reduce per capita cost of healthcare
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Stakeholders Are Creating New Models Of Care That focus on achieving the Triple Aim
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Healthcare Costs & Quality of Care
Many Care Delivery Challenges to Achieving
the Triple Aim
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Poor PCP-Specialist
Communication
Practice/Provider Variation
Lack of Data Sharing
Capabilities
Poor Care
Coordination
Poor PatientEngagement
Challenges
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The Physician in Today’s World
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• Low physician satisfaction
• Physician incomes aren’t keeping up with the cost of living
• Work-life imbalance
• High physician burnout
• Physicians are not trained to practice value-based care
• Physician shortages
• Increasing need for data
• Consolidation of health systems and practices
• Mergers of systems and payers
• Transition from volume to value
Low Morale Lack of Training Marketplace Changes
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Healthcare’s New Reality Is Driving the
Payment Model Shift From Volume to Value
• There has been a growing shift in healthcare towards service delivery models emphasizing cost containment, integrated care, and quality of care improvement
• Shift to value holds providers financially responsible for the value of the care they provide in both primary and specialty care
Value
Quality
Cost
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Alternative payments will comprise 30% of 2016 CMS Reimbursement and 50% of 2018 Reimbursement
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• Individual patient
• Fee-for-service
• No clear quality incentives
• Siloed care-team members
• Entire patient populations
• Risk-based payment
• Quality-based incentives
• Coordination of care among providers
Volume to Value Transition Focuses on
Improving Patient Population Outcomes
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Volume Value
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Priorities for Health Systems
Addressing these areas will help health systems shift to value-based care
1 Population Health Management
2 Team-Based Care Coordination
3 Transitions of Care
4 Patient Engagement
5 The Use of Data and Health Information Technology (HIT)
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Population Health Management
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“If we don’t develop a thorough discharge plan, our patients will be right back in the hospital a
couple weeks later. And we don’t want that for the hospital readmissions penalties, but more imp
ortantly we don’t want that for the patients.”
– CMO at a East Coast Academic Medical Center
Important Considerations:
Care coordinators act
as liaisons between PCPs,
specialists, caregivers, and
community resources
Home monitoring and
follow-up is important to
ensure patients comply with treatment regimen
Ensure that patients
understand their treatment plan at
discharge to avoid
readmissionsand improve their health outcomes
Use of technology is increasingly important to
manage patient health
The emergence of bundled payments
encourage a population health
management approach to patient care
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Coordination
Collaboration
Sta
nd
ard
iza
tio
n
Co
nti
nu
ity
Hospital Discharge Planning
Community Service
Patient Evalualtion
Diseases, Lifestyle, Diet
Medication Management
Post Discharge Clinic or PCP
Followup
Virtual Care Team
Pharmacy Case Management Social Work Home Health
Team-Based Care Coordination
“Care needs to be coordinated between the right providers of the right levels to make sure that
patients get the most effective care a the right cost.”
– CMO at a West Coast Large Integrated Health System
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Examples of Team-Based Care:
Accountable Care Organizations
Patient-Centered Medical HomesCMS Practice
Transformation Networks
Hospital Care Team Community Care Team
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Long-Term Care Coordination and Co-Management
Transitions of Care
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Elements of successful care transitions:
• “Medical Neighborhood” of community assets to ensure effective patient management
• “Parallel Care” through engaging with the patient and specialist to promote a seamless handoff
• Active coordination, bi-directional flow of information, timely communication, and data transfer
between providers and care settings
Patient
Identification
Risk
Assessment
Specialist
Referral
Disease
Treatment
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Considerations for patient engagement:
Patient Engagement
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Use Motivational
Interviewing
techniques to foster
patient-centered
relationships
Enhance the
use of technology to
provide access to
patient health
information
Understand
socioeconomic
differences between
patients
Address
health literacy
issues among patients
“Patient engagement is the key to successful disease management. The secret sauce is having
tools and resources available that provide personalization at the individual patient level to help
providers and patients achieve their disease management goals.”
– Medical Director at an East Coast Academic Medical Center
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The Use of Data and HIT
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The importance of health information technology:
Actionable data to provide
information-powered clinical
decision-making
Activate patients in their own
care through access to health
information
Exchange of patient data
between providers
“Understanding the importance of technology means understanding that there will always be a
growing, aging population and a shortage of primary care physicians, and that many of these
mechanisms and deliveries have to be delivered from a technology solution.”
- Chief Clinical Officer at an East Coast Integrated Health System
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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Change the Conversation Move from a Transactional to Business to Business Relationship
PHARMA
PROGRAMS
PHARMACY
DIRECTORS
Traditional Pharma Programs
QUALITY
IMPROVEMENT
TEAM
PHYSICIANS
UTILIZATION
MANAGEMENT TEAM
MEDICAL POLICY
GROUP
PATIENT
C-SUITE
DECISION MAKERS
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Change the Conversation
TKG SOLUTIONS:
Population Health Management
Value Based Outcomes
Comparative Effectiveness
Health Economics
Care Delivery Models
Patient Satisfaction
QUALITY
IMPROVEMENT
TEAM
PHYSICIANS
UTILIZATION
MANAGEMENT TEAM
MEDICAL POLICY
GROUP
PATIENT
C-SUITE
DECISION MAKERS
PHARMACY
DIRECTORS
ACCOUNT EXECUTIVE
Become Part of the Conversation via Strategic and Tactical Solutions
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Health System SurveyThe opportunity for pharma collaboration
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Do you currently use any Pharma/Life Sciences industry
Resources?
Yes
No
40.74%
59.26%
If a Pharma/Life Sciences company had a completely
non-branded program in an area of need, would you consider
utilizing their resources?
Yes
No
96.30%
3.70%
Key Takeaway
Over 96% of health
systems surveyed
are willing to
collaborate with the
industry to address
care gaps and
improve the process
of care delivery.
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What areas of your interests and needs should the Pharma/Life
Sciences industry explore that you would support/participate in?
Care TeamImplementation
Key Takeaway
Health systems
are interested in
unbranded
programs that
address these
identified areas
of need
Partnership Areas of InterestUnbranded programs for pharma to develop
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PatientExperience
Patient Education
DiseaseManagement
Market Insights
62.96%
44.44%
66.67%
66.67%
40.74%
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The Voice of Your Customer
Putting this together is hard, no pharma has figured it out yet-Former Chief Medical Officer at Large Payer
If (pharma) is going to go at risk and offer a support program with the product and
the system achieves a certain result, (pharma) will give some money back based on
the risk-based contract in place -Former Executive Medical Director for Large Health System
If we have a risk-based contract in place regarding outcomes, we will be willing to go
to the payer to ensure that the drug is on formulary and available for our use Director of
Pharmacy and Chronic Disease Management for Hospital-Owned Organization-Director of Pharmacy and Chronic Disease Management for Hospital-Owned Organization
Chronic Disease is a crowded space; there needs to be an understanding
(from Industry) of the process and address the gaps within that process.-CMO, Large IDN, East Coast
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Opportunities for Collaboration with PharmaThree areas to address chronic conditions
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Medication AdherenceDisease State Education Patient Engagement
• SoCs are open only to unbranded education
• SoCs need help with capturing and organizing information regarding medication adherence
• Targeting polypharmacy can also help with adherence
SoCs expressed interest in:
• Support for education/engagement through care teams and non-traditional community channels
• Disease-specific tools and training for motivational interviewing
• Tools and resources integrated with patient portals
… None of us want branded things. And we won’t trust branded things and won’t
hand patients branded things
What role could pharma play in the development of that HIE that would say these
prescriptions are getting filled… a lot of this is getting us organized. And the win-win there
is if we get patients to adhere…
I think there’s an opportunity out there to have good information on chronic diseases
out of portals, out of EMR, that pharma can help us with... You know, [patients] love their
doctor. They only see them twice a year. The rest of the time… what we do with them
can really change their behavior.
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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Confidential. Do not distribute.
Improving Relationships for Cross Functional
TeamsScalable Multi-System QI Initiative
Challenge
Opportunity
Program Development
• Need to integrate in compliant fashion Commercial and Medical Teams
• Limited opportunities for commercial publications
• Looking to sale to broad Health System audience
• Leverage TKG relationship with national 3rd party member organization
• Integrate existing, non branded resources
• Initiative kicked off with commercial and medical involvement in development of QI measures
• Sponsor included in each meeting, web-ex with participating systems over a 18 month period
• Participant results being published by 3rd party and distributed through medical field teams
#1
on the HIRC Report
18 Participating Systems
Representing 100k Patients
all 18 are using the collaborative as a
model for quality improvement programs
Increased revenue in
75% of targeted systems
25%
of targeted systems retained
revenue growth
Results
33
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Improving Market AccessPayer Stakeholder Engagement Platform with Phase ll Risk Share
Agreement with upside at 70% of achievement
Challenge
Opportunity
Program Development
• New therapeutic area for pharma
• 3rd to market in crowded therapeutic area
• Clinical differentiation based on safety in patients with significant, known side effects
• Achieve corporate expectations of market leadership
• Define appropriate utilization / product placement
• Gain unrestricted formulary access
• A comprehensive market access strategy and pre-launch plan was developed to engaged the payer customers, and provide profitable access to the client’s product
of those covered by commercial and
Part D plans have access to portfolio
without a PA
Lowest branded copay
coverage in the US
for Part D
80%
Results
34
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Increasing ROI via Key Account ManagementCommercial Effectiveness Platform
Challenge
Opportunity
Program Development
Results
• Competitor gaining market share
• Need for increased field team knowledge on enhancing customer relationships
• Existing strong Key Account Management team
• Unbranded Platform was developed focusing on co-management and transitions of care
• TKG/Client hired 15 KAMs to call on Target Accounts for pilot
• Program was introduced and implemented by KAMs, while pull-through was conducted by field sales
• The traditional field model was kept as an opportunity for baseline comparator, while a Reach and Frequency Model composed of branded messaging was implemented with the new platform
• Increased access at Target Accounts with KAMs
• Elevated access from Pharmacy level to Administrators/Key Decision Makers
• KAM accounts grew 12% compared to national sales
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The Changing Healthcare Landscape
Priorities for Health Systems
Strategies for Pharma
Best Practice Case Studies
Appendix
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Confidential. Do not distribute.38
Health Systems and Payers are Increasingly
Becoming Interested in Pharma Having
Accountability for Outcomes
LEVEL OF INTEREST
Pharma interest is growing, especially in diagnostic and imaging centers
Risk-based contracting should only be used if needed to achieve differentiation in a competitive market
Health Systems prefer programs that involve shared savings upside potential, rather than penalties for poor performance
Benefit needs to outweigh the burden for both health systems and payer
POTENTIAL OPPORTUNITIES
Develop risk-based contracting platform or model to ensure that pharma has “skin in the game” for clinical outcomes that pharma claims the product achieves
Incorporate a protocol or standard of care to support alignment on product utilization and process to motivate adherence
Track and monitor metrics (ie. readmissions, side effects, medication adherence) to align on outcomes and risk-sharing
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Performance Is Tracked Using Nationally
Recognized Quality Measures
Physician Hospital Health Plans
CMS Physician Quality
Reporting System (PQRS) System that encourages reporting of
quality of care to Medicare in order to
assess the quality of care provided to
patients and quantify how often particular
quality metrics are met
Joint Commission:
Accreditation, Health Care,
Certification (JCAHO) Evaluates and accredits health care
organizations, health plans and health
care networks in order to recognize an
organizations commitment to meeting
certain performance standards
NCQA Healthcare Effectiveness
Data and Information Set
(HEDIS) Quality measuring tool used to evaluate
performance across 5 domains of care;
effectiveness of care, access/availability
of care, experience of care, utilization and
relative resource use, and health plan
descriptive information
Hospital Consumer Assessment
of Healthcare Providers and
Systems (HCAHPS)Standardized, publicly reported survey
instrument and data collection
methodology for measuring patients'
perceptions of their hospital experience
CMS Five-Star Quality Rating
System (Medicare Star)Nursing home rating between 1 and 5
stars which measures performance based
on health inspections, staffing and quality
measures
National Committee for
Quality Assurance (NCQA)
Organizations must annually report on their performance to obtain the
NCQA seal which is a reliable indicator of high quality, well-managed
care and service
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Our Business Structure
Agency for life sciences companies
with industry-experienced client
management and project support
AGENCY SERVICES
• Strategic development
• Content creation
• Tactical execution
• Creative services
• Account management solutions
• Over 100+ combined years of
experience
• Network of strategic advisors and
industry experts
Engagements with health systems and
payer stakeholders leveraging robust
clinical networks and care delivery
expertise
CARE DELIVERY CONSULTING
• Key market drivers
• Care processes
• Workflow mapping & optimization
• Metric tracking
• Value-based care redesign
Our goal is to know our customer’s customer better than our customer does.
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The Alignment of the Two Sides of Our Business
Provides Clients with Relevant Insights for
Impactful Results
Clinical Quality
Improvement EducationWorkflow Design Care Team Tools Care Team Training
Marketplace Dynamics
Training Speaker Programs Partnerships
Disease Education
and Impact
CARE DELIVERY
AGENCY
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Our Commercial Excellence Model:
Aligning with Today’s Customer
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TKG has done this with multiple programs across various therapeutic areas
Results from Our Model
Payer, SoC, Physician, and Patient
Improve Managed Markets Access
Build and Implement an effective organized customer B2B model
Enhance Customer Relationships
Proven Results
Drive Revenue Growth
Innovation Fueled by Deep Market Knowledge2
1
3
+ +