Medicare Linkage: Medicare Linkage: Quality & Payment Quality & Payment Washington State Hospital Association July 28, 2008
Dec 28, 2015
Medicare Linkage:Medicare Linkage: Quality & Payment Quality & Payment
Washington State Hospital AssociationJuly 28, 2008
Presenters
Washington State Hospital Association Carol Wagner, Vice President, Patient Safety Claudia Sanders, Senior Vice President, Policy Lance Heineccius, Interim Director, Finance Jim Cannon, Executive Director, Health
Information Program
AND, Gloria Kupferman, DataGen
Why This Webcast?
This webcast is designed to:• Provide you with information on current
and future Medicare links between payment and quality
• Provide you with new WSHA tools to improve quality
• Encourage a dialog between finance and quality at each hospital
Preparing for the Future
Links between quality and payment currently apply only to PPS hospitals
It is advisable for hospitals of all sizes to report their measures to Hospital Compare and to ensure that they achieve high scores
Information in Three Stages
Medicare has already started to link quality and payment.
1. CMS is implementing pay for reporting
2. Reporting measures will change; addition of new measures under discussion
3. On the horizon, value based purchasing
Slide Presentation Marked
Likelihood of Medicare policy happening: For sure () Likely (?) Possible (??) Direction is cloudy
Linking Quality and Payment in the Medicare Program
Outpatient Pay for Reporting7 MeasuresMinus 2.0
percentage points
Inpatient Pay for Reporting10 ProcessMeasuresMinus 0.4
percentage points if not
report
Expand Inpatient Pay for Reporting
21MeasuresMinus 2.0
percentage points
Expand Inpatient Pay for
Reporting27 MeasuresAdd Patient
Satisfaction and 30-day Mortality
MeasuresMinus 2.0
percentage points
Hospital Acquired
Conditions(8 conditions)
Potential Payment
Reductions
Value-BasedPurchasing
Pending Congressional
Approval
Linking Quality and Payment
Expand Hospital Pay for Reporting 32 Measures
Minus 2.0 percentage
points
FY 2006 20112009FY 2010200820072005
2011 IPPS Proposed
Quality Measures
?? Measures Minus ??
percentage points
2010 IPPS Proposed
Quality Measures
72 Measures Minus ??
percentage points
2006
Expand Hospital Pay for Reporting
37 Measures( 6 VTE’s)Minus 2.0
percentage points
Candidate Hospital Acquired Conditions
(9 additional conditions)
Medicare Quality Initiatives – Public Reporting
Hospital Compare Twenty four process measures Two risk-adjusted mortality measures Public reporting on the Web
Nursing Home Compare Seventeen measures based on patient condition Public reporting on the Web
Home Health Compare Twelve measures based on patient condition Public reporting on the Web
Physician Voluntary Reporting Program Sixteen process measures Confidential report back to physician
Medicare Payment Update
Reporting hospital quality data for annual payment update
Medicare Modernization Act (MMA) required Prospective Payment System hospitals to submit data on quality beginning in FFY 2005 and linked the update factor to reporting
Data displayed on the CMS Hospital Compare web site
History of “Pay for Reporting”
Inpatient PPS – FFY 2005 and 2006, update factor minus 0.4 percent
for non-compliance FFY 2007, update factor minus 2.0 percent for non-
compliance Outpatient PPS –
CMS delayed adoption of quality measures (including a 2.0 percent for non-compliance)
Reporting in CY 2008 for payment in 2009 Home Health PPS –
CY 2007, update factor minus 2.0 percent for non-compliance
Inpatient PPS MeasuresAcute Myocardial Infarction (AMI)
AMI -1 Aspirin at arrival
Acute Care Inpatient: HQA since 2003 Medicare
payment since FY 2005
AMI -2 Aspirin at discharge
AMI -3 Beta-blocker at arrival
AMI -4 Beta-blocker at discharge
AMI -5
Angiotensin converting enzyme (ACE) inhibitor or angiotensin receptor blocker (ARB) for left ventricular systolic dysfunction (LVSD)
AMI -6 Smoking cessation advice/counseling
Acute Care Inpatient: HQA since 2004 Medicare
payment since FY 2007
AMI -7AThrombolytic within 30 minutes of arrival
AMI -8APercutaneous Coronary Intervention (PCI) 90 minutes of arrival
AMI -9 30 day mortality rate Acute Care Inpatient:
Medicare payment since FY 2008
Inpatient PPS MeasuresHeart Failure
HF-1Left ventricular systolic function evaluation Acute Care Inpatient:
HQA since 2003 Medicare payment
since FY 2005HF-2 ACE inhibitor or ARB for LVSD
HF-3 Discharge instructions received Acute Care Inpatient: HQA since 2004
Medicare payment since FY 2007
HF-4Smoking cessation advice/counseling
HF 30 day mortality rate Acute Care Inpatient:
Medicare payment since FY 2008
Inpatient PPS MeasuresPneumonia
PN-1 Oxygenation assessment
Acute Care Inpatient: HQA since 2003
Medicare payment since FY 2005
PN-2 Pneumococcal vaccination
PN-3BBlood culture performed prior to administration of first antibiotics
PN- 4Smoking cessation advice/counseling
Acute Care Inpatient: HQA since 2007
Medicare payment since FY 2008
PN-5AInitial antibiotics within 6 hours of arrival
PN-6Received most appropriate antibiotic
PN-7 Influenza vaccination
PN 30 day mortality rate Acute Care Inpatient:
Medicare payment beginning FY 2009
?
Inpatient PPS MeasuresSurgical Care Improvement
SCIP -1Antibiotics one hour before incision Acute Care Inpatient:
HQA since 2004 Medicare payment
since FY 2007SCIP -3Antibiotics stopped within 24 hours after surgery
SCIP -2 Selection of antibiotic Acute Care Inpatient:
HQA since 2007 Medicare payment
since FY 2008
SCIP -VTE1
Prophylaxis to prevent venous thromboembolism ordered
SCIP- VTE2
Prophylaxis to prevent venous thromboembolism received
SCIP -6 Appropriate hair removal Acute Care Inpatient: HQA since 2007
Medicare payment since FY 2008
SCIP -Card2
Cardiac surgery patients with controlled 6AM postoperative serum glucose
?
CMS 30-day Mortality Measures
Risk adjustment methodology developed by Yale and Harvard
Based on administrative claims data Takes into account medical care received during
the year prior to patients hospitals admission Patient inpatient, outpatient and physician practice
claims Model uses information adjust for patient mix Patients with comfort care not excluded Patients who are admitted to a hospital and then
transferred are included in the measures
Inpatient PPS MeasuresHCAHPS
Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS)
HCAHPS survey results on patient interaction with doctors, nurses, and hospital staff; cleanliness of the organization; pain control; communication about medicines; and discharge information
Acute Care Inpatient: HQA since
2007 Medicare payment since FY
2008
Hospital Consumer Assessment of Healthcare Providers and Systems
(HCAHPS)
Designed to allow comparison of patients’ perspectives on hospital care based on 27 questions in seven domains Doctor communication Nurse communication Cleanliness and quiet of the hospital environment Responsiveness of hospital staff Pain management Communication about medicines Discharge information
Also includes two questions: overall satisfaction with and willingness to recommend the hospital
Patient Satisfaction
Hospital Environment Items Cleanliness of hospital environment Quietness of hospital environment
Discharge Information Composite Discharge Information
Overall Ratings Overall rating of this hospital Willingness to recommend this hospital
CMS Calculated Performance Measures
Heart Attack Patients Given ACE Inhibitor or ARB for
Left Ventricular Systolic Dysfunction
(LVSD)
Heart Attack Patients Given
Aspirin at Arrival
Heart Attack Patients Given
Aspirin at Discharge
Heart Attack Patients Given Beta
Blocker at Arrival
Heart Attack Patients Given Beta Blocker at
Discharge
Heart Attack Patients Given
Smoking Cessation Advice/Counseling
Heart Attack Patients Given
Fibrinolytic Medication Within
30 Minutes Of Arrival
Heart Attack Patients Given PCI
Within 90 Minutes Of Arrival
Top 10% Performance Level for All United States Hospitals 100% 100% 100% 100% 100% 100% 100% 88%
Average Performance Level for All United States Hospitals 85% 93% 90% 88% 91% 91% 39% 60%
Average Performance Level for All Washington Hospitals 90% 95% 93% 93% 94% 90% 23% 67%
Sample Washington State Hospital
Number of Reported Cases 21 107 124 88 136 38 1 30
Indicator Score 86% 96% 97% 98% 99% 92% 100% 63%
U.S. Decile Rank for Hospitals Reporting More Than 24 Cases (1 is Best) Insufficient Data 7 6 2 2 10 Insufficient Data 6
Ranking out of Washington Hospitals Reporting More Than 24 Cases Insufficient Data 27 out of 38 22 out of 35 10 out of 34 5 out of 35 20 out of 28 Insufficient Data 20 out of 26
State Average Comparisons (Case-weighted)
Washington Average Score - All Hospitals 90% 98% 98% 96% 97% 95% 24% 69%
Washington - Hospitals Reporting < 25 Cases 90% 91% 86% 90% 92% 86% 24% 48%
Washington - Hospitals Reporting > 24 Cases 90% 98% 98% 96% 97% 95% Insufficient Data 70%
All United States Hospitals 99% 100% 100% 100% 100% 100% 91% 88%
Washington 100% 100% 100% 100% 100% 100% Insufficient Data 87%
United States Non-Teaching 100% 100% 100% 100% 100% 100% 84% 88%
Washington Non-Teaching 99% 100% 100% 100% 100% 100% Insufficient Data 87%
United States Urban 99% 100% 100% 100% 100% 100% 92% 88%
Washington Urban 100% 100% 100% 100% 100% 100% Insufficient Data 87%
United States Between 100 and 500 Beds 99% 100% 100% 100% 100% 100% 91% 88%
Washington Between 100 and 500 Beds 99% 100% 100% 100% 100% 100% Insufficient Data 87%500003
Sample Washington State Hospital
Top 10% Performance Level Comparisons (Hospitals Reporting More Than 24 Cases)
Heart Attack (AMI) Care
Heart Attack Care - Hospital vs. Top 10% Performance
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Heart Attack Patients Given ACEInhibitor or ARB for Left
Ventricular Systolic Dysfunction(LVSD)
Heart Attack Patients GivenAspirin at Arrival
Heart Attack Patients GivenAspirin at Discharge
Heart Attack Patients Given BetaBlocker at Arrival
Heart Attack Patients Given BetaBlocker at Discharge
Heart Attack Patients GivenSmoking CessationAdvice/Counseling
Heart Attack Patients GivenFibrinolytic Medication Within 30
Minutes Of Arrival
Heart Attack Patients Given PCIWithin 90 Minutes Of Arrival
Sample Washington State Hospital All United States Hospitals
CMS Release Date:
March 2008
Inpatient Payment Rate
with Full Update
2007 Standard Amount $4,874.492008 Marketbasket Update 3.3%2008 Behavioral Offset Adjustment 0.994 2008 Budget Neutrality Adjustment 0.997096
2008 Standard Amount $4,990.60Seattle Wage Index 1.1363 2008 Wage-Adjusted Standard Amount $5,412.34
Sample Washington State Hospital DSH Adjustment 0.0743 Sample Washington State Hospital IME Adjustment 0.1822
2008 Adjusted Standard Ratefor Sample Washington State Hospital
$6,800.39
Inpatient Payment Rate Reduced by 2.0
2007 Standard Amount $4,874.492008 Marketbasket Update 1.3%2008 Behavioral Offset Adjustment 0.994 2008 Budget Neutrality Adjustment 0.997096
2008 Standard Amount $4,893.98Seattle Wage Index 1.1363 2008 Wage-Adjusted Standard Amount $5,307.55
Sample Washington State Hospital DSH Adjustment 0.0743 Sample Washington State Hospital IME Adjustment 0.1822
2008 Adjusted Standard Ratefor Sample Washington State Hospital
Difference in payment rates (per Medicare patient) ($131.66)
$6,668.73
Proposals for Inpatient in 2009, 2010, 2011 . . .
2009 Inpatient Proposed Quality Measures
CMS requires hospitals to submit data effective with discharges beginning January 1, 2009
Forty-three new measures including: One surgical care Four nursing sensitive Three readmission Five stroke Six venous thromboembolism (VTE) measures
VTE -1: VTE Prophylaxis VTE- 2: VTE Prophylaxis in the ICU VTE- 4: Patients with overlap in anticoagulation therapy VTE - 5/6: (as combined measure) Patients with UFH dosages
and platelet count monitoring and adjustment VTE- 7: Discharge instructions: follow-up, compliance, dietary
restrictions adverse drug reactions VTE- 8: Incidence of preventable VTE
??
2010 Inpatient Proposed Quality Measures (72)
Heart Attack (AMI) - 8 measures Heart Failure (HF) - 4 measures Pneumonia (PN) - 6 measures Surgical Care Improvement Project (SCIP) - 8
measures Mortality Measures - 3 measures Patient’s Experience of Care (HCAHPS) Readmission Measures (Medicare patients) - 3
measures Inpatient Stroke Care - 5 measures
??
2010 Inpatient Proposed Quality Measures (72) continued. . .
DVT Prophylaxis (from proposed 2009) - 6 measures
AHRQ Patient Safety Measures - 4 measures AHRQ Inpatient Quality Indicators – 2
measures AHRQ Composite Measures - 3 measures Nursing Sensitive Measures - 4 measures Cardiac Surgery Measures - 15 measures
??
2011 and Subsequent Years - Inpatient Proposed Measures
Chronic Pulmonary Obstructive Disease Measures - ? measures
Complication of Vascular Surgery - 3 measures Inpatient Diabetes Care Measures - ? measures Healthcare Associated Infection - 2 measures Central Line Associated Blood Stream
Infections/Surgical Site Infections Sexual Assault/Death or Injury Patient or Staff
Assault
??
2011 and Subsequent Years - Inpatient Proposed Measures
(continued…)
Timeliness of Emergency Care Measures - 3 measures
Surgical Care Improvement Project (SCIP) - 2 measures
Complication Measures (Medicare Patients) - ? measures
Hospital Inpatient Cancer Care Measures - 5 measures
Average Length of Stay Coupled with Readmission Measure - ? measures
Healthcare Associated Conditions - 3 measures Serious Reportable Events in Healthcare - 24
measures
??
Preventable Hospital Acquired Conditions - 14 measures
Catheter-Associated Urinary Tract Infection (UTI) Vascular Catheter-Associated Infection SSI Following Elective Surgeries:
Total Knee Replacement Laparoscopic Gastric Bypass and Gastroenterostomy Ligation and Stripping of Varicose Veins
Legionnaire’s Disease Glycemic Control Iatrogenic Pneumothorax Delirium Ventilator Associated Pneumonia DVT/PE Staphylococcus Aureus Septicemia C Diff Associated Disease MRSA
2011 and Subsequent Years - Inpatient Proposed Measures
(continued…) ??
Hospital Outpatient Quality Data Reporting Program
Emergency Department
Preoperative Care
AMI Aspirin at Arrival X
AMI Median Time to Fibrinolysis X
AMI Fibrinolytic Therapy Received Within 30 Minutes of Arrival X
AMI Median Time to Electrocardiogram X
AMI Median Time to Transfer for Primary PCI X
Timing of Antibiotic Prophylaxis X
Selection of Prophylactic Antibiotic X
?
Outpatient Data Reporting
Start date for hospital outpatient encounters is period from April through June 2008
Outpatient data due to CMS November 1, 2008 Validation will NOT be implemented until CY 2009 Validation will be implemented in CY 2009 beginning with
July 2008 data Delay public reporting until CY 2009 for data submitted
beginning July 2008 Data submitted for July 2008 services and forward will
affect payment determinations for CY 2010
?
Value-Based Purchasing
Medicare Pay for Performance (P4P)
“Better care should be rewarded . . . it is time that we pay for the quality of the health care provided to our beneficiaries, not simply the amount. We are working to apply this in every setting in which Medicare and Medicaid pays for care.”
CMS Administrator Mark McClellan, M.D. Ph.D. January 31, 2005
CMS Report on Value-Based Purchasing
CMS report to Congress released on November 21, 2007
Mandate to implement by October 1, 2008 (Deficit Reduction Act of 2005)
CMS proposes a three-year transition to full payment for performance (P4P) Year 1 – 100 percent pay for reporting Year 2 – 50 percent pay for reporting and 50
percent on P4P Year 3 – 100 percent on P4P
Redistribution in Value-Based Purchasing
Scoring based upon data reported by hospitals in three quality “domains” Clinical process of care, Patients’ perspectives of care, and Outcomes
Pool of incentive money funded via a carve-out from all hospital inpatient payments (2 to 5 percent)
Redistribution of pool dollars dependent upon hospitals’ scores
Measures for Value-Based Purchasing
Process of care data reported since 2004 and publicly available on the CMS Hospital Compare site
HCAHPS Patients’ Perspectives of Care survey required as part of pay for reporting as of FFY 2008 and publicly available since March 2008
Two outcomes measures, 30-day mortality of patients with AMI or heart failure, publicly available since June 2007
Hospital Performance in Value-Based Purchasing
Overall hospital performance will be measured based on an aggregate of the scores in all three domains
Process measures for updates and HCAHPS Indicators Each indicator receives a score between 1
and 10 Each indicator score is the higher of two
measures - attainment or improvement
Hospital Performance in Value-Based Purchasing
The attainment score for an indicator is determined by comparing the hospital’s performance to national benchmark and threshold levels for the indicator The benchmark -- the high performance
measurement The threshold -- the minimum acceptable
performance measurement Each domain will have its own methodology for
setting benchmarks and thresholds The improvement score for an indicator is determined
by comparing the hospital’s performance to its own prior year performance
HCAHPS in Value-Based Purchasing
HCAHPS scoring will include a score (between 0 and 20) for achieving minimum performance across all HCAHPS indicators If all eight of a hospital’s HCAHPS indicator
scores were above their respective 50th percentile (median) value, the hospital would receive the full 20 points
Otherwise, the minimum performance score would be based upon the indicator with the lowest percentile score and points awarded based upon how close that percentile rank is to the median
Scores In Value-Based Purchasing
Each domain’s performance scores are aggregated as a percentage of the maximum possible score
Then the domain aggregates are combined to arrive at one overall VBP Total Performance Score
Combining individual scores into one aggregate percentage allows CMS to compare hospitals on one standardized measure
Questions on Value-Based Purchasing
How will mortality (outcome) measures be scored and incorporated? (Report to Congress makes no mention)
Will indicators with small case counts be included?
How will new indicators be phased in? How will the three domains’ scores be weighted
to arrive at the Total VBP score? What will the withhold percentage be in 2009?
Indicator Benchmark Threshold Case Count Performance Case Count PerformanceAttainment
ScoreImprovement
Score Final Score
Heart Attack Patients Given ACE Inhibitor or ARB for Left Ventricular Systolic Dysfunction (LVSD)
90.0% 60.0% 28 79% 21 86% 9 6 9
Heart Attack Patients Given Aspirin at Arrival
90.0% 60.0% 111 97% 107 96% 10 Does Not Apply 10
Heart Attack Patients Given Aspirin at Discharge
90.0% 60.0% 121 97% 124 97% 10 Does Not Apply 10
Heart Attack Patients Given Beta Blocker at Discharge
90.0% 60.0% 141 99% 136 99% 10 Does Not Apply 10
Heart Attack Patients Given PCI Within 120 Minutes Of Arrival
Insufficient Data
Insufficient Data
0 0% 0 Insufficient Data Not Computed
Heart Attack Patients Given Smoking Cessation Advice/Counseling
90.0% 60.0% 37 92% 38 92% 10 Does Not Apply 10
Heart Attack Patients Given Fibrinolytic Medication Within 30 Minutes Of Arrival
85.4% 53.0% 1 100% 1 100% Not Computed Not Computed Not Computed
Heart Failure Patients Given ACE Inhibitor or ARB for Left Ventricular Systolic Dysfunction (LVSD)
99.5% 87.0% 56 75% 59 83% 0 3 3
Heart Failure Patients Given Discharge Instructions
97.7% 72.0% 119 59% 120 72% 0 3 3
Heart Failure Patients Given Smoking Cessation Advice/Counseling
90.0% 60.0% 21 81% 20 85% 8 4 8
Pneumonia Patients Assessed and Given Pneumococcal Vaccination
97.6% 80.0% 149 81% 142 84% 2 2 2
Pneumonia Patients Given Smoking Cessation Advice/Counseling
90.0% 60.0% 47 94% 43 95% 10 Does Not Apply 10
Pneumonia Patients Given the Most Appropriate Initial Antibiotic(s)
97.1% 87.0% 116 93% 108 96% 9 7 9
Pneumonia Patients Whose Initial Emergency Room Blood Culture Was Performed Prior To The Administration Of The First Hospital Dose Of Antibiotics
90.0% 60.0% 143 81% 138 85% 8 4 8
Pneumonia Patients Assessed and Given Influenza Vaccination
99.1% 82.0% 48 81% 48 81% 0 0 0
Surgery Patients Who Received Preventative Antibiotic(s) One Hour Before Incision
97.1% 87.0% 360 84% 293 84% 0 0 0
Surgery Patients Whose Preventative Antibiotic(s) are Stopped Within 24 hours After Surgery
97.0% 79.0% 343 87% 279 86% 4 0 4
Hospital - Base Year Hospital - Scoring Year
Overall Score 64%
National
Sample Washington State HospitalValue-Based Purchasing Score Details
Scoring Period: July 2006 - June 2007Base Year: April 2006 - March 2007
500003
Jul 2004 - Jun 2005
Oct 2004 - Sep 2005
Jan 2005 - Dec 2005
Apr 2005 - Mar 2006
Jul 2005 - Jun 2006
Oct 2005 - Sep 2006
Jan 2006 - Dec 2006
Apr 2006 - Mar 2007
Jul 2006 - Jun 2007
Sample Washington State Hospital
April 2004 - March 2005 Base Year 66% 69% 75% 74% 73% 72% 70% 78% 85%
Updated Base Year 74% 63% 64% 64% 71% 64%
April 2004 - March 2005 Base Year 57% 60% 64% 68% 72% 75% 77% 80% 82%
Updated Base Year 53% 56% 60% 63% 63% 67% 70% 73% 64%
April 2004 - March 2005 Base Year 52% 55% 59% 64% 67% 71% 74% 77% 78%
Updated Base Year 64% 59% 64% 68% 71% 60%
Average Score - Washington Hospitals
Average Score - All United States Hospitals
Reporting Period
Sample Washington State Hospital
Medicare Value-Based Purchasing (VBP) Score Analysis
VBP Score Trend
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jul 2004 - Jun2005
Oct 2004 - Sep2005
Jan 2005 - Dec2005
Apr 2005 - Mar2006
Jul 2005 - Jun2006
Oct 2005 - Sep2006
Jan 2006 - Dec2006
Apr 2006 - Mar2007
Jul 2006 - Jun2007
Reporting Period
VB
P S
co
re
April 2004 - March 2005 Base Year Updated Base Year
Basics of Value-Based Purchasing
Scores will be calculated at the start of each inpatient prospective payment system year
The baseline and measurement period will be April 1 through March 31
FFY 2010 = October 1, 2009 – September 30, 2010 The baseline period for FFY 2010 will be April 1, 2007 –
March 31, 2008 The measurement period for FFY 2010 will be April 1,
2008 – March 31, 2009 Data only be 7 months old at the start of the FFY Hence, hospitals will be submitting data within a tighter
timeframe (60 days from close of quarter plus 30 days to resubmit data, if necessary)
Hospitals’ Scores in Value-Based Purchasing
Overall scores from each of the three domains will be averaged together Process measures will receive the highest weight Current proposal: 70 percent Process, 30 percent
HCAHPS The hospital’s grand total score is entered into an
equation to determine a payment percentage If the maximum payment percentage is 100 percent
of the hospital’s original pool contribution, there will be excess money left in the pool
Sample Washington State Hospital
Washington
64% 68%88% 85%
$985,000 $82,767,000$865,000 $70,215,702($120,000) ($12,551,298)
50000350
Expected Payment from VBP
Curvilinear Payment Function
Net Loss from VBP
Overall VBP ScorePayment Percentage
Dollars Contributed to VBP
Assumes 5% Pool
Sample Washington State HospitalPayment Impact Estimate
Value-Based PurchasingScoring Period: July 2006 - June 2007
Curvilinear Payment Scenario
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Score
Pa
ym
en
t P
erc
en
tag
e
Payment Conversion Curvilinear Function Sample Washington State Hospital
Payments for Value-Based Purchasing
A hospital’s payment percentage will be determined at the start of each payment year
The payment percentage will apply for the whole year
The VBP carve-out and payment percentage will be applied to inpatient prospective payments, excluding IME, DSH, outliers, and capital
Excess Pool Funds in Value-Based Purchasing
Question: What becomes of the excess pool funds? The industry wants assurances that the
entire pool will be distributed MedPAC also recommends that there be no
savings achieved through this program How will distribution of excess dollars be
handled?
Key Factors in Value-Based Purchasing
Hospitals’ P4P scores and payment percentages established prospectively based upon prior performance
Data reported between April 1, 2008 and March 31, 2009 will be the measurement year for FFY 2010 and the base year for FFY 2011
Only top performers will be made whole Once transition to VBP, hospitals still must
participate in reporting of all data to qualify for incentive payments Measures for VBP Measures for public reporting Measures being tested
WSHA Work on Quality and Payment
WSHA Federal Advocacy on Linking Payment and Quality
CMS has proposed inpatient and outpatient rules Inpatient: Comment period closed and final rule
expected by September 1 Outpatient: Comment period open through September
2, 2008 Comment at: http://tinyurl.com/5z33sh
WSHA generally follows AHA lead on national issues
WSHA will be involved if and when value based purchasing is discussed by Congress and next administration
Make sure we understand your concerns on linking payment and quality
WSHA Information on New Payment Changes
HIP will estimate impact of hospital specific proposals
HIP contracts with DataGen to get you this information
You can expect to see: Impact of inpatient final rules Impact of outpatient final rules If adopted, impact of value based purchasing
WSHA Help on Quality Improvement
Washington is helping hospitals to improve the results of Hospital Compare measures through a Safe Table called Safe Practices: Hospital Compare and More A Safe Table is a collaborative in which hospitals
work together to learn best practice and improve care
Quarterly Hospital Compare Reports These color coded reports display how your hospital
is doing as compared to the top 10% of hospitals in the nation and other hospitals in Washington State
Source: Hospital Compare July 2006 – June 2007
Suggested Measures
Measure Group MeasureWA
AverageNational Top 10%
Gap
PCI Within 90 Minutes of Arrival 67% 88% 21%
Smoking Cessation Advice 90% 100% 10%
Antibiotic One Hour Before Surgery 83% 96% 13%
Antibiotic Stopped Within 24 Hours 81% 96% 15%
Discharge Instructions 58% 96% 38%
Smoking Cessation Advice 79% 100% 21%
Influenza Vaccination 67% 98% 31%
Pneumococcal Vaccination 73% 96% 23%
Smoking Cessation Advice 82% 100% 18%
Pneumonia
Surgical Infection Prevention
Heart Attack
Heart Failure
Questions???
Contact Information
Carol Wagner: [email protected]
Claudia Sanders: [email protected]
Jim Cannon: [email protected]
Lance Heineccius: [email protected]