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2004 CCNC CCNC PRESENTATION: NC Medicaid Reform “Improving Quality While Controlling Cost” PRESENTATION: NC Medicaid Reform “Improving Quality While Controlling Cost” L. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services L. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST

CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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Page 1: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

PRESENTATION:NC Medicaid Reform

“Improving Quality While Controlling Cost”

PRESENTATION:NC Medicaid Reform

“Improving Quality While Controlling Cost”

L. Allen Dobson ,Jr. MD FAAFPSenior Policy Advisor /CCNCNC Department of Health &Human Services

L. Allen Dobson ,Jr. MD FAAFPSenior Policy Advisor /CCNCNC Department of Health &Human Services

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Page 2: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Page 3: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

ObjectivesObjectivesGeneral problems facing State Medicaid ProgramsCommunity Care of NC- our experience and what led us to our current programDiscussion of ongoing initiatives and resultsA few take home thoughts

General problems facing State Medicaid ProgramsCommunity Care of NC- our experience and what led us to our current programDiscussion of ongoing initiatives and resultsA few take home thoughts

Page 4: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

“States Struggle with Medicaid budgets”

“States Struggle with Medicaid budgets”

Policy Tools Utilized by StatesPA, PDL, Supplemental rebatesReimbursement cutsEligibility cutsFixed rate contracts- managed care organizationsDisease Management??New-Recipient self purchased plan with fixed $ amount- Fla

Policy Tools Utilized by StatesPA, PDL, Supplemental rebatesReimbursement cutsEligibility cutsFixed rate contracts- managed care organizationsDisease Management??New-Recipient self purchased plan with fixed $ amount- Fla

Page 5: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Page 6: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Page 7: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

The Cost EquationThe Cost EquationEligibility and benefit- who you cover and for whatReimbursement- what you payUtilization- how much services are provided

We just have not figured out how to manage utilization!!!

Eligibility and benefit- who you cover and for whatReimbursement- what you payUtilization- how much services are provided

We just have not figured out how to manage utilization!!!

Page 8: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Page 9: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

North Carolina MedicaidNorth Carolina MedicaidPCCM ( Access I) started in 1992HMO contracted in 3 metro area 1997First ( 7) community networks ( Access II/III) piloted 1998Most HMOs did not renew- 2001CCNC( Access II/III) became single Medicaid strategy 2002

PCCM ( Access I) started in 1992HMO contracted in 3 metro area 1997First ( 7) community networks ( Access II/III) piloted 1998Most HMOs did not renew- 2001CCNC( Access II/III) became single Medicaid strategy 2002

Page 10: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Current NC Medicaid FactsCurrent NC Medicaid Facts1.2 million covered (15.2% 0f population)686,000 children covered45% of all babies born covered30.5 % of recipients consume 74.5% resourcesDrug cost now equals hospital cost was increasing at double digit rate yearlyInpatient care (hosp,NH,MRC) consumes 40.7%Physicians account for only 9-10% of costs!!!

1.2 million covered (15.2% 0f population)686,000 children covered45% of all babies born covered30.5 % of recipients consume 74.5% resourcesDrug cost now equals hospital cost was increasing at double digit rate yearlyInpatient care (hosp,NH,MRC) consumes 40.7%Physicians account for only 9-10% of costs!!!

Page 11: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

ISSUES:• No real care coordination system at the local level

• PCPs feel limited in their ability to manage care in the current system

• Local public health departments and area mental health programs are not coordinated into the medical care management process

• Duplication of services at the local level• State “Silo Funding”

Page 12: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Issues(continued..)Issues(continued..)

Only 1/3 of Medicaid budget is women and children. 2/3 disabled and elderly which is less suitable for typical commercial managed care approachLarge portion of the state’s Medicaid population is in rural counties where there is minimal managed care activity

Only 1/3 of Medicaid budget is women and children. 2/3 disabled and elderly which is less suitable for typical commercial managed care approachLarge portion of the state’s Medicaid population is in rural counties where there is minimal managed care activity

Page 13: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

SOCIAL SERVICES

SILO

EMSSILO

HOSPITALSSILO

PUBLICHEALTH

SILO

MH/DD/SASSILO

DOCTORSSILO OTHER

PROVIDERSSILO

OURSYSTEM

Page 14: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC Silos Within SilosDivision of Social Services

Carolina Access MCR(Managed Care Representative)* Gathers & processes local enrollment data* Interprets Access roles for the state* Gathers local Medicaid statistics* Patients & doctors representative

Medicaid IntakeTransportationWork First/Job PlacementChild Protection ServicesAdult Protection ServicesDay CareChild SupportEmergency Assistance

Food Stamps

Division of Public Health

Child Services CoordinationMaternity Care CoordinationMaternal Outreach ProgramHealth CheckPostpartum Newborn/ Nurse Home

Visiting ProgramIntensive Home Visitor ProgramImmunization ProgramFamily PlanningWIC/Breast Feeding PromotionCommunicable DiseaseEnvironmental HealthHealth Promotions

Page 15: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Carolina Access I (10+ yr experience)The statewide PCCM has resulted in:

• Medicaid patients linked with a primary care provider increasing access to services across the state

• Primary care providers willing to serve as a gatekeepers and assist patients with appropriateutilization of the health care system( $2.50pmpm)

IMPROVED ACCESSThe problem was that it did not address the population that consumed the most resources!!

Page 16: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Options consider for NC Medicaid

Options consider for NC Medicaid

State Operated

Contracted Out

Locally Run

State Operated

Contracted Out

Locally Run

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Page 17: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Primary GoalsPrimary Goals

Improve the care of the Medicaid population while controlling costs

Develop Community based networks capable of managing populations

Improve the care of the Medicaid population while controlling costs

Develop Community based networks capable of managing populations

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Page 18: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Basic Operating PremiseBasic Operating PremiseRegardless of who manages Medicaid, the hospitals, physicians and safety net providers in NC serving patients remain the same and must be engagedWe need to transform Medicaid management from a regulatory function to a health management functionWe must carefully balance cost containment with quality improvement effortsDecision making must be driven by data & outcomes monitoredWe must help transform healthcare system from acute care model to chronic illness model

Regardless of who manages Medicaid, the hospitals, physicians and safety net providers in NC serving patients remain the same and must be engagedWe need to transform Medicaid management from a regulatory function to a health management functionWe must carefully balance cost containment with quality improvement effortsDecision making must be driven by data & outcomes monitoredWe must help transform healthcare system from acute care model to chronic illness model

Page 19: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

“Management rather than Regulation”

“Management rather than Regulation”

Page 20: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Goals Achieved By:Goals Achieved By:

Making Sure People Get Care When They Need It

Increasing local provider collaboration

Obtaining Quality Care

Implementing Best Practice Guidelines

Managing Medicaid Costs

Making Sure People Get Care When They Need It

Increasing local provider collaboration

Obtaining Quality Care

Implementing Best Practice Guidelines

Managing Medicaid Costs

December 9, 2003

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CCNCCCNC

Page 21: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Community Care of North CarolinaCommunity Care of North Carolina

Joins other community providers (hospitals, health departments and departments of social services) with physicians

Creates community networks that assume responsibility for managing recipient care

Joins other community providers (hospitals, health departments and departments of social services) with physicians

Creates community networks that assume responsibility for managing recipient care

Build on ACCESS IBuild on ACCESS I

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Page 22: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Community Care of North CarolinaCommunity Care of North CarolinaFocuses on improved quality, utilization and cost effectiveness of chronic illness care

15 Networks with more than 3000 physicians

595,000 enrollees

Focuses on improved quality, utilization and cost effectiveness of chronic illness care

15 Networks with more than 3000 physicians

595,000 enrollees

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Page 23: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

AccessCare Network SitesAccessCare Network CountiesAccess II Care of Western NCAccess III of Lower Cape Fear

Cabarrus Community Care Plan

Central Piedmont Access IICarolina Community Health Partnership

Comm. Care Partners of Gtr. Mecklenburg

Community Care Plan of Eastern NCCommunity Health PartnersNorthern Piedmont Community Care

Partnership for Health Management

Sandhills Community Care NetworkWake County Access II

Community Care of North CarolinaCommunity Care of North Carolina

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Access II and III Networks – 9/04Access II and III Networks – 9/04

Page 24: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Community Care Networks: Community Care Networks: Non-profit organizationsIncludes all providers including safety net providersSteering/Governance committeeMedical management committeeReceive $2.50 PM/PM from the StateHire care managers/medical management staff

Non-profit organizationsIncludes all providers including safety net providersSteering/Governance committeeMedical management committeeReceive $2.50 PM/PM from the StateHire care managers/medical management staff

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Page 25: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

What Networks DoWhat Networks DoAssume responsibility for Medicaid recipients

Identify costly patients and costly services

Develop and implement plans to manage utilization and cost

Create the local systems to improve care & reduce variability

Implement improved care management and disease management systems

Assume responsibility for Medicaid recipients

Identify costly patients and costly services

Develop and implement plans to manage utilization and cost

Create the local systems to improve care & reduce variability

Implement improved care management and disease management systems

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Page 26: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Key Program Areas in Managing Clinical Care:Key Program Areas in Managing Clinical Care:

Implementing quality improvement — Best practice processes

Implementing disease management

Managing high-risk patients

Managing high-cost services

Building accountability through monitoring & reporting

Implementing quality improvement — Best practice processes

Implementing disease management

Managing high-risk patients

Managing high-cost services

Building accountability through monitoring & reporting

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Page 27: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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Managing Clinical CareManaging Clinical Care

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Clinical Directors Group • Select targeted diseases/care processes• Review evidenced-based practice guidelines• Define the program• Establish program measures

• Select targeted diseases/care processes• Review evidenced-based practice guidelines• Define the program• Establish program measures

I

ASTHMAASTHMA

DIABETESDIABETES

PHARMACYPHARMACY

HIGH-RISK & -COSTHIGH-RISK & -COST

EDED

Local Medical Mgmt. Comm.

• Implement state-level initiatives• Develop local improvement initiatives• Implement state-level initiatives• Develop local improvement initiatives

PRACTICE A PRACTICE B PRACTICE C

Care Managers and Access II and III quality improvement staff support clinical management activitiesCare Managers and Access II and III quality improvement staff support clinical management activities

III

IIGASTRO-ENTERITISGASTRO-ENTERITIS

OTITIS MEDIAOTITIS MEDIA

CHILD DEVELOPMENTCHILD DEVELOPMENT

ADHDADHD

FEVERFEVER

DEPRESSIONDEPRESSION

LOW BIRTH WEIGHTLOW BIRTH WEIGHT

ANCILLARY SERVICESANCILLARY SERVICES

BEST PRACTICES

Page 28: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Improving Quality “Disease Management”

Improving Quality “Disease Management”

Page 29: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Current Disease Management Initiatives

Current Disease Management Initiatives

AsthmaDiabetesPilots in Depression, ADHD, Special Needs Children, Gastroenteritis, Otitis Media and Low Birth Weight

AsthmaDiabetesPilots in Depression, ADHD, Special Needs Children, Gastroenteritis, Otitis Media and Low Birth Weight

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Page 30: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Asthma InitiativeAsthma Initiative

First program initiative – began Jan. 1999 Adopted best practice guidelines (NIH)Implemented continuous quality improvement processes at each practicePhysicians set performance measuresProvide regular monitoring and feedback

First program initiative – began Jan. 1999 Adopted best practice guidelines (NIH)Implemented continuous quality improvement processes at each practicePhysicians set performance measuresProvide regular monitoring and feedback

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Page 31: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Asthma InitiativeAsthma Initiative

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KeyKey

Process MeasuresProcess Measures

47%

56%64% 64%

49%

93% 95% 92%

67%

78% 75% 73%

0%

20%

40%

60%

80%

100%

'99 '00 '01 '02 '99 '00 '01 '02 '99 '00 '01 '02

47%

56%64% 64%

49%

93% 95% 92%

67%

78% 75% 73%

0%

20%

40%

60%

80%

100%

'99 '00 '01 '02 '99 '00 '01 '02 '99 '00 '01 '02

1 2 3

1 No. with asthmawho had documentation of staging

No. with asthmawho had documentation of staging

2 No. staged II – IV on inhaled corticosteroids

No. staged II – IV on inhaled corticosteroids

3 No. staged II – IV who have an AAPNo. staged II – IV who have an AAP

Page 32: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Asthma InitiativeAsthma Initiative

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Pediatric Asthma Hospitalization RatesPediatric Asthma Hospitalization Rates

8.2

5.3

0123456789

10

Access I Access II & III

8.2

5.3

0123456789

10

Access I Access II & III

April 2000 - December 2002April 2000 - December 2002

KeyKeyIn patient admission rate per 1000 member monthsIn patient admission rate per 1000 member months

Page 33: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Asthma Pilot DM Findings from Sheps:Asthma Pilot DM Findings from Sheps:

CY 2000 Annual Savings $ 290,000

CY 2001 Annual Savings $ 1,470,000

CY 2002 Annual Savings $ 1,580,000

CY 2000 Annual Savings $ 290,000

CY 2001 Annual Savings $ 1,470,000

CY 2002 Annual Savings $ 1,580,000

Page 34: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Diabetes InitiativeDiabetes InitiativeSecond program-wide initiative – began July 2000Adopted best practice guidelines (ADA)Implement continuous quality improvement processes at each practicePhysicians set performance measuresProvide regular monitoring and feedback

Second program-wide initiative – began July 2000Adopted best practice guidelines (ADA)Implement continuous quality improvement processes at each practicePhysicians set performance measuresProvide regular monitoring and feedback

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Page 35: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Diabetes InitiativeDiabetes InitiativeACCESS II-III Diabetes Chart Audit ResultsACCESS II-III Diabetes Chart Audit Results

0

10

20

30

40

50

60

70

80

90

100

BP Referral forDial. Eye exam

Foot Exam HbA1c every 6mo.

Lipid Prof ile Album.Screening

Flu Vaccine PneumococcalVaccine

Per

cent

age

0

10

20

30

40

50

60

70

80

90

100

BP Referral forDial. Eye exam

Foot Exam HbA1c every 6mo.

Lipid Prof ile Album.Screening

Flu Vaccine PneumococcalVaccine

Per

cent

age

Baseline (July – Dec. ’00)Baseline (July – Dec. ’00) July – Dec. ‘01July – Dec. ‘01 Jan. – June ‘02Jan. – June ‘02 July.- Dec. ‘02July.- Dec. ‘02

Page 36: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

SOURCE: February 20, 2004Sheps Center Report

SOURCE: February 20, 2004Sheps Center Report

Diabetes Disease Management Findings:

Overall pmpm costs for CCNC diabetes lower than Access9% lower hospital admissions

Diabetes Disease Management Findings:

Overall pmpm costs for CCNC diabetes lower than Access9% lower hospital admissions

Page 37: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Diabetes DM Findings from Sheps:Diabetes DM Findings from Sheps:

Cost savings for diabetes care for 3 year period approximately $2.1 million

Potential > $11.3 million total savings in 2003 if CCNC were statewide with asthma and diabetes DM

Cost savings for diabetes care for 3 year period approximately $2.1 million

Potential > $11.3 million total savings in 2003 if CCNC were statewide with asthma and diabetes DM

Page 38: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Managing Costs“ Targeted Approach”

Managing Costs“ Targeted Approach”

Page 39: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Managing High-Cost Services:Managing High-Cost Services:Pharmacy

— Nursing home polypharmacy— PAL— Ambulatory polypharmacy

Emergency DepartmentAncillary ServicesIn-home Care

Pharmacy— Nursing home polypharmacy— PAL— Ambulatory polypharmacy

Emergency DepartmentAncillary ServicesIn-home Care

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MANAGING HIGH-COST SERVICES

Page 40: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

ED InitiativeED InitiativeTarget enrollees with 3 or more ED visits in 6 month time periodCare managers perform outreach, education & follow-upSpecial mailings target top 3 reasons for ED visits (otitis media, fever, upper respiratory infections)

Reinforce “medical home” concept

Target enrollees with 3 or more ED visits in 6 month time periodCare managers perform outreach, education & follow-upSpecial mailings target top 3 reasons for ED visits (otitis media, fever, upper respiratory infections)

Reinforce “medical home” concept

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Page 41: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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ED InitiativeED Initiative

56.92

45.49

36.437.9530.8

42.05

0

10

20

30

40

50

60

Access I2001

CCNC2001

Access I2002

CCNC2002

Access I2003

CCNC2003

56.92

45.49

36.437.9530.8

42.05

0

10

20

30

40

50

60

Access I2001

CCNC2001

Access I2002

CCNC2002

Access I2003

CCNC2003

ED Utilization Rate – 7/1/01 – 6/30/03 – Children < 21 yearsED Utilization Rate – 7/1/01 – 6/30/03 – Children < 21 years

UR

Rat

e Pe

r 100

0 M

MU

R R

ate

Per 1

000

MM

Fiscal YearFiscal Year

Page 42: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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ED InitiativeED Initiative

$8.32

$4.17

$7.90

$5.80

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

Access I 2001 Access II & III2001

Access I 2002 Access II & III2002

$8.32

$4.17

$7.90

$5.80

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

Access I 2001 Access II & III2001

Access I 2002 Access II & III2002

ED Cost PMPM – 7/1/01 – 6/30/02 – Children < 21 yearsED Cost PMPM – 7/1/01 – 6/30/02 – Children < 21 years

ED C

ost P

MPM

ED C

ost P

MPM

Fiscal YearFiscal Year

Savings CalculationSavings Calculation(Access I PMPM –Access II-III) x Access II-III Enrollment

(Access I PMPM –Access II-III) x Access II-III Enrollment

Total Savings – ’01-’02$10,362,190Total Savings – ’01-’02$10,362,190

Page 43: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

2004CCNCCCNC

Cost Effective Prescribing 2003Cost Effective Prescribing 2003“How to make a difference in rising prescription drug costs!”“How to make a difference in rising prescription drug costs!”

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Page 44: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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NC Medicaid Expenditures:Prescription DrugsNC Medicaid Expenditures:Prescription Drugs

$ 0

$ 2 0 0 , 0 0 0 , 0 0 0

$ 4 0 0 , 0 0 0 , 0 0 0

$ 6 0 0 , 0 0 0 , 0 0 0

$ 8 0 0 , 0 0 0 , 0 0 0

$ 1 , 0 0 0 , 0 0 0 , 0 0 0

$ 1 , 2 0 0 , 0 0 0 , 0 0 0

$ 1 , 4 0 0 , 0 0 0 , 0 0 0

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4

$ 0

$ 2 0 0 , 0 0 0 , 0 0 0

$ 4 0 0 , 0 0 0 , 0 0 0

$ 6 0 0 , 0 0 0 , 0 0 0

$ 8 0 0 , 0 0 0 , 0 0 0

$ 1 , 0 0 0 , 0 0 0 , 0 0 0

$ 1 , 2 0 0 , 0 0 0 , 0 0 0

$ 1 , 4 0 0 , 0 0 0 , 0 0 0

1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4

FY99$557,772,670FY99$557,772,670

FY00$754,505,194FY00$754,505,194

FY01$927,240,693FY01$927,240,693

FY02$1,056.158.750FY02$1,056.158.750

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Process – PALProcess – PAL

Pharmacy committee defines drug classes and unit dosesMedicaid calculates relative drug cost and rank ( net costs- includes rebates)Inform Access II and III physiciansMeasure changes in prescribing patternsState-wide rollout began Nov 2003

Pharmacy committee defines drug classes and unit dosesMedicaid calculates relative drug cost and rank ( net costs- includes rebates)Inform Access II and III physiciansMeasure changes in prescribing patternsState-wide rollout began Nov 2003

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PAL — Prescription Advantage ListPAL — Prescription Advantage List

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Anticipated SavingsAnticipated SavingsPAL- $ 30 -40 million annual savings expectedOther Pharmacy Management/Policy Initiatives:Selected Prior ApprovalSpecialty Disease RegistryActive Intervention Selected OTC coverage

PAL- $ 30 -40 million annual savings expectedOther Pharmacy Management/Policy Initiatives:Selected Prior ApprovalSpecialty Disease RegistryActive Intervention Selected OTC coverage

Page 48: CCNC Presentation-1-05 GaL. Allen Dobson ,Jr. MD FAAFP Senior Policy Advisor /CCNC NC Department of Health & Human Services HOME NEXT LAST CCNCCCNC 2004 CCNCCCNC 2004 ObjectivesObjectives

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Nursing Home Polypharmacy Initiative( “Active Intervention”)

Nursing Home Polypharmacy Initiative( “Active Intervention”)Community Care of North CarolinaCommunity Care of North Carolina

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InterventionIntervention

Pharmacist / Physician TeamsReview drug profiles / medical records of Medicaid patients in nursing homesDetermine if a drug therapy problem existsRecommend a changePerform follow-up to determine if change was made

Pharmacist / Physician TeamsReview drug profiles / medical records of Medicaid patients in nursing homesDetermine if a drug therapy problem existsRecommend a changePerform follow-up to determine if change was made

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Screening CriteriaScreening CriteriaNursing home residents with . . .− >18 drugs used in a 90 day period

9208 residents met this criteria

Medicaid database uses criteria to flag charts

Nursing home residents with . . .− >18 drugs used in a 90 day period

9208 residents met this criteria

Medicaid database uses criteria to flag charts

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Flagging CriteriaFlagging Criteria

Inappropriate Rx for the elderly “Beers drugs”Drugs used beyond usual time limitDrug Use Warnings & precautionsPrescription Advantage List “PAL”Potential Therapeutic Duplication

Inappropriate Rx for the elderly “Beers drugs”Drugs used beyond usual time limitDrug Use Warnings & precautionsPrescription Advantage List “PAL”Potential Therapeutic Duplication

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Preliminary FindingsPreliminary FindingsPatients reviewed: 9208Recommendations made: 8559− Unnecessary therapy – 19%− More cost effective drug – 56%− Wrong dose – 7%− Potential adverse reaction – 9%− Needs additional therapy – 3%− Other – 6%

Recommendations implemented: 6359 (74%)

Patients reviewed: 9208Recommendations made: 8559− Unnecessary therapy – 19%− More cost effective drug – 56%− Wrong dose – 7%− Potential adverse reaction – 9%− Needs additional therapy – 3%− Other – 6%

Recommendations implemented: 6359 (74%)

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Potential Cumulative Savings from InterventionsPotential Cumulative Savings from InterventionsDollars in MillionsDollars in Millions

$0$2$4$6$8

$10

$12$14

$16

Nov Jan

Mar

May Jul

Sep Nov Jan

Mar

May Jul

Sep Nov

$0$2$4$6$8

$10

$12$14

$16

Nov Jan

Mar

May Jul

Sep Nov Jan

Mar

May Jul

Sep Nov

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Cost/Benefit EstimatesCost/Benefit Estimates

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Community Care of North CarolinaCommunity Care of North Carolina

Cost - $8.1 Million(Cost of Community Care operation)

Savings - $60,182,128 compared to FY02

Savings- $203,423,814 compared to FFS

(Mercer Cost Effectiveness Analysis – AFDC only for Inpatient, Outpatient, ED, Physician Services, Pharmacy, Administrative Costs, Other)

Cost - $8.1 Million(Cost of Community Care operation)

Savings - $60,182,128 compared to FY02

Savings- $203,423,814 compared to FFS

(Mercer Cost Effectiveness Analysis – AFDC only for Inpatient, Outpatient, ED, Physician Services, Pharmacy, Administrative Costs, Other)

July 1, 2002 – Jun 30, 2003July 1, 2002 – Jun 30, 2003

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NC Medicaid ExpendituresNC Medicaid Expenditures

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Pilot InitiativesPilot InitiativesTherapy servicesLow birth weightDisparitiesMental health integrationPoly-pharmacy in outpatient settingsSickle cellCommunity Access programs (uninsured)Special needs population

Therapy servicesLow birth weightDisparitiesMental health integrationPoly-pharmacy in outpatient settingsSickle cellCommunity Access programs (uninsured)Special needs population

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Big Lessons & ChallengesBig Lessons & ChallengesThere are no easy $ 100 million decisions- but there may be 50 $ 2million decisions ( you just have to find them)Providers must be engaged- but a challenge to keep their attentionMust make policy decisions consistent with program goals and visionSavings are additive (the total sum of savings seem to be greater than the sum of individual initiatives)

There are no easy $ 100 million decisions- but there may be 50 $ 2million decisions ( you just have to find them)Providers must be engaged- but a challenge to keep their attentionMust make policy decisions consistent with program goals and visionSavings are additive (the total sum of savings seem to be greater than the sum of individual initiatives)

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Other Lessons LearnedOther Lessons Learned1. Top down approach is not effective in N.C.2. Community ownership a must3. Can’t do it alone - must partner4. Incentives must be aligned5. Must develop systems that change behavior at the

practice and community level6. Have to be able to measure outcomes (data and

feedback important- “you get what you inspect…”)7. Lasting change takes time and reinforcement8. There are indirect quality and cost benefits to the

community

1. Top down approach is not effective in N.C.2. Community ownership a must3. Can’t do it alone - must partner4. Incentives must be aligned5. Must develop systems that change behavior at the

practice and community level6. Have to be able to measure outcomes (data and

feedback important- “you get what you inspect…”)7. Lasting change takes time and reinforcement8. There are indirect quality and cost benefits to the

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