tv [untitled] April 14, 2014 12:00pm-12:31pm PDT
because we have an employer involvement in the aco's. we participate in quarterly meetings and we look at the numbers and we add suggestion and we add sometimes more hard nudging than other times, but the medical groups know that we are on top of these numbers. and that's unusual. usually the employer is not at the table. we are looking at length of stay, readmission rates and examining catastrophic cases, monitoring emergency department visits in the old days we said emergency room visits and analyzing the drugs spent and whether or not the generic prescribing rates were improving. today all of those metrics as you will see have improved. the influence is clear, the blue shield for 2013 renewal they requested a 13 percent increase, a double
digit increase, a second year in a role of double digit increase. in 2012 the board decided to go flex funded. the increase was actually when we looked at the utilization was only a 2.5 percent increase. the rational for lower premiums is one that helps the aco accomplish their goals and lowers the overall cost because they set goals and they need to live within them and achieve them. to remind you an aco is an integrated net deliver network model where they and the hospital work together. they talk to each other electronically and in person and look at clinical best practices which are different from medical group
to medical group. they integrate their data and they report it out. and the idea that they are even reporting it to aco but also reporting it to their board of directors and they know if the prescription rate is above 70 percent and below and they work with their particular pigsz -- physicians to go through that metric. i'm not going through all of these. it's a long process to go through them and they initiate the contract and they engage numbers in the physicians and employer and then we monitor the outcomes and assess how to improve integration. if you go page 9, i think our recent experience is probably tells an important story. this looks at the data from july 2010 to
june 2011 and compares it with 2012 through november 2013. so while our admits per a 1,000 went up. the flu epidemic we had. everybody in the city, there was a bed shortage for the first time in a long time. our days per thousand, hospital days per -- 1,000. it speaks to the management to better coordination of their care in the outpatient setting. the average length of stay similarly. the average length of stay is down 10 percent which is remarkable. 30-day readmission rate is
down 7.2 percent. we are not the only organization that has inspired the attention to readmissions. medicare certainly had a lot to do with that but this means our members aren't being discharged early, if they are being discharged, not early, but in the right amount of time, the medical group and hospital make sure that member has what they need at home and to stay home. the medications are filled, they have the right ament amount of help and they are not having to figure out things on their own. and medical and social workers are helping our members. the coordinated care is definitely improved quality. the emergency room visits are down 7.7 percent. i think hss gets
credit for saying there cannot be this, we close our offices at 5:00 and both medical groups stepped up and said we will offer hours after 5:00 and on the weekends. there have never been urgent care services available in san francisco. all san franciscans can thank us that urgent care hours outside of kaiser are now available through the two major physician groups here in the city. the outpatient surgeries are up.2 percent. that would align that our inpatient beds are down and inpatient length of stay is down. we are doing more outpatient setting. the net
is down. it's very difficult to get a physician who is pretty used to practicing the way he or she practices for 20 years to say, you don't just get to prescribe that anymore. you really need to prescribe things differently. we are changing physician behavior and we are changing in the context of the coordination of care and changing the culture of how care is provided in team care which is a major shift in culture for physician offices. so all of these metrics point to the success that our hmo's have had over these years. they have point to the fact that we have saved money. the question was asked can you compare the aco trend in terms of cost increases to your non-aco trend. blue
shield said half is costly as our aco trends. we have bent that cost curve which is one of our goals. we've had significant overall savings when you look at the premiums. we were able to negotiate last year and hopefully this year. we kept blue shield except -- competitive. they are going to have to stretch competitive this year. kaiser is making affordability one of their priorities and we have improved quality of care. we have a lot to pat ourselves on the back for as do the physician groups. i think some of the hospitals are more engaged than others and when we sit down we sit with the physician groups and the hospitals and talk about why aren't you meeting this number. what happens, even if it's a small number, a small end, we look at where did that data point shift. so, having
the employer lower the data is an extra incentive for them beyond and makes it's more current beyond the rates. let me get neal to explain how we are going to do the targets which is on page 11 and 12. >> for those who are following along we are now on page 11. >> i have a question. so the urgent care services are those special facilities or in the regular doctor offices in extended hours? >> they are extending hours. they are both. so blue shield is contracting with some of the urgent care centers that are popping up. >> how are they getting that information to the members that this is available?
there used to be an urgent care facility. >> lisa, deputy director of health systems. each of the aco's would like to talk to you about their intervention and whenever they extend their after hour services and how they have effectively communicated that to their membership. the other thing is that both have done is implement the advice line so that our members and we've publicized that number on all of our material so they are calling the advice line and there might be an appointment available or giving direction and not just saying, i don't know what's open in your area. just go to the emergency room. a lot of innovation.
>> all right. >> something i don't remember we've ever really shared at the board level that is as part of the structure there are incentive pay out targets that pay out of the trust to aco's brown and hills physician group. when these things were taking flax, we were alerted by blue shield that is their only mechanism and that is what you consider a self funded or minimum p premium structure. that's universe arch -- arch we are not being asked to make a funding arrangement. say the average rate for the program at brown and toll an is $600 and we say, based on this
utilization, this drug cost, these catastrophic claims for your population, this is the status quo. now, if you do these initiatives that they are going to talk about and we look at where your present bed day rates are etc and you bring them down 10-15 percent, they that number now becomes $530 for instance. with that, we say if you hit that target, no. 1 that we talked about on page 1 and you go all the way to target no. 2, there is a 50/50 split. hss for the money that goes down on a per member per month basis. that money is equally split between hss and brown and toll an and various facilities that are associated with brown and tolley. then there is the stretch target. say the initial target is x, then the next target is 10
percent below that and we have a stretch and sometimes the percentage allocation is higher or lower depending on if we are doing a 50/50 split. that's what we are trying to show you on page 11. so that we want everybody to be aware that those exist. then there is a second thing is an example of how this works on page 12. so talk to your target is 550, second tier is 510 and final pay out level is 490. so if you cross over 550, and you go to 510, there will be a certain allocation of the money on a certain split. then if you go down, i didn't make this super complicated and fancy. once you are at 490, no more pay out. with that, we have an example. they get to 530 as an example. there is a
$20 difference in the average cost per member per month in the entire year. they have 20,000 people times 12 and the allocation is 50 percent. that turns out to be $2.4 million that is now paid from the trust to brown and toll an for instance and associated facilities as part of that which would be like cpmc, etc. these targets are jointly negotiated which i think is pretty good amongst my unto contracted actuary with blue shield and brown and tholeey. we talk with blue shield and because of their association with the groups themselves and with the association and we go yay! or nay. i have never had a session where we all talk together and we hope at some
point if it's proper within the structure of the contract relationships we would all like to be together. that being said are there any questions about the fact that these exist and how they work? >> i would just say that i know in the early part of this work i was affiliated with another major organization in california, as this was being talked about, i know there was a little bit of skepticism about how all of the details would begin to work and what would be the longer term benefit of trying to do it. i'm very pleased that after a couple of years which seem some manifestation that it could be put together but it takes time and money. the money is a bit of the driver on both sides of the equation. custody -- kudos.
>> the 50 percent goes to, it's 50/50 percent between hss, the medical group and associated hospitals? >> yes. >> so hss would get what percentage of this? >> half for every dollar below the threshold. >> the medical group would get how much? >> it is an allocation. say they get half and the facility would split it up. they split up their 50 and hss would keep theirs. >> we should have said it was 50/50 between aco and hss. the aco has identified themselves by their medical groups and they contract with the hospital. >> so some goes to the hospital and some goes to brown and toll an, but not back to blue shield?
>> no money goes back to blue shield. not true? correct me. >> can you direct that clarification? >> i have a clarification. so lisa said our money goes into our stabilization reserve which allows us to adjust the rates accordingly. in theory, we have money to adjust the rates. >> and the targets themselves, the amount of money that is set aside for targets are built into premium that you approve. this is not money on top of the premium. this is money we are already collecting already inside to incentivize coordinated and quality care. >> we are setting aside from where? >> i'm not sure setting aside is the right way to think about it. >> what we are essentially
doing if you save money, if you spend less from the premium, you will get less of it. giving them a financial incentive. it's not being set aside, it's nothing like that. you can earn some by saving money. >> it's just paying somebody to do what they are supposed to be doing strikes me like giving your kids allowance for cleaning a room. it seems that it's the opposite. we have targets for kaiser. if they don't meet it, they give us money. if they don't meet this, if they meet this, we give them money and if they don't meet it, we get nothing. >> i understand your perspective. the medical group, they have to build infrastructure in order to accomplish these goals. in my conversations with them, they say their only goal, they want to compete, they want to
stay in business and if kaiser can do it with better management. they say we have to have an organization which was brought to you in 2010. in their mind, these targets are bonus money, to pay for their infrastructure so they can accomplish the goals in the initiatives they are talking about. they are not looking to pad their walt. -- wallet. they are looking to pay for the structure. when you have to take a registry of all this and communicate properly, it takes time and money and skill sets need to be developed. so i hear what you are saying, but from them it's a matter of building a structure so they can go forward as a competitive well organized and well structured entity.
>> that's just some feedback. >> like the infrastructure. they paid a lot of money for that. so did they ask for money back? >> mean, i don't know, maybe i'm over be laboring this. >> they plow it back into their systems and they are fully insured and we know that they have saved money on our membership. so this is an environment in which we are at risk and the medical groups are at risk and if they save money, previously blue shield was there and they came in under our premium, blue shield kept that money. hopefully they brought it back to innovation. now, blue shield isn't getting that. we are saying if they come in under
premium, debit to keep half the money and half the money goes into our reserve. so, it's that difference between being at risk or not at risk. if we are still dealing with blue shield, blue shield would be negotiating these kinds of targets with them and paying them and keeping the difference splitting the difference the same way. but in this instance we are doing it. this is only the second time we've done it which is why we are trying to explain how it's done. >> it seems like when you pay money, it would incentivize the provider to give less care, maybe when the person needed it. i know they can give too much care but i feel it go the other way because they look at their level now. >> which is why we are monitoring their admission and length of stay. we are
looking at both of those to balance it out. but this is an action item and that we do need to, probably want to let commissioner fraser, i think that in 2013 they didn't meet their target but in 2014, the experience is already better. in 2013 with the big flu. it was an extensive year all over. hospital use for the first 3 months of 2014 was between 60-70 percent better than it was in 2013. which is positive and we want to incentivize those payments. so the 2 medical groups will tell you what they have done and what they intend to do. they would like to present briefly. but they are in all of those
areas where the outpatient population management, inpatient management, emergency department utilization, member engagement and wellness and medication management. and that's the toll an and hill and how you move complex care from the hospital or how you keep them out of the hospital, emergency department use and member engagement wellness. it's slightly different. we will need now that we might generate some surplus if they come in under, we'll need to set aside funds for this. we'll need action by the board to recommend that we develop a policy. >> do i understand there are representative from brown and toll an and hill present? i would like to afford them a few moments. so whoever the representative are, would you please come from brown and
toll an and hills physician and we'll do brown and toll an first alphabetically. it's not by preference or anything like that. thank you very much. if you would please identify who you are? >> i'm richard fish from brown and toll an. ceo. >> welcome. >> thank you. thanks for having us here. this is a project that's been and i have spoken to you before and it's been near and dear to our heart and important to address it. certainly the labels that have been mentioned the collaboration with the hospital which means getting our staff together with the hospital staff in the er and the hiring of nurses and really to support to t up for the discharge. having a dedicated hospital group that centers around your patients
and knows our staff. a significant discharge plant that we started with the county and patients that works from before the patient's discharge to make sure everybody understand the plan and what's going to happen afterwards. it works all the way through having the hospital make the hand off and we've added staff that contacts most patients. there is a criteria for those who need this. that work with them on the telephone and make sure they pick up their discharge. now e that that discharge process there is so much going on at a time when nobody can really absorb the information. which is why we have this problem. people don't under and they can't follow through and we give it a day and three days and we contact them and we have the discharge notes and make sure that our clinical team that did they
pick up their meds, did they meet their part of the appointment and the cardiology, the right doctor. having that level of intense interaction and not wait for a problem that we would deal with it that we think our system historically has leaned towards. i mentioned after hours. we have two in our office to extend their hours evenings, weekends. we put out flyers, newsletters, calls to folks that were hitting the er that we thought wouldn't need to to make sure are aware of this. the city and county population is open to all of our population but the volumes continue to go up through awareness. we've also contracted through awareness care and from our verbiage through urgent care, there is a higher level of licensing
required for you urgent care than after hours. most of the volume is for extended hours that truly needed urgent care but not needing er. i would close by saying that we've learned a lot about this population. i know i have spoken here before but i can't give up my moment in the pulpit without mentioning it. >> we didn't mean anything by that. >> would you believe that we appreciate the studies that have been done to look at the risk of the populations that select each delivery system and make sure that we are all setting the expected cost structure and the rates commensurate to the risk of the population that's being served. medicare was out first with this risk adjustment on
the medicare program. now all the exchange products are using a different methodology. we believe that's the future for all the programs in overall populations of the patients. if you have a 10 percent more expensive premium, but you are taking 12 percent more expensive people, it's not actually cheaper. we need to get that denominator to evaluate the numerator. i know there has been a lot of work in this regard, if we can support this effort to make sure the patients regardless of their acuity are getting the level of care they deserve and that you are paying for the care that you should be paying but getting the highest quality of care. >> thank you very much. >> i have one question. how many urgent care facilities do you have? >> in san francisco we have two after hours care, one
urgent visit. >> just urgent care. >> urgent care. there is a second that has limited hours. there is one with extended hours with urgent care and we are opening up a second sight in the spring and we have one in the east bay. two after hours and one urgent visit and a second one coming. so we'll have four soon all within the city limits in addition to the hospital services. >> any other questions or comments? thank you. >> good afternoon commissioners. i'm terry hill. vice-president for performance strategy for hills physicians. it's a pleasure to see you again. it maybe somewhat reassuring to you to say that we are in our 5th year of the
calipers project which covers 41,000 members in sacramento. for the first four years we just found out we have exceeded our savings target. this is not some idea that is a flash in the pan. it can work long-term. we are talking about making foundational changes in the way we deliver care and holding ourselves collectively responsible which i think is the key. that of course kaiser colleagues have exploited for a long time and we are now doing as well. a number of our programs are now quite mature. for instance our care transitions program as richard explained, this is a very critical time. we feel
extraordinarily good about the day-to-day transition manager and we are launching a very innovative pharmacy program this year including having our hills pharmacy go over the patient list for some of our clinics prior to the primary care physician seeing the patient and putting sticky notes in the electronic charts. some of this is quite innovative and we feel very good about that. we have long had the usfc care center across the street. if someone calls the urgent care center for an appointment because you can do that, we have a process in place by which the patient if there is time in the primary care physician office, the patient