HEALTH REFORM LAW: ACCOUNTABLE CARE ORGANIZATIONS



Similar documents
Who, What, When and How of ACOs. Summary of proposed rule provisions for Accountable Care Organizations under the Medicare Shared Savings Program

Mar. 31, 2011 (202) Summary of proposed rule provisions for Accountable Care Organizations under the Medicare Shared Savings Program

DETAILED SUMMARY--MEDCIARE SHARED SAVINGS/ACCOUNTABLE CARE ORGANIZATION (ACO) PROGRAM

CMS Releases Proposed Rule Governing Accountable Care Organizations

The true meaning of ACO is Awesome Consulting Opportunities. - The Weekly Standard, 04/12/11. Consultants

PROPOSED MEDICARE SHARED SAVINGS (ACO) PROGRAM RULES

Additional Information About Accountable Care Organizations

Accountable Care Organizations (ACO) Proposed Rule Summary March 31, 2011

Participating Accountable Care Organizations (ACOs) that meet quality performance standards will be eligible to receive payments for shared savings.

Guidance Released on Accountable Care Organizations Participating in the Medicare Shared Savings Program

Medicare Final Accountable Care Organization (ACO) Regulations Effective January 1, 2012 Median Savings of $470 Million over 4 Years

Newsroom. The quality measures are organized into four domains:

The Accountable Care Organization

Accountable Care Organizations and Provider Integration Under Health Care Reform. Sarah Swank

NATIONAL ASSOCIATION OF COMMUNITY HEALTH CENTERS. Briefing Paper on the Proposed Medicare Shared Savings Program

CMS proposed rule on ACOs:

Entities eligible for ACO participation

Summary of Final Rule Provisions for Accountable Care Organizations under the Medicare Shared Savings Program

NATIONAL ASSOCIATION OF COMMUNITY HEALTH CENTERS. Briefing Paper on the Proposed Medicare Shared Savings Program

II. SHARED SAVINGS PROGRAM AND COST-REDUCTION INCENTIVES

BAKER DONELSON BAKER S DOZEN

STATEMENT OF ACHIEVING THE PROMISE OF HEALTH INFORMATION TECHNOLOGY BEFORE THE UNITED STATES SENATE COMMITTEE ON HEALTH, EDUCATION, LABOR & PENSIONS

Medicare and Commercial Accountable Care Organizations: A Retrospective and Prospective View

Accountable Care Organizations: Reality or Myth?

Health Law Bulletin. provided by: ACOs AND SHARED SAVINGS IN A NUTSHELL Applications to Participate Available Now

Accountable Care Organizations An Operational Overview

Using Partial Capitation as an Alternative to Shared Savings to Support Accountable Care Organizations in Medicare

OUR ACCOUNTABLE CARE ORGANIZATION (ACO) STRATEGY. Meredith Marsh Director Health Choice Care, LLC

Accountable Care Organizations: What Providers Need to Know

How Will the ACO Regulations Affect You?

The Medicare Shared Savings Program

Physician Integration Models: ACOs as the Latest and Greatest? David T. Lewis LifePoint Hospitals, Inc.

HEALTHCARE REFORM OCTOBER 2012

Premier ACO Collaboratives Driving to a Patient-Centered Health System

KATHLEEN L. DEBRUHL & ASSOCIATES, L.L.C. 614 TCHOUPITOULAS STREET NEW ORLEANS, LOUISIANA (OFFICE) (FAX)

May 8, The Honorable Fred Upton Chairman House Committee on Energy and Commerce United States House of Representatives Washington, DC 20151

A Closer Look at the Final ACO Rule

CMS ACO Proposed Regulations

Medicare Shared Savings Program Final Rule

May 26, Section 3022 of the Affordable Care Act. Dear Administrator Berwick:

Fraud and Abuse Considerations for Accountable Care Organizations (ACOs)

Payor Perspectives on Provider Realignment and ACOs

Cms Finally speaks: organization (ACO) proposed regulations and WhaT They mean For anesthesiologists

Accountable Care Organizations: The Final Rule

What is an Accountable Care Organization. Amit Rastogi, MD President/CEO PriMed

Client Advisory. CMS Issues Final ACO Regulations EXECUTIVE SUMMARY. Health Care. Eligibility. November 10, 2011

INTEGRATION STRATEGIES FOR A NEW HEALTH CARE ECONOMY

Re: Medicare Program; Medicare Shared Savings Program: Accountable Care Organizations (CMS-1345-P)

How To Make A Home Medical Care More Affordable

Accountable Care Organizations Understanding What They Are and How to Structure Them

Medicare Shared Savings Program

Accountable Care Organizations: Experiences, Examples and Lessons Learned

Post-Acute/Long- Term Care Planning for Accountable Care Organizations

Provider Participation in ACOs May Hinge on HHS Regulations

Accountable Care Organizations The Future Integrated Health Care Delivery Model?

Summary of Medicare Shared Savings Program Final Rule on Accountable Care Organizations

Accountable Care Organizations: Importance to Physicians in Value Based Payment June 19, :00-1:00pm EST

ACOs: Impacting the Past, Present and Future State of Healthcare

Banner Health Network Pioneer ACO - Physician Toolkit

Alan K. Parver Darryl Drevna SUBJECT: Accountable Care Organizations DATE: August 24, 2010

1 of 5 4/9/2014 3:48 PM

How Health Reform Will Affect Health Care Quality and the Delivery of Services

CMS Initiatives Involving Patient Experience Surveying FAQs

Healthcare Reform Update Conference Call VI

Nuts and Bolts Accountable Care Organizations: A New Care Delivery Model for New Expectations

AHLA. BB. Accountable Care Organizations and the Medicare Shared Savings Program. Troy Barsky Crowell & Moring LLP Washington, DC

Analysis and Overview of the Medicare Shared Savings Program for Accountable Care Organizations

Accountable Care Organizations (ACOs)

2010 MHA Governance Leadership Forum: Accountable Care Organizations. Chris Rossman, Esq. Foley & Lardner LLP Detroit, Michigan

OHIO HOSPITAL ASSOCIATION 2015 Annual Meeting. Accountable Care Organizations Comprehensive Integration Strategy

May 7, Submitted Electronically

Large Urology Group Practice Association. Accountable Care Organizations

Statement of the Association of American Medical Colleges on Legal Issues Related to Accountable Care Organizations and Healthcare Innovation Zones

With the support of The Commonwealth Fund, NASHP is tracking state efforts to lead or participate in accountable care models that include Medicaid

Update on Medicare accountable care organizations (ACOs): September 11, 2014 David Glass, Jeff Stensland

Clinical Integration Defined

Gold Coast Health IT Resource Center. Accountable Care Organization (ACO)

Webinar: Next Generation ACO Implications: Impact of the New CMS ACO Model

Accountable Care Organization Refinement Brief

Mount Sinai Care: A Medicare Shared Savings Program Primer. Brett Bernstein, MD, AGAF, FASGE Medical Director, Provider Partners of Mount Sinai IPA

Legal & Policy Issues Related to ACO Formation by Independent Physician Groups

Care Coordination and Contracting Entities: The CHC Perspective on IPAs and ACOs. Today s Discussion

CLINICALLY INTEGRATED NETWORKS: BUSINESS AND LEGAL CONSIDERATIONS

Welcome to the First Edition!

Nonprofit Healthcare: What Does the Future Hold?

December 3, Dear Administrator Berwick:

Re: CMS Notice of Proposed Rulemaking for Accountable Care Organizations

How To Track Spending On A Copay

Re: CMS-1345-P, Medicare Shared Savings Program: Accountable Care Organizations

Medicare Accountable Care Organizations: What it s about

Prospective Attribution as a Single-Step Assignment Process

Medicare Value Partners

Medicare ACO Road Map

Accountable Care Organizations Strategic Planning & Preparations Bob Perna, FACMPE, Director, WSMA Practice Resource Center

Accountable Care Organizations: An old idea with new potential. Stephen E. Whitney, MD, MBA Testimony to Senate State Affairs September 22, 2010

Repeal the Sustainable Growth Rate (SGR), avoiding annual double digit payment cuts;

SUMMARY OF HEALTH IT AND HEALTH DATA PROVISIONS OF H.R. 2, THE MEDICARE ACCESS AND CHIP REAUTHORIZATION ACT (MACRA)

The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) Summary of SGR Repeal and Replacement Provisions

ACOs. ACO Definition. ACO Governance. Stuart B Black MD, FAAN Chief of Neurology Co-Director: Neurosciences Baylor University Medical Center at Dallas

Transcription:

HEALTH REFORM LAW: ACCOUNTABLE CARE ORGANIZATIONS PRESENTED AT THE NASABA 2011 CONVENTION BY: PURVI B. MANIAR

Context and Background Patient Protection and Affordable Care Act of 2010 ( PPACA ) (Section 3022) required establishment of a Medicare Shared Savings Program ( MSSP ) by January 1, 2012 The MSSP is intended to encourage physicians, hospitals, and certain other types of providers and suppliers to form accountable care organizations ( ACOs ) to provide costeffective, coordinated care to Medicare beneficiaries. PPACA constructed the concept of ACOs; Centers for Medicare and Medicaid Services ( CMS ) was to determine parameters of the program through regulations. March 31, 2011 CMS issued much anticipated regulations proposing how ACOs would implemented. Addressed structure, governance, operational requirements and how potential savings (and losses) would be shared between Medicare and the ACO Regulations represent significant interagency coordination between CMS, OIG, DOJ, FTC and IRS However, significant concerns raised by the key associations representing all major healthcare stakeholders Comment period is closed; final regulations are due?

What is an ACO? Organization comprised of multiple Medicare service providers with a level of integration sufficient to deliver accountable care. accountable care care that is more coordinated, more transparent to the consumer, using evidence-based measures to achieve better outcomes, greater patient satisfaction and improved cost-efficiency; both, the payment and delivery system for healthcare need to change to achieve accountable care Idea is that such coordinated care is better care which often costs less, because it helps to ensure that the patient receives the right care at the right time, with the goal of avoiding unnecessary duplication of services and prevention of medical errors. Eligible ACOs include: Physicians and other professionals in group practice arrangements Networks of individual physician practices Partnerships or joint ventures between hospitals and physicians Hospitals employing physicians Other groups of eligible participants approved by CMS ACO th t f t h d d t lit f t d d h ACOs that feature shared governance and meet quality performance standards can share in resulting savings achieved by Medicare

Main Governance, Structure and Operational Requirements Formal legal entity any form Governing body: 75% of control by ACO participants representative of Medicare beneficiaries Full-time, board certified medical director as part of executive team 3 year agreement with HHS Primary care physicians Sufficient number for at least 5,000 Medicare beneficiaries At least 50% must be meaningful users of electronic health records by second year Exclusive to the ACO Sufficient i specialist physicians i do not need to be exclusive to the ACO Information technology sufficient to enable ACO to collect and evaluate performance data Measure and report performance on 65 quality criteria in five domains: Patient/care giver experience Care coordination Patient safety Preventative health At risk population/frail elderly health issues Demonstrate patient-centeredness, e.g. Engagement of beneficiaries through education, shared-decision making and surveys Systems to identify high-risk individuals and processes to develop individualized care plans for target populations

Shared Savings Savings measured against CMS benchmark the amount that CMS estimates Medicare would have been spent for the ACO attributed patients in the absence of the ACO Track One - no downside risk until the third year of the contract with CMS; ACO can receive up to 50% of savings against the CMS benchmark up to 7.5% of the total benchmark amount. Track Two ACO shares both, savings and losses from the first year; but there is a higher potential upside of up to 60% of savings against CMS benchmark up to 10% of the total benchmark amount. Threshold h savings of 2% against benchmark before any savings are shared Higher potential payments are available to ACOs that achieve higher quality performance. By the beginning of the third year of the contract, however, all providers would share risks as well as savings. 25% withhold of any shared savings payment to ensure repayment of any losses under the program

Alternative ACO Models Pioneer ACO Model aimed at organizations that have already started coordinating care for patients and are ready to move to more aggressive risk based models with a larger number (at least 15,000) Medicare beneficiaries Advanced Payment ACO Initiative that would allow certain participants in the program to get part of their expected savings up front to invest in care coordination. The Administration is offering free Accelerated Development Learning Sessions to help providers learn how they can improve care delivery and coordination.

Criticisms and Concerns - Highlights g Retrospective assignment of beneficiaries is a challenge to effectiveness Benchmark methodology is flawed Prescriptive requirements are too burdensome; don t bear enough relation to outcomes Imbalance between risk and reward Start-up costs would be significant payoff threshold h of 2% to 3.9% savings before any savings are shared may be too high Lack of patient responsibility May have anti-competitive results State insurance law implications?

Representative EBG Client Activities Hospital physician alignment initiatives; physician group mergers Evaluating suitable ACO structures for health systems and large multi-specialty medical groups Evaluating quality and cost strategies for different payors/programs (e.g., Medicare, Medicaid and commercial payors) for ACO and ACO-like initiatives Providing health regulatory and corporate/contracts advice in developing an innovative quality incentive and gainsharing program in which the participating physicians earn "credits" from their quality and cost savings performances that will be applied to EHR and ACO participation i opportunities. Revising managed care agreements in order to include financial incentives for hospitals and physicians to take into consideration quality and cost Advising health system with design of an alternative payment arrangement in order to become an accountable care organization; legal and consulting teams are collaborating to identify opportunities and implement the bundled payment arrangement Comments to proposed rules on behalf of industry associations, clinics and health systems

What s Next? Richard Sorian, HHS assistant secretary of public affairs: 100 percent confident that Accountable Care Organizations will be established on schedule, improve the quality of care and lower costs.we re taking comments on a proposed rule, and those comments will make the rule stronger that s t how the process works. Note: Being on schedule means a program launch date of January 1, 2012. American Medical Association: Since this is a completely new Medicare delivery and payment model, the AMA urges CMS to issue an interim final rule, rather than a final rule, so that CMS maintains the flexibility to modify and improve the ACO regulations as the agency learns more about this model. The Medicare Payment Advisory Commission (MedPAC) also recognized the importance of program flexibility. The group, which advises Congress on Medicare payment issues, told CMS that shifting from volume-driven to value-driven care will not be quick or easy, and it cannot be expected that a single set of regulations will be able to address all contingencies or difficulties that may arise. ACOs represent an opportunity to transform the delivery system, but realizing i that opportunity will require providers to change their practices and take a risk on a novel payment system and CMS to be flexible and responsive as the program evolves. There is widespread agreement as to the current problems with the U S health care There is widespread agreement as to the current problems with the U.S. health care delivery and payment system and the end goals for improvement the challenge is in the transition.

CONTACT INFORMATION PURVI B. MANIAR EPSTEINBECKERGREEN pmaniar@ebglaw.com (212) 351-3757