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Riding the Rapids of Payment
Reform?
Downstream Effects of Quality Reporting on Revenue Capture
Introductions
• Jodi Frei, PT MSMIIT, Northwestern Medical Center
• William Presley, Vice President , Acmeware
Audience Poll
• CIOs?
• Providers?
• IT Informatacists?
• Quality Nurses?
• Others?
Session Agenda
• Background on Quality Programs
• 2017 Quality Programs: VBP, MIPS, APM
• Reporting, Scoring
• Reimbursement, Financial Impact
• Challenges and Opportunities
• Infrastructure Considerations
• Future Insights
Riding the Rapids
“…often done on whitewater or different degrees of rough
water, and generally represents a new and challenging
environment for participants. Dealing with risk and the
need for teamwork is often a part of the experience. “
Wikipedia
Sounds familiar?
Background: Quality Measurement Programs
Hospital
Quality
•EHR Incentive Program
•Hospital Value-Based
Purchasing
•Inpatient Psychiatric Facilities
•Inpatient Quality Reporting
•HAC payment reduction
program
•Readmission reduction
program
•Outpatient Quality Reporting
•Ambulatory Surgical Centers
•The Joint Commission (TJC)
Physician
Quality
•EHR Incentive Program
•Physician Quality Reporting
System (PQRS)
•Value-Based Payment
Modifier (VM)
•eRX Quality Reporting
Payment
Model
•Bundled Payments
•Accountable Care
Organizations (ACO)
•Medicare Shared Savings
Program
•Patient Centered Medical
Homes (PCMH)
Programs Driving Performance Based Reimbursement
Hospital Quality
• Value Based Purchasing (VBP)
• Inpatient Quality Program (IQR) and MU
• Hospital-Acquired Conditions (HAC)
• Hospital Readmission Reduction (HRRP)
Physician Quality
• Merit-based Incentive Payment System (MIPS)
Payment Model
• Alternative Payment Model (APM)
• Comprehensive Primary Care (CPC+)
Revenue at Risk
Details Behind 2017
Quality Programs: MIPS
MACRA
• Bipartisan legislation signed into law on April 16, 2015
• Repealed Sustainable Growth Rate Formula
• Rewards providers for quality versus quantity
• Combines existing quality programs into one
• Participants: Part B Eligible Professionals
MIPS Overview
• Combines components of PQRS, Value Modifier, and MU
into one program
• One composite performance score, 0-100 points,
determined through 3 weighted categories
• Budget neutral program rewarding quality performance
• 2017 performance impacts 2019 payment
Current Physician Quality Programs
Merit-Based Incentive Program (MIPS)
Quality
Resource
Use
Advancing
Care
Clinical
Practice
Composite Scoring
1 - 100
2017
MIPS Participants
2017: Medicare Part B
Eligible
• Physicians
• PAs
• NPs
• Clinical nurse specialists
• Certified registered nurse
anesthetists
2019: Opened to other
clinicians
• PTs, OTs, SLPs
• Nurse Midwives
• Clinical Social Workers
• Dietitians
• Clinical Psychologists
MIPS Eligibility
EC EC EC EC EC
Hospitalist ED Provider Ortho Practice Family Practice
EC
Private Practice
Acute Ambulatory
MIPS Participation Options
Pick your pace
• Option 1: Test the System by submitting partial data
No negative, no positive 2019 adjustment
• Option 2: Participate for Part of the Year
Small positive 2019 adjustment available
• Option 3: Participate Full Calendar Year
Modest payment adjustment available
• Option 4: Participate in APM
5% incentive payment available
MIPS Scoring: QUALITY DOMAIN
Selection of 6
Measures;
Reduced from
PQRS 9,
Minimum case
requirement
One
Crosscutting
Measure; One
Outcome or
High Priority
2-3 Claims
Based
Population
Measures
1-10 Points per
measure,
based on
historical
benchmark
Additional
Points for
Reporting
Additional
Measures
Converting Performance To Points
CMS will create 10 deciles per measure based on national
benchmarks of baseline period, 2 years prior
1-10 points assigned based on the decile within which the
EP performs
MIPS Quality Performance Scorecard
MIPS Quality Performance Scorecard
Advancing Care
25% total MIPS score
5 measures required
Extra points for reporting of additional measures
Meaningful Use vs Advancing Care
Meaningful Use
• Strict Reporting
Requirement
• Labor Intensive
• Misaligned with Other
Quality programs
Advancing Care
• Flexible Reporting
• Streamlined
• Aligned with Other Quality
Programs
Summary of Advancing Care Measures
Required Objective Measures:
• Security Risk Analysis
• e-Prescribing
• Provide Patient Access
• Send Summary of Care
• Request/Accept Summary of Care
For bonus credit, you can:
• Report up to 4 additional measures
• Report Public Health and Clinical Data Registry Reporting measures
• Use certified EHR technology to complete certain improvement activities in the
improvement activities performance category
Improvement Activities
15% of Total MIPS Score
Maximum Score of 40 points
Credit for involvement in Medical Home and APMs
90 available to accommodate specialists
Description of Improvement Activities
90 available aligned with:
• Care Coordination
• Beneficiary Engagement
• Patient Safety
• Expanded Practice Access
• Population Management
• Emergency Preparedness
• Achieving Health Equity
• Participation in APM
Improvement Activities: Scoring
Scoring based on weighting
• Up to 20 points for highly weighted activities
• Medical Home, transformation of the clinic, public health
priorities
• Examples: Patient experience ratings, timely access for
Medicaid patients
• Up to 10 points for all other activities, considered medium
weight. Most options are of medium weight
Total high weight points + total medium points/total
possible points (40) = % of Improvement Activities Score
Improvement Activities: Reporting
Individual clinicians, groups or designated 3rd party
vendors must designate Yes/No to each chosen activity
Reporting Options:
• Attestation
• QCDR
• Qualified Registry Reporting
• EHR
• Claims (If feasible, no other reporting necessary)
• Groups of 25 or greater also have option of reporting
via CMS Web Interface
Cost Catagory
0% of total MIPS score
Replaces Value Modifier
Claims based reporting
*No additional reporting requirements
Scoring is based on comparison to others
*Those that provide the most efficient, effective care
will receive greater scores
Cost Category: Measures
40 Episode Specific Measures
*Specialty specific measures exist
Up to 10 points are available per measure
*Patient volumes per measure, typically 20, are
required in order to qualify for measure
Cost Category: Scoring Example
Total Performance Score
Submission
Category
Scoring
Composite
Performance
Score
Calculation
Comparison
to
Performance
Benchmark
Payment
Adjustment
Calculation
and
Application
How Do You Rate?
Revenue at Risk
Physician Revenue at Risk
Details Behind 2017
Quality Programs: APM
Advanced APMs
• Clinicians who are involved with qualified ACOs, Medical
Homes, etc
• ACO must base payment on quality measures
• Must meet patient volume and financial risk thresholds
• In order to determine APM eligibility, all clinicians report
through MIPs in 2017
• APM clinicians avoid MIPS reporting requirements and
payment adjustments
• Receive 5% APM incentive payment
• Does not change how APMs reward value
Advanced APMs Criteria
ACO Reporting
• Measures, means and frequency vary per ACO
• Vermont:
• Three ACOs coming under one umbrella - VCO
• Data flowing from EMRs through HIE to ACO Data
Repository Workbench One
• PMPM Analyzer
• ACO Explorer
• Manual annual reporting process will phase out
• Importance of thoroughly and accurately diagnosis and
comorbidities
Details Behind 2017 Quality
Programs: VBP
VBP Program Background
• Funded by reductions from Diagnosis-Related
Group (DRG) payments; Budget Neutral
• Built on the Hospital Inpatient Quality Reporting
(IQR) measure reporting infrastructure
• Measures collected through the Hospital IQR
Program infrastructure
• Reimbursements based on either national
benchmarks or internal improvements
VBP Program Domains and Measures
VBP Program Domains and Measures
VBP Program Domains and Measures
VBP Program Domains and Measures
VBP Program Domains and
Measures
Value Based Purchasing Scoring
• Scores for all measures generate total performance score
• Types of points awarded
• Achievement points
• 0-10 based on comparison to all hospitals’ baseline period
rates
• Improvement points
• 0-9 based on comparison to same hospital’s baseline period
rates
• Consistency points
• 0-20 based on hospital’s HCAHPS scores compared to all
hospitals’ baseline period rates
Financial Impact
• Total amount of value-based incentive payments must equal
the total amount withheld across all hospitals in the
program.
• For FY18 payment (2016 performance): 2% withhold
• Value-based incentive payments = Sum of all hospital’s base-
operating DRG*0.02 (withhold)
Revenue at Risk
Hospital Revenue at Risk
Year IQR EHR MU VBP HAC HRRP
2013 2.0% MBU N/A 1.0% DRG N/A 1.0% DRG
2014 2.0% MBU N/A 1.25% DRG N/A 2.00% DRG
2015 25% MBU 25% MBU 1.50% DRG 1.0% DRG 3.00% DRG
2016 25% MBU 50% MBU 1.75% DRG 1.0% DRG 3.00% DRG
2017 25% MBU 75% MBU 2.00% DRG 1.0% DRG 3.00% DRG
MBU = Market Basket Update
DRG = Diagnosis-related group
Hospital Revenue at Risk
.0%
.0%
.0%
.0%
.0%
.0%
.0%
.0%
2013 2014 2015 2016 2017
IQR EHR VBP HAC HRRP
Financial Impact
Financial Impact
Infrastructure Considerations
Infrastructure and Integration
• EHR 2015 Edition (Stage 3) Upgrades for 2018
• Acute and Ambulatory EHR Integration
• Data Warehouse Design
• Quality Reporting Metrics and Alerting
Measurement Validation
Enhanced Oversight and Accountability
ONC expands role of oversight
Attest to cooperation with certain authorized IT
surveillance and oversight activities
Clinicians required to give access to their EHR
No restriction of data sharing and interoperability
Challenges
• Disparate Systems
• Difficult to assess performance across settings
• Creation of Clinical Alerts
• Coding occurs post discharge
• Understanding workflow required by eCQMs
• Transition from free text and customized reporting
Conclusion
• CMS is transitioning to what the they call "a new and more
responsive regulatory framework." This new framework is
based on the landmark bipartisan legislation called MACRA
• As organizations transition from volume to value based
reimbursement, both in the inpatient and outpatient
realms, increased attention to quality outcomes is necessary
• This involves focus on:
• Standardized Workflow
• Performance Reporting with Clinical Alerts
• Clinical Surveillance Across Settings
• Data Sharing - TOC
Questions
• Jodi Frei, PT MSMIIT
Northwestern Medical Center
• William Presley, Vice President
Acmeware
References
• Physician Quality, Path to Value,
http://www.acmeware.com/products.aspx
• https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-
MIPS-and-APMs/MACRA-MIPS-and-APMs.html
• https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-
MIPS-and-APMs/NPRM-QPP-Fact-Sheet.pdf
• https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-
MIPS-and-APMs/MIPS-Scoring-Methodology-slide-deck.pdf
• https://www.acog.org/-/media/Departments/Payment-
Reform/ProposedCrosscuttingQualityMeasures.pdf?dmc=1
&ts=20160802T0014121685
• https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-
MIPS-and-APMs/CPIA-Performance-Category-slide-deck.pdf
• https://www.cms.gov/Outreach-and-Education/Medicare-
Learning-Network-
MLN/MLNProducts/Downloads/Hospital_VBPurchasing_Fac
t_Sheet_ICN907664.pdf
• http://www.himss.org/news/cms-previews-quality-
payment-program-changes-fy-2017-performance-year-
allows-clinicians-pick-their
• https://qpp.cms.gov
• https://www.cms.gov/medicare/medicare-fee-for-service-
payment/physicianfeedbackprogram/valuebasedpaymentm
odifier.html
• https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-
MIPS-and-APMs/Advancing-Care-Information-Fact-Sheet.pdf

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Riding the Rapids of Payment Reform: Downstream Effects of Quality Reporting on Revenue Capture

  • 1. Riding the Rapids of Payment Reform? Downstream Effects of Quality Reporting on Revenue Capture
  • 2. Introductions • Jodi Frei, PT MSMIIT, Northwestern Medical Center • William Presley, Vice President , Acmeware
  • 3. Audience Poll • CIOs? • Providers? • IT Informatacists? • Quality Nurses? • Others?
  • 4. Session Agenda • Background on Quality Programs • 2017 Quality Programs: VBP, MIPS, APM • Reporting, Scoring • Reimbursement, Financial Impact • Challenges and Opportunities • Infrastructure Considerations • Future Insights
  • 5. Riding the Rapids “…often done on whitewater or different degrees of rough water, and generally represents a new and challenging environment for participants. Dealing with risk and the need for teamwork is often a part of the experience. “ Wikipedia Sounds familiar?
  • 6. Background: Quality Measurement Programs Hospital Quality •EHR Incentive Program •Hospital Value-Based Purchasing •Inpatient Psychiatric Facilities •Inpatient Quality Reporting •HAC payment reduction program •Readmission reduction program •Outpatient Quality Reporting •Ambulatory Surgical Centers •The Joint Commission (TJC) Physician Quality •EHR Incentive Program •Physician Quality Reporting System (PQRS) •Value-Based Payment Modifier (VM) •eRX Quality Reporting Payment Model •Bundled Payments •Accountable Care Organizations (ACO) •Medicare Shared Savings Program •Patient Centered Medical Homes (PCMH)
  • 7. Programs Driving Performance Based Reimbursement Hospital Quality • Value Based Purchasing (VBP) • Inpatient Quality Program (IQR) and MU • Hospital-Acquired Conditions (HAC) • Hospital Readmission Reduction (HRRP) Physician Quality • Merit-based Incentive Payment System (MIPS) Payment Model • Alternative Payment Model (APM) • Comprehensive Primary Care (CPC+)
  • 10. MACRA • Bipartisan legislation signed into law on April 16, 2015 • Repealed Sustainable Growth Rate Formula • Rewards providers for quality versus quantity • Combines existing quality programs into one • Participants: Part B Eligible Professionals
  • 11.
  • 12. MIPS Overview • Combines components of PQRS, Value Modifier, and MU into one program • One composite performance score, 0-100 points, determined through 3 weighted categories • Budget neutral program rewarding quality performance • 2017 performance impacts 2019 payment
  • 14. Merit-Based Incentive Program (MIPS) Quality Resource Use Advancing Care Clinical Practice Composite Scoring 1 - 100
  • 15. 2017
  • 16. MIPS Participants 2017: Medicare Part B Eligible • Physicians • PAs • NPs • Clinical nurse specialists • Certified registered nurse anesthetists 2019: Opened to other clinicians • PTs, OTs, SLPs • Nurse Midwives • Clinical Social Workers • Dietitians • Clinical Psychologists
  • 17. MIPS Eligibility EC EC EC EC EC Hospitalist ED Provider Ortho Practice Family Practice EC Private Practice Acute Ambulatory
  • 18. MIPS Participation Options Pick your pace • Option 1: Test the System by submitting partial data No negative, no positive 2019 adjustment • Option 2: Participate for Part of the Year Small positive 2019 adjustment available • Option 3: Participate Full Calendar Year Modest payment adjustment available • Option 4: Participate in APM 5% incentive payment available
  • 19. MIPS Scoring: QUALITY DOMAIN Selection of 6 Measures; Reduced from PQRS 9, Minimum case requirement One Crosscutting Measure; One Outcome or High Priority 2-3 Claims Based Population Measures 1-10 Points per measure, based on historical benchmark Additional Points for Reporting Additional Measures
  • 20. Converting Performance To Points CMS will create 10 deciles per measure based on national benchmarks of baseline period, 2 years prior 1-10 points assigned based on the decile within which the EP performs
  • 23. Advancing Care 25% total MIPS score 5 measures required Extra points for reporting of additional measures
  • 24. Meaningful Use vs Advancing Care Meaningful Use • Strict Reporting Requirement • Labor Intensive • Misaligned with Other Quality programs Advancing Care • Flexible Reporting • Streamlined • Aligned with Other Quality Programs
  • 25. Summary of Advancing Care Measures Required Objective Measures: • Security Risk Analysis • e-Prescribing • Provide Patient Access • Send Summary of Care • Request/Accept Summary of Care For bonus credit, you can: • Report up to 4 additional measures • Report Public Health and Clinical Data Registry Reporting measures • Use certified EHR technology to complete certain improvement activities in the improvement activities performance category
  • 26. Improvement Activities 15% of Total MIPS Score Maximum Score of 40 points Credit for involvement in Medical Home and APMs 90 available to accommodate specialists
  • 27. Description of Improvement Activities 90 available aligned with: • Care Coordination • Beneficiary Engagement • Patient Safety • Expanded Practice Access • Population Management • Emergency Preparedness • Achieving Health Equity • Participation in APM
  • 28. Improvement Activities: Scoring Scoring based on weighting • Up to 20 points for highly weighted activities • Medical Home, transformation of the clinic, public health priorities • Examples: Patient experience ratings, timely access for Medicaid patients • Up to 10 points for all other activities, considered medium weight. Most options are of medium weight Total high weight points + total medium points/total possible points (40) = % of Improvement Activities Score
  • 29. Improvement Activities: Reporting Individual clinicians, groups or designated 3rd party vendors must designate Yes/No to each chosen activity Reporting Options: • Attestation • QCDR • Qualified Registry Reporting • EHR • Claims (If feasible, no other reporting necessary) • Groups of 25 or greater also have option of reporting via CMS Web Interface
  • 30. Cost Catagory 0% of total MIPS score Replaces Value Modifier Claims based reporting *No additional reporting requirements Scoring is based on comparison to others *Those that provide the most efficient, effective care will receive greater scores
  • 31. Cost Category: Measures 40 Episode Specific Measures *Specialty specific measures exist Up to 10 points are available per measure *Patient volumes per measure, typically 20, are required in order to qualify for measure
  • 34. How Do You Rate?
  • 38. Advanced APMs • Clinicians who are involved with qualified ACOs, Medical Homes, etc • ACO must base payment on quality measures • Must meet patient volume and financial risk thresholds • In order to determine APM eligibility, all clinicians report through MIPs in 2017 • APM clinicians avoid MIPS reporting requirements and payment adjustments • Receive 5% APM incentive payment • Does not change how APMs reward value
  • 40. ACO Reporting • Measures, means and frequency vary per ACO • Vermont: • Three ACOs coming under one umbrella - VCO • Data flowing from EMRs through HIE to ACO Data Repository Workbench One • PMPM Analyzer • ACO Explorer • Manual annual reporting process will phase out • Importance of thoroughly and accurately diagnosis and comorbidities
  • 41. Details Behind 2017 Quality Programs: VBP
  • 42. VBP Program Background • Funded by reductions from Diagnosis-Related Group (DRG) payments; Budget Neutral • Built on the Hospital Inpatient Quality Reporting (IQR) measure reporting infrastructure • Measures collected through the Hospital IQR Program infrastructure • Reimbursements based on either national benchmarks or internal improvements
  • 43. VBP Program Domains and Measures
  • 44. VBP Program Domains and Measures
  • 45. VBP Program Domains and Measures
  • 46. VBP Program Domains and Measures
  • 47. VBP Program Domains and Measures
  • 48. Value Based Purchasing Scoring • Scores for all measures generate total performance score • Types of points awarded • Achievement points • 0-10 based on comparison to all hospitals’ baseline period rates • Improvement points • 0-9 based on comparison to same hospital’s baseline period rates • Consistency points • 0-20 based on hospital’s HCAHPS scores compared to all hospitals’ baseline period rates
  • 49. Financial Impact • Total amount of value-based incentive payments must equal the total amount withheld across all hospitals in the program. • For FY18 payment (2016 performance): 2% withhold • Value-based incentive payments = Sum of all hospital’s base- operating DRG*0.02 (withhold)
  • 51. Hospital Revenue at Risk Year IQR EHR MU VBP HAC HRRP 2013 2.0% MBU N/A 1.0% DRG N/A 1.0% DRG 2014 2.0% MBU N/A 1.25% DRG N/A 2.00% DRG 2015 25% MBU 25% MBU 1.50% DRG 1.0% DRG 3.00% DRG 2016 25% MBU 50% MBU 1.75% DRG 1.0% DRG 3.00% DRG 2017 25% MBU 75% MBU 2.00% DRG 1.0% DRG 3.00% DRG MBU = Market Basket Update DRG = Diagnosis-related group
  • 52. Hospital Revenue at Risk .0% .0% .0% .0% .0% .0% .0% .0% 2013 2014 2015 2016 2017 IQR EHR VBP HAC HRRP
  • 56. Infrastructure and Integration • EHR 2015 Edition (Stage 3) Upgrades for 2018 • Acute and Ambulatory EHR Integration • Data Warehouse Design • Quality Reporting Metrics and Alerting
  • 58. Enhanced Oversight and Accountability ONC expands role of oversight Attest to cooperation with certain authorized IT surveillance and oversight activities Clinicians required to give access to their EHR No restriction of data sharing and interoperability
  • 59. Challenges • Disparate Systems • Difficult to assess performance across settings • Creation of Clinical Alerts • Coding occurs post discharge • Understanding workflow required by eCQMs • Transition from free text and customized reporting
  • 60. Conclusion • CMS is transitioning to what the they call "a new and more responsive regulatory framework." This new framework is based on the landmark bipartisan legislation called MACRA • As organizations transition from volume to value based reimbursement, both in the inpatient and outpatient realms, increased attention to quality outcomes is necessary • This involves focus on: • Standardized Workflow • Performance Reporting with Clinical Alerts • Clinical Surveillance Across Settings • Data Sharing - TOC
  • 61. Questions • Jodi Frei, PT MSMIIT Northwestern Medical Center • William Presley, Vice President Acmeware
  • 62. References • Physician Quality, Path to Value, http://www.acmeware.com/products.aspx • https://www.cms.gov/Medicare/Quality-Initiatives-Patient- Assessment-Instruments/Value-Based-Programs/MACRA- MIPS-and-APMs/MACRA-MIPS-and-APMs.html • https://www.cms.gov/Medicare/Quality-Initiatives-Patient- Assessment-Instruments/Value-Based-Programs/MACRA- MIPS-and-APMs/NPRM-QPP-Fact-Sheet.pdf • https://www.cms.gov/Medicare/Quality-Initiatives-Patient- Assessment-Instruments/Value-Based-Programs/MACRA- MIPS-and-APMs/MIPS-Scoring-Methodology-slide-deck.pdf • https://www.acog.org/-/media/Departments/Payment- Reform/ProposedCrosscuttingQualityMeasures.pdf?dmc=1 &ts=20160802T0014121685 • https://www.cms.gov/Medicare/Quality-Initiatives-Patient- Assessment-Instruments/Value-Based-Programs/MACRA- MIPS-and-APMs/CPIA-Performance-Category-slide-deck.pdf • https://www.cms.gov/Outreach-and-Education/Medicare- Learning-Network- MLN/MLNProducts/Downloads/Hospital_VBPurchasing_Fac t_Sheet_ICN907664.pdf • http://www.himss.org/news/cms-previews-quality- payment-program-changes-fy-2017-performance-year- allows-clinicians-pick-their • https://qpp.cms.gov • https://www.cms.gov/medicare/medicare-fee-for-service- payment/physicianfeedbackprogram/valuebasedpaymentm odifier.html • https://www.cms.gov/Medicare/Quality-Initiatives-Patient- Assessment-Instruments/Value-Based-Programs/MACRA- MIPS-and-APMs/Advancing-Care-Information-Fact-Sheet.pdf