Relentless Health Value

Stacey Richter
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Sep 29, 2022 • 33min

EP381: For Reals, Becoming Customer-centric, Transforming, or Innovating at a Very Large Organization, With Karen Root

I was at the PanAgora Pharma Customer Experience (CX) Summit earlier this summer. Let me tell you one of my big takeaways. Many at pharma companies who are trying to convince their organizations of the need to be provider- and/or patient-centric are having a tough go of it. Heard that coming from every direction. Seems there are quite a few pharma organizations out there who are not actually customer/patient-centric. Say it isn’t so. Turns out, they continue to be pretty darn brand-centric whether or not anyone besides the CX team and the most successful KAMs (key account managers) realize this hard truth. This matters because, from a provider organization, physician, or patient standpoint, it’s not what’s written on the walls … it’s what goes on in the halls. It’s what a company actually does in their interactions with the rest of the healthcare ecosystem that matters and that builds their reputation. You see this lack of customer centricity and, et cetera et cetera, there are certainly other things going on here; but you see the lack of customer centricity manifesting, right? You see the pharma reps that get kicked out of hospital systems because the perception is they add little if any value and “waste doctors’ time; all they do is shove detail aids in our faces.” Heard that recently. You see manufacturers in the news getting fined, very publicly, by the OIG (Office of Inspector General) or the DOJ (Department of Justice) for doing stuff that is not really patient-centric by a long shot. For those of you working at pharma companies looking to do the right thing by patients, looking to be patient- or customer-centric for reals, a couple of reality checks here which you might be able to use to spark transformation at your organization. You saw, for the first time ever, legislation allowing Medicare to negotiate for drugs to pass into law, as well as the inflation rebate. Listen to the show last week with Mark Miller, PhD (EP380), for the “why did that happen right now” full story, but the short version is this: People, voters, patients, physicians, taxpayers, policy makers … all of them are questioning the value that Pharma brings for the money being spent. I am being blunt, I know; but so is this here referendum that just happened. If you’re trying to spark change and you need a story arc that has a carrot and a stick to inspire transformation at your organization, I’m just dropping this here for you.   In today’s environment, bottom line, being brand-centric instead of customer-centric diminishes trust. Look, this doesn’t just pertain to Pharma; this is a message for the whole industry. But there is certainly a way to do well by doing good, and how that starts is helping provider organizations and patients improve patient outcomes as the primary goal. Being innovative to that end. It’s about supporting the best-practice standard of care and bringing resources to bear that are truly helpful. That is how more of the right patients can get the right treatment/drug at the right time or take their meds as per the A1A clinical guideline. It’s probably also the way to sustainable business success. I’ve said it here a thousand times: People trying to do the right thing by patients all need to work together. If there’s a party in the mix that nobody else wants to deal with because they are deemed not a team player or they don’t listen … yeah, that’s what I call a competitive disadvantage, beyond just squandering their ability to achieve their mission statement and improve patient care and lives, that is. Today’s conversation is with Karen Root, who was a speaker at the aforementioned PanAgora conference. In this healthcare podcast, we are talking about how to make transformation and innovation actionable at a large organization—maybe a pharma company but pretty much any large organization with lots of people, lots of human beings with different motivations and goals. As we all know, for every early adopter, there are (it feels like) five laggards who will fight you tooth and nail because they do not want to transform. They like being brand-centric, and it’s been working out fine … well, up until this year, at least. Karen Root is currently director of experience strategy at Boehringer Ingelheim, which is a pharma company. For many years prior to her current role, she was an enterprise head of brand and culture at WL Gore & Associates. What we talk about in this show is how to break down the historical “brand is king” mentality so that people want to follow with the awareness, courage, and determination to do so. Everything that we talk about in this episode can also be applied to pretty much any organizational transformation or the rollout of any innovation or new capability. Here’s the key things that Karen talks about which are essential for an organization to transform, maybe (again) in a way that is customer-centric and/or to roll out new innovations or capabilities: Leaders must communicate a compelling vision that also includes a realistic assessment of what it’s gonna take to reach that vision and offer hope and the promise that the hard work and inevitable problems will all be worth it. Systems thinking—a consideration of the systems and the people who will need to be a part of the transformation, thinking through what is likely to go wrong and proactively planning for it Identify the right entry point. This should be a micro-journey or a quick win so that the team can score a victory and get through the messy middle that exists in any transformation or rollout. Triple points if you can find a micro-moment that has some emotionality connected to it from your customers’ perspective or patient perspective. If you can fix a so-called moment that matters, it really matters. Consider starting by looking into call center logs, finding a common complaint, and fixing it. Do it this way and it’s harder for anybody to complain that the status quo is so super amazing and tell you to talk to the hand. Determine how you are going to measure what your quick win accomplished, as well as your whole larger transformational effort. Ensure you have a full story arc here that shows the before and the after that clearly articulates that the before (the status quo) is problematic and that we have to, with urgency, get to the after. Never forget that we’re working with human beings here and not, as they say, rational economic actors. One heads-up: In the conversation with Karen today, we talk a lot about the so-called J curve. As Karen says (and you can look this up), whenever you introduce a new anything into an organization, at some point, there’s gonna be a mess-up. And when something messes up, the whole team will spiral into a so-called “trough of disillusionment” or a “trough of despair,” sometimes it’s called. This is the rock-bottom hook of that J in the J curve. The thing is, if a leader’s vision isn’t sufficient or their will to continue isn’t sufficient, then the organization quits at this low point instead of working through it and coming out in a better place on the other side of the J. And you know what happens then. From that point forward until eternity, everybody who brings up implementing an innovation or a transformation will definitely hear the lecture about the time we tried that and how it failed miserably. So, the J curve … Check it out. Don’t underestimate it. One very last thing: If you are working for a large organization (like Fortune 500 large) and you have succeeded in moving a transformation forward (like being actually patient-centric or customer-centric, for example), hit me up. I would certainly love to hear your thoughts on how you did it and why you think you were successful and the impact that you had.
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Sep 22, 2022 • 33min

EP380: 7 Big Reasons Medicare Drug Price Negotiation Actually Happened This Time Around—What Changed? With Mark Miller, PhD

It’s been said that healthcare in this country will not be transformed because of some incremental government policy, nor will this industry transform because of some tech company who techs the crap out of healthcare. It’s been said that the only way the healthcare industry in this country is going to fundamentally change is vis-à-vis a seismic shift in the way Americans view the healthcare industry in their understanding of what is going on and the extent to which it directly impacts lives. You and I, all of us, have heard pundits say every year for a decade (at least) that this revolution is a-comin’ and that this year … no más. Americans cannot afford to pay any more in premiums or out of pocket. We have reached the brink. And year after year, we’ve discovered that, in fact, Americans as patients, members, and taxpayers can pay more and are willing to do so. Well, maybe right now we are actually cresting the chop. Medicare can now negotiate drug prices legislation. Maybe it’s a bit of a watershed moment here. In this healthcare podcast, I’m talking with Mark Miller, PhD, EVP of healthcare at Arnold Ventures; and this is what we talk about today: the why now—the why, all of a sudden, after years of talking and griping and nothing happening, how right now, what constellation of factors transpired that enabled Medicare drug price negotiation to become law. You need to listen to the show to get the context, but here’s the seven main reasons by my counting that Mark Miller talks about in this episode: The sensitivity of the public to just healthcare costs in general, Pharma being an easy-to-spot component of those healthcare costs Sensitivity of policy makers to Pharma’s R&D claims, and non-industry-sponsored information coming out that tempers some of those research and development claims that Pharma has been making Sensitivity that innovation isn’t a homogenous broad stroke when it comes to new drugs. There’s a difference between breakthrough innovations versus me-too-type drugs. Consider some new combination drug that’s, I don’t know, two generics and costs $2000 a month. There’s eyes on that kind of stuff, and if Pharma’s reputation travels in an industry-wide block, this compounds our #3 point here. Sensitivity of innovation in the future versus people getting access right now to today’s innovations. If too many people (ie, voters) can’t get access to today’s meds, it’s a reach to expect them to worry too much about their future selves where, in all likelihood, they are thinking that they still wouldn’t have access to the drugs. The landscape shifted, but pharma talking points did not—and the result was labeled “tone deaf” by some. Voters wanted aggressive actions as a result of the aforementioned constellation of factors, and a majority of Congress people responded and either voted yes or didn’t protest overly hard, even if they didn’t. Patient voices became more sophisticated. While they still might have issues with PBMs (pharmacy benefit managers) and/or insurance carriers, there’s a growing perception that the story here is more nuanced and Pharma is in that mix. This is what we talk about in this episode: the why now, exactly and specifically. So thrilled to have had this conversation with Mark Miller, who has had, and continues to have, such a storied career. In brief, Mark Miller ran MedPAC (Medicare Payment Advisory Commission) for 15 years. That’s a big deal. He also has held other roles at CMS and the Urban Institute. Now, Mark is at Arnold Ventures, as aforementioned, which is a philanthropic organization. He oversees Arnold’s work in healthcare. One last thing: The legislation that just passed also includes a few other parts that impacts drugs. A big one is limiting the catastrophic Medicare Part D out-of-pockets to beneficiaries to $2000. And then there’s also an inflation rebate. So, there’s a rebate back to Medicare if Pharma raises its prices faster than the inflation rate. You can learn more at arnoldventures.org.  Mark E. Miller, PhD, leads Arnold Ventures’ work to lower the cost and improve the value of healthcare. He has more than 30 years of experience developing and implementing health policy, including prior positions as the executive director of the Medicare Payment Advisory Commission, assistant director of Health and Human Resources at the Congressional Budget Office, deputy director of health plans at the Centers for Medicare and Medicaid Services, health financing branch chief at the Office of Management and Budget, and senior research associate at the Urban Institute. 04:45 Why did Medicare’s ability to negotiate on drug pricing happen now? 06:35 What’s different about the drug market today that allowed Medicare to gain the ability to negotiate drug pricing? 12:08 How has innovation played into drug price negotiations? 12:40 “If you limit profits, you can end up limiting innovation.” 14:03 Why was the distinction between more drugs and innovative drugs important to changing the landscape of the drug market? 15:49 More versus new and future versus now in the drug market. 19:59 “As the landscape was shifting, Pharma didn’t shift with it.” 23:00 How did voters change the landscape in drug pricing? 24:39 “Pharma did not have exclusive control over the patients’ voice.” 29:59 “The industry would largely like to just stick with the patents that they have.” 30:16 “Of course, it’s competition that ultimately drives innovation.” 31:30 “This is an exquisitely complicated market.” You can learn more at arnoldventures.org.   @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast Why did Medicare’s ability to negotiate on drug pricing happen now? @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast What’s different about the drug market today that allowed Medicare to gain the ability to negotiate drug pricing? @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast How has innovation played into drug price negotiations? @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “If you limit profits, you can end up limiting innovation.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast Why was the distinction between more drugs and innovative drugs important to changing the landscape of the drug market? @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast More versus new and future versus now in the drug market. @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “As the landscape was shifting, Pharma didn’t shift with it.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast How did voters change the landscape in drug pricing? @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “Pharma did not have exclusive control over the patients’ voice.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “The industry would largely like to just stick with the patents that they have.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “Of course, it’s competition that ultimately drives innovation.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast “This is an exquisitely complicated market.” @MarkMiller_DC discusses #medicare #drugprices on our #healthcarepodcast. #healthcare #podcast   Recent past interviews: Click a guest’s name for their latest RHV episode! AJ Loiacono, Josh LaRosa, Stacey Richter (INBW35), Rebecca Etz (Encore! EP295), Olivia Webb (Encore! EP337), Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins  
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Sep 15, 2022 • 35min

EP379: How Much Money, Really, Are Employee Benefit Consultants and/or Brokers Making From Plan Sponsors? With AJ Loiacono

This show with AJ Loiacono is different than others you may have heard with him because in this healthcare podcast, we are not talking about PBMs (pharmacy benefit managers). We’re talking about brokers and EBCs (employee benefit consultants). So, say I’m a self-insured employer. Here’s the big question: Is my broker or EBC helping me make the right decisions, or is he or she helping me make decisions that will make them the most money? While there are some amazing and totally above-board EBCs and brokers out there, unfortunately, caveat emptor is a thing. Buyer beware, that is. Too many self-serving and I’m sure very charming sharks are out there circling plan sponsors. It is currently a fact that some EBCs and brokers and even TPAs (third-party administrators) or PBMs or others take hidden kickbacks or fees or percentages. They make a lot of money, maybe the most money, in these secret ways. All this money, money paid in secret backroom deals—let’s not lose track, these dollars increase the total prices paid by plan sponsors and employees. Now, I say this to say that my guest today, AJ Loiacono, calls 2022, right now, a “magical moment” for plan sponsors—and for straight-shooting EBCs and PBMs and all the others who are actually doing the right thing by their clients also. It’s because of the Consolidated Appropriations Act (CAA), which states quite clearly that plan sponsors can ask their healthcare and benefits service providers to disclose the money that they are making off of the plan—all of the money, not just the direct fees. The CAA went into effect last December (December 2021), and contrary to what some people have said or may believe, it is in force right now. The field memo went out on 12/31/2021. So, the CAA is the rule right now. And in fact, the CAA makes it imperative under ERISA (Employee Retirement Income Security Act) to do what I just said: Plan sponsors must disclose the monies that they are paying out on behalf of employees and ensure that those fees are reasonable and free from conflict. If you’re the fiduciary of the plan, you gotta disclose all these indirect and direct compensations of the people that you are paying or the people that you are paying who may be kicking back dollars to other people you are working with, unbeknownst to you. The Department of Labor is putting as much emphasis right now on healthcare as they put on 401(k) plans in the early 2000s, so this is a big deal—or it should be—for plan sponsors. So obviously, in order to comply with the CAA, self-insured employers should be requesting from their EBCs and brokers or others that they disclose, in writing, how much money they are making off the plan. You can see why this disclosure would be necessary if the plan sponsor is responsible to determine if those payments are reasonable and seem to be free from conflict, right? You can’t evaluate something you do not know about, and if you don’t know about it, the plan sponsor is the one at risk. Ignorance is not an excuse here. Here’s one example: What if the EBC or TPA is collecting a $40 payment per prescription from the PBM? Wait … what? Some plan sponsor is paying $40 per script in, I guess you’d call it, a commission? Yes, that is a rumored example—$40/Rx. It is basically full-on arbitrage, and if anyone disagrees, let me know why and how it’s not. Or let’s say the EBC is making, say, $6 per script payable by the PBM, and this sum should be mailed quarterly to a PO box in another state. This was a condition, by the way, for a PBM to win an RFP (request for proposal) that the EBC wrote and picked the winner of. Yeah, you as the plan sponsor really probably want to know that this is going on because it’s your butt on the line. Maybe they are happening right now to you if you haven’t gotten the disclosures from your EBC or broker. So, in sum, the CAA is in effect right now. Penalties can be levied right now against plan sponsors. For a deep dive into the CAA, listen to the show with Christin Deacon (EP342) from last year.   What’s the process if I’m an employer plan sponsor? Step 1: Request in writing the dollars that your EBC or broker is making off of you. Similar to the advice that you’ll hear often on this show, ask for actual dollars, not a percentage of this or that. Ask for how much money did you (broker or EBC) make off each program that you recommended to us, and what did that total up to. Once you make that request, the EBC/broker/TPA (whoever you’re asking) has 30 or 90 days to respond, depending on who you ask. But if they do not respond, then you, the employer, should report them to the Department of Labor. Keep this in mind: Once that EBC or broker is reported for failure to comply by anybody, meaning likely some other employer, it is only a matter of time before that information becomes public. And the second that info becomes public, I guarantee you that there’s some attorney out there just waiting to file a class action lawsuit against every other self-insured employer who uses that EBC/broker because everybody else out there is now out of compliance. Right? I’m not a lawyer and I am certainly not a class action ambulance chaser, but even I can figure out that strategy. AJ Loiacono has been on this podcast before talking about PBMs, and in this episode he delivers, talking about the shenanigans of some brokers and how the jig is now up. AJ is the CEO of Capital Rx, which is a PBM 2.0, as they call it. To see how the CAA is playing out, you can read about one real-life example of a school district’s lawsuit against an insurance consultant.   You can learn more at cap-rx.com and find resources through law firms. Anthony J. “AJ” Loiacono is the co-founder and CEO of Capital Rx, one of the fastest-growing health technology companies in America. He has over 20 years of experience in pharmacy benefits, finance, and software development. AJ’s mission is to create the first efficient market for prescription prices and provide employer groups with the highest standard of patient care. AJ has spent his career studying the pharmaceutical supply chain and producing engineering solutions that have continually redefined the pharmacy benefit industry to achieve this goal. Prior to Capital Rx, AJ was a co-founder of Truveris, where he served for eight years as CEO, CIO, and board member, leading the company to record growth (Deloitte FAST 500 and Crain’s Fast 50). Before Truveris, AJ co-founded SMS Partners, a joint venture with Realogy (RLGY), and in 2010 exited the partnership with a buyout. In his first venture, AJ started Victrix, a pharmaceutical supply chain consultancy, and successfully sold the company to Chrysalis Solutions in 2007. AJ is a graduate of Manhattanville College, where he studied finance while playing varsity soccer and rugby. 06:03 Who can get in trouble for mismanaging employee funds? 06:31 Who can begin the cycle for annual review? 07:53 “When you talk about conflicts of interest, they’re everywhere.” 13:17 “You’re paying for access.” 13:38 Why is it important to request that they disclose direct and indirect compensation? 14:08 What are the layers to these hidden fees and compensations? 18:17 What is a reasonable fee for a good plan admin? 19:32 “I think people need to step back and say, ‘How many different ways are they getting compensated?’” 24:57 “The compensation is not just unreasonable, but if they were to move it, they would lose access to an entire column of revenue.” 25:13 “For every good broker consultant, there’s a horrible individual lurking out there and it’s easy to figure out: Ask for them to disclose their fees.” 28:14 “You can’t win if you can’t even pay the house fee to come in.” 31:42 Why do you need to ask for disclosure, and what do you need to ask specifically? 32:27 What are some of the characteristics of a good plan consultant? You can learn more at cap-rx.com and find resources through law firms.   AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth Who can get in trouble for mismanaging employee funds? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth Who can begin the cycle for annual review? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “When you talk about conflicts of interest, they’re everywhere.” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “You’re paying for access.” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why is it important to request that they disclose direct and indirect compensation? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth What are the layers to these hidden fees and compensations? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is a reasonable fee for a good plan admin? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “I think people need to step back and say, ‘How many different ways are they getting compensated?’” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “The compensation is not just unreasonable, but if they were to move it, they would lose access to an entire column of revenue.” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “For every good broker consultant, there’s a horrible individual lurking out there and it’s easy to figure out: Ask for them to disclose their fees.” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth “You can’t win if you can’t even pay the house fee to come in.” AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why do you need to ask for disclosure, and what do you need to ask specifically? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth What are some of the characteristics of a good plan consultant? AJ Loiacono of @cap_rx discusses #ebcs, #brokers, and #plansponsors on our #healthcarepodcast. #healthcare #podcast #digitalhealth   Recent past interviews: Click a guest’s name for their latest RHV episode! Josh LaRosa, Stacey Richter (INBW35), Rebecca Etz (Encore! EP295), Olivia Webb (Encore! EP337), Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova
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Sep 8, 2022 • 33min

EP378: The Status of Telehealth Reimbursement and Other Telehealth Policy Updates, With Josh LaRosa, MPP

Okay, so … telehealth for Medicare patients. Currently, there’s payment parity, meaning a clinician gets paid the same amount for a Medicare patient visit regardless of whether that patient comes in the office or has a telehealth encounter. Right? Or did that end already? And if it didn’t end, how much longer will payment parity continue? Also, is it the same for commercial and Medicaid patients? Congress makes rules for Medicare patients, but is it Congress that makes the rules for commercial and/or Medicaid telehealth reimbursement rates? Or how do those reimbursement decisions get made? What about the doing telehealth across state lines thing … the idea that if I’m a doc in New York, I can take a telehealth appointment with a patient in Arizona even though I am technically not licensed in Arizona? And who’s in charge of that? Yeah, I went into today’s conversation with Josh LaRosa, VP at Wynne Health Group, with a lot of questions. As you may suspect, this program is about telehealth. But just to level set on what we’re not talking about, this interview does not dissect the “should we use the telehealth or should we not” question; and it does not get into best practices or equity concerns. For that info, listen to the show with Christian Milaster (EP320) or Liliana Petrova (EP357) or Ali Ucar (EP362) or Ian Tong, MD (EP347).  Also, we are not talking about the politics, per se, of who’s for telehealth and who’s against it. We also aren’t drilling too far into the telehealth fraud cases that are coming to light right now, but of course we cannot resist talking about them a little bit. So, let me tell you what Josh LaRosa and I are, in fact, talking about in this healthcare podcast. We’re specifically discussing the near-term future of CMS reimbursement for telehealth and the allowed so-called “flexibilities” for telehealth. We talk about a few of the why’s behind why are policy makers doing some of the stuff that they are doing. And then we chat about the when, how long some of the new flexibilities and reimbursements that were permitted originally during the pandemic will continue. We touch on the Cerebral incident (I guess maybe you’d call it) and the potential DEA or legislative actions that may result from that as well. An interesting point that we dig into for a couple minutes is this one: Do not forget that the whole telehealth reimbursement debate (do I wanna call it?)—Should we cover it? Should we not cover it? And for how much?—this whole debate is part of a bigger debate. A much bigger debate, actually: the fee-for-service vs the not-fee-for-service debate. That’s the larger context of all of this, and I think it’s often overlooked. Nobody anywhere is limiting how often a practice who wants to use telehealth as part of some kind of risk-based or capitated thing can use telehealth. Why? Because in a capitated or bundle arrangement, from a Medicare trust fund perspective at least, telehealth visits are not equivalent to additional spend or additional volume. In a non-FFS environment, there’s little chance of fraud also, really. Also, patient safety—arguably, probably—becomes much more of a practice concern. It gets a lot less rewarding to do unsafe things over telehealth when you don’t get automatically paid to do them … and also paid to fix the problems that resulted from the unsafe things, which is the perverse beauty of FFS that we’re all so familiar with. Acronym alert! PHE stands for public health emergency. A public health emergency is the thing the government declares, for example, during a pandemic. You can learn more at wynnehealth.com or by following on Twitter and LinkedIn.   Josh LaRosa, MPP, is a vice president at Wynne Health Group, focusing primarily on regulatory affairs with a focus on the US Food & Drug Administration (FDA) and Centers for Medicare & Medicaid Services (CMS). His interests lie in delivery reform and innovations in payment and care delivery models. Josh also supports the firm’s Public Option Institute, which studies the emergence of public option programs at the state level. Prior to Wynne Health Group, Josh consulted for the CMS Innovation Center, where he worked to implement, monitor, and spread learning garnered from the center’s high-profile demonstration projects, most recently including the national primary care redesign effort, Comprehensive Primary Care Plus (CPC+). Josh holds a Master of Public Policy from the University of Virginia’s Frank Batten School of Leadership and Public Policy. He also completed his undergraduate studies at the University of Virginia, graduating cum laude with a BA in political philosophy, policy, and law. 04:09 What is the story with telehealth policy right now? 06:08 What kind of flexibilities did HHS allow with telehealth after the pandemic? 09:46 Are we still under these pandemic flexibilities for telehealth? 12:15 Why isn’t the government just making greater access to telehealth permanent? 18:24 How does telehealth lend itself to the risk of overspending when dealing with an FFS model? 21:13 Does telehealth fit into the new CMS fee schedule? 22:55 How do states factor into the future of telehealth? 24:40 What is Arizona doing specifically to improve and ensure the future of telehealth? 30:56 What’s next in store for telehealth at the congressional level? You can learn more at wynnehealth.com or by following on Twitter and LinkedIn.   @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is the story with telehealth policy right now? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth What kind of flexibilities did HHS allow with telehealth after the pandemic? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth Are we still under these pandemic flexibilities for telehealth? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why isn’t the government just making greater access to telehealth permanent? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth How does telehealth lend itself to the risk of overspending when dealing with an FFS model? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth Does telehealth fit into the new CMS fee schedule? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth How do states factor into the future of telehealth? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is Arizona doing specifically to improve and ensure the future of telehealth? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth What’s next in store for telehealth at the congressional level? @josh_larosa of @WynneHealth discusses #telehealth on our #healthcarepodcast. #healthcare #podcast #digitalhealth   Recent past interviews: Click a guest’s name for their latest RHV episode! Stacey Richter (INBW35), Rebecca Etz (Encore! EP295), Olivia Webb (Encore! EP337), Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai  
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Sep 1, 2022 • 14min

INBW35: Collaboration Between Healthcare Providers, Payers, and Others Is Required to Improve Chronic Care Patient Outcomes

Late in May of this year, three-ish months ago, I did an inbetweenisode that explores the “why with the no collaboration” amongst healthcare stakeholders and what the lack of collaboration signifies. That episode got a lot of traction and engagement.   This episode that follows is a pretty good approximation of a presentation that I made at the MTVA (Moving to Value Alliance) symposium that happened in Connecticut this past June. If you listened to the earlier show about collaboration, this one is slightly different, shorter, and more to the point. So, let’s start here: When you listen to any patient with a chronic condition talk about their challenges with the healthcare industry—and yes, if a patient has a chronic condition, more often than not, that is what they will talk about, their challenges … I went on Twitter just now, and it took me literally 13 minutes to collect what I’m going to say are 300+ Tweets written by patients and their caregivers complaining about their chronic care journey. That’s the sad part. I don’t mean to kick this off talking about problems; however, if you’re gonna solve for something, it is important to understand what problem you are solving for. You do not want to be a solution looking around for a problem. So, let’s fix this, this rampant problem problem that chronic care patients seem to have. Many of the patient challenges in the 300 Tweets that I just collected can be grouped into two major categories. And these two major challenge groups can really only be solved for with collaboration amongst healthcare stakeholders. So, let’s dig in here. The first major patient challenge is what I’m gonna call the care gap problem. I was talking to someone at a provider organization the other day, and she had 8000 known care gaps with patients and [insert overwhelm here]. And these were just the care gaps that showed up on somebody’s radar because they added up to a quality metric, which is sometimes the definition people use for what is a care gap. But if we think about all the other holes in patient care, the typical care gaps that are identified probably come not even close to the total number of actual care gaps: patients who can’t see their specialist because they can’t get ahold of their records from the local health system or no coordination of care. Coordination is probably another synonym for collaboration. This is a huge deal. People literally die because their clinician cannot get their biopsy results or whatever from somebody else. That’s a care gap as deep as a grave. Or patients who keep showing up in the ER because they aren’t getting the help or the meds or the accurate diagnoses or the treatment plan that they need to stay out of the ER ... My grandfather had heart failure. At the end of his life, he was probably in the ER once a month. It was sad and painful and expensive and totally unnecessary. But his PCP didn’t seem to be collaborating with the specialists, and the ER I don’t think was telling anybody what was going on. Right? Or patients who can’t get a drug they need approved by their insurance, so they wind up in crisis. Crappy prior auth processes create care gaps. All of these things are gaps in care. Carly Eckert, MD (EP361), was on the podcast; and she made a crucial point for me. In fact, I tried to get her to come on the podcast originally to talk about care gaps and closing care gaps; but she categorically refused. Chronic care management, she said, should not be a game of whack-a-mole. It may be better than nothing, a game of whack-a-mole; but it is certainly not ideal.   Chronic care management by care gap is like cooking with a fire extinguisher. If we want to eliminate care gaps for reals, let’s just not have care gaps. So, how do you go about not having care gaps, then? The goal should be to craft a non-fragmented patient journey. Let’s figure out what a great care journey looks like ahead of time and then try to keep the patient on it. That is the best way to eliminate care gaps: proactively. You don’t have them. Immediately, because I am a person of action, I went into my filing cabinet; and I actually found an example of a patient journey map amongst my papers that I had worked on years ago. You have probably seen one of these and may have some of your own patient journey maps tucked away in a binder in your office somewhere. Most people have them. There are a few things that they all have in common, irrespective of the disease state or the organization or anything. The things that they have in common are they are complicated flowcharts with a lot going on. Besides just being complicated, the other thing that patient journey maps all have in common is that there are multiple parties mentioned with roles in that patient journey. You’re gonna have a PCP, a specialist or two, a hospital, a payer, a pharma company more than likely, a PBM maybe, maybe a community organization … Here’s a quote that kinda sums that up from Dr. William Bestermann: “Improving chronic disease management is an enormous problem that requires multiple stakeholders coming together to combine new science, new systems, and new payment models in a comprehensive solution. No one person or organization can make progress that matters. The problem is too big.”   Is this obvious? I think it’s pretty obvious. But yet, collaboration in general at the organizational level is less than common. With uncommon exceptions, you not only don’t have multiple providers working together but—heaven forbid!—you have payers and providers or other entities working together. But just taking this back to the thrust of this conversation, the first major patient challenge can only be solved for with collaboration to create a non-fragmented patient journey, which reduces care gaps by avoiding care gaps in the first place. So, collaboration is a rate critical for a non-fragmented patient journey to eliminate care gaps that patients have big issues with. So now, let’s move on now to the second big problem category that chronic care patients were Tweeting about in those Tweets that I collected: They can’t afford their care. This crisis of affordability is a huge patient challenge that, it’s not the only thing, but we can’t solve for it without being collaborative, without having collaborative relationships along the patient journey. I don’t really want to get into how much healthcare prices have skyrocketed, but healthcare prices have been inflating at 4x the cost of everything else. This causes mental health issues; it causes stress. There’s a show with Wayne Jenkins from Centivo where we dig into this deeply. Listen to EP358.   It is inarguable at this point that financial toxicity is clinical toxicity. I have a folder on my computer where I chuck references for this statement, and at this point, I probably have 400 studies and articles that all say the same thing in different ways with different patient populations. Most of these patients are insured. By the way, just because you have insurance doesn’t mean that you can afford to use it. And patients who cannot afford their care have worse clinical outcomes. Period. End of sentence. Minor sidebar because I was really like head exploding emoji this morning: I saw somebody in a forum today lashing out at patients suffering with crippling medical debt saying that these people really should take some personal responsibility for the financial choices that they have made. WTH? The entity not taking responsibility for people losing their life savings and their homes simply because they had the fortune of getting sick or injured, the entity that should be taking some responsibility here is a broken, profit-driven healthcare industry. Let me just add some fidelity to what I mean when I say “the healthcare industry,” which really should take some responsibility here for the financial toxicity that they themselves are creating. Consider that a lot of medical debt is of a balance bill nature and the people being pursued generally signed a contract which they did not understand the consequences of, because most of them had “insurance” and they certainly weren’t given a quote up-front so that they could make a rational economic choice. So, let’s add some fidelity: How do we make healthcare more affordable? Or how do we make the charges not a complete surprise at a minimum? How do we do that? Lots of ways, big and small, are required; but let’s talk about one of them: Navigate patients to high-quality providers charging a fair price. Navigate patients to providers who do not do low-value things and who have practice patterns that are aligned with evidence-based medicine (ie, get employers and providers to direct contract, especially in non-FFS ways, especially as it relates to primary care where there are measurable outcomes or quality). ACOs or CINs (clinically integrated networks) who know how to refer to high-value specialists or hospitals is another example of a collaboration that can help with affordability. Some health plans and TPAs (third-party administrators) are starting to get really data-driven about how they go about this. Point being, to coordinate care to or amongst high-value providers, multiple parties have to be involved (ie, collaboration). So, in sum, we talked about two common and major patient problems, which are probably not a surprise to anyone listening. The two are a lack of coordinated care (patients falling into gigantic care gaps) and then also a lack of affordability. We know how to solve for both of these issues. Defragment care and steer patients to high-quality provider organizations/hospitals/CoEs with competitive prices. Collaborate in these two ways. So, why are so few doing it, then? You can always count on me to say the quiet part out loud, so here we go: The business model of most, many, lots of healthcare organizations, both for-profit and tax-exempt, is revenue maximization. As Kevin Schulman, MD, said on the podcast (EP366), it’s not A or B; we have a dysfunctional healthcare benefits system in this country.   But nonetheless, if we want to identify a root cause for why with the no interoperability, why with the info blocking to prevent network leakage, why with the no collaboration … it’s not a technical problem at its core. It’s not a HIPAA concern, really, at its core. It’s a business case problem. And I don’t say this as any sort of castigation. I say this because it’s actionable information. Tiptoeing around a thing that we all know just clutters our ability to come up with a solution that is actually going to work. Really understanding a pretty big root cause behind why needed collaborations don’t happen is necessary. This level of introspection is required for those who are mission driven to find others who are similarly mission driven to get a collaboration over the line. But the good news is success stories abound. It’s my belief the healthcare industry won’t be transformed in one giant turn of some flywheel. It’s gonna be transformed one local market at a time. And there’s a lot of great stuff happening in local markets. Listen to the show with Dave Chase (EP374) for a bunch of examples. There’s a show with Cora Opsahl (EP372) that has some great examples of this. There’s the one with Doug Hetherington (EP367). We also have a show coming up in October with Nick Stefanizzi from Northwell Direct.   All of these great examples are stakeholders harnessing the power of collaboration to defragment patient journeys and get patients into high-value care settings so that the overall cost of care is in range for employers, taxpayers, patients, and American families. I’m so excited, honestly, about that because the healthcare industry is a legacy that we will leave behind to children and grandchildren. I have a vision in my head about what I want the healthcare industry to look like in 25 years. Maybe you do, too. Listen to the show with David Muhlestein, PhD, JD (EP364), for more on that. But the point is, if this vision is going to come true, we need to—like, right now—start building the roadmap to get to that goal. And a lot of this involves facilitating collaboration. Actually collaborating, for reals. There’s real momentum behind that in organizations such as the Moving to Value Alliance in Connecticut, where I originally gave a version of this same talk. Thanks, by the way, to Steve Schutzer, MD, for moderating the collaboration panel that I was a part of at aforementioned MTVA symposium. Not only is he a great moderator, but he also has done a great service for patients through his ability to get a whole bunch of surgeons—who are pretty competitive as a general rule—to collaborate and form a Center of Excellence. For more information, go to aventriahealth.com.   Each week on Relentless Health Value, Stacey uses her voice and thought leadership to provide insights for healthcare industry decision makers trying to do the right thing. Each show features expert guests who break down the twists and tricks in the medical field to help improve outcomes and lower costs across the care continuum. Relentless Health Value is a top 100 podcast on iTunes in the medicine category and reaches tens of thousands of engaged listeners across the healthcare industry. In addition to hosting Relentless Health Value, Stacey is co-president of QC-Health, a benefit corporation finding cost-effective ways to improve the health of Americans. She is also co-president of Aventria Health Group, a consultancy working with clients who endeavor to form collaborations with payers, providers, Pharma, employer organizations, or patient advocacy groups. 01:41 What are the two major patient challenges in chronic patient care that can only be solved by collaboration? 01:56 What is the “care gap” problem? 03:19 “Crappy prior auth processes create care gaps.” 03:25 EP361 with Carly Eckert, MD.  04:00 How do you eliminate care gaps proactively? 06:46 EP358 with Wayne Jenkins.  08:21 What is one way to make healthcare more affordable? 09:49 Why aren’t more healthcare entities collaborating? 10:04 EP366 with Kevin Schulman, MD.  11:13 EP374 with Dave Chase. 11:18 EP372 with Cora Opsahl.  11:22 EP367 with Doug Hetherington.  11:25 Upcoming episode with Nick Stefanizzi. 12:00 EP364 with David Muhlestein, PhD, JD.   For more information, go to aventriahealth.com.   Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast What are the two major patient challenges in chronic patient care that can only be solved by collaboration? Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast What is the “care gap” problem? Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast “Crappy prior auth processes create care gaps.” Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast How do you eliminate care gaps proactively? Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast What is one way to make healthcare more affordable? Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast Why aren’t more healthcare entities collaborating? Our host, Stacey Richter, discusses #collaboration on our #healthcarepodcast. #healthcare #podcast   Recent past interviews: Click a guest’s name for their latest RHV episode! Rebecca Etz (Encore! EP295), Olivia Webb (Encore! EP337), Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan    
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Aug 25, 2022 • 31min

Encore! EP295: The Not Entirely New but Definitely Improved Way to Measure Primary Care, With Rebecca Etz, PhD

I wanted to resurface this episode because when it originally aired over a year ago, the topic may have been ever so slightly ahead of its time. Look, here we are right now with everybody trying to do three big things relative to measuring PCP (primary care provider) performance: Come up with a fair measure for PCP performance. Account for diverse populations with diverse risks so that some docs don’t get dinged because their patient populations have lots of comorbidities or behavioral health challenges or live in food deserts, or any one of the other social determinants of health. Not make measuring performance a total procedural nightmare. Right? We want fair measures, we want to account for equity issues essentially, and we want this whole measurement fandango to be as easy as possible. Enter Rebecca Etz, PhD, and The Larry A. Green Center with a really well-validated “instrument,” as she calls it, to measure primary care performance. I can think of more than one PCP frankly right off the top of my head who would be thrilled to be measured using this methodology. Even more so because it’s one thing that’s simple and not a jumble of numerators with various mix-and-match denominators. PCPs are really important to population health. Primary care is the foundation of any well-functioning health system, I am sure many listening to this podcast know well. For the Triple Aim to happen, patients really need access to robust primary care. This has been affirmed by almost anyone who looks into it. And yet, in this country, our system sort of anemically supports our primary care colleagues. As a general statement, poking and prodding and procedures are compensated at a far higher rate than anything requiring cognitive services. What a PCP or a pediatrician mainly does all day is really cognitive. It’s listening and thinking and counseling and coordinating. But here is maybe an underappreciated point: If we’re going to measure PCP performance, then we need the right measures to measure that performance. You might be doing this measurement as a basis for incentives or maybe for continuous improvement programs. Either way, if you don’t have the right measures, then maybe great primary care is under-rewarded or your continuous improvement process is counterproductive—you’re incenting the wrong things, you get the wrong activity. And to add to that, PCPs (ie, practices) can spend upwards of $40,000 a year of uncompensated time trying to add and subtract and tote up the difference in all these varied and potentially inapplicable measurement standards coming at them from all manner of directions. My guest in this healthcare podcast is Rebecca Etz, PhD. Dr. Etz and the team over at The Larry A. Green Center have worked hard to create a set of 11 performance measures for primary care. These measures went through the wringer as far as their creation and validation. These 11 measures take into account what patients want, what primary care clinicians (including pediatricians, nurse practitioners, and others) think is most important and possible to provide, and what payers want to pay for. These 11 measures are aligned across the three stakeholders, and they are actionable. Rebecca Etz, PhD, is associate professor of family medicine and codirector of The Larry A. Green Center, which is in Richmond, Virginia, at the Virginia Commonwealth University. You can learn more at green-center.org.   Rebecca S. Etz, PhD, is an associate professor of family medicine and population health at Virginia Commonwealth University (VCU) and codirector of The Larry A. Green Center—Advancing Primary Health Care for the Public Good. Dr. Etz has deep expertise in qualitative research methods and design, primary care measures, practice transformation, and engaging stakeholders. Her career has been dedicated to learning the heart and soul of primary care through three main lines of inquiry: (1) bridging the gap between the business of medicine and the lived experience of the human condition, (2) making visible the principles and mechanisms upon which the unique strength of primary care is based, and (3) exposing the unintended, often damaging consequences of policy and transformation efforts applied to primary care but not informed by primary care concepts. As a member of the VCU Department of Family Medicine and Population Health and previous codirector of the ACORN practice-based research network, Dr. Etz has been the principal investigator of several federal and foundation grants, contracts, and pilots, all directed toward making the pursuit of health a humane experience. Recent research activities have included studies in primary care measures, behavioral health, simulation modeling, care team models, and adaptive use of health technologies. Dr. Etz currently leads the fielding of a weekly survey regarding the response to and impact of COVID-19 on US primary care practices. She also serves on the National Academies of Medicine consensus study, “Implementing High-Quality Primary Care.” 04:58 Why is primary care one of the “best-kept secrets” of better health outcomes? 09:45 “Measures are a form of communication.” 09:58 “If the way that you are assessed does not actually match up with the work you do or what you find to be important, it’s pretty demoralizing.” 12:48 “It is the outcome of healthcare, but it is not the same thing as quality.” 17:18 “It creates a financial incentive to hit a target by any means necessary.” 18:53 “We incentivize people to have good outcomes, and what that means is that electronic medical records are no longer simply databases that tell us what the health of the population is. They are databases that tell us what is the optimal picture that a clinician is able to paint of their patients.” 21:54 “Primary care is a relational field.” 23:02 “How does this relate to cost and utilization?” 27:45 How has the measure of PCPs in the time of COVID held up? 28:03 What measure performs worse in the time of COVID? 29:59 EP270 with Dave Chase and EP272 with Guy Culpepper, MD.  You can learn more at green-center.org.   Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp “Measures are a form of communication.” Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp “If the way that you are assessed does not actually match up with the work you do or what you find to be important, it’s pretty demoralizing.” Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp “It is the outcome of healthcare, but it is not the same thing as quality.” Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp “It creates a financial incentive to hit a target by any means necessary.” Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp “Primary care is a relational field.” Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp How has the measure of PCPs in the time of COVID held up? Rebecca Etz of @GreenCenterOrg discusses #primarycare performance on this week’s #healthcarepodcast. #healthcare #podcast #digitalhealth #healthtech #pcp   Recent past interviews: Click a guest’s name for their latest RHV episode! Olivia Webb (Encore! EP337), Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan, Shawn Rhodes  
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Aug 18, 2022 • 33min

Encore! EP337: A Patient-First Specialty Pharmacy, Not a Money-First Specialty Pharmacy, With Olivia Webb

This encore episode seemed really apropos at this moment in time, since we’ve just basically published a course in the specialty pharmacy ecosystem, including who all of the various stakeholders are and what their vested interests are. Weirdly, in many of the episodes in the series/course, you’ll find the word patient in short supply. And that’s not a weird oversight in our podcast production. It is actually an egregious oversight in the specialty pharmacy market, an oversight with real human consequences, which I talk about with Olivia Webb in this encore. Check out a playlist of all of the specialty pharmacy episodes that comprise our series here.   If you listen to them all, let me know; and also let me know what you think and, I don’t know, maybe we’ll create a special certificate for you because at that point you will know more than 99.9% of the industry (even industry insiders) if you listen to the whole thing. Here’s the cold hard truth: The whole specialty pharmacy operational model is not built to serve patients, a fact that becomes crystal clear when you’re a patient. Instead, the specialty pharmacy model is, rather, pretty blatantly dedicated to the power struggle for revenue and captive patient populations. It’s war between providers and the whole PBM/insurer/specialty pharmacy vertical consolidations. Employers and pharma manufacturers are, of course, on the battlefield as well. What is a drug that qualifies to be a specialty pharmacy drug? Usually, these drugs are complicated to store, dispense, to use, and/or they’re expensive—generally, really expensive. Lots of zeros, completely unaffordable to pay cash for them as an individual. No one is using a GoodRx card and not using their insurance to pay for these puppies. They can cost as much as a house. Biologics, for example, usually considered specialty drugs—lots of cancer and immunology therapies, injectable medications, IV/infused medications—all these are usually considered specialty drugs. There’s no one definition of a specialty drug. It’s more that someone somewhere decided to not run the drug through your traditional retail pharmacy for any number of reasons. The problem with the current status quo, wherein the patient gets tossed around while everybody fights over them, is that some basic needs are not being met—like if a patient asks the person administering the drug maybe even a pretty simple question about the drug or its side effects. It’s way more likely than it should be that the nurse or whomever doesn’t know the answer. Not knocking nurses here at all but definitely knocking a system that allows that to happen. I mean, really now. We’re injecting a six-figure therapy in someone’s arm that will impact their body in a myriad of maybe frightening ways, some of which are a problem and some of which are not. Said another way, there’s a really good financial and clinical use case for making sure that we’re patient-centric at a specialty pharmacy point of service—if you care about the patient and cost efficiency, that is. But I guess therein lies the root cause of the trouble. In this healthcare podcast, I’m talking with Olivia Webb about what it would take and be like to create a “patient-first specialty pharmacy,” as she has coined the term—a specialty pharmacy dedicated to patients not only having a half-decent experience but also one that might actually create better patient outcomes. Olivia Webb is author of the Acute Condition newsletter. I would certainly recommend subscribing. One last thing: If you’re following the whole PBM/insurer/specialty pharmacy vertical integration skullduggery, keep an eye on a bunch of lawsuits against these combined entities (three examples here, here, and here) alleging that they are doing some not super upright and honest things with their massive market power. (Say it isn’t so!) You can learn more at acutecondition.com.  Olivia Webb is a healthcare strategist and writer. She publishes the newsletter Acute Condition, as well as working on other content across the healthcare and biotech ecosystem. She previously worked at Massachusetts General Hospital and Advisory Board Company. 04:43 Why did Olivia start thinking about a patient-centric specialty pharmacy? 06:05 “There’s really no layer on top of it to make it look nice.” 06:55 “You’re kind of dealing with this vertical stack that doesn’t really deal with patients frequently.” 07:07 Is the specialty model more patient friendly or less? 07:39 What would a patient-centric specialty pharmacy look like? 08:29 “There’s a lot of fragmentation; there’s a lot of friction.” 08:42 What’s unique to specialty pharmacy prescriptions? 11:09 Why can infusion centers be a high-drama place? 12:44 What’s “the question” around specialty pharmacy? 13:11 Who has the vested interest in ensuring patients take their medications correctly in specialty pharmacy? 15:08 “It’s really just a unique area of healthcare where the people that I think of as the good guys and the bad guys completely flips.” 16:34 Why might the time be ripe for disruption in the specialty pharmacy area? 20:26 “There’s no one with a clear incentive to cap the prices.” 20:39 What are the barriers in specialty pharmacy? 21:01 “The patient just isn’t at the center, the financial incentive, in any direction.” 29:44 “I think people who are designing these things need to see how patients are actually doing it.” 30:13 “I think there’s a lot of money here; I think this market is going to only increase in size.” 30:32 “I think you need scale.” 30:42 AEE15 with David Carmouche, MD, of Ochsner.   You can learn more at acutecondition.com.  @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why did Olivia start thinking about a patient-centric specialty pharmacy? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “There’s really no layer on top of it to make it look nice.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “You’re kind of dealing with this vertical stack that doesn’t really deal with patients frequently.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth Is the specialty model more patient friendly or less? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth What would a patient-centric specialty pharmacy look like? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “There’s a lot of fragmentation; there’s a lot of friction.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth What’s unique to specialty pharmacy prescriptions? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why can infusion centers be a high-drama place? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth What’s “the question” around specialty pharmacy? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why might the time be ripe for disruption in the specialty pharmacy area? @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “It’s really just a unique area of healthcare where the people that I think of as the good guys and the bad guys completely flips.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “The patient just isn’t at the center, the financial incentive, in any direction.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “I think people who are designing these things need to see how patients are actually doing it.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth “I think there’s a lot of money here; I think this market is going to only increase in size.” @OliviaWebbC of the #acutecondition newsletter discusses #patientfirst #specialty on our #healthcarepodcast. #healthcare #podcast #digitalhealth   Recent past interviews: Click a guest’s name for their latest RHV episode! Mike Baldzicki, Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan, Shawn Rhodes, Pramod John (EP353)  
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Aug 11, 2022 • 32min

EP377: Specialty Pharmacy, PBM, Hospital, Employer, and Pharma Strategic Maneuvering, With Mike Baldzicki, CRCM

Members taking specialty drugs represent about 2% of any given employer’s population but often consume as much as 30% of an employer’s total cost of care. As Pramod John, PhD, in EP353 has said, this isn’t just small companies we’re talking about here. Some of the largest employers in the US are dropping big bucks on specialty drugs, and they are obviously overpaying and don’t need to.  No employer or plan really need pay any more than the pharmacy’s acquisition price plus a reasonable professional fee. But so many employers pay way more than that. Let’s just keep in mind that specialty pharmacy spend extends beyond just pharmacy spend. Medical claims for pharma drugs that are infused, for example, can be more than 50% of an employer or plan’s specialty pharmacy spend. What I’m talking about now is buy and bill–type stuff where a hospital or physician practice bills for an infused pharmaceutical product under a patient’s medical benefit. Listen to EP370 with Autumn Yongchu and Erik Davis about how some hospitals, for example, are managing to charge employers 6x the cost of specialty meds to infuse them and also EP365 with Scott Haas about PBM shenanigans.   So, currently, specialty pharmacy spend is big; but it’s grown bigger every single year. Every year, employers and the government/taxpayers alike spend more and more on these really expensive drugs. As you can see, there are billions and billions of dollars on the specialty pharmacy table here. Also, as you certainly know if you’ve listened to the recent series of specialty pharmacy shows that we’ve done lately, it’s kind of a war out there.   There are multiple healthcare industry stakeholders trying to capture all of the money. If you can get your hands on a specialty pharmacy patient and manage their care—or, probably more pointedly, manage to bill for their care—it can be incredibly profitable. This show kind of wraps up some loose ends for me. In this healthcare podcast, I’m speaking with Mike Baldzicki, who is chief brand officer over at AscellaHealth. A majority of Mike’s background is in specialty pharmacy infusion, capabilities with an array of different healthcare companies. So, he is a great guy to wrap up some of these loose ends with. On the show today, we discuss how many/the percentage of self-funded employers who have taken their specialty pharmacy business from the “Big Three” or “Big Five” PBMs, how many of them have actively started steering their members and managing their benefit carefully. I talk with Mike about what these employers are doing and how they are doing it. From there, the conversation, of course, naturally flows into preventing hospitals from rapaciously buying and billing, which then segues into a discussion about hospital strategy … because if you can’t do your buy-and-bill thing for a whole bunch of your patients, then it makes sense for you to do two things strategically: (1) stand up your own specialty pharmacy and/or (2) set up your own network of infusion centers. Mike and I talk about this. We also discuss how much trying to get a specialty pharmacy drug sucks for most patients, which I deeply investigated in EP337 with Olivia Webb.   Also in this episode, you can hear me contend that maybe if Pharma and payers enter into outcomes-based contracts, maybe patients would be better served. It’s kind of the pharmacy version of the whole “let’s pay for value, not volume” thing. I ask Mike how many pharma outcomes-based contracts are out there in the wild, for reals. All of this and more … but you gotta listen to the podcast. Oh, by the way, acronym alert: SPP stands for specialty pharmacy provider. You can learn more at ascellahealth.com.   Michael J. Baldzicki, CRCM, is chief brand officer (CBO) at AscellaHealth. As CBO, Mike supports the AscellaHealth Family of Companies comprehensive business strategy to increase brand awareness, boost perceived value, and improve lines of services in the marketplace. He is responsible for oversight of their Family of Companies based on sales and marketing to finance, client services, and specialty pharmacy strategies throughout the organization that drive strategic business initiatives. Within his roles, he enhances the success of the strategic projects and applies business development, contract negotiations, network advancement, and marketing and outreach strategies that cultivate opportunities for AscellaHealth and their Family of Companies. With more than 24 years of experience, Mike held roles in senior executive management within the specialty pharmacy supply group, pharmaceutical and biotech industry of managed markets, group purchasing organizations, specialty wholesale, and integrated delivery networks. He assumed roles within the pharmaceutical organization such as Bristol Myers Squibb, Enzon BioTech, Novo Nordisk, Baxter BioScience, as well as roles within the distribution channel of AmerisourceBergen specialty groups, BioMatrix Specialty and Infusion Rx, Diplomat/BioRx Specialty Pharmacy, CareCentrix Medical Infusion, Asembia GPO, Axelacare Infusion, to other manufacturer and specialty pharmacy home infusion companies. Mike is active in the biotech community and is council advisor of the Council of Strategic Healthcare Advisors (CSHA), an advisor/faculty member of the Academy of Managed Care Pharmacy (AMCP) for Specialty Pharmacy Advisory Group & Biosimilars Partnership Forum, NCPDP Specialty Pharmacy Stakeholder Action Group, Self-insured Institute of America (SIIA) advisor, National Alliance of Healthcare Purchaser Coalitions, and was 2014 Editorial Board Member for Specialty Pharmacy Times. Mike holds a bachelor’s degree in business management and a Certificate in Clinical Research Compliance and Management (CRCM). He has completed programs in leadership development at Harvard University, Brooks Group, Miller Heiman Account Management, and MD Anderson Center Cancer Courses. 04:27 Is it a conflict of incentives to worry about the cost of million-dollar pharmaceuticals? 06:24 “Really, does it make sense to carve up my specialty pharmacy benefit … away from my typical PBM model?” 06:48 What’s the trend line with moving away from the big PBMs? 07:20 Specialty pharmacy episodes.07:53 How does a small PBM contract with Pharma? 08:34 EP365 with Scott Haas.10:15 EP337 with Olivia Webb.11:32 “We’re still lacking the overall insight to data.” 12:15 “When you have insight and good data, then you can start really driving the plan language and cover requirements.” 13:07 “It is a frustrating game because … the large PBMs that have traditionally managed an employer’s spend … doesn’t give them the data that’s needed.” 13:48 What’s going on with outcomes-based contracts? 14:16 What’s the importance of aligning reimbursement around value instead of volume? 14:57 “The issue is, how real is the data?” 19:24 EP370 with Erik Davis and Autumn Yongchu.20:36 Are hospital-based specialty pharmacies teaming up with big PBMs? 22:01 “It’s market ownership.” 29:17 EP369 with Keith Hartman, RPh.30:43 “These are real scenarios that are happening in the self-insured planned sponsor market.” 30:59 “Employers really should start recognizing organizations that take more of an integrated and thoughtful approach.” You can learn more at ascellahealth.com.   Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast Is it a conflict of incentives to worry about the cost of million-dollar pharmaceuticals? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “Really, does it make sense to carve up my specialty pharmacy benefit … away from my typical PBM model?” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast What’s the trend line with moving away from the big PBMs? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast How does a small PBM contract with Pharma? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “We’re still lacking the overall insight to data.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “When you have insight and good data, then you can start really driving the plan language and cover requirements.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “It is a frustrating game because … the large PBMs that have traditionally managed an employer’s spend … doesn’t give them the data that’s needed.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast What’s going on with outcomes-based contracts? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast What’s the importance of aligning reimbursement around value instead of volume? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “The issue is, how real is the data?” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast Are hospital-based specialty pharmacies teaming up with big PBMs? Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “It’s market ownership.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “These are real scenarios that are happening in the self-insured planned sponsor market.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast “Employers really should start recognizing organizations that take more of an integrated and thoughtful approach.” Mike Baldzicki of @AscellaHealth discusses #specialtypharma, #PBM, #hospitals, #employers, and #pharma on our #healthcarepodcast. #healthcare #podcast   Recent past interviews: Click a guest’s name for their latest RHV episode! Lisa Bari, Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan, Shawn Rhodes, Pramod John (EP353), Pramod John (EP352)  
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Aug 4, 2022 • 34min

EP376: Interoperability—Who’s Who and Doing What? With Lisa Bari, MBA, MPH

Interoperability. Let’s just review a few key points that probably everybody listening knows but certainly bear repeating because they matter. I don’t want to dig into the technical or regulatory details of interoperability. That is above my pay grade. But I want to talk about the really important stuff that maybe doesn’t get talked about a whole lot because you say the word interoperability and it’s like the magic word that transports the unwary into the land of shadow and smoke and mist. It’s like a self-published YA (young adult) novel half the time. But let’s start here: First of all, consider that a lot of healthcare these days is conceived of as a scattering of micro-moments. It’s not even like we think of patients one at a time. We think about patients one ICD-10 code at a time. And we think about those ICD-10 codes in 20-minute increments whenever a patient happens to show up in clinic. The average Medicare patient these days sees five specialists and more than one PCP a lot of times. So, we’re not only breaking that patient down into codes per minute or something, but this is further broken down by clinician or practice. Now consider that everybody knows—and when I say everybody knows, I mean it’s inarguable at this point—health happens at the whole-patient level, at the whole-person level, more accurately. It happens at the community level: 80% of patient outcomes are going to derive from what that patient does when they leave the office and whether they are able to and health literate enough to construct a reconciled treatment plan for themselves from the bits and pieces of information they’ve received scattered all over the place. You know in Star Trek when someone gets into the transporter to beam down to a planet and their whole body splinters into a gazillion little pieces? That’s how our healthcare industry treats patients. They are frozen in that moment and rarely, if ever, become whole on the other side. So, when we talk about interoperability, what we’re really talking about is a means to an end. What we are discussing is creating the ability to treat the whole patient or—Heaven forbid!—consider the whole community because we have enough data that we can accurately and adequately see the whole picture. We are able to avoid prescribing a treatment that is dangerous to the patient, inefficient, duplicative, or low quality—which is what happens over and over again. It’s no amazing surprise that our healthcare industry wastes $1 in $4 we spend and doesn’t net outcomes that are great in almost any respect when compared to other countries. Let me say this more bluntly, as if that wasn’t already pretty blunt: If I don’t know relevant and important details about my patient, then I cannot consistently deliver care that is high quality, safe, or cost conscious due to service duplication or uncoordinated care. I mean, how is anybody supposed to deliver evidence-based care when a lot of evidence may or may not be missing? So basically, without interoperability piping in the right patient information, I cannot succeed in any risk-based arrangement, right? If care provided is consistently lower quality, uncoordinated, unsafe, or inefficient, how am I supposed to optimize my care delivery? Said another way, interoperability is essential for anybody who wants to succeed in a value-based arrangement. I need all the data on my patients, and I need it in a way that I can separate the signal from the noise. Of course, getting 40 pages of duplicative SOAP (subjective, objective, assessment, and plan) notes that are semi-accurate and that no one bothers to look at is just unhelpful. Quick counterpoint: FFS (fee for service) loves siloed data. You know how much money everybody talks about could be saved if we eliminate duplicative services? Well, that’s how much some fee-for-service health system is gonna lose if you make it easy for clinicians to see that the patient already got that CAT scan. So, in sum, interoperability is essential to high-quality, safe, and efficient care. A mark of a health system or provider practice who is really committed to patient outcomes is going to be their commitment to share data. The world has moved from a “Hey, you’re permitted to share data if you really want to” to a “You are obligated to share your data.” And right now, I am loosely quoting Micky Tripathi, PhD, MPP, who is the ONC’s (Office of the National Coordinator for Health Information Technology) national coordinator and also the guy in charge of TEFCA (Trusted Exchange Framework and Common Agreement) and implementing the provisions against information blocking that was in the Cures Act Final Rule last year. In this healthcare podcast, I am speaking with the perfect person about interoperability, and that would be Lisa Bari, who is the CEO of Civitas Networks for Health, which is a national collaborative working to improve interoperability in this country to improve health. Since interoperability is a huge topic, what I wanted to understand from Lisa most particularly are: Who are the current roster of players in the interoperability space? Like, what is going on there? Lisa told me that there are four main groups of interoperability folks—EHR (electronic health record) systems; APIs (application programming interfaces); HIEs (health information exchanges), both profit and nonprofit; and then others like clearinghouses, etc—which we talk about in some detail in this episode. We also discussed Larry Ellison’s bold proclamation that Cerner is going to build one national medical records database. It’s almost like Larry made it through the “welcome to the healthcare briefing” packet that his team gave him and immediately concluded that the interoperability problem is a technology problem, not a business case, fee-for-service, workflow, no universal ID, human, organizational, or government problem. Lisa adds some fidelity there.  Also, TEFCA … we talk about what it is and what it’s not. Short version: It’s a framework so that no one can say they won’t share data lest they get in trouble in some way. At the same time, it’s not gonna solve, as Lisa puts it, “the last mile of interoperability,” meaning it’s not going to put the right information in the right clinician’s hands at the right time. It just governs getting data from one organization to another organization but kinda has nothing to do with the clinical workflow, so to speak. The Civitas Networks for Health annual conference, by the way, is coming up on August 21-24 if you are interested in going.  You can learn more at civitasforhealth.org.  Lisa Bari, MBA, MPH, is the inaugural CEO of Civitas Networks for Health, a national nonprofit member- and mission-driven organization that was previously known as the Network for Regional Health Improvement and the Strategic Health Information Exchange Collaborative. Civitas counts over 100 multi-stakeholder-governed regional health improvement collaboratives and health information exchanges as members and creates national opportunities for education and community building between its members, policy makers, and business partners. Their upcoming conference (August 21-24, 2022, in San Antonio or via livestream) focuses on the theme of data collaboratives and information exchanges creating the critical infrastructure for health equity. Previously, Lisa was the health IT and interoperability lead at the CMS Innovation Center, working on primary care innovation model policy, and additionally has a background in health IT marketing and strategy. She holds an MBA from Purdue University and a Master of Public Health in health policy from the Harvard TH Chan School of Public Health and serves on the boards of directors of HealthCare Access Maryland and the Zorya Foundation.  06:30 How does value-based care depend on interoperability? 07:38 Why is it really important to exchange information at the right time with the right purpose? 08:00 What is one of the easiest low-hanging fruit to achieve in value-based care? 09:42 What are the four kinds of companies getting into the interoperability space? 11:51 “As we know, there’s sort of technical interoperability … and then there’s semantic interoperability.” 12:59 Where are we right now with EHR basic interoperability? 15:33 Who should ACOs hire to get the right data at the right time? 17:00 Why is it important to delineate the different types of HIE? 22:09 What can ACOs assure with interoperability? 22:59 Is the demand among ACOs for interoperability there? 24:04 “If you’re in value-based care, you better care about what’s happening outside of the healthcare setting.” 24:36 EP108 with Chris Klomp.26:25 “Every couple of years, someone talks about creating the ultimate database to rule them all. … It hasn’t happened yet, and I don’t think it’s going to happen.” 26:56 “The difficult thing about healthcare data … interoperability … is an organizational and a governance problem.” 28:49 “You’ve gotta start with the incentives … and then you do have to say … ‘We are not gonna hoard any more data.’” 29:10 What is TEFCA, and how does it fit into this interoperability conversation? 32:17 “I think partners are trying to solve for value and outcomes.” You can learn more at civitasforhealth.org.  @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth How does value-based care depend on interoperability? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why is it really important to exchange information at the right time with the right purpose? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is one of the easiest low-hanging fruit to achieve in value-based care? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth What are the four kinds of companies getting into the interoperability space? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “As we know, there’s sort of technical interoperability … and then there’s semantic interoperability.” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth Where are we right now with EHR basic interoperability? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth Who should ACOs hire to get the right data at the right time? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why is it important to delineate the different types of HIE? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth What can ACOs assure with interoperability? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth Is the demand among ACOs for interoperability there? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “If you’re in value-based care, you better care about what’s happening outside of the healthcare setting.” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “Every couple of years, someone talks about creating the ultimate database to rule them all. … It hasn’t happened yet, and I don’t think it’s going to happen.” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “The difficult thing about healthcare data … interoperability … is an organizational and a governance problem.” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “You’ve gotta start with the incentives … and then you do have to say … ‘We are not gonna hoard any more data.’” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is TEFCA, and how does it fit into this interoperability conversation? @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth “I think partners are trying to solve for value and outcomes.” @lisabari of @civitas4health discusses #interoperability on our #healthcarepodcast. #healthcare #podcast #digitalhealth   Recent past interviews: Click a guest’s name for their latest RHV episode! Betsy Seals (EP375), Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan, Shawn Rhodes, Pramod John (EP353), Pramod John (EP352), Dr Eric Bricker
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Jul 28, 2022 • 32min

EP375: Medicare Advantage Plans in the Hot Seat, With Betsy Seals, CEO and Cofounder of Rebellis Group

Medicare Advantage (MA), otherwise known as the “money machine,” is often the most profitable parts of many payers’ business lines. Medicare Advantage plans can make a lot of cash if they are good at what they do. Look at any of these large, consolidated carriers’ financial statements to get the magnitude of that statement. Also, in 2022, Medicare Advantage plans have enrolled 28 million participants between them, which represents 45% of all Medicare beneficiaries. This marks a three-point improvement in penetration over 2021 and a total program enrollment growth of 9%.   All of this is not a secret. So, what’s happening right now is that this administration is looking carefully at Medicare Advantage plans and what they have been up to. We have had an amping up of government oversight, including regulatory actions and program audits. In this healthcare podcast, I am speaking with Betsy Seals, who is CEO and cofounder of Rebellis Group, which is a managed care consulting firm working with Medicare Advantage plans. Betsy says (and this is what we talk about in the interview) that there’s three main areas that the government is currently scrutinizing: Sales and marketing. There have been these third parties, it seems, these field marketing organizations who were hired to do marketing and sales for some of the Medicare Advantage plans. And because they were third parties, it seems that many of them felt themselves to be excluded from CMS (Centers for Medicare & Medicaid Services) regulations and able to basically mislead prospective members with sales pitches that were highly suspect. Betsy gives some examples of these, and when you hear them, you will see why CMS is cracking down. Recouping improper payments is another area that CMS is all over. Interestingly, as Betsy Seals says in this interview, this might be one area where the government is actually ahead of private sector plans from a technology and analytic standpoint. CMS seems to have better analytics capabilities and is better at detecting fraud schemes and improper payments than the plans themselves. These plans are not sophisticated enough to notice stuff that CMS detects when it gets ahold of the plan data. But as unusual as this situation is where the government is ahead of the business sector, I can’t say I’m shocked. We have had one guest on this show after another talking about just how far in the past some of these health plans are lagging. Dan O’Neill probably said it most eloquently and notably (EP359).   But I digress. So, recouping improper payments has the eye of CMS. This means two things largely. It means finding “outlier” codes that some MA plan paid for but which are clearly errors and should not have been paid. Another improper payment is when plans themselves do a little fancy upcoding so that they make more money than they should in their risk-adjustment payments. This has gotten some major attention lately. Let me quote from an OIG (Office of Inspector General) report:   “Our findings raise concerns about the extent to which certain MA companies may have inappropriately leveraged both chart reviews and HRAs [health risk assessments] to maximize risk-adjusted payments. We found that 20 of the 162 MA companies drove a disproportionate share of the $9.2 billion in payments from diagnoses that were reported only on chart reviews and HRAs, and on no other service records.” The sneaky idea here to get more money than they should from taxpayers is that someone somewhere puts down that a member has major depressive disease because someone somewhere said they did. But the patient clearly doesn’t have major depressive disease because they aren’t getting any treatment for it and nothing anywhere would indicate that they are suffering from a major depressive disease. So, the plan winds up getting more money from the government to care for a patient who is suffering from major depressive disease, but the patient doesn’t require any additional care because they don’t have major depressive disease. It’s a great way to make some dollars for shareholders that is coming right out of the pockets of taxpayers. In sum, the #2 area of additional oversight is recouping improper payments either from paying claims that should not have been paid for or by wild upcoding. This is just kinda like the general sort of compliance oversight that CMS does, meaning grievances and appeals and formulary administration and models of care for SNP plans (special needs plans), compliance program effectiveness—normal stuff like this—which will be interesting given all of the articles coming out right now about how patients on Medicare Advantage plans are less likely to get more costly diabetes treatments and how often there’s denials for cancer care or NCI cancer centers aren’t covered, etc. One point of note here that’s kind of thought-provoking on a few levels: If you’re an MA plan, it is super important for you to get members in for their annual screenings. For one, CMS requires that you document diagnoses each year; and you need to do this to reduce the chances that CMS will question a treatment being paid for because there’s no underlying diagnosis to support it—and these diagnoses must be re-upped every year. Recall what I was just talking about re: improper payments and fraud schemes. If a patient isn’t diagnosed with something, then why are taxpayers paying for its treatment? Also risk adjustment ... if you wanna upcode, it’s not a bad idea to have a diagnosis documented in multiple different ways so that when the OIG/CMS/DOJ comes knocking, you can have your ducks in a row. Getting patients in for their annual screenings is how you can safely upcode. Further, one more reason why getting patients in for annual screenings matters to MA plans, member experience counts for an increasing piece of star ratings. Patients who never see their doctor and never interact with the plan don’t usually give the plan they have nothing to do with stellar marks—and besides that, these members are tough to retain. Last big deal for an MA plan to get members in for their annual is this is when the doc gets into screening for care gaps, which is also part of star measures. All this about annual screenings is a bit of a sidebar, but it is kind of interesting to contemplate as we get into the conversation today about government oversight. (For a meme on this topic, check out this Tweet from Rik Renard.) My guest, as I mentioned earlier, is Betsy Seals. Listen to our conversation about how MA plans are in the hot seat right now. Later in the fall, Betsy will be coming back to talk about trends in the Medicare Advantage marketplace. You can learn more at rebellisgroup.com.   Betsy Seals is the CEO and cofounder of Rebellis Group, a consulting firm established to provide advisory and hands-on services to Medicare Advantage Organizations (MAOs) and their subcontractors. Betsy is a nationally recognized leader in the managed care industry with over 20 years of experience. Betsy brings to the table a solid mix of leadership and business acumen, as well as regulatory and strategic knowledge within the managed care landscape. Betsy’s expertise is focused in the areas of mergers and acquisitions, compliance, sales and marketing, strategy, supplemental benefit landscape, innovative benefit design that address social determinants of health, and health plan operations. Prior to founding Rebellis Group, Betsy served as the chief consulting officer for Gorman Health Group (GHG). In this role, Betsy managed the Medicare consulting practice, including implementation of strategic initiatives, development of new practice areas, and oversight of day-to-day consulting operations. Prior to her role as chief consulting officer, Betsy served as senior vice president, compliance operations, where she assisted MAOs and Part D sponsors to attain and maintain compliance with the Centers for Medicare & Medicaid Services (CMS) regulations and guidance by conducting risk assessments, preparing organizations for CMS audits, performing mock CMS audits, and creating and implementing internal and delegated entity oversight programs. Before joining GHG, Betsy worked for MAOs, where she served in customer service and compliance with responsibility for creation and implementation of oversight programs, CMS audit preparation, implementation of internal corrective action plans, and the day-to-day management of compliance operations. Betsy has also worked as a CMS subcontractor to conduct CMS Compliance Program audits. 08:15 What’s happening with sales and marketing in the healthcare industry? 11:04 What’s happening with the focus on recouping improper payments? 13:32 “When you look at the fundamentals of it, these are federal dollars. And what we’re talking about is federal dollars that were paid when they should not have been paid.” 15:39 Are improper claim payments an administrative problem, or something more intentional? 16:20 “The health plan has a responsibility to catch those issues.” 20:10 What are specialty pharmacy prescriptions being scrutinized for? 22:12 “If this is where CMS is headed … the health plan should’ve already been doing this.” 23:58 Why do you see a bigger focus on social determinants of health? 25:54 Do these health plan audits actually have any teeth? 27:01 What is the biggest penalty a health plan can face from an audit? 29:57 “Navigating the Medicare program … was near to impossible. I know the program, and even for me, it was hours and hours and hours and hours on the phone.” You can learn more at rebellisgroup.com.   @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth What’s happening with sales and marketing in the healthcare industry? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth What’s happening with the focus on recouping improper payments? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth “When you look at the fundamentals of it, these are federal dollars. And what we’re talking about is federal dollars that were paid when they should not have been paid.” @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth Are improper claim payments an administrative problem, or something more intentional? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth “The health plan has a responsibility to catch those issues.” @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth What are specialty pharmacy prescriptions being scrutinized for? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth “If this is where CMS is headed … the health plan should’ve already been doing this.” @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth Why do you see a bigger focus on social determinants of health? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth Do these health plan audits actually have any teeth? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth What is the biggest penalty a health plan can face from an audit? @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth “Navigating the Medicare program … was near to impossible. I know the program, and even for me, it was hours and hours and hours and hours on the phone.” @betsyseals of @GroupRebellis discusses #MedicareAdvantage plans on our #healthcarepodcast. #healthcare #podcast #digitalhealth   Recent past interviews: Click a guest’s name for their latest RHV episode! Dave Chase, Cora Opsahl (EP373), Cora Opsahl (EP372), Dr Mark Fendrick (Encore! EP308), Erik Davis and Autumn Yongchu (EP371), Erik Davis and Autumn Yongchu (EP370), Keith Hartman, Dr Aaron Mitchell (Encore! EP282), Stacey Richter (INBW34), Ashleigh Gunter, Doug Hetherington, Dr Kevin Schulman, Scott Haas, David Muhlestein, David Scheinker, Ali Ucar, Dr Carly Eckert, Jeb Dunkelberger (EP360), Dan O’Neill, Dr Wayne Jenkins, Liliana Petrova, Ge Bai, Nikhil Krishnan, Shawn Rhodes, Pramod John (EP353), Pramod John (EP352), Dr Eric Bricker, Katy Talento  

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