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Tom Cooke Sr. VP, Business Development, Aetna Accountable Care Solutions Mark Shields, MD, MBA Sr. Medical Director, Advocate Physician Partners Beth Waterman Chief Improvement Officer, HealthPartners
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Tom Cooke Sr. VP, Business Development, Aetna Accountable Care Solutions

Mark Shields, MD, MBA

Sr. Medical Director, Advocate Physician Partners

Beth Waterman Chief Improvement Officer, HealthPartners

Mark Shields, MD, MBA Sr. Medical Director, Advocate Physician Partners

From Clinical Integration to Accountable Care Implications for AMCs

Alliance of Independent Academic Medical Centers (AIAMC) 2012 Annual Meeting

Organizational Strategies for Accountable Care March 29, 2012

Mark Shields, MD, MBA Senior Medical Director

Disclosure • Nothing in Today’s Presentation Should Be

Construed as Advising or Encouraging Any Person to Deal, Refuse to Deal or Threaten to Refuse to Deal with Any Payer, or Otherwise Interfere with Commerce

• Opinions Expressed by Speakers are Their Own • APP Assumes No Responsibility for the Reliance

by Conference Participants on Materials Presented at Today’s Session

4

Learning Objectives Participants Will Be Able to: • Understand Challenges to AMC and GME Due

to Payment Changes • Understand Challenges to ACO Development • Understand How Clinical Integration Drives

Outcomes • Describe Key Components of Clinical Integration

that Lead to Success

5

Presentation Topics • Challenges for Academic Medical Centers • APP Overview and Role of CI • Integrating Physicians • CI to ACO

6

It’s a New Day • Insurers Acknowledge Inability to Manage

Rising Costs • Medicare Finances are Not Sustainable • Payers Can No Longer Sustain Double-Digit

Increases • Population is Aging • Uninsured Will Enter Care Delivery System

7

Industry Has Difficulty Controlling… • Utilization of High-End Imaging • Readmissions • Outpatient Trend • New Drugs & Technologies • Ambulatory Sensitive Conditions

8

Change is Necessary

• Significant Waste In System • Value of Partnering

– To Eliminate Waste – To Have Price Competitive Product

• Current Payment Model Does Not Support Shared Vision

• Sense of Urgency

9

Changing Paradigms

10

FROM... TO...

Silo Care Management Enterprise Care Management

Episodes of Care Coordination of Care

Discharges

Transitions

Utilization Management Right Care at the Right Place at the Right Time

Caring for the Sick Keeping People Well

Production (Volume) Performance (Value)

Concept of ACO Is Not New “The existing deficiencies in health care cannot be corrected simply by supplying more personnel, more facilities and more money. These problems can only be solved by organizing the personnel, facilities and financing into a conceptual framework and operating system that will provide optimally for the health needs of the population.”

Dr. Robert Ebert Dean,Harvard Medical School

Founder, Harvard Community Health Plan, 1969 11

Changing Landscape for Academic Medical Centers • System Based Learning for Trainees • Value-Based Purchasing for Hospitals (and

Ultimately for Doctors) – Accountable Care Organizations, Bundled

Payments, Medical Home Incentives, Risk Programs

• Transparency of Quality, Safety and Costs

12

Can AMCs Compete In This New World? • Kastor (NEJM, Sept., 2011), “Doubtful”:

– Doctors and Hospitals Report Separately

– Traditional Training Yields Expensive Care – Faculty Have Other Priorities – Standardization Across Specialties

Unlikely – Specialists Dominate Primary Care – Hierarchy Reins; Not Collaboration

13

Can AMCs Compete In This New World? • Berkowitz and Miller (NEJM, Sept, 2011): “Perhaps”

– Form Relationships with Other Hospitals and Grow Primary Care

– Pilot Programs Such as Program of All-Inclusive Care for the Elderly or Capitation – Deploy HIT – Multi-disciplinary Collaboration – Change Promotion System – Change Incentives ($ and Others) – Promote Research in Care Delivery Science

14

Some AMCs Have Embraced ACOs • Of the 32 Medicare Pioneer ACOs:

– Beth Israel-Deaconess – Dartmouth-Hitchcock – Detroit Medical Center – Partners HealthCare System (Boston) – University of Michigan

15

Presentation Topics • Challenges for Academic Medical Centers • APP Overview and Role of CI • Integrating Physicians • CI to ACO

16

• $4.5 Billion Annual Revenue • AA Rated • 12 Acute Care Hospitals

– 2 Children’s Hospitals – 5 Level 1 Trauma Centers – 4 Major Teaching Hospitals – 4 Magnet Designations

• Over 250 Sites of Care – Advocate Medical Group – Dreyer Medical Clinic – Occupational Health – Imaging Centers – Immediate Care Centers – Surgery Centers – Home Health / Hospice

Advocate Health Care

17

Advocate 2020

18

Advocate Physician Partners • Physician Membership

– 1,085 Primary Care Physicians

– 2,889 Specialist Physicians

– Total Membership Includes 987 Advocate-Employed Physicians

• 10 Acute Care Hospitals and 2 Children’s Hospitals

• Central Verification Office Certified by NCQA

• 230,000 Capitated Lives/700,000 PPO Lives

• 215,000 “Attributable Lives

Advocate Physician Partners delivers services throughout Chicagoland and Downstate Illinois.

19

Clinical Integration: Definition

20

A Structured Collaboration Among APP Physicians and Advocate Hospitals on an Active and Ongoing Program Designed to Improve the Quality and Efficiency of Health Care. Joint Contracting With Fee-for-Service Managed Care Organizations Is a Necessary Component of This Program in Order to Accelerate These Improvements in Health Care Delivery.

Challenges of Health Reform Large Multi-specialty Groups Are the

Exception 9 of 10 Americans Get Their Medical Care

in a Solo or Small Practice* Infrastructure Is Required to Drive Quality

Outcomes Demonstrated by Multi-specialty Groups

Culture Is Not Created Over Night * NEJM 360;7 Feb. 12, 2009 21

Clinical Integration is the Foundation of an ACO • Provides Infrastructure for Integration of Small

Practices • Overcomes Problems Seen Within the Fee-

for-Service Model – Incentives to Providers Drive Improvement

• Creates Business Case for Hospital and Doctors to Work for Common Goals

• Allows One Approach for Commercial and Governmental Payers

22

Presentation Topics • Challenges for Academic Medical Centers • APP Overview and Role of CI • Integrating Physicians • CI to ACO

23

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

24

Creating a Culture of Engaged Physicians • Physician Engagement in Governance • Physician Leadership Development • Shared Identity and Values → “Membership” • Infrastructure Investment to Enable Success • Appeal to Pride and Sense of Excellence

– Recognition for Quality and Efficiency – Consistent Use of Evidence-based Medicine – Power of the Outcomes of the Group

25

Total Physicians on Medical Staffs = 6,007

Total APP Physicians = 3,974

Independent Non-APP = 2,033 Independent APP = 2,987 Employed /

Affiliated = 987

Affiliated (Dreyer) = 172 AMG (Employed) = 815

Advocate’s Physician Platform

26

APP Board and Committee Composition

27

Lee Sacks, M.D., Chief Executive Rober t Zimmanck, M.D ,Chairman

Mar ty Manning, President

Contract Finance Committee

Rober t Raines, M.D., Chairman Pankaj Patel, M.D., Chairman

Advocate Physician Par tners Board of Directors

Utilization Management Committee Quality Improvement Committee

Mark Shields, M.D., Chairman

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

28

Health Plan Commitments Includes All Major Payers in the Market • Risk and Fee-for-Service Contracts • Base and Incentive Compensation • Same Measures Across All Payers

– Common Procedures at Practice Level for All Contracted Plans

29

2012 Performance Metrics

30

• Physician Commitment to a Common Broad Set of Clinical Initiatives – 60 Initiatives – Broad Area of Focus – 159 Individual Performance Measures

• Primary Care and Specialty

– 4 AdvocateCare Measures – 5 Performance Domains

• Medical and Technological Infrastructure • Clinical Effectiveness • Efficiency • Patient Safety • Patient Satisfaction

Physicians Determine All New Performance Measures

Clinical Integration 3.0: Increasing Physician/System Integration

31

Early Years: 2004 - 2006

Primary Care/

Ambulatory Measures Increasing

Specialist Measures

Middle Years: 2007 - 2009

Maturing Years: 2010 - 2013

Increasing Physician/

System Integration

Clinical Integration

to Accountable

Care

Health Reform: 2013 -

32

0%10%20%30%40%50%60%70%80%90%

100%

Cardiology

Family

Practice

Surgery

Internal Med

icine

Orthopedics

Pulmonology

APPNon-APP

Why Physician Engagement Matters Adoption of eICU®- 2007

Year 2004 High Speed Internet Access in Physician Offices

Centralized Longitudinal Registries Access to Hospital, Lab and Diagnostic Test Information Through a Centralized Clinical Data Repository (Care Net and Care Connection)

2005 Electronic Data Interchange (EDI) 2006 Computerized Physician Order Entry (CPOE)

Electronic Medical Record Roll out in Employed Groups 2007 Electronic Intensive Care Unit (eICU) Use 2008 e-Prescribing 2009 Web-based Point of Care Integrated Registries (CIRRIS) 2010 e-Learning Physician Continuing Education

Electronic Medical Records Roll Out in Independent Practices 2011 Care Management Software plus Analytics

Advancing Technologies

33

• Web-Based Commercial Registry • Integrates All Registries, Pharmacy, Labs, Claims

and Performance Reporting • Integrates Physicians • Integrated with EMR

Clinical Integration Registry and Reporting Information System (CIRRIS)

34

35

Advancing Evidence-Based Medicine and Care Year 2004 Physician Reminders for Care

Chart Based Patient Management

2006 Patient Outreach

2007 Physician Office Staff Training

Pharmacy Academic Detailing Program

Generic Voucher Program

2008 Diabetes Collaborative

Patient Coaching Program

Hospitalists

2009 Diabetes Wellness Clinics

Asthma and HF/CAD Collaborative Added

2011 Access and COPD Collaborative Added

Impact of GME on QI, Safety, and Cost-Effective Care in a PHO Environment • Students and Residents Are at the Front Line • Current GME Priorities Drive Improvement:

-Patient Safety -Monitoring and Ensuring Clinical Excellence in Patient Care -Effective Communication Skills -Consistent and Thorough Handovers - Engagement in System-Based Approaches to Care -Fostering Cost-Effective Care with Appropriate Utilization of

Services -Medical Technology and Infrastructure Learning Opportunities, -Engagement in Life-Long Learning 36

Optimum Design of GME

• Faculty Actively Engaged in Safety and Care Improvement Initiatives for System/Hospital – Need to Redesign Rewards for Faculty (See

Dhalla,Detsky, JAMA, March, 2011, p. 932)

• Faculty Models Behaviors – Priority on Safe, Effective, Efficient Care – Patient-Centered Care – Team Based Care Across Specialties – Communication Drives Successful Transitions of

Care 37

Explicitly Address Economic Reality In Medical Education (Sessions, Detsky, JAMA Sept 15, 2010)

• Almost All Medical Schools Offer Course in Health Policy or Medical Ethics

• Core Content Should Cover: Economic Forces, Conflicts, Asymmetry of Information, Concepts of Waste, Efficiency and Opportunity Cost

• During GME, Practical Examples Given: – 15-Fold Increase in Complex Spinal Fusions – Academic Detailing (Avorn)

38

“Everybody has a plan until they get punched in the mouth.”

Attributed to Mike Tyson

39

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

40

Advocate Physician Partners’ Incentive Fund Design

PHOs 1-9

Residual Funds

Individual Incentives (70%)

Individual Distribution

Based on Individual

Criteria

Residual Funds

Group/PHO Incentives (30%)

Group/PHO Distribution

Based on Group/PHO

Criteria

Tier 1 (50%)

Tier 2 (33%)

Tier 3 (17%)

Tiering based on individual

MD scores

Residual funds are rolled over into general CI fund available for distribution in the following year

41

Calculation and Distribution of CI Incentives to Physicians • CI Incentive Distribution for Each Physician

Based on the Following: – Physician’s Allowable Physician Billings – Individual and Primary PHO CI Scores – Disease Registry Patient Counts – Inpatient Performance

42

Aligning Physician and Hospital Incentives • 2009

– CPOE Core Measures • 2010

– CPOE Core Measures – Readmissions – Core Measures – Length of Stay

• 2011 – ED Efficiency – Meaningful Use – Core Measures – Readmissions – Length of Stay

• 2012 – ED Efficiency – Core Measures – Readmissions – Length of Stay – Transfusion Safety – Elective Induction of Labor

43

Incentives for Outcomes CI Incentive Funds Distribution

Performance Year Funds Distributed

2005 $12.4 Million 2006 $16.7 Million 2007 $25.0 Million 2008 $28.2 Million 2009 $38.0 Million 2010 $50.0 Million 2011 Combined Funds

44

• 230,000 Capitated Lives / 700,000 PPO Lives • 215,000 “Attributable” Lives • Great Clinical Outcomes and Good Business

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

45

Transparency of CI Performance

• At Direction of APP Board of Directors, Strategy Implemented to Increase Transparency of CI Program Performance

• Statistics Shared with MDs for Them to See How They Compare to Their Physician Peers

• All Individual Physician Performance Results are Available for All to View and Compare (Internally)

46

Generic Prescribing: 6-9% > Local Plans LDL Good Control in Patients with Diabetes:

61% > National Rate Childhood Immunizations: 82% > National

Rate Depression Screening: 93% > National Rate Diabetic Care: Exceeded National Rate on All

10 Measures Asthma Action Plans: 90% > National Rate

Highlights of 2011 CI Program “Moving the Dial on Quality”

47

2011 Value Report

48

www.advocatehealth.com/valuereport or call 1-800-3-ADVOCATE

(1-800-323-8622

Critical Success Factors • Physician Driven • Same Metrics Across All

Payers • Minimize Additional

Administrative Costs • Additional Funds Recognize

Extra Work by Physicians and Staff

• Infrastructure Necessary to Support Improvement

• Physician/Hospital Alignment

49

Value for Physicians

• Better Alignment with Hospital • Marketplace Recognition • Focus on Outcomes • Incentives Compensate for Additional Work • Interface with Multiple Payers

50

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

51

Presentation Topics • Challenges for Academic Medical Centers • APP Overview and Role of CI • Integrating Physicians • CI to ACO

52

From Clinical Integration to Accountable Care

53

It’s a New Day • Insurers Acknowledge Inability to Manage

Rising Costs • Medicare Finances are Not Sustainable • Payers Can No Longer Sustain Double-Digit

Increases • Population is Aging • Uninsured Will Enter Care Delivery System

54

Unicorn

“The accountable care organization is like a unicorn, a fantastic creature that is vested with mythical powers. But no one has actually seen one.” Ian Morrison

55

Introducing AdvocateCare – A Global Care Contracting Framework • Global Cost Management Overlay On Top

of Existing FFS Structures • Responsibility for Managing Comparative

Trend • Method for Sharing Savings • Involves Partnering With the Payer • One Model for Governmental &

Commercial ACO-Like Contracts 56

Shared Savings Model

$ Per Attributed Life Per Year (Risk Adjusted)

0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

Shared Savings

57

Summary Results of the Physician Group Practice Demonstration Performance Years 1-4*

58

Physician Group Practice Percentage of Quality Goals Attained

YEAR 1 YEAR 2 YEAR 3 YEAR 4

Billings Clinic, Billings, MT 90.91 97.78 98.11 92.45

Dartmouth-Hitchcock Clinic, Lebanon, NH 95.45 97.78 92.45 94.34

Everett Clinic, Everett, WA 86.36 95.56 94.34 94.34

Forsyth Medical Group, Winston-Salem,NC 100.00 100.00 96.23 96.23

Geisinger Clinic, Danville, PA 72.73 100.00 100.00 100.00

Marshfield Clinic, Marshfield, WI 81.82 100.00 98.11 100.00

Middlesex Health System, Middletown, CT 86.36 95.56 92.45 94.34

Park Nicollet Clinic, St. Louis Park, MN 95.45 97.78 100.00 100.00

St. John’s Clinic, Springfield, MO 100.00 100.00 96.23 98.11

University of Michigan Faculty Group Practice, Ann Arbor 95.45 100.00 94.34 96.23

• Because the CMS applied different weights to each quality measure, the agency calculated the quality goals attained as percentages, rather than absolute numbers of measures. Data are from RTI International.

Published in NEJM, 364:198-200, Jan 20, 2011

58

Physician Group Practice

Shared Savings Payments ($)

YEAR 1 YEAR 2 YEAR 3 YEAR 4

Billings Clinic, MT 0 0 0 0

Dartmouth-Hitchcock Clinic, NH 0 6,689,879 3,570,173 328,798

Everett Clinic, WA 0 129,268 0 0

Forsyth Medical Group, NC 0 0 0 0

Geisinger Clinic, PA 0 0 1,950,649 1,788,196

Marshfield Clinic, WI 4,565,327 5,781,573 13,816,922 16,154,242

Middlesex Health System, CT 0 0 0 0

Park Nicollet Clinic, MN 0 0 0 0

St. John’s Clinic, MO 0 0 3,143,044 8,185,757

University of Michigan Faculty Group Practice, Ann Arbor 2,758,370 1,239,294 2,798,006 5,222,852

Summary Results of the Physician Group Practice Demonstration (cont’d)

59 Published in NEJM, 364:198-200, Jan 20, 2011

59

Attributed Patient Cost Concentration Supports Care Management Model

Person Years Predicted Expenditures Number Percent Mean $ Percent

Very Low Risk 54,398 30.5% $ 784 3%

Low Risk 78,520 44.1% $ 4,054 22%

Moderate Risk 24,906 14.0% $ 11,517 20%

High Risk 16,056 9.0% $ 24,054 27%

Very High Risk 4,270 2.4% $ 91,062 27%

Total 178,149 100.0% $ 7,987 100%

60

60

CM Risk/Reporting System

Physician Office Performance

Coaches

Market Share Growth/Backfill

Data & Analytics

PCP Access/ Virtual Visits

Communication Strategies

Transitions

2011 ECM Infrastructure & Support

Outpatient Care Management

• Dedicated Outpatient

CMs for High-Risk Patients

Post-Acute

• SNF CM Model • SNF, LTACH,

Inpatient Rehab Network

• Transition Coaches

Emergency/Acute Care Management

• Inpatient CMs • ED CMs • Hospitalists • Physician-Partnered

CM Model

61

Federal ACO Requirements • “Become Accountable for Quality, Cost,

Overall Care” of FFS Beneficiaries • At Least 3 Yr Contract • Formal Legal Structure to Receive/Distribute

Shared Savings • Enough Primary Care for Assigned

Beneficiaries (At Least 5000)

62

Federal ACO Requirements • Report Key Data to HHS: Assignment,

Quality, Etc. • Leadership and Management Structure • Processes to Promote EBM, Patient

Engagement, Quality, Cost, Care Coordination

• Meet Patient-Centered Criteria

63

Implementing ACOs: 10 Mistakes Singer and Shortell, JAMA, 8/9/11

64

Overestimate Organization Capabilities • Manage Risk • EHR • Performance Measures • Implement Protocols Failure to Engage Stakeholders • Balanced Governance

• Engage Patients • Specialist Selection and

Engagement • Regulations/Legal • Integrate Beyond

Structures Failure to Recognize Interdependencies • Address All of Above

Implementing ACOs To Overcome These Mistakes:

• Adapt to Local Contexts • Use Learning Systems Internally and

Externally • Mature Measurement Systems Internally and

Externally

65

Summary of Key Points • Culture Evolves Over Time and Takes

Effort • Physician Engagement Requires Physician

Involvement • Technology Plays Important Role • Evidence-based Management is Key • The Need for Change – Preparing for the

Future • GME Can Play an Important Role as

Change Agent 66

Key Drivers Culture

Governance

Infrastructure

Incentives

Transparency of Results

Feedback Loop

67

Speaker • Mark Shields, MD, MBA, FACP

Vice President, Advocate Health Care Senior Medical Director, Advocate Physician Partners

[email protected]

68

Beth Waterman

Chief Improvement Officer, HealthPartners

HealthPartners as an ACO: Two Perspectives

Beth Waterman RN MBA Chief Improvement Officer

HealthPartners

HealthPartners • Not-for-profit, consumer-governed • Integrated care and financing system

– 12,000 employees – Health plan

• 1.36 million members in Minnesota and surrounding states – Medical Clinics

• 500,000 patients • 800 physicians

– HealthPartners Medical Group – Stillwater Medical Group

• 35 medical and surgical specialties • 50 locations • Multi-payer

– Dental Clinics • 60 dentists • Specialties: oral surgery, orthodontics, pediatric dentistry, periodontics, prosthodontics • 20 locations

– Four hospitals • Regions: 454-bed level 1 trauma and tertiary center • Lakeview: 97-bed acute care hospital, national leader in orthopedic care • Hudson: 25-bed critical access hospital, award-winning healing arts program • Westfields: 25-bed critical access hospital, regional cancer care location

Our Affordability Strategy: The Triple Aim: Value Driven Health Care

Population Health

Experience of Care

Per Capita Cost

• Simultaneously Improve

72

0.8987

9.0%

41.0%

5%

15%

25%

35%

45%

0.880

0.900

0.920

0.940

0.960

0.980

1.000

Tota

l Cos

t In

dex

97.1% 98.3%

90%

95%

0.890

% patients with Optimal Diabetes Control*

* controlled blood sugar, BP and cholesterol (per ICSI guideline A1c changed from < 7 to < 8 in 1Q09 and BP control changed from <130/80 to <140/90 in

3Q10), AND daily aspirin use, AND non-tobacco user

% patients “Would Recommend” HealthPartners

Clinics

Total Cost Index

(compared to statewide average) < 1 is better than network average

TRIPLE AIM: Health-Experience-Affordability HealthPartners Clinics

43%

Triple Aim: Transformation Elements Set goals; aim

high

Redesign Care • Reliability • Customization • Access • Coordination

Align compensation, payment, and plan benefit design with Triple Aim goals

Transparently report results

Provide actionable Triple Aim data

Support healthy lifestyle choices

Proactively identify and engage high risk populations

Culture

Triple Aim: Transformation Elements Set goals; aim

high

Redesign Care • Reliability • Customization • Access • Coordination

Align compensation, payment, and plan benefit design with Triple Aim goals

Transparently report results

Provide actionable Triple Aim data

Support healthy lifestyle choices

Proactively identify and engage high risk populations

Culture

We use the following design principles to ensure our care achieves Triple Aim results:

Care Design Principles

Four Care Design Principles

Reliable processes to systematically deliver

the best care

Care is customized to individual needs

and values

Easy, convenient and affordable access to care and information

Coordinated care across sites, specialties,

conditions and time

Reliability Customization Access Coordination

After the Visit Between Visits

Visit Scheduling

Pre-visit Planning Check-in Visit Follow-up

Between Visits

Before The Visit During the Visit

Visit Cycle

Clinical Topics Team Members Depression Physician Led Diabetes Registered Nurse Preventive Services Rooming Staff Tobacco Cessation Clerical Staff Pediatric Immunizations Ad hoc: dieticians, diabetes Child and Teen Check-up educators, pharmacists Pediatric Asthma

Client success - TURCK • 400 USA employees, International manufacturer • Wellbeing strategy aligned with becoming employer of choice

Broad Program – Individual wellbeing based on intrinsic choice • Health assessment, Biometric health screening • Wellbeing, career coaching and wellbeing challenges • Educational seminars: On-site health coach • On-site clinic and pharmacy services – employees and family members • Use of clinic and one-on – one wellbeing coaching, on company time.

CLIENT PROFILE

PROGRAM DESIGN

Source: Geiger Lora, MetroDoctors The Journal of the Twin Cities Medical Society; July/August 2011: 15-16.

ENGAGEMENT & RESULTS

• Over 62% of employees engage in one-on-one coaching and receive premium reductions

• Over 6,000 PTO hours saved by employees since 2007 clinic opening and over $100,000 saved by employees in clinic copayments

• Company saved over $950,000 in productivity & direct medical savings – 35.1% reduction in office visits – 22.5% reduction in chiropractic services – 82.5% reduction in inpatient admissions

Patient chooses the way they want to access HPMG based on:

1) Do they have an established relationship?

2) What is the presenting problem?

3) What level of convenience do they desire?

4) What level of connection to their provider & care team do they desire?

e.Visit Telephone Visit

Complex Care Visit

Urgent Care

Same Day Clinic

Access

Employer Based Clinics

virtuwellTM

“Call, Click or Come In”

• Available around the clock – 24/7/365 • Custom treatment plan with prevention

advice • A simple $40 price, insurance accepted • Money-back guarantee • Free & easy triage if higher level of care

needed • Free 24/7/365 follow-up care • Evidence-informed & physician-

endorsed, backed by five decades of care delivery innovation

• Ability to connect with a nurse practitioner anytime

virtuwellTM at a Glance

Triple Aim: Transformation Elements

Culture

Set goals; aim high

Redesign Care • Reliability • Customization • Access • Coordination

Align compensation, payment, and plan benefit design with Triple Aim goals

Transparently report results

Provide actionable Triple Aim data

Support healthy lifestyle choices

Proactively identify and engage high risk populations

Culture

Grounded in Partnership: Creating Our Physician Culture

HealthPartners Physician & Dentist Partnership Agreement

ORGANIZATIONAL GIVES Involve and engage doctors • Involve doctors in strategy, business, and marketing • Include doctors in the development of patient centered and doctor efficient practices • Provide opportunities for leadership training • Promote partnership between doctors, staff, and organization • Listen to and be influenced by doctors, assume good intentions, and foster

opportunities and forums for doctors to discuss and deliberate important issues Support a practice that works for both patients and doctors • Be Patient Centered • Support 6 Aims practice and remove barriers at the point of care • Provide an environment and tools to ensure satisfying and sustainable practices • Promote trust and accountability within teams and the medical/dental groups • Create opportunities to educate physicians, dentists and staff about 6 Aims centered

care • Provide support for a healthy and balanced work life for doctors • Respect physicians’ and dentists’ time to allow care of patients

Grow strong and sustainable clinical practice • Recruit and retain the best people • Market HP’s multi-specialty medical and dental groups aggressively • Provide market based, and performance linked compensation • Acknowledge and reward contributions to patient care and the organization’s goals • Create an environment of innovation and learning • Support teaching and research

Demonstrate accessible, accountable, responsive and empathetic leadership • Understand the complexity of health care delivery and apply best management

practices • Seek to understand the clinical perspective • Communicate coherently our mission, vision, direction, and strategy; • Help us to understand the complexity of our dynamic business challenges • Provide performance feedback communicated in the spirit of improvement and

learning • Recognize the leadership, professionalism, and contributions of doctors • Resolve conflict with openness and empathy

PHYSICIAN & DENTIST GIVES Be involved and engaged • Participate in departmental and medical/dental group meetings and activities • Engage and participate in partnership with practice teams, and with clinical and

administrative colleagues • Champion processes to improve care systems service and quality • Provide input to strategy, marketing, and operations development • Develop understanding of the business aspects of care delivery • Raise issues and concerns respectfully • Seek to understand the organizational perspective, assume good intent, and

collaborate effectively • Demonstrate ownership of your practice and clinic

Excel in clinical expertise and practice • Be Patient Centered • Pursue clinical practice consistent with the 6 Aims • Advance personal and care team expertise and excellence • Seek and implement best practices of care for patients • Reduce unnecessary variation in care to support quality reliability, and customized

care based on patients needs • Create innovations for care and care delivery and be open to innovations and ideas for

improvement needed in our environment • Show flexibility and openness to change

Support our multi-specialty group practice • Demonstrate passion and commitment for your practice and our multi-specialty

medical and dental group • Collaborate within and across disciplines and partners to improve patient care • Promote, refer and communicate with colleagues effectively • Use resources responsibly and support care delivery systems that improve care and

reduce costs effectively • Participate in teaching and research

Be a Leader • Demonstrate commitment to the organization’s mission and vision • Lead as a role model • Support colleagues and partners • Communicate respectfully and thoughtfully • Use a problem solving approach when identifying issues • Provide leadership to the care team and delegate effectively • Provide recognition and feedback to other doctors and staff • Participate in and support medical/dental group decisions • Seek ways to continually develop leadership and influence skills

ORGANIZATIONAL GIVES Involve and engage doctors • Involve doctors in strategy, business, and marketing • Include doctors in the development of patient centered and doctor efficient practices • Provide opportunities for leadership training • Promote partnership between doctors, staff, and organization • Listen to and be influenced by doctors, assume good intentions, and foster

opportunities and forums for doctors to discuss and deliberate important issues Support a practice that works for both patients and doctors • Be Patient Centered • Support 6 Aims practice and remove barriers at the point of care • Provide an environment and tools to ensure satisfying and sustainable practices • Promote trust and accountability within teams and the medical/dental groups • Create opportunities to educate physicians, dentists and staff about 6 Aims centered

care • Provide support for a healthy and balanced work life for doctors • Respect physicians’ and dentists’ time to allow care of patients

Grow strong and sustainable clinical practice • Recruit and retain the best people • Market HP’s multi-specialty medical and dental groups aggressively • Provide market based, and performance linked compensation • Acknowledge and reward contributions to patient care and the organization’s goals • Create an environment of innovation and learning • Support teaching and research

Demonstrate accessible, accountable, responsive and empathetic leadership • Understand the complexity of health care delivery and apply best management

practices • Seek to understand the clinical perspective • Communicate coherently our mission, vision, direction, and strategy; • Help us to understand the complexity of our dynamic business challenges • Provide performance feedback communicated in the spirit of improvement and

learning • Recognize the leadership, professionalism, and contributions of doctors • Resolve conflict with openness and empathy

PHYSICIAN & DENTIST GIVES Be involved and engaged • Participate in departmental and medical/dental group meetings and activities • Engage and participate in partnership with practice teams, and with clinical and

administrative colleagues • Champion processes to improve care systems service and quality • Provide input to strategy, marketing, and operations development • Develop understanding of the business aspects of care delivery • Raise issues and concerns respectfully • Seek to understand the organizational perspective, assume good intent, and

collaborate effectively • Demonstrate ownership of your practice and clinic

Excel in clinical expertise and practice • Be Patient Centered • Pursue clinical practice consistent with the 6 Aims • Advance personal and care team expertise and excellence • Seek and implement best practices of care for patients • Reduce unnecessary variation in care to support quality, reliability, and customized

care based on patients needs • Create innovations for care and care delivery and be open to innovations and ideas for

improvement needed in our environment • Show flexibility and openness to change

Support our multi-specialty group practice • Demonstrate passion and commitment for your practice and our multi-specialty

medical and dental group • Collaborate within and across disciplines and partners to improve patient care • Promote, refer and communicate with colleagues effectively • Use resources responsibly and support care delivery systems that improve care and

reduce costs effectively • Participate in teaching and research

Be a Leader • Demonstrate commitment to the organization’s mission and vision • Lead as a role model • Support colleagues and partners • Communicate respectfully and thoughtfully • Use a problem solving approach when identifying issues • Provide leadership to the care team and delegate effectively • Provide recognition and feedback to other doctors and staff • Participate in and support medical/dental group decisions • Seek ways to continually develop leadership and influence skills

Excel in clinical expertise and practice • Be Patient Centered • Pursue clinical practice consistent with

the 6 aims • Advance personal and care team

expertise and excellence • Seek and implement best practices of

care for patients • Reduce unnecessary variation in care to

support quality, reliability, and customized care based on patients needs

• Create innovations for care and care delivery and be open to innovations and ideas for improvement needed in our environment

• Show flexibility and openness to change

Support a practice that works for both patients and doctors • Be Patient Centered • Support the 6 aims of practice and remove

barriers at the point of care • Provide an environment and tools to ensure

satisfying and sustainable practices • Promote trust and accountability within

teams and the medical/dental groups • Create opportunities to educate physicians,

dentists and staff about 6 Aims centered care • Provide support for a healthy and balanced

work life for doctors • Respect physicians’ and dentists’ time to

allow care of patients

HealthPartners Physician & Dentist Partnership Agreement

Triple Aim: Transformation Elements

Culture

Set goals; aim high

Redesign Care • Reliability • Customization • Access • Coordination

Align compensation, payment, and plan benefit design with Triple Aim goals

Transparently report results

Provide actionable Triple Aim data

Support healthy lifestyle choices

Proactively identify and engage high risk populations

Culture

Care Team Scorecards

86

Medical Group

Appr

opria

te

Test

ing

for

Child

ren

with

Ph

aryn

gitis

Appr

opria

te

Trea

tmen

t for

Ch

ildre

n w

ith

Upp

er

Resp

irato

ry

Infe

ctio

n

Avoi

danc

e of

An

tibio

tics

in th

e Tr

eatm

ent o

f Ad

ult B

ronc

hitis

Child

hood

Im

mun

izat

ion

(Com

bo 3

)

Brea

st C

ance

r Sc

reen

ing

Cerv

ical

Can

cer

Ch

lam

ydia

Sc

reen

ing

in

O

ptim

al D

iabe

tes

Opt

imal

Vas

cula

r

Cont

rolli

ng H

igh

Bloo

d Pr

essu

re

Use

of S

piro

met

ry

Test

ing

n th

e As

sess

men

t and

Di

agno

sis

of

COPD

Follo

w-u

p Ca

re

for C

hild

ren

Pres

crib

ed A

DHD

Med

icat

ion

HealthPartners Clinics (10 of 12 )

Park Nicollet Health Services (8 of 12)

CentraCare Health System (7 of 12)

Fairview Medical Group (7 of 12)

Quello Clinic (5 of 12)

Health East (5 of 12)

Allina Health System (4 of 12)

Minnesota Community Measures High Performing Medical Groups in 2011 (Primary Care)

=Medical Group rate and CI fully above average Blank= measure reported but rate was average or below average

Total Cost of Care

Price Resource Use

Total Cost of

Care

• Includes 100% of the care provided. • Illness burden adjusted • Patients are ‘attributed’ based on where care is obtained • NQF Endorsed

Improving TCOC • Primary Care

– Specialty referral preference – Standardized labs – Hospital choice – Screening and test intervals

• Specialty Care and Hospital – Care pathways – Place of service – Consultation balanced with on-going care

• Medical Group – Generics – Fee Schedule – Diagnostic imaging

Paying for Value

1997 • Partners in Excellence

• Financial incentives for better health, better care and lower costs.

2001 • Partners in Progress

• Blends payment for better health, better care and lower costs into market-based reimbursement rates.

2009 • Total cost of care payment approach introduced

• Focuses care systems on the overall cost of providing care, not just the cost of each service.

2011 • 2/3 of members receive care from a provider with a total cost of

care agreement

Another Perspective: Northwest Metro Alliance

Northwest Metro Alliance The Opportunity: 7 year agreement to achieve Triple Aim Results

• Additional focus will be to coordinate planning for physician coverage to ensure the availability of providers, and to avoid duplicative capital expenditures.

• Shared financial risk

Current Initiatives:

Clinic-Based

• Generics

• Bronchitis

• Low Back Pain

Hospital-Based

• Readmissions

• Mental Health 7-day Follow Up

• Safe and Effective Inductions of Labor

• HealthPartners Medical Group, Allina Medical Clinics, and Mercy Hospital care for nearly 300,000 people . The NW Metro Alliance was created to ensure the stability required for care and strategic integration

• The goals of the NW Metro Alliance are to improve the health of residents through a focus on the Triple Aim and to ensure the long-term viability of the healthcare providers and system in the area.

NW Alliance: First Year Results

• Achieved its quality & patient experience goals. • Obtained gains in multiple clinical areas. • Decreased total cost of care trend for the market

NW Metro Alliance - Year over Year PMPM Trend summary, through end of Q4, 2010

8.09%

2.96%

0.00%2.00%4.00%6.00%8.00%

10.00%

Q4, 2009 Q4, 2010“Rather than sitting around a table thinking up ways to do things differently, they [NW Alliance] are in the clinics and hospitals doing things differently.”

- Jim Abeler, Chairman, MN HHS Finance Committee

Results Position us as an ACO

• In top 25 national in NCQA’s Health Insurance Plan rankings for 2010/11 • Obtained Medical Home recognition across all clinics

– NCQA Primary Care Medical Home highest level designation – State of MN Health Care Home certification in Primary Care and Infectious

Disease • Hospital: Leapfrog Group’s Top Hospital designation 2009/10/11 • Benchmark employee satisfaction • Physician satisfaction (AMGA survey)

– 25th percentile → 88th percentile • Achieved margin target in each of last 9 years • Plan administrative costs at 5.4%; clinic unit costs moderated (1.07%

compound annual growth rate 2004-10) • Growth

– 20% increase in medical plan membership over three years; 15% in dental plan

– Regions Hospital achieved top market share position in 2011 – Clinic’s active patients increased

Questions?

Tom Cooke Sr. VP, Business Development, Aetna Accountable Care Solutions

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Need Insurance?

Collaborating to Transform Healthcare Aetna Accountable Care Solutions Overview

AIAMC Meeting Tucson, Arizona

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Our values drive our behaviors and strategy

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

The market is demanding more value

We want to reduce our annual healthcare costs by 15%...” “Willing to exchange access and choice for

affordability…” “Discounts alone are not sustainable...we need

improved unit costs…” “Where do you have innovative models in place with

providers that …?

Economic Conditions

Rising Costs

Globalization

Absenteeism & Presenteeism

Quotes from plan sponsors:

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Unified Theory of Narrow Networks

Base Network

Quality Designation

Network

Low Cost Networks

ACO

• Some customers still demand maximum access • This is the most costly option

• Select providers that meet certain quality standards • Consistent methodology across all geographies • Appeals to multi-location employers • 1st step for customers looking improve quality & cost

• One-off network designs based on local market opportunities (clinical integration, contracting, other)

• Steerage, High Value Network physicians only with benefit changes to achieve a 10% savings

• Results dependant on ability to produce savings, provide superior customer experience

• Tiered Networks may be used w/ACO at Tier 1 • Convenience strengthened through tech / people • May be private label product

100%

95%

90%

85%

100%

60%

40%

25%

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Price, Brand, Benefit Design and Services will Increasingly Drive Buying Behavior through Reform

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

• License • Claims • Member Services • Sales and Marketing • Actuarial / Underwriting • Implementation Services

Health Plan Services • License • Claims • Member Services • Sales and Marketing • Actuarial / Underwriting • Implementation Services

Health Plan Services

Care Management

• Embedded CM • Telephonic CM • DM, UM, CM • Wellness • Senior Programs • Implementation Services

Care Management

• Telephonic / Embedded • UM, DM, CM, BH, MM

Training, Staff & Programs • Wellness and Lifestyle • Clinical / IT Platform • Implementation Services

HIT/HIE

• HIE • CDS

• PHR / Pt Portal • Analytics

• Implementation Services

• CT Suite

HIT/HIE

• HIE • CDS

• PHR / Patient Portal • Analytics

• Implementation Services

• Care Team Suite • HIE

• CDS •

• Analytics & Reporting • Implementation Services

Provider Branded Health Plan

Provider Branded Health Plan

Payment Reform

Payment & Incentive Models

Consulting Consulting

Out Patient Facilities Pharmacy Home Health

Physicians Hospitals Staff Out Patient Facilities Pharmacy Home Health

Physicians Hospitals Staff

Accountable Care Solutions Strategy

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Phased Approach to Accountable Care

EMR / PMS

HIE

Population, Risk & Financial

Management

Care Team Portal

HIE

Care Team Portal

Clinical Decision Support

EMR / PMS EMR / PMS

“Accountable Care Enablement”

“Clinical Integration Enablement”

“Meaningful Use Enablement”

HIE

Clinical Decision Support

Outcomes Measurement &

Reporting

• Manage populations • Price / manage risk • Create a sustainable

economic model

Clinical Decision Support

Analytics & Registry

Analytics & Registry

Outcomes Measurement &

Reporting

• Team based care • Manage performance

• Digitization & Interoperability

• Identify gaps in care

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Description Model

Build Population Specific Models

Provider Branded Private Label Health Plan

Clinical Integration

Support All Payers

Medicare: FFS, Pioneer Grant Support and Medicare Advantage Medicaid System Employees Commercial Fully Insured Self Funded Plan Sponsors

Governance Network Development Business, Payment and Clinical Model Development Workflow Redesign, Clinical, IT, Care Management Infrastructure Development Role and Responsibility Definition

Use of insurance license and expertise (e.g., actuarial) to enable private label/co-branded health plan offering and manage risk Leverage scale/operations – claims processing, customer service, call center, &

care management (e.g., staff, programs, technology)

A

C

B

Three Models of Collaboration

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

ACO Scope

Bre

adth

of P

opul

atio

ns S

erve

d 58 Medicare Advantage Provider Collaborations

3 technology enabled Pioneer Pilots to Date

9 Multi-payor PCMHs; Many single payer PCMHs

10+ Medicaid PCMHs 2 Statewide ACOs 30+ bundled payment pilots 30 multi-line, multi-payor ACOs

being contracted or launched >160 providers in pipeline

Experience

We used ACS’ structure and targeted investments to build industry leading experience

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

ACS components

HIE / HIT/ Informatics

EMR, HIE Services Clinical Data Mgmt

Sales & Analytics

Clinical Quality & Efficiency Reporting

Financial Performance Reporting

Local Mkt Analysis Benchmarking

Support health system migration via consulting services & engagement managers Readiness Assessment, community outreach strategies, HIT implementation services, change management…

Care Mgmt

MD Integrated DM/UM/CM

Prevention & Wellness Ancillary Services

Financial Arrangements

Financial/Incentive Design Financial Disbursement

Product Design

Health Plan Core Consumer Platform

Care Delivery Support Local On Line Communities

Patient Education Product & Preferences

Support

1. Find value opportunities

2. Create value via medical management, technology, and patient/consumer engagement

3. Capture & share value via contracting & plan products

Mgmt Reporting Member Service Provider Service

Coherent Individual Health Record

• Personal details • Care Team • Health events. matters

problems, medications, treatments

New Technologies

ontology single best record

protocols

Frag

men

ted

Pro

vide

r/Pla

n D

ata

Medicity

A single understanding of the patient

shared with all involved in care giving including

the patient, doctors, health

coaches & enriched by

analytics

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Next Gen Health IT Enabled Health Plan

Payer Gateway

Rx Hub

Rad

Lab

ADT EDIS

PMS

EHR

Data Integration

Claim

X.12 837

HL7, NCPDP

X.12 837

HL7, CCD, CCR, TEXT HL7, CCD, CCR, TEXT

HL7, TEXT

HL7, LOINC, TEXT

HL7, TEXT

Semantic Normalization

Data Warehouse

(Clinical & Claim data)

Reports • Population analysis • Provider analysis • Risk analyses • Cost analyses • Utilization • Efficiency • Patient analysis • Quality • Outcomes • Comparative

Effectiveness • Profitability

Care Coordination

(Care Apps)

Patient Engagement & Care Team Workflow

Clinical Analysis

(Care Algorithms)

Care Analysis & Alerts

• Enables integration and organization of unstructured clinical data

• Marriage with claims data • Without it, cannot do clinical

reports, PHR is incomplete and Alerts are inaccurate

Data Import & Export

Syntactic Translation

Master Person Indexing

Record Location & Routing • Community

health record • eRx • Referrals • EHR Lite

• Integration into provider work flows

• Provider-oriented reports for managing care and reporting quality and outcomes

• Lack of behind-the-firewall solution • DART for self-service use by providers

EHR

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Member Experience: • Personalized • Convenient • Satisfying

Maintaining health, wellness and independence

– Benefits design to align incentives – Health Risk Appraisal – Senior Care – Disease and Wellness management – Personal Health Record (PHR) – Care Alerts

Efficiently navigating the healthcare system

– Healthcare content and advice – Symptom guide – Provider directory and care match – Cost estimator – Appointment Scheduling – Clinical Capacity Exchange – Concierge services – Patient portal and e-Visits

Critical Success Factor: Patient engagement

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Key Product Features

Medical condition diagnosis (patented algorithms and proprietary clinical content)

Physician finder: • Nationwide directory of

hospital ERs, physicians, urgent care centers, retail clinics, pharmacies and outpatient clinics

• Directions based on GPS, IP Address or specified location

Cost estimation Appointment booking / pre-

registration / ER wait times Links to PHR

Creating a Symptom-to-Provider™ Pathway and Steerage

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Next Gen Health Plan Network Aetna is developing a multi state ACO network

Aetna

Sharp

Employer

State Heart

land

Carilion

BAHN

Data Integration

Banner

• New ACO networks (a national network made up of ACOs) will create value not through broad access or discounts but through data and informatics.

• The intellectual property of how to most efficiently manage a certain patient type or clinical condition becomes a valuable asset that can be leveraged across the next generation network.

• Delivery system members of this network will share clinical data as needed to support seamless patient care regardless of where the member travels

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Private-Label Health Plan

Background

Carilion Clinic, headquartered in Roanoke, VA, is a health care organization with 9,500 employees, more than 600 physicians in a multi-specialty group practice and 8 not-for-profit hospitals Carilion Clinic serves approximately 1 million people in western Virginia Carilion owns and operates its own Medicare Advantage (MA) Plan with 600 members Carilion has more than 1,200 licensed beds and net revenues of $1.25B in FY2009 Pioneer member of Dartmouth-Brookings ACO Collaborative Aetna had less than 10% market share in the Roanoke, VA market

What Carilion Wanted to Achieve

Get out of the red and drive profitable MA growth Lower costs and improve the health of Carilion’s employee plan via an accountable care model Diversify their commercial revenue streams by directly competing with the blues Transition from FFS to performance based payments without sacrificing revenue and profitability “Lose less” or potentially generate margin on Medicaid

Collaboration Model(s)

Medicare Carilion transitioned administration of its MA plan to Aetna continuing use of its own license Aetna deployed its MA provider collaboration model to generate up to $150 pmpm in savings Commercial Carilion transitioned its employees to Aetna in order to improve provider collaboration, operating efficiency and cost

savings Developed and launched a commercial health plan and three tier network targeted at individuals, small group, mid sized

employers. – The product, Aetna Whole Health, used Aetna’s insurance license. – Developed in partnership with Carilion the plan design, pricing, sales and distribution strategy – The network includes both Carilion and HCA, a Carilion competitor, in Tier 1 to reduce the blues local strangle hold

on their revenue. Tier 2 provides access to Aetna’s national par network to attract multi-sited employer groups. Tier 3 is Aetna’s non-par providers.

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Branded Network and Accountable Care Model

Background

Banner Health is an integrated delivery system w/35K employees headquartered in Phoenix and operates 23 hospitals and has 9,000 employed and affiliated physicians across 5 states Banner is a charter member of the Premier ACO collaborative Banner operates its own Medicare Advantage and employee health plan [Medisun] Aetna has 75K lives in the Phoenix market

What Banner Health Wants to Achieve

Launch and monetize the Banner Health Network (BHN) by developing strategic relationships with employers directly and health plans to drive steerage the BHN Demonstrate that the BHN can drive best in market quality and efficiency in managing populations

and potentially risk, over time Ensure Medicaid patients are getting the right care in the right setting at the right time within

Banner or other Phoenix systems Meet or exceed financial risk sharing targets for their Medicare FFS via the Pioneer Grant Award

Collaboration

Model(s)

Commercial Will launch a commercial product targeted at Individuals, Small Group, Public and Labor and other

targeted self insured customers Product—Aetna Whole Health— will include 3-tiered network with Banner Health Network and

Children’s Hospital of Phoenix in tier one Product is priced significantly below market premium based on efficiencies generated through

jointly developed care delivery model; pricing will be sustained Banner and Aetna will go, jointly, direct to employer to create steerage opportunities to the model

Proprietary and Confidential – Preliminary Document for Discussion Purposes Only

Branded Network and Accountable Care Model (Cont’d)

Collaboration

Model(s)

Medicare Deploy Aetna’s entire technology stack and care management support model to assist Banner

achieve pmpm savings targets for the Pioneer Grant. Aetna will take risk on achieving the targets and potentially share in a portion of the savings generated Extend the technology model to deliver improved quality and efficiency results for Banner

Health’s employees Medicaid Deploy a health home model to improve management of Medicaid beneficiaries

Payment and Incentives

Shared savings on Aetna’s existing Fully Insured lives Transition enrollees in new product from FFS, plus gain sharing to up-/downside risk when

enrollment meets jointly defined thresholds Roll-out 1/1/13 model for Banner/Aetna to share in savings generated for self insured customers Assist Banner extend the contracting, payment and incentive model, to other payers

Capabilities and/or Investments

Needed to Support Collaboration

Marketing: B2B and retail marketing campaign to drive product sales and steerage to Banner HIT/HIE: ActiveHealth CareTeam suite integrated w/Cerner/Allscripts; HDMS analytic tools, etc. Care management: Technology platform, health management programs, clinical staff support Health plan services: Aetna insurance license, AetnaOne Concierge Model, call center support Consulting: Dedicated project management office, support workflow re-design, medical

management support, etc.


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