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Monday
Nov262012

MCOL Blog | Complimentary On-Demand Webinar: Executing on the Individual Mandate – Challenges and Opportunities

By Claire Thayer, November 26, 2012

Complimentary One hour On-Demand webinar: Executing on the Individual Mandate: Challenges and Opportunities. This webinar video provides a discussion of the current state of the retail health insurance market, steps to transition from a B2B to a Business-to-Consumer environment and what some of the important IT implications are for health care payers. Oracle health insurance offers both a health insurance platform (exchange portals and business rules) as well as a healthcare payer business intelligence platform (claims, financials, member services, business rules and products) and provides an overview of these platforms as well as a case study analysis. Listen to this complimentary On-Demand webinar at your convenience at:www.healthwebsummit.com/Oracle111412.htm

Monday
Nov192012

Predictive Analytics: A Product Evaluation Invitation for Hospital-Based Providers

By Claire Thayer, November 19, 2012

MCOL invites Case Managers, Discharge Managers and Nurse Managers from hospitals and health systems to join us for a complimentary webinar on December 4th and participate in market: Predictive Analytics at the Bedside | A market study for hospital based providers. MEDai / Elsevier speakers will present a product evaluation for inpatient specific clinically meaningful risk predictions.

Identify risk levels and risk trending for five critical outcomes:

• Risk of excessive Length of Stay
• Risk of Transfer to ICU during hospitalization
• Risk of 30 Day Readmission following discharge
• Risk of Sepsis during hospitalization
• Risk of Mortality during hospitalization

Register at: http://www.healthwebsummit.com/medai120412.htm

Friday
Nov162012

Mercer Weighs in on Employer Health Benefit Cost Projections

By Clive Riddle, November 16, 2012

Here’s what Mercer has to say about the rise in  health benefit costs:  “growth in the average total health benefit cost per employee slowed from 6.1% last year to just 4.1% in 2012. Cost averaged $10,558 per employee in 2012. Large employers – those with 500 or more employees – experienced both a higher increase (5.4%) and higher average cost…. Employers expect another relatively low increase of 5.0% for 2013. However, this increase reflects changes they plan to make to reduce cost; if they made no changes, cost would rise by an average of 7.4%.”

This is based on results from Mercer’s annual National Survey of Employer-Sponsored Health Plans, which includes public and private organizations with 10 or more employees; with 2,809 employers responding in 2012. The full survey results will be released in April 2013.

 How does this compare to what other major human resources/benefits consulting firms are estimating? Here's what we reported in our Tidbits column in the October 6th edition of MCOL weekend:

Aon Hewitt reports that "the average health care premium rate increase for large employers in 2012 was 4.9 percent, down from 8.5 percent in 2011 and 6.2 percent in 2010. In 2013, however, average health care premium increases are projected to jump up to 6.3 percent."  Towers Watson's survey "projects a 5.3% net increase in total health benefit plan costs after any plan changes are taken into account, increasing the average cost per active employee from $10,925 in 2012 to $11,507 in 2013. Of the 2013 total, employees will pay an average of $2,596, or 22.6%, up from $2,436 in 2012." The Segal Company  projects 8.8% increases in 2013 for open access PPOs (10.0% in 2012; 8.2% increases in 2013 for HMOs (9.6% for 2012) and 9.1% increases in 2013 for HDHPs (10.4% in 2012.)

Mercer makes particular note of the impact of CDHPs in the employer benefit arena. They state that “with a growing number of employers now positioning a high-deductible, account-based consumer-directed health plan as their primary plan – or even their only plan – employee enrollment jumped from 13% to 16% of all covered employees in 2012. Many employers see these plans as central to their response to health care reform provisions that will raise enrollment. Over the past two years, offerings of CDHPs have risen from 17% to 22% of all employers, and from 23% to 36% of employers with 500 or more employees. Well over half (59%) of very large organizations (20,000 or more employees), which typically offer employees a choice of medical plans, now offer a CDHP. With the cost of coverage in a CDHP with a health savings account is about 20% lower, on average, than the cost of PPO coverage – $7,833 per employee compared to $10,007 -- employers are increasing willing to make the CDHP their primary or even their only plan. Among large employers that offer an HSA-based CDHP, average enrollment rose from 25% to 32% in 2012. And, when asked if they expect to offer a CDHP five years from now, 18% of large employers say they expect to offer it as the only plan, up from 11% in 2011.”

Tuesday
Nov132012

What’s Happening at MCOL | Health Insurance Exchanges HIX Learning Kit

By Claire Thayer, November 13, 2012

Health Insurance Exchanges are coming -  enrollment starts in October 2013 for health insurance coverage that begins January 1, 2014.  We’ll get you and your organization up to speed on learning all about the exchanges with the Health Insurance Exchange Learning Kit!

Watch video clip: http://www.healthsharetv.com/content/hix-learning-kit-welcome-video-0

Using this learning kit, you can view a number of insightful presentations from national experts covering a variety of issues concerning HIXs, reference federal and state regulatory documents, browse a HIX Primer or Thought Leader commentary, consult a map indicating HIX state status, or view an infographic on exchanges.

Modules:

  • Welcome Video Clip
  • Video of Nine Faculty Presentations with almost nine hours of instruction on HIX topics (slide presentations synchronized with audio) with option to print presentation slides
  • Documents library providing full text of the 3 applicable sections of the Affordable Care Act pertaining to HIXs plus applicable HIX legislation from sixteen states
  • Primer offering an overview on Health Insurance Exchanges
  • Thought Leader commentary on the impact of HIXs from seven national experts
  • Map indicating status of states regarding HIX grant status and establishment of HIXs
  • Infographic with facts and figures regarding HIX's

Learn more at: https://www.managedcarestore.com/hixlearning.html

Thursday
Nov082012

Some Lessons from Sandy

By Kim Bellard, November 8, 2012

I have no doubt that many very smart people, and especially ones who were more directly impacted by Sandy than I was, will be doing extensive debriefings about Sandy’s impacts, and coming up with lots of far-reaching recommendations for next big disaster.  Still, I wanted to throw in a few thoughts about a couple lessons Sandy has for HIT.

One of the unexpected learnings from hurricane Katrina in 2005 was a boost in the perceived need for electronic health records, as many paper records were lost or destroyed by the storm, and as Louisiana residents widely dispersed across the country.  The paper and place systems for health information were found severely lacking, and Katrina was a clarion call to move health information into the 21st century.

Seven years later, we have, in fact, seen much progress on that front.  HITECH was passed to stimulate the adoption and “meaningful use” of EHRs.  Over 300,000 physicians and4,000 hospitals received HITECH incentive payments through 3Q 2012 – some $7.7b.  Those numbers are expected to grow rapidly, and the increasingly tough meaningful use standards will drive better use of the data in the EHRs.

That’s all good news, and it would be easy to see how HIT should have helped mitigate some of the woes from Sandy.  Instead, what we’ve seen makes me wonder if we’ve learned anything at all. 

Sandy caused hundreds of hospitalized patients transferred, with some entire hospitals closed due to flooding.  That’s obviously not good for patients, but understandable under the circumstances.  I couldn’t help but wonder what was happening with their records.  Did all their information travel to the new hospitals, or was everyone forced to start from scratch? 

Best case scenario, the patient might have transferred to a sister hospital that used the same systems.  The worst case scenario, of course, was that the records were only on paper which was lost or destroyed.  The most frustrating scenario, though, would be that both the old and new hospital had electronic records, but that the respective hospitals couldn’t communicate.

Unfortunately, this latter scenario is all too likely.  David Whitlinger, the health of SHIN-NY, the statewide HIE for New York, cited disasters such as Sandy as why we need health information exchanges (HIEs).  He’s exactly right, of course – but even he couldn’t say how many of the impacted New York hospitals were participating in SHIN or were able to take advantage of its capabilities.  I suspect that if they had any big success stories from Sandy, they would be touting them.

I’m not picking on SHIN-NY.  HIEs are facing problems in many places.  In Michigan, for example, there are two statewide HIEs, which can’t communicate with each other.  According to the eHealth Initiative, HIEs biggest concerns included developing a sustainable business model, and competition from other HIEs.  Most of them still aren’t doing anything as sophisticated as transmitting entire patient records.  It would be comical if it wasn’t so depressing, and if my federal tax dollars weren’t subsidizing these efforts.

HIEs are supposed to ensure interoperability and transmission of patient and clinical data, but those battles are still being fought.  A recent report from KLAS Research indicates that providers express dissatisfaction with their HIE vendors, including their ability to move data between multiple EMRs.  Respondents mentioned, for example, that Epic scores well for connectivity, but not with non-Epic installations…which sort of makes the capability moot.

Then there is mHealth, a term that was only just beginning to be used when Katrina hit in 2005.  It’s now a big deal: the mHealth market is estimated to double in 2012, to over $1.3b, with literally thousands of mHealth apps on the market, from the trivial to the FDA-approved.  It is no wonder that mHealth has taken off; over half of the U.S. population now has a smartphone, with two-thirds of new purchases being smartphones.  According to the Pew Internet & American Life project latest findings, almost 20% of smartphone users have health apps.

Sandy showed us that we’re not quite ready for prime time on this front either.  Let’s start with the availability of mobile networks.  The New York Times reported on the spotty service and infuriated customers.  As one impacted resident said, “not having hot water is one thing, but not having a [cell]phone? Forget about it.”   The Times pointed out that one of the recommendations from Katrina was better emergency back-up mechanisms for the wireless carriers, such as longer-lasting emergency batteries, which have not been widely adopted.  The wireless carriers have resisted many of the regulators’ efforts, and were not routinely providing their outage statistics the way, say, the power companies were during Sandy.  The Wall Street Journal had a similar story

So much for having any of those fancy mHealth apps; just think about any chronically ill patients who might have been being remotely monitored by their physicians when Sandy hit.  The wireless carriers are not yet seeing their mission as providing life-critical support to their customers, and it is getting harder and harder to understand why.

Sandy emphatically illustrated that wireless service is one that emergency planners will have to take very seriously going forward.  It has obvious implications for contacting friends and family, getting status updates on the disaster and recovery efforts, and helping direct affected people to assistance.  I only hope they take mHealth equally into consideration.  Not just for the things it does every day, but how to further take advantage of its capabilities when providers and their places of care are unavailable or limited.  Just think of how telehealth, remote monitoring, prescription history, and other applications could be useful in the aftermath of a Sandy.

Sandy has also firmly re-enforced Katrina’s lesson about health records.  We heard that lesson, and have spent much time, effort, and money on it since Katrina, but we find ourselves not much better off in making health records more fluid.  The EHR/HIE industries and their various customers need to step up their efforts and fix this problem -- hopefully before the next Sandy. 

I like the point that Brian Dolan of Mobihealthnews made in a recent post: technology is forcing us to rethink the classic concept of “point-of-care,” focusing more on where the patient is, not where the provider is, or even if the patient and provider are physically in the same place.  He was writing more from a mHealth perspective, but the paradigm shift applies broadly, as those evacuated Sandy patients could attest.

In the 21st century, health information can’t be tied down to paper or even to place, but has to be able to follow the patient wherever he/she receives care.

Wednesday
Nov072012

Post-Election Health Reform: The Future Is Now

By Lindsay Resnick, November 7, 2012

A year from now you may wish you had started today.

The major hurdles to healthcare reform’s Affordable Care Act – June’s Supreme Court decision and re-election of Barack Obama – are now history. Obamacare is here to stay. While obstacles and legislative fixes lie ahead (regulatory definitions, implementation timelines, funding appropriations), advancing a strategy of “repeal & replace” is now off the table. Expect political wrangling to shift focus to more pressing issues facing the country such as sequestration, budget reconciliation, tax cuts, and 2014 mid-term elections.

For health plans the next 14-months will be an intense period of preparation, planning and positioning. Today’s health insurance marketplace: 154 million employer-based, 14 million individually purchased, 47 million Medicaid, 49 million Medicare, and 49 million uninsured – will see profound change. New operating rules—State/Federal Exchanges, premium subsidies, elimination of pre-existing condition restrictions, rating limitations, Medicaid expansion, tax assessmentsdemand new thinking!

Confidence is the feeling you have before you understand the situation.

A winning health reform strategy starts by knowing your customers (and potential customers) better than your competitors. It means a data-driven direct-to-consumer approach to maximize reform’s opportunities and buffer risks…whether playing defense to protect your membership base, or setting-up a marketplace offensive to claim your fair share of new customers with a short-term land grab under current rules, and then starting 2014 in a position of strength.

Why? With product standardization, regulatory constraints and price transparency leveling the playing field and neutralizing brands, health insurers need to refresh their approach to customer acquisition and retention. The center of power is rapidly shifting into the hands of the customer. Millions of consumers will be shopping for coverage and migrating between market segments. They’ll be talking about you, price checking you, and recommending you…or not. Tomorrow’s customers will have a wide-ranging choice, and they will determine your value. Forward thinking marketers are making sure existing and prospective customers are engaged in their health care decision-making as they seek support from branded, personalized resources delivered by trusted local partners. 

First movers may sometimes fail, but last movers don't survive.

Based on a health plan’s core customer segments, product portfolio range, and distribution channel mix every Plan needs to design a customized, strategically sound approach to survive, and thrive as Obamacare advances through its implementation phases (see attached). The clock is ticking.

To compete in the new customer-centric healthcare retail game, success will come from taking a 360° view of your customer, differentiating your brand position, moving from a B2B to direct-to-consumer marketing orientation, distribution outlet “retailization”, and most importantly, developing an actionable framework to serve as the roadmap for your health reform enterprise plan.

Monday
Nov052012

What’s Happening at MCOL | Patient Centered Medical Homes: Outcomes & Cost Research

By Claire Thayer, November 5, 2012

Medical Homes have been increasingly embraced by stakeholders as a key component of 21st century health care delivery. The challenge now, is to demonstrate the validity of quality and value from PCHM care being delivered.  HealthCore's study of Empire BlueCross BlueShield PCMH pilots, including Westchester-based WestMed Medical Group, provides significant evidence that medical homes better managed their patients’ diseases, ordered fewer high-cost imaging tests, reduced patient emergency room visits and hospitalizations and reduced costs of care for patients overall.

On Thursday, this week, please join Healthcore's Director of Research Operations Andrea DeVries, PhD, Empire BlueCross Blue Shield's Chief Medical Officer Scott Breidbart, M.D., and Dr. Barney Newman, Medical Director for WESTMED Medical Group for this important event co-sponsored by Medical Home News, as they share detailed results from their hallmark PCMH research findings and experiences. 

We hope you’ll join us! http://www.healthwebsummit.com/medicalhome2012.htm

Friday
Nov022012

Accenture on Independent MDs in the near future: Fewer of Them; With More Performing Subscription Based Services

By Clive Riddle, November 2, 2012

Accenture has just released a new report: Clinical Transformation: New Business Models for a New Era in Healthcare. They found that  “over the past decade, the number of independent U.S. physicians has dropped dramatically, from 57 percent in 2000 to 39 percent in 2012. By the end of 2013, Accenture predicts this number will likely drop further, to 36 percent.” More interesting, it that “by the end of 2013, Accenture also estimates that one-in-three doctors remaining independent will offer patients with subscription-based services, such as telemedicine or online consultations, for sustaining profit – a trend that is expected to increase three-fold over the next three years.”

Accenture’s Kaveh Safavi, M.D., J.D., tells us “More independent physicians are offering subscription-based services as a way for patients to customize their care experience. Meanwhile, patients appreciate the opportunity to supplement their existing coverage with premium, subscription-based services, such as same-day appointments and online prescription refills.”

While this blends with concierge medicine concepts, but the possibilities for what physicians potentially could develop as supplemental premium services could be quite interesting. Of course, for those doctors under health plan managed care contracts preventing balance billing, chartering into premium service waters might require considerable navigation.

Here are some other findings from the Accenture physician survey:

  • 87 percent of physicians surveyed cited the cost and expense of running a business as a chief concern.
  • 65 percent joining health systems said they expect to make the same or less compensation than in private practice.
  • 61 percent cited business operations as a main reason for seeking hospital employment rather than remaining independent.
  • 53 percent cited electronic medical record requirements as a main reason for leaving private practice.
Tuesday
Oct302012

What’s Happening at MCOL | New HealthExecStore Partner - HIN

By Claire Thayer, October 30, 2012

We’re pleased to welcome the Healthcare Intelligence Network (HIN) as our newest HealthExecStore Partner!! HIN’s frequently updated Benchmark Reports and Guides cover topics including; Reimbursement, ACO's, Medical Home, Case Management, Trends, Health Management Tools, Clinical Integration, and Management Case Studies. Visit their HealthExecStore page at: http://www.healthexecstore.com/hin.htm

Here’s a look at our other HealthExecStore Partners:

Atlantic Information Services, Inc. (AIS) is a publishing and information company that has been serving the health care industry for more than 20 years. It develops highly targeted news, data and strategic information for managers in hospitals, health plans, medical group practices, pharmaceutical companies and other health care organizations. Their products include print and electronic newsletters, web sites, looseleafs, books, strategic reports, databases, and webinars. More info at: http://www.healthexecstore.com/aishealth.htm

Contexo Media, an Access Intelligence company, provides revenue-enhancing solutions for medical practices to maximize their coding, reimbursement and compliance efforts. Thousands of health care professionals rely on their coding books, software, eLearning, and educational workshops to stay on top of critical updates across the fast-changing medical landscape. More info at: http://www.healthexecstore.com/contexo.htm

Health Policy Publishing, LLC offers selected paid subscription newsletters in print and electronic formats, and free subscription newsletters in electronic format. Topics include: Accountable Care, Health Reform, Patient Centered Medical Home, Hospital Readmissions and Workplace and Retail Clinics. More info at: https://www.managedcarestore.com/ypg/hpp.htm

HealthQuest Publishers offers critical market intelligence for those doing business with the managed care and health care industries. HealthQuest Publishers has offered directories and reports since 1994 that provide leads, contact information, mailing lists, profiles and tools. More info at: https://www.managedcarestore.com/yhlthqst/healthquest.htm

Payers & Providers premier healthcare business publications include the weekly California and Midwest editions, monthly National Edition, and selected White Papers on key topics. Payers & Providers was founded in 2009 and is based in Burbank, CA. More info at:

https://www.managedcarestore.com/pandp/payersandproviders.htm

Learn more about these and other HealthExecStore products at: http://www.healthexecstore.com/

Friday
Oct262012

Reporting from the Healthcare M&A Frontlines: Irving Levin

By Clive Riddle, October 26, 2012

Irving Levin Associates has released quarterly merger & acquisition data from two reports they have just published: The Health Care M&A Report, covering the various healthcare sectors, and The Hospital M&A Market Report, Third Edition, 2012.

According to Irving Levin, activity declined during the past quarter. Stephen M. Monroe, Partner at Irving Levin Associates tells us, “historically, the third quarter is usually the slowest quarter of the year, but with the continued economic turmoil in Europe combined with the uncertainty of the 2012 presidential election in the U.S., there has been more caution in the health care market…. Two large managed care acquisitions made up more than half of the total dollars spent in the health services M&A market in the third quarter, and there really were no other dominant deals like that in any of the other sectors, whether technology or services,” according to Mr. Monroe.”

Irving Levin cited the total activity amounted to $38.2 billion in transactions, with managed care comprising 32% of the dollars, pharmaceuticals 24%, Home Health & Hospice 12% and the remain 32% spread among all other segments.

With specific respect to the hospital market, Irving Levin reports that “the Hospital M&A market was continuing its post- recession rebound, but lately it has been slumping in terms of dollars committed.”

Here are data tables Irving Levin has shared regarding M&A activity:

The Health Care M&A Market – Deal Volume By Sector

Sector Q3:12
Deals*
Q2:12
Deals
% Change Q3:11 Deals % Change
Services Segment:  
Long-Term Care 52 36 44% 43 21%
Hospitals 11 23 -52% 16 -31%
Physician Groups 8 21 -62% 28 -71%
Labs, MRI, Dialysis 21 10 110% 6 250%
Managed Care 6 9 -33% 5 20%
Home Health Care 9 6 50% 6 50%
Behavioral Health Care 3 4 -25% 1 200%
Rehabilitation 3 3 0% 6 -50%
Other 22 24 -8% 21 5%
Services Subtotal 135 136 -1% 132 2%
Technology Segment:  
Medical Devices 19 44 -57% 50 -62%
Pharmaceuticals 19 29 -34% 24 -21%
e-Health 25 24 4% 21 19%
Biotechnology 18 22 -18% 12 50%
Technology Subtotal 81 119 -32% 107 -24%
Grand Total 216 255 -15% 239 -10%    

 

Hospital Mergers and Acquisitions January 1, 2007 – June 30, 2012 

Year

Number of
Transactions

Dollar Volume of
Transactions

2007

60

$9,172,000,000

2008

60

$2,502,000,000

2009

50

$3,777,000,000

2010

76

$4,289,000,000

2011

90

$9,905,000,000

2012 6 Months

47

$812,500,000

Monday
Oct222012

What’s Happening at MCOL | Supersized B2B Health List

 By Claire Thayer, October 22, 2012

Create your own mailing list to reach the contacts you need! Custom select from over 51,000 health management and managed care professionals to build your healthcare business mailing list using our Supersized B2B Health List. Selections include standardized organization categories and job levels, in addition to state. Selections can also be randomized to fit a specified number of requested records. Your selection is delivered via CD or e-mail, in Excel or Text delimited formats. Your choice!

For summary and detailed statistical tables: https://www.managedcarestore.com/yhlthqst/b2btable.htm

For a flyer on the mailing list and order form:

https://www.managedcarestore.com/yhlthqst/b2bflyer.pdf

Learn more at the HealthExecStore: https://www.managedcarestore.com/yhlthqst/hqsuper.htm

Wednesday
Oct172012

Remember Who the Customer Is

By Kim Bellard, October 17, 2012

An organization called OpenNotes – primarily funded by the Robert Wood Johnson Foundation – recently released a very interesting study that supports the concept that patients do want to participate in their care with their physicians.  This probably doesn’t surprise patients, but may surprise many physicians. 

In brief, the study allowed patients of three geographically disparate primary care practices to access their doctor’s notes (electronically).  The study included over 13,000 patients from 105 physicians.  The vast majority of patients did view at least one note, and survey results indicate that such viewing notes made them feel more in control of their health and improved their medication adherence.  Contrary to physicians’ concerns, such viewing did not lead to longer visits or to more questions outside of visits.  About 60% of patients wanted the ability to add their own comments to the notes, while one-third wanted to approve the notes’ content (something adamantly opposed by the physicians).

It goes back to one of what I think is one of the central problems in health care: those in the business of health care are doing things about patients, but not necessarily for patients.   

Health records are the case in point.  They are maintained about patients, but are written in a jargon that is virtually unintelligible to lay consumers (and, in the case of paper records – often illegible as well!).  The concept that they belong to the patient in any real sense would come as a surprise to the health care professionals who keep them.  Meaningful use requirements are going to quickly force providers towards more patient access to information, such as clinical summaries of visits and summary of health information.  The easiest solution to this is likely to be a patient portal with a view into an EMR, but that in itself doesn’t mean the view is useful.  Please correct me if I’m wrong, but I don’t believe any of the “meaningful use” requirements relate to how meaningful the information is to consumers.  It is telling that the requirements for how many patients actually view or download the information is very weak – only 5%.

Those in the health care business talk in a language of ICD, CPT, HCPCS, DRG, NDC, DSM, to name a few; throw in insurance terminology to complete the task of confusing consumers.  Each of those grows ever-more complex and insular, driven by needs for more detailed analysis, billing, legal protection, and other purposes.  Now we’re increasingly moving towards widespread use of various quality indicators, which are similarly very well-intentioned but may not quite be answering the questions consumers have, or should have. 

As best I can tell, no one in the health business – physicians, hospitals, payors, labs, IT vendors, etc. – really like the complicated languages that have evolved around them, and all would argue that the complexity greatly adds to the expense of running their business, but I don’t see any groundswell to simplify the situation. 

One might have thought that the movement towards consumer transparency might ignite such pressure, but that hasn’t seemed to have happened.  Transparency is one of those things that everyone is in favor of conceptually, but the details of how to do it and whether consumers will use it remain open.  UnitedHealthcare recently found that only 14% of survey respondents use the Internet to comparison shop for health care treatments and services, compared to 75% who use it to comparison shop for other goods and services, a statistic United hopes to improve through its enhanced myHealthcare Cost Estimator.  Aetna, Cigna, Wellpoint and other Blue plans have their own online cost estimator tools.  

In addition to efforts from payors to help consumers with health cost transparency, there are a number of other efforts.  I had been aware of Castlight Health and The Healthcare Blue Book, but was a little surprised to uncover a plethora of other firms, including ClearCost Health, NewChoice Health, and Change Healthcare.  Some of these are aimed at employees of certain self-insured employers, or members of specific health plans, while a few focus on the general public.  It is admittedly an uphill battle to get consumers engaged in thinking about price and quality, and these various organizations all should be lauded for their efforts to give consumers more and better options for doing so.  That being said, it’s somewhat like the talking dog: it is not that it does it well, it’s just that it does so at all.

All the efforts to make costs more transparent have to wrestle with two key problems: what is the “service” being bought, and how can that service be explained in consumer-friendly terms?  E.g., an “office visit” has numerous CPT codes that could apply, each with its own price, and many visits and procedures are accompanied with other services that have their own costs, which the consumer might rightly view as being part of the original service.  How many of us have had, say, a lab test or an X-ray and then been surprised at how many bills we end up receiving for them?  

At the risk of repeating an overused analogy, compare “buying” health care with buying a computer /tablet from the Apple Store or Amazon.  Computers have their own technical language that can be every bit as arcane as health care, but consumers are not forced to use it or fully understand it to complete their shopping experience quite satisfactorily.  When they are shopping, they get lots of options on price and features, with plenty of reviews, customer feedback, and shopping “wizards” to assist them. 

Buying health care, on the other hand, is more akin to getting your own PC back in the 1970s, which required buying a kit and/or components and then trying to assemble the whole thing yourself.  Health care transparency as we know it begins to look more like giving consumers the prices of each component in your PC and quality indicators from the chip manufacturing process.  Those do mean something, but are not really what consumers want.  The problem is that health care professionals are speaking in Greek (or perhaps Latin!) while we want to hear about our health in our own language.

People talk about “disruptive innovation” in health care, by which they often mean use of various forms of technology.  Technology is going to certainly play an even more significant role, but I have to wonder if the disruption will come instead from organizations which can make the health care experience for consumers simpler –much simpler.  I.e., radically rethink what the “products” are, what the processes should be, and how these are communicated to patients. 

Our health care system has many historical practices and preferences that muddle the roles of the various parties involved in it, but it’s helpful to remember that it all boils down to the patient as customer.  It’s their health, after all.

Tuesday
Oct162012

What’s Happening at MCOL | HealthExecStore – shop for health care business tools and resources

By Claire Thayer, October 16, 2012

The HealthExecStore features many products from the industry’s leading organizations. Whether you’re looking for benchmark data, newsletters, databases, mailing lists, books or reports, you’ll find them in the HealthExecStore, online at: http://www.healthexecstore.com. Select specific company of interest or use the Solution Finder to search by applicable topic: i.e., Accountable Care, Benchmarks, Directories, Hospital, Mailing Lists, Reports, Training and Education, etc. Also, each month, HealthExecStore subscribers receive a complimentary copy of the latest HealthExecStore newsletter – to view the October 2012 edition, click here:  http://www.healthexecstore.com/newsletters/currentissue.htm

Leading HealthExecStore Partners include:

AIS Health | AIS Health is a publishing and information company that has been serving the health care industry for more than 20 years, serving as the one-stop source for news, data, and strategic information on the business of health care. AIS products include print and electronic newsletters, Web sites, looseleafs, books, strategic reports, databases, audio conferences and live conferences.

Contexo Media | Contexo Media, an Access Intelligence company, provides revenue-enhancing solutions for medical practices to maximize their coding, reimbursement and compliance efforts. Thousands of health care professionals rely on Contexo Media’s coding books, software, eLearning, and educational workshops to stay on top of critical updates across the fast-changing medical landscape.                       

Health Policy Publishing | Health Policy Publishing, LLC offers selected paid subscription newsletters in print and electronic formats, and free subscription newsletters in electronic format. Health Policy Publishing newsletters are administered by MCOL, a leading publisher of health care business information since 1995.

HealthQuest Publishers | HealthQuest Publishers offers critical market intelligence for those doing business with the managed care and health care industries. HealthQuest Publishers has offered directories and reports since 1994 that provide leads, contact information, mailing lists, profiles and tools.

MCOL Memberships | MCOL offers online memberships with a package of exclusive e-newsletters, member only web sites, and more.  MCOL is a leading publisher of health care business information to managed care and other health care professionals since 1995.

MCOL E-Learning | MCOL offers software e-learning resources for professionals, all available on CD-ROM. MCOL is a leading publisher of health care business information to managed care and other health care professionals since 1995.

Payers & Providers | Payers & Providers premier healthcare business publications include the weekly California and Midwest editions, monthly National Edition, and selected White Papers on key topics.

Learn more about these and other health care business tools and solutions at: http://www.healthexecstore.com

Tuesday
Oct092012

Health Reform’s New Customer Journey

By Lindsay Resnick, October 9, 2012

Health reform makes 2014 an important milestone for every health plan: market leaders protecting their turf and opportunists setting up for a land grab. At the same time, a value-based consumer experience has never been more important as the center of power shifts into the hands of the health insurance customer. The retailization of healthcare means consumers are in control and taking a new healthcare journey: budgeting for their health benefits, navigating care delivery, and recommending preferred health plans.

It’s time to anticipate and prepare for this new journey by putting a plan together built around a series of sequenced, deliberate action steps:

  • Know existing and prospective customers better than any of your competitors.
  • Build an actionable roadmap to secure a differentiated, believable market position.
  • Establish an arsenal of B2C marketing tools to reach, motivate and bond with consumers.
  • Integrate & optimize sales outlets (broker, worksite, telesales, online, mobile, retail).
  • Design a high engagement customer experience to drive retention and loyalty

A health plan’s ability to anticipate market shifts and prepare for strategic and tactical execution has reached a new level of urgency. Informed decision-making will separate winners from losers as companies manage through uncertainty. It calls for laser focus on two strategic imperatives:

  1. Protect and retain existing customers. With public and private health benefit exchanges now in hyper-speed development as a new distribution channel, plans need to deepen relationships with existing customers across product-lines, market segments and distribution channels. This means identifying and profiling a Plan’s most valuable and most vulnerable customers.
  2. Leverage “big data” to target growth opportunities. Across the country, the Affordable Care Act is expected to bring access to 30 million new customers; 24 million entering a new customer journey (aka Exchange), and possibly 16 million new Medicaid enrollees. Having a deep understanding of these prospective customers through demographic, attitudinal and behavioral data-driven segmentation is the only way to build an actionable, first-to-market sales and marketing plan.

In a retail healthcare marketplace it’s the consumer’s responsibility to deal with intimidating, complex benefit and health care decisions. Whether driven by reform or natural marketplace competitive pressures, if the cry for “personal responsibility” means asking consumers to step-up and take control of their healthcare destiny, they need to be educated in order to make smart, individualized choices. The burden falls on health plans to guide customers with a roadmap of relevant decision support.

To read more about preparing for health reform get KBM Group: Health Services’ newest Solutions Brief - Healthcare 2014: Leverage Opportunity Buffer Risk - Click Here

Monday
Oct082012

What’s Happening at MCOL | HealthSprocket – New list posted on Public and Private Health Exchanges to Follow on Twitter

Monday
Oct012012

ACO Explosion

Bill Demarco, October 1, 2012

Medicare Shared Savings

Feasibility studies for three ACOs in North Carolina, a medical group in Arizona, a physician alliance in Illinois, a hospital system in Indiana and consultation with several Pioneer Plans has kept us very busy over the last several months. Most of these are physician owned medical groups, while several are IPAs with medical homes who want to collaborate with one another to form the primary care base of a Medicare Shared Savings ACO.

Over 490 applications for new ACOs are in process and due to CMS by September 6th. Add to this the several hundred earlier ACOs approved in April and June of this year and it becomes clear that the 600% growth rate in ACOs since November of last year when final rules were published brings excitement to the marketplace.

This easily represents 20% of Medicare beneficiaries who will be connected to Medicare through their ACO by January 1, 2013. When adding the Medicare Advantage beneficiaries that represent 27% of the Medicare population and growing, it is a factual statement to say that 50% of all Medicare beneficiaries will be receiving their benefits through Medicare contractors instead of Medicare directly. These contractors are all being held accountable by CMS to follow stringent guidelines including patient satisfaction.

This means Medicare has been permanently changed by focusing on shares savings for improving quality instead of merely paying claims. We anticipate ACO mergers and acquisitions will be the next step as investors and hospitals catch up to the opportunity to invest in the new chronic care business model.

We are excited for the plans with whom we have worked and their enthusiasm and innovation encourages us to expand our own resources and capabilities to serve this emerging transformation of the local delivery system.

Cautioning new applicants for next spring

We are talking to people about getting their Notices of Intent (NOI) submitted in the spring. This would make them eligible for submitting an application in fall of 2013 with a start date of January 1, 2014.

Applications that look simple are not acceptable by CMS with simple answers. Some of the key points we have heard from CMS include:

• Several workflow adjustments need to be made to make the patient process coordinated and all encompassing.

• Early charge reconciliations indicate the patient population notified by CMS may be different than the original ACO defined population discussed in early planning.

In addition, beneficiary engagement is a vital area of the application and connects with population management which is the backbone of successful care management. Tools and techniques vary by service area.

What’s an AHO?

What is the difference between a Medicare Shared Savings ACO and an Accountable Health Organization (AHO)? Is an AHO a private ACO?

Many people continue to be confused by private ACOs such as those sponsored by Cigna, Aetna and Blue Cross versus the Medicare Shared Savings opportunity to contract for Medicare lives in their area. While many of these private ACOs represent more of a bundled payment experiment paying global fees to doctors and hospitals tied to some sort of risk banding, the Medicare ACOs have a stronger focus on quality scores versus production of services and in so doing are able to raise the bar for both quality and cost. Private ACO sponsors are slowly making this transition but providers need to read closely what they are obligating themselves to in the future. Some are asking insurers for 2 side risk on day one and some are asking for one side risk only.

 

Monday
Oct012012

What’s Happening at MCOL | Just released! ACO Learning Kit version 5

By Claire Thayer, October 1, 2012

Version 5 of MCOL’s popular ACO Learning Kit is now available.  This learning tool is packed full of important information about Accountable Care Organizations, including:  video presentations from national experts with over fifteen hours of instruction on ACO topics; 164 Executive Profiles of thought leaders and executives involved with Accountable Care; an overview presentation with summary of key ACO information; library of thirty-one key Accountable Care articles and regulatory documents, interactive Quiz with optional full text and answer key.

Watch a 3 minute Video on HealthShareTV

Learn more at: https://www.managedcarestore.com/YMCOL/acolearningkit.htm

Tuesday
Sep252012

What’s Happening at MCOL | The Future of Health Cooperatives

By Claire Thayer, September 25, 2012

What does the future of healthcare cooperatives hold? The potential answers are of significance, not only to health cooperative stakeholders, but to all organizations involved in some aspect of the delivery of healthcare benefits, as applicable cooperatives will be available side-by-side with other health plan alternatives. We hope you’ll join us on Thursday this week as three nationally noted stakeholders in the Health Cooperative movement share their insights, perspectives and experiences on their own organizational development and overarching issues going forward for healthcare cooperatives around the country. To learn more: http://www.healthexecwire.com/releases/hew092412.htm

Monday
Sep242012

Remind Me Why We Have Insurance

By Kim Bellard, September 24, 2012

A recent article in The Columbus Dispatch reported on the practice of doctors providing discounts to patients if they paid directly instead of using their insurance.  It got me thinking about far health insurance has strayed from its original purpose.

We ask health insurance to do a lot of things: lessen concern about catastrophic expenses, reduce financial barriers to care, smooth out cash flow of health expenses, even help us manage chronic conditions via disease management and wellness programs.  Insurance does these things because, frankly, there haven’t been many good alternatives.  But that doesn’t mean there couldn’t be.

The Affordable Care Act -- ObamaCare -- requires expanded coverage for preventive care with no cost-sharing, on the premise that this will help people get those serves.  It troubles me that some, perhaps most, people won’t get necessary preventive services unless it is “free” to them at point-of-care.  That tells me something is really, really wrong with how we look at health.  But why does health insurance needs to be the mechanism for providing incentives to take care of one’s own health?

The Dispatch gave several examples of physicians and hospitals offering significant discounts – up to 40% - to patients who pay directly, in order to avoid the administrative burdens of dealing with health insurers.  It also quoted Tom Blue of the American Academy of Private Physicians as indicating they believed there were 4400 physicians nationally who replied in part or entirely on direct payments from patients, although that would seem to include uninsured patients. 

A more direct patient-physician financial relationship may be an idea whose time has come…again.  So-called “concierge medicine” started several years ago, and has developed to the point where it has its own trade association, the aforementioned American Academy of Private Physicians.  The concept of concierge medicine is that patients pay a fixed fee, monthly or annually, and in return they get guaranteed 24/7 access to their personal physician.  No insurance, no billing, no out-of-pocket payments.  

Examples of concierge practices include EliteHealth, MDVIP, and SignatureMD,  There’s even a television series featuring a concierge practice, USA Network’s Royal Pains.  Prices for concierge service vary widely, with some practices aimed at wealthy families and costing tens of thousands per year, while others are more affordable at $1,500 - $2,000 annually.  Proponents believe it greatly reduces the number of patients physicians have to see, reduces hassles with third party payors, and ensure a closer, more accessible physician-patient relationship.

Then there’s “direct primary care” model.  Like concierge medicine, patients pay flat fees for access to personal primary care physicians.  The lines between the two approaches are somewhat blurry, at least to me, but direct primary care tends to use monthly fees instead of annual retainers, and appears to be generally less expensive, often under $100 per month.  It also has its own trade association – Direct Primary Care – and has had legislation passed in both Oregon and the state of Washington to specifically allow the approach. 

Examples of direct primary care practices include Qliance and MedLion.   The DPC website lists over 80 practices in 19 states, some of whom are also listed in the American Association of Private Physicians website.   DPC argues that by cutting out insurers and the practices expenses devoted to billing and administrative hassles associated with third party payors, direct primary care can save 40% of the health care dollar.   

Concierge medicine and direct primary care both emphasize primary care and flat payments to cover essentially unlimited access to primary care services (and, in some cases, many routine services).  Both seek to eliminate insurers from the equation.  It’s interesting that while these efforts are happening, Medicare and many insurers are experimenting with patient centered medical homes (PCMH), which also seek to reestablish primary care as the centerpiece of a patient’s health care needs.  In the PCMH model, of course, insurance is still very much part of the picture, providing additional financial support to the involved primary care physicians.  In an ACO world, though, health insurance may be less integral to PCHM practices.

For all these models, I can’t help but be reminded of 1990’s capitated gatekeeper approaches, which also featured fixed per-member payments (from insurers) and primary care physicians coordinating all care.  It will be interesting to see how these new approaches – concierge, direct primary care, or PCMH – deal with patients with complex needs.  Just as there was with capitation, there will be financial temptation to triage them off to specialists who are still on fee-for-service, and there will be similar concerns about such practices skimming off healthier patients, not to mention wealthier patients. 

I don’t know if concierge medicine or direct primary care will ever evolve out of niche offerings, and their development will be interesting to watch.  The model I think is potentially even more disruptive to the current system is the encroachment of corporate approaches to retail medicine – e.g., TakeCare, Minute Clinic, Walmart’s recent entry into immunizations, among others  All of them work with health insurance, because that’s where the money is now, but all are also quite happy to take consumer’s money directly and to do so in a way that is more like we buy other goods and services, with clearly delineated lists of services and prices.  If other parts of the health care system think those kinds of approaches aren’t coming to them, they are deluding themselves.

Two things I feel strongly that our health care financing mechanisms should achieve is that low income people need assistance with paying for health care services, and no one should have to go broke due to medical bills.  Even for those, though, I can think of solutions which do not require health insurance.  As for cash flow management and chronic condition management, health insurance may actually be one of the less efficient solutions to address those. 

I am not saying there shouldn’t be any sort of health insurance, but given the mess we find out health system in – expensive, uneven access and quality, high administrative costs, etc. – maybe it’s time we rethought what it looks like.  It’s too bad that, as we start to decide what constitutes essential benefits under ObamaCare, we’re still playing small ball.

Thursday
Sep202012

Three Ways Health Plans are Using Twitter to Engage Their Members (and Potential Members)

By Marshall Riddle, September 20, 2012

Case Studies in Health Care Social Media

Last month MCOL released its 2012 update to its Benchmarking Healthcare Social Media Learning Kit. The base of the learning kit is a white paper which covers a study on 216 social media accounts representing 58 healthcare organizations from five sectors and takes data from Twitter, Facebook and YouTube. A number of benchmarks and ratios were developed for the study including the Twitter engagement ratio which measures the “quality” of an organization’s followers. Quality in this case pertains to an audience who interacts and is more likely to be interested in the content an organization is tweeting about. The engagement ratio is the percent of followers who are of “quality”. If a health plan’s goal in using twitter is to engage and be engaged by their members (and potential members), then this ratio is a relevant way to measure whether their approach to Twitter is effective.

Based on Twitter accounts utilized by health plans that were looked at in this study there are three basic approaches to using twitter in this industry sector:

1. Promoting company brand and activities: tweeting what would normally go out in a company press release

2. Customer Assistance: helping plan members with questions and navigation of their coverage whether solicited or not

3. Health/wellness/fitness advice: promoting the well being of their members in order to create a positive and interactive brand image

One account type not listed here and not focused on in the study were those which focused on job listings. This type of account does not have the goal of engaging with consumers and thus is not relevant to this list.

The 36 Twitter accounts from eight health plans that were included in this study spanned all three approaches. Examples of each are detailed below.

Promoting Company Brand and Activities

As Twitter has become as much a news aggregator as a social media platform, some health plans have focused their use on this aspect which was a natural progression from posting press releases in the media section of their website.

One plan which operates an account that spotlights its brand is Health Care Service Corporation (@HCSC). @HCSC tweets about:

Company achievements:

Company Programs:

How the company supports the community

@HCSM will also occasionally send out tweets with wellness and health information, though many of them link back to one of their plan’s press releases.

@HCSM has an engagement ratio of 1.58% which is below the average engagement ratio of plans included in the study at 2.83%. While @HCSM’s audience is not as engaged as other plan’s its maintenance takes much less effort than the other two approaches health plans are using on Twitter.

 

Customer Assistance

Whether a company has a presence on twitter or not, people will be talking about them, usually to complain. When a health plan has a customer service style account and someone tweets a complaint (or insult) at them or about them they are able to respond with an offer of help. Kaiser Permanente is one plan which does this with their @kpmemberservice account.

They respond to:

Negative references:

Questions or help with member services sent to any of their organization’s accounts:

And the very rare compliment:

@kpmemberservice has an engagement ratio of 4.15% which is above the health plan average of 2.83%. While this is a high engagement ratio for a health plan (most accounts of this style are similarly high), some of the engagements driving this are negative as seen above.

 

Health/wellness/fitness advice

Some health plans choose to focus one of their twitter accounts (or there whole twitter presence) on creating a positive brand image rather than promoting their company or services. They do this by tweeting about healthy living, nutrition, and fitness. Much of the time they tweet in the form of questions in order to start a conversation about a positive non controversial topic.

Humana has been using this approach with their @humanavitality account. Their positive tweets include:

@humanavitality has an engagement ratio which falls more towards the average at 2.96%. This is a lower engagement rate than what you would get from a customer service style account, but on the whole, the engagements with users are positive.

Each approach has its pros and cons. Promoting company brand and activities puts out the exact information a plan wants to and is low maintenance, but has limited engagement with consumers. Customer Assistance has a very high engagement ratio but does attract negative comments (though the negativity much of the time is already out there.) Health/wellness/fitness advice accounts have a good engagement ratio and have mainly positive engagements. The only drawback to the advice accounts is the plan is not able to offer material information on their plans and services.

To see how your plan stacks up to plans with similar accounts and to learn more about the study and benchmarks used check out The Benchmarking Healthcare Social Media Learning Kit 2012 (https://www.managedcarestore.com/ymcol/HCSM.htm).