Financial Solutions for a Changing Healthcare System
Transcription
Financial Solutions for a Changing Healthcare System
Weathering the Storm… Financial Solutions for a Changing Healthcare System May 8, 2014 William J. Simione, III Principal Simione Healthcare Consultants, LLC CRITICAL SUCCESS FACTORS FOR HOMECARE AND HOSPICE 2 UNCERTAINTY 4 UNCERTAINTY 5 REGULATORY CHANGES AND SCRUTINY STATE AND FEDERAL AUDITS FACE TO FACE ICD 10 MEDICARE CUTS SEQUESTRATION HOMECARE REBASING HOSPICE PAYMENT REFINEMENT HOSPICE REBASING HOSPICE SITE OF CARE PRODUCTIVITY ADJUSTMENT AFFORDABLE CARE ACT ACCOUNTABLE CARE ORGANIZATIONS COLLABORATION BETWEEN POST ACUTE PLAYERS HOSPITALS & PAYORS PREVENT REHOSPITALIZATIONS POPULATION HEALTH MANAGEMENT RISK BASED PAYMENT BUNDLING DEMONSTRATE VALUE - $ ACA’s Employer Mandate • Effect on Caregivers hours • Higher Cost • Automation / Technology Companion Exemption • Increased Rates • Access & Availability • Additional Caregivers Market • Affordable Care Act • Population Health Management • 1 and 5 being 65 + Older by 2030 Pricing Pressure • ACA Employer Mandate • Registries and Independents FUTURE • Affordable Care Act Accountable Care Organizations Rebasing of Homecare Rates • 14% cuts over Four Years Productivity Adjustment starting in 2015 Refinement of the Hospice Medicare Payment System (Possibly in 2015) • Tiered Shape Payment System? • Rebasing of Routine Homecare Rate? • Site of Care Adjustment? Risk Based Payment/Bundling 8 MEDICARE REIMBURSEMENT 9 MANAGED CARE 10 IMPACT ON REIMBURSEMENT 11 Reduce Costs & Improve Quality Best Practices Benchmarking Compliance Demonstrate Value Market Alignment Hospital Systems Physician Groups Payers Mergers/Affiliations Program Development Care Transition Programs Wellness Clinics Telemedicine Diversification Home Health Palliative Care Hospice Private Duty Align Providers Development of Regional & System Governance: The Organized System of Care 13 G L O B A L C O N T R A C T I N G P L AT F O R M Health Accountable Care, L.C. VA L U E - B A S E D C O N T R A C T S Focus: Population Health Management Bundled Payments Employer Direct Commercial Health SelfInsured Plan Another Medicaid ORGANIZED SYSTEM OF CARE Collaboration between physicians, providers and administrative leaders who have a shared commitment for the quality, cost and patient experience across the entire care continuum Clinics FQHCs Home Care Hospice and Palliative Hospitals Long Term Care Mental Health Public Health Skilled Nursing Facilities VA L U E - B A S E D C A R E C A PA B I L I T Y S E T S Advanced IT Tools 14 Care Coordination Chronic Disease Management Community Provider Collaboration Financial Reporting Population Management/ Risk Stratification Quality Outcomes Monitoring & Reporting Value-Based Contracting Shifting from Volume to Value: Affordable Care Act Incentives to Improve Quality Care Create and Demonstrate Value Strategic Focus on Population Health 15 Shifting from Volume to Value: Affordable Care Act Incentives to Improve Quality Care Population Health Challenges 16 16 SHIFTING FROM VOLUME TO VALUE: AFFORDABLE CARE ACT INCENTIVES TO IMPROVE QUALITY CARE 17 CURRENT STATE: A YEAR IN THE LIFE OF A PATIENT 5 Hospital Admissions 6 6 Social Workers Meds 2 37 Home Care Agencies Nurses 5 Physical Therapists Clinic Visits 16 Physicians 2 19 4 Occupational Therapists 22 Community Referrals 6 Weeks SNF Care 5 Months of Home Care 18 Source: Johns Hopkins, RWJ 2010 (G Anderson) Nursing Homes STRATEGIC PLANNING 19 DO NOT WAVE THE WHITE FLAG 20 BE CREATIVE 21 TEAM WORK 22 SET YOUR GOALS SET YOUR GOALS 24 SELF ASSESSMENT OF YOUR HOMECARE AND HOSPICE AGENCY WHEN LOOKING INTO THE FUTURE SELF ASSESSMENT OF YOUR AGENCY • STEPS THAT SHOULD BE TAKEN IN ASSESSING YOUR AGENCY: 1. LOOK INTO THE FUTURE (5 YEARS) ON BOTH A FEDERAL AND STATE LEVEL 2. DETERMINE THE IMPACT BOTH OPERATIONALLY AND FINANCIALLY ON THE AGENCY 3. ASSESS YOUR POSITION IN THE MARKET PLACE COMPETITION REFERRAL SOURCES MARKET SHARE 4. DEVELOP A BUSINESS PLAN TO ACHIEVE BEST PRACTICES AND POSITION THE AGENCY FOR THE FUTURE 26 ASSESSMENT OF YOUR AGENCY • STEPS THAT SHOULD BE TAKEN IN ASSESSING THEIR AGENCY: 5. INCLUDE BOARD OF DIRECTORS OR INVESTORS IN THE PLANNING PROCESS 6. DETERMINE SHORT TERM VS. LONG TERM OBJECTIVES (PRIORITIZE) 7. DETERMINE AMOUNT AND SOURCE OF CAPITAL REQUIRED TO MEET YOUR OBJECTIVES 8. CALCULATE RETURN ON INVESTMENT 27 SELF ASSESSMENT OF YOUR AGENCY • YOU MAY NEED TO MAKE SOME HARD DECISIONS • THINK OUT OF THE BOX AND BE OPEN MINDED • NO IDEA IS A BAD IDEA EACH ONE SHOULD BE TAKEN INTO CONSIDERATION • LOOK AT ALL PAYERS NOT JUST MEDICARE 28 STEP BACK AND GET STRATEGIC • “WHAT TO DO WHEN YOUR COMPANY IS TOO BIG TO BE SMALL BUT TOO SMALL TO BE BIG?” “NO MAN’S LAND”, BOOK BY DOUG TATUM 29 NAVIGATING A COMPANY THROUGH “NO MAN’S LAND” • FOUR RULES - FOUR “M’s” 1. MARKET (ALIGNMENT VS. MISALIGNMENT) AGENCY LOSING TOUCH WITH ITS CUSTOMERS 2. MANAGEMENT OUTGROWING YOUR MANAGEMENT STAFF 3. MODEL OUTGROWING YOUR MODEL 4. MONEY OUTGROWING YOUR MONEY 5. THE 5TH M IS MOMENTUM - APPEARANCE OF FORWARD MOTION EXISTS 30 INGREDIENTS FOR SUCCESS INGREDIENTS FOR SUCCESS • STRATEGIC INITIATIVES FOR SURVIVAL : Cost Efficient Home Health and Hospice Programs – It is anticipated that Operating costs will need to be reduced by up to 10 to 20 percent in most organizations in the next 3 to 5 years. Develop Key Performance Indicators that drive Best Practices. Demonstrate and Measure Value that Homecare and Hospice bring to the Health System and or Payers. Capture data necessary to quantify value added and to effectively manage the Agency. 32 INGREDIENTS FOR SUCCESS • STRATEGIC INITIATIVES FOR SURVIVAL : Access to Capital to invest in technology, expansion of services and growth. Strong Quality Measures and Outcomes. Smart Growth - Increase Volume that produces a positive Gross Profit Margin and contributes to Overhead. Grow Market Share through Strategic Alliances or Acquisitions. Measuring Return on Investment from new services and programs. 33 INGREDIENTS FOR SUCCESS • STRATEGIC INITIATIVES FOR SURVIVAL : Willingness to enter into risk sharing arrangements. You must know your costs. Evaluate Infrastructure and service delivery systems to reduce costs. Generate or Maintain profits from Medicare. 34 THE FUTURE 35 INGREDIENTS FOR SUCCESS • The Key Attributes for Home Care and Hospice are the ability to increase overall quality, to streamline access, demonstrate efficiency and effectiveness and the willingness to collaborate during the formative stages. 36 CELEBRATE WHEN REACH YOUR GOAL 37 THEN COUNT YOUR MONEY 38 The future depends on what we do in the present. Mahatma Gandhi 39 NEXT STEPS 40 THE JUMP TO 2014 AND BEYOND 41 QUESTIONS YOU NEED TO ASK YOURSELF 1. Am I as a provider going to be Inside Looking out or Outside Looking in? 2. Will I be part of the team and be a player in the Post Acute Care Continuum? 3. What are my options: 42 Stay Independent Preferred Provider Affiliate with the system Niche Provider Independent outside Contractor QUESTIONS YOU NEED TO ASK YOURSELF 4. What are the Risks Either Way?: Do nothing and watch my revenue/census drop and cannot support overhead. Need to downsize. Become part of the system but are not paid appropriately for the value you bring. And therefore have negative margins in a bundled/risk based system. Need to quantify that value. 5. Can I partner with other Providers? 6. What are the ACO’s and Payers looking for? 43 QUESTIONS YOU NEED TO ASK YOURSELF 7. What do I need to do as an Agency to demonstrate that I bring value? 8. Do I have the resources and business plan to succeed? 44 QUESTIONS 45 SIMIONE.COM Simione™ Healthcare Consultants provides solutions for your core home care and hospice challenges – organizational, financial, sales & marketing, technology, and mergers & acquisitions. Over 1000 organizations use our practical insight and tools to reduce costs, mitigate risk and improve efficiencies to steward the way they conduct business. William J. Simione, III Principal 4130 Whitney Avenue Hamden, CT 06518 203.287.9288 800.949.0388 [email protected] 46