BPCI Advanced CMS Voluntary Bundled Payment Program: Overview May 2019 - Date - Tower Health
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BPCI Advanced Date CMS Voluntary Bundled Payment Program: Overview May 2019 CONFIDENTIAL
Table of Contents I. Introduction II. Program Details III. Strategic Considerations Appendix A: Episode Detail Appendix B: Target Price Detail CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 1
I. Introduction CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 2
I. Introduction BPCI Advanced CMS recently announced that it would be opening up its second application period for BPCI Advanced in April, for a program start date of January 1, 2020. ECG’s introduction to BPCI Advanced includes: Description of program features, important Program application deadlines and other dates, clinical Details episodes, pricing structure, and additional details Strategic Strategic considerations regarding next steps, Considerations staffing models, and other ECG recommendations Note: Prospective Payment System–exempt cancer hospitals, inpatient (IP) psychiatric facilities, critical access hospitals, hospitals in Maryland, hospitals participating in the Rural Community Hospital Demonstration, and participant hospitals in the Pennsylvania Rural Health Model cannot participate in BPCI Advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 3
I. Introduction Current Participation 1,295 Participants 715 Acute Care Hospitals 580 Physician Group Practices (ACHs) (PGPs) Participation by Service Line 534 Kidney 479 Neurology 4% 469 4% 434 Gastrointestinal 371 (GI) 359 354 8% 353 345 Spine, Bone, 344 and Joint 344 Pulmonary 31% 315 10% 313 260 Infectious 235 Disease 232 13% 221 218 Cardiovascular 206 30% 198 189 184 165 143 111 100 93 70 63 Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. On March 1, 2019, 16% of participants (295 providers) dropped out of BPCI Advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 4
I. Introduction Program Benefits Offers an opportunity to learn how to manage Qualifies as an total cost of care Advanced APM; physicians eligible for bonuses under MACRA Fosters a collaborative BPCI clinical culture across settings and functional Engages and aligns Advanced areas physicians and provides certain gainsharing waivers Provides historical benchmark data for Reduces costs and episodes, within and improves care delivery outside the organization across the episode CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 5
II. Program Details CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 6
II. Program Details BPCI Advanced Overview Program Features Key Stakeholders Eligible Participants » BPCI Advanced is a voluntary bundled » Convener Participants bring together » ACHs and PGPs may take part as Convener payment model with a single risk track. multiple downstream entities and facilitate or Non-Convener Participants. » It includes 33 IP episodes and 4 outpatient coordination; they bear and apportion » Other entities may take part as Convener (OP) episodes.1 financial risk. Participants only. » The program runs from January 1, 2020, » Non-Convener Participants bear financial through December 31, 2023. risk only for themselves, not on behalf of multiple downstream entities. » It qualifies as an Advanced APM. Reconciliation and Target Price Quality Measures Payment » A single retrospective payment includes a » A 3% discount is applied to historical » Participants can choose between two triggering IP stay or OP procedure and the Medicare FFS expenditures for each quality measures sets: (1) claims-based 90-day period starting on the day of episode.2 measures used in MYs 1 and 2 including discharge. » Preliminary TPs will be provided for each advance care plan, all-cause readmissions, » The total Medicare fee-for-service (FFS) episode in advance of the first and other episode-specific metrics, or payment for the episode is reconciled against performance period of each MY. (2) claims- and registry-based measures yet target prices (TPs) on a semiannual basis to be defined. and adjusted for quality performance. » Participants will be accountable for no more than five measures per episode. 1 Participants that start in Model Year (MY) 3 (January 1, 2020) may not add or drop clinical episodes until the start of MY 4 (January 1, 2021). Active participants as of March 2019 will not be allowed to make any changes until the start of MY 3 (January 1, 2020). 2 The 3% discount is a continuation from MYs 1 and 2. However, CMS may make slight adjustments to this amount in future MYs. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 7
II. Program Details Clinical Episodes Starting Model Year 3, there are a total of 37 clinical episodes (4 outpatient and 33 inpatient). New episodes for 2020 are indicated in bold font. Cardiovascular Spine, Bone, and Joint Gastrointestinal » Acute myocardial infarction » Back and neck except spinal fusion (OP » Disorders of the liver (excluding » Cardiac arrhythmia episode) malignancy, cirrhosis, and alcoholic » Cardiac defibrillator (OP episode) » Cervical spinal fusion hepatitis) » Cardiac valve » Combined anterior posterior spinal » GI hemorrhage » Congestive heart failure (CHF) fusion » GI obstruction » Coronary artery bypass graft » Double joint replacement of the lower » Inflammatory bowel disease1 extremity » Major bowel procedure » Pacemaker » Fractures of the femur and hip or pelvis » Percutaneous coronary intervention (PCI) (OP episode) » Hip and femur procedures except major Neurology joint » Transcatheter aortic valve » Seizures1 replacement (TAVR)1 » Lower extremity/humerus procedure except hip, foot, and femur » Stroke Kidney » Major joint replacement of the lower extremity (IP and OP1 episodes) Pulmonary » Renal failure » Major joint replacement of the upper » Chronic obstructive pulmonary disease extremity (COPD), bronchitis, asthma Infectious Disease » Spinal fusion (noncervical) » Simple pneumonia » Cellulitis » Sepsis Bariatrics » Urinary tract infection (UTI) » Bariatric surgery1 1 New clinical episode for MY 3. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. Note: Participants that start in MY 3 (January 1, 2020) may not add or drop clinical episodes until the start of MY 4 (January 1, 2021). Active participants as of March 2019 will not be allowed to make any changes until the start of MY 3 (January 1, 2020). CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 9
II. Program Details Timeline November 2019 » CMS Selects Second October 1, 2018 Cohort BPCI Advanced June 24, 2019 » Participation Agreements January 1, 2020 Starts for First Deadline: Applications and Participant Profiles BPCI Advanced Starts Cohort Are Due to CMS Are Due for Second Cohort April 24, 2019 September 2019 December 2019 Application for » Historical Claims and Submit All Other Second Cohort TPs Are Distributed to Q1 2020 Begins Applicants Deliverables to » CMS Distributes CMS Participation Agreements The BPCI Advanced program ends for both cohorts on December 31, 2023. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 9
II. Program Details Exclusions and Precedence Rules A Medicare FFS beneficiary receives an anchor service for a BPCI Advanced clinical episode at a participating acute care hospital. Is the beneficiary Is the anchor Is the Is the aligned to: service a joint attending operating » A Next Generation replacement, physician part physician part The clinical Accountable Care and was it of a PGP of a PGP episode is Organization (ACO)? No performed at a No participating in No participating in No attributed to » Medicare Shared Comprehensive BPCI BPCI the ACH. Savings Program Care for Joint Advanced? Advanced? ACO Track 3? Replacement » An ESRD Seamless (CJR) hospital? Care Organization with downside risk? Yes Yes Yes » An ACO participating in the Vermont Medicare The clinical ACO Initiative? The clinical The clinical episode is episode is episode is Yes excluded and attributed to the attributed to the attributed1 to the PGP. PGP. CJR hospital. The clinical episode is excluded. 1 Attributed to the entity that is at risk. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. Note: CMS has not released details regarding the overlap between BPCI Advanced and Pathways to Success models. Entities may participate in both BPCI Advanced and the Oncology Care Model; however, CMS will adjust Oncology Care Model payments based on episode overlap. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 10
II. Program Details Target Price To determine program savings, CMS will compare Medicare FFS expenditures in the clinical episode against the TP for that episode. Preliminary TPs will be provided in advance of the first performance period of each MY. Standardized Patient Case Mix Peer-Adjusted Baseline Spending Adjustment (PCMA) Trend Factor (SBS) Historical efficiency of Adjusts for varying levels Adjusts for persistent Benchmark ACHs based on risk- of severity1 in ACHs’ differences in episode Price and peer-standardized patient case mix that are spending levels across episode spending in the outside their control ACH peer groups2 baseline period Benchmark 3% TP Price Discount3 1 Patient characteristic categories used to adjust risk include Hierarchical Condition Categories (HCCs), HCC interactions, HCC severity, recent resource use, demographics, long-term institutional, Medicare Severity Diagnosis Related Group (MS-DRG)/Ambulatory Payment Classification (APC), comprehensive APC (C-APC), and clinical episode category–specific adjustments. 2 Peer groups will be determined by geographical and hospital characteristics, including classifications such as academic medical center, urban/rural, safety net hospital, census division, and bed count. 3 The 3% discount is a continuation from MYs 1 and 2. However, CMS may make slight adjustments to this amount in future MYs. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 11
II. Program Details Reconciliation and Stop-Gain/Loss CMS will apply a 20% stop-gain/loss provision to the net payment reconciliation amount (NPRA); a participant may only earn up to 20% of its target spending if savings are achieved. Example: Stop-Gain Applied to Total Savings (NPRA) Spending across All Episodes The difference Target Spend: $1,000,000 $1,200,000 between the target spend and the Actual Spend: (750,000) $1,000,000 actual spend is Savings/NPRA: $ 250,000 known as the $1,000,000 NPRA. In this Quality Adjustment: (25,000) $800,000 example, the NPRA (+/- 10%) $ 225,000 $750,000 is $250,000 across $600,000 all episodes. This Stop-Gain amount is adjusted (20% of Target Spend): $ 200,000 $400,000 for (1) quality performance, up to The participant earns the lesser of the $200,000 10%, and (2) a stop-gain or the quality-adjusted NPRA. stop-gain provision. Net Program Earnings: $ 200,000 $0 Target Spending Actual Expenditures (determined by CMS) (FFS) Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 12
II. Program Details Waivers Payment Policy Waivers If the participant wishes to furnish services to BPCI Advanced beneficiaries pursuant to the policy waivers below, the participant must submit to CMS its intent to use the waivers in its Participant Profile. Three-Day » Waives: Three-day rule for SNFs with overall rating of three stars or better SNF Rule » Implications: Beneficiaries who meet clinical criteria discharged to a more Payment appropriate care setting earlier (must enter into a written agreement with a Policy Waiver qualified SNF to qualify) Postdischarge » Waives: Direct supervision requirement Home Visits Payment » Implications: In-home postdischarge visits from a nurse without a physician Policy Waiver present Telehealth Payment » Waives: Geographic and originating site requirements Policy Waiver » Implications: Delivery of telehealth services to beneficiaries in their homes Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 13
III. Strategic Considerations CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 14
III. Strategic Considerations Key Resources Preliminary discussions with select team members will help to frame initial responses for each application question. Quality Case Management Care Coordination Finance Legal and Compliance Strategy Data and IT Medical Affairs CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 15
III. Strategic Considerations Key Questions As organizations analyze their historical claims data and preliminary TPs, they should keep in mind these considerations when determining which episodes to select. Financial Is the volume in the selected episode(s) sufficient? How do readmissions and/or post-acute utilization rates drive cost in the episode? How does episode cost compare to the TP? Will there be a savings opportunity? Strategic What is the organization’s appetite for moving from volume to value? Is the organization ready for value- based payments? Would the organization benefit from enhanced physician alignment through an initiative focused on gainsharing of the savings associated with bundled payments? Are there service lines that may benefit from additional efforts to either develop care pathways or further refine and operationalize existing pathways? Would the organization benefit from a more aligned and preferred post-acute care provider network? Operational What type of organizational and governance structures would need to be implemented to effectively manage the bundled payment program? Does the hospital have the appropriate administrative and physician leadership and support? What type of analytics and performance reporting capabilities exist? CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 16
III. Strategic Considerations Episode Selection Analytics ECG provides detailed analysis by episode in order to determine the participant’s greatest opportunity for program success. A blinded client example in the first BPCI Advanced cohort is shown below. Average Average Variance Average Average PAC Cost Average Preliminary Cost Annual Dollars Average PAC as Percentage Episode Episodes TP per Episode $ % Earned/(Lost) Cost of Episode Sepsis 135 $31,272 $30,435 $837 2.7% $112,676 $20,126 66% CHF 88 $27,444 $27,728 $(284) (1.0%) $(24,978) $20,897 75% COPD 80 $22,136 $21,433 $703 3.3% $55,989 $15,482 72% Pneumonia 77 $24,665 $27,981 $(3,316) (11.9%) $(254,258) $20,640 74% UTI 68 $26,760 $27,571 $(810) (2.9%) $(55,361) $21,953 80% Stroke 51 $30,166 $31,442 $(1,275) (4.1%) $(65,474) $24,514 78% Cardiac Arrhythmia 44 $18,570 $18,414 $156 0.8% $6,857 $13,222 72% GI Bleed 40 $22,287 $21,395 $892 4.2% $35,979 $14,326 67% MJRLE 40 $30,688 $35,087 $(4,399) (12.5%) $(174,482) $21,337 61% PCI (IP) 38 $30,925 $29,037 $1,887 6.5% $72,347 $13,942 48% Cellulitis 37 $23,996 $24,403 $(407) (1.7%) $(15,065) $18,871 77% Renal Failure 36 $27,410 $27,551 $(140) (0.5%) $(5,046) $20,956 76% AMI 30 $26,225 $24,867 $1,358 5.5% $41,199 $17,308 70% PCI (OP) 30 $21,182 $18,707 $2,475 13.2% $73,420 $7,783 42% Hip and Femur Except Joint 23 $45,973 $48,501 $(2,528) (5.2%) $(57,299) $35,823 74% Spinal Fusion (noncervical) 17 $46,400 $48,107 $(1,707) (3.5%) $(29,021) $20,774 43% Pacemaker 15 $31,516 $32,843 $(1,327) (4.0%) $(19,902) $16,309 50% Selected by leadership for further analysis. Green = Positive variance from TP. Yellow = Further consideration of market dynamics and strategic priorities required. Red = Eliminated from consideration given negative variance from TP. Source: CMS BPCI Advanced preliminary TPs (2013 to 2016) and raw claims (2014 to 2016); received from CMS on July 9, 2018. Notes: Figures may not be exact due to rounding. Episodes with fewer than 15 cases were excluded. PAC cost includes professional fees. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 17
III. Strategic Considerations Next Steps » Determine the level of organizational readiness for value-based payments. » Decide if BPCI Advanced aligns with the overarching organizational strategy. » Evaluate the potential for physician alignment. › Consider a gainsharing arrangement with your physicians. » Move forward with the application process—CMS will provide the financial performance of all 37 episodes. » Review the financial results of the episodes. » Identify the episodes with the greatest strategic and financial value. » Decide on Participation or Not. » If participating, then: › Complete the application process. › Implement gainsharing. › Develop a post-acute care network. › Manage and monitor program performance. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 18
Appendix A Episode Detail CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 19
Episode Detail Episode Definitions Inpatient Clinical Episode DRG 1 DRG 2 DRG 3 DRG 4 DRG 5 DRG 6 DRG 7 DRG 8 Acute myocardial infarction 280 281 282 Back and neck except spinal fusion 518 519 520 Bariatric surgery1 Coronary artery bypass graft surgery 231 232 233 234 235 236 Cardiac arrhythmia 308 309 310 Cardiac defibrillator 222 223 224 225 226 227 Cardiac valve 216 217 218 219 220 221 266 267 Cellulitis 602 603 Cervical spinal fusion 471 472 473 Combined anterior posterior spinal fusion 453 454 455 Congestive heart failure 291 292 293 COPD, bronchitis/asthma 190 191 192 202 203 Disorders of liver except malignancy, cirrhosis, or alcoholic hepatitis 441 442 443 Double joint replacement of the lower extremity 461 462 Fractures, femur and hip/pelvis 533 534 535 536 GI hemorrhage 377 378 379 GI obstruction 388 389 390 Hip and femur procedures except major joint 480 481 482 Inflammatory bowel disease1 Lower extremity and humerus procedure except hip, foot, femur 492 493 494 Major bowel procedure 329 330 331 Major joint replacement of lower extremity 469 470 Major joint replacement of upper extremity 483 Pacemaker 242 243 244 Percutaneous coronary intervention 246 247 248 249 250 251 273 274 Renal failure 682 683 684 Seizures1 Sepsis 870 871 872 Simple pneumonia and respiratory infections 177 178 179 193 194 195 Spinal fusion (noncervical) 459 460 Stroke 61 62 63 64 65 66 TAVR1 Urinary tract infection 689 690 New clinical episode for MY 3. 1 A-1 CONFIDENTIAL Note: CMS has indicated that the MS-DRGs and HCPCS codes that are included will be made available at a later time. 1678.010\480360(pptx)-E2 DD 5-7-19
Episode Detail Episode Definitions (continued) HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS HCPCS Outpatient Clinical Episode 1 2 3 4 5 6 7 8 9 10 11 12 13 Back or neck except spinal fusion 62287 63005 63011 63012 63017 63030 63040 63042 63045 63046 63047 63056 63075 Cardiac defibrillator 33262 33263 33264 33249 33270 TKA1 Percutaneous coronary intervention 92920 C9600 C9604 92924 92937 92928 92943 C9606 92933 C9602 C9607 1 New clinical episode for MY 3. Note: CMS has indicated that the MS-DRGs and HCPCS codes that are included will be made available at a later time. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 A-2
Appendix B Target Price Detail CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 22
Target Price Detail TP Key Features Efficiency Measure: Historic spending is incorporated into the target price (TP), where higher-than-peer-group 1 spending results in a higher efficiency measure and, therefore, higher TP. Peer Group Trends: Clinical episode spending for participant and peer groups is determined prospectively, to allow the participant to achieve savings after accounting for differences 2 in case mix. Patient Case Mix: More-complex, high-acuity patients lead to 3 a higher price adjustment, and a healthier patient population drives a lower price adjustment. Reward for Improvement: The pricing will reward improvement over time, and participants must reduce spending to achieve this savings. 4 Reward for High-Quality Care: The combination of TP 5 methodology and the composite quality score promotes savings to Medicare while also providing high-quality care. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 B-1
Target Price Detail Patient Case Mix Adjustment Patient Case Mix Is Accounted for in Multiple Ways 1 MS-DRG and C-APC assignment 2 Patient Characteristics Demographic characteristics (e.g., age, gender), long-term institutional status, dual eligibility, HCCs, interactions, counts, and recent 3 HCCs resource use Individual diagnoses grouped by similar diagnoses and illness severity; individual HCC categories used to account for clinical conditions in the BPCI Advanced model This methodology accounts for interactions between conditions. For example, heart failure is more difficult to manage if paired with renal impairment. The case mix will differ depending on the complexity of patients attributed to the clinical episode in the performance year. Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 B-2
Target Price Detail Standardized Baseline Spending Spending in the Baseline Period Suburban Urban Academic » CMS adjustments are removed when Hospital Medical Center calculating historical clinical episode costs and making comparisons to other Rent Teaching Rent Teaching Costs ACHs. This allows for comparison of Proportion of Disproportionate the intensity of services provided, Labor Uninsured Labor Share independent of context. » These adjustments are reapplied in the CMS adjusts payments for: final step of setting ACH benchmarks. » Regional labor costs and practice expenses (i.e., hospital wage indexes and geographic practice cost indexes). » Graduate medical education and indirect medical education. » Serving a large population of poor and uninsured patients (i.e., disproportionate share payments). Historical Efficiency The efficiency calculation quantifies the Hospital A Hospital B relationship between resources utilized Excellent Outcomes Excellent Outcomes to achieve an outcome and outcomes Low High achieved. In this example, hospital A is Testing Unit Testing Unit more efficient because it uses less Volumes Volumes Inpatient Days Inpatient Days services but achieves the same clinical outcome as hospital B. Post-Acute Care Days Post-Acute Care Days Readmissions Readmissions Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. Cost alone does not reflect efficiency. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 B-3
Target Price Detail Peer-Adjusted Trend Factor Hospitals are not compared to specific peer hospitals. Instead, these factors are accounted for in a multivariate model. Bundled Clinical Episodes Compare Peers on the Basis of the Type and Quantity of Services Provided Factors considered in identifying ACH peers include: Bed Count Safety Net Status Rural/Urban Setting Census Division Academic Medical Center Status If all your peers achieve more-efficient care, over time you’ll be held to that same standard. » Example: More-efficient use of post-acute care in orthopedic bundles Conversely, if all your peers start using a new treatment that changes costs and outcomes, it will adjust your TP. » Example: New, expensive curative treatment Source: https://www.innovation.cms.gov/initiatives/bpci-advanced. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 B-4
Target Price Detail Implications The final TP will not be determined until the end of October 2019. While most changes will be linked to the Medicare fee schedule through the SBS, adjustments to the PCMA could have a greater impact on the final TP. Methodology Implication » Historic spending is adjusted by an efficiency » Actual spending will be updated quarterly to measure that is a ratio of observed to predicted reflect changes to the Medicare fee schedule. spending. SBS » Observed spending that is higher than » Adjustments to this component are expected to be minor. predicted spending will increase the SBS. » PCMA is the ratio between average case mix– » PCMA will be adjusted at the end of the MY to adjusted spending and average predicted reflect performance year case mix baseline spending across all hospitals. PCMA » If case mix changes relative to the average, TP » A higher PCMA indicates a higher-acuity case will also be affected. mix and a higher TP. » This factor adjusts for persistent differences in the peer group trends through the end of MY 1. Peer This factor will not exhibit large fluctuations, either » Factors considered in identifying peers include in increases or decreases in spending, that cannot Adjustment bed count, rural/urban setting, academic/ be expected to persist. Trend Factor nonacademic status, safety net status, and census division. CONFIDENTIAL 1678.010\480360(pptx)-E2 DD 5-7-19 B-5
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