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Clinical Integration and
 Quality Improvement
    Jay C. Williamson, M.D.
  CMO, Summa Physicians Inc.

     Robin Chatman, MD
    Trinity Family Medicine




       Copyright 2012Ohio State Medical Association   1
The Integrated Healthcare Delivery System
         Hospitals                          Physicians                               Health Plan                     Foundation
Inpatient Facilities                 Multiple                                  Geographic Reach                System Foundation
•   Tertiary/Academic Campus         Alignment Options                         • 19 Counties for Commercial    Focused On:
•   3 Community Hospitals            •   Employment                            • 18 Counties for Medicare      •   Development
•   1 Affiliate Community Hospital   •   Joint Ventures                        • 60-hospital Commercial        •   Education
•   2 JV Hospitals with Physicians   •   EMR                                     provider network              •   Research
                                     •   Clinical Integration                  • 41-hospital Medicare          •   Innovation
Outpatient Facilities                •   Health Plan                             provider network              •   Community Benefit
• Multiple ambulatory sites                                                    • National accounts in          •   Diversity
• Locations in 3 Counties            Summa Physicians, Inc.                      multiple states               •   Government Relations
                                     • 260+ Employed Physician                                                 •   Advocacy
Service Lines                          Multi-Specialty Group                   191,000
• Cardiac, Oncology, Neurology, O                                              Total Members
  rthopaedics, Surgery, Seniors, B Summa Health Network                        •   Commercial Self Insured
  ehavioral                        • PHO with over 1,000                       •   Commercial Fully Insured
  Health, Women’s, Emergency, R physician members                              •   Group Process Outsourcing
  espiratory                       • EMR/Clinical Integration                  •   Medicare Advantage
                                     Program                                   •   Individual PPO
Key Statistics
•   2,000+ Licensed Beds
•   62,000 Inpatient Admissions
•   47,000+ Surgeries
•   660,000+ Outpatient Visits
                                                                              Net Revenues: Over $1.5 Billion
•   226,000+ ED Visits                                                        Total Employees: Nearly 11,000
•   4,300+ Births
•   Over 220 Residents



                                                   Copyright 2012Ohio State Medical Association                                       2
The Next Evolution of the Integrated Delivery System

     Summa fundamentally believes that accountability in healthcare
     is a moral imperative with Integration being a means to that end

 •     We believe that the current healthcare payment system is unsustainable and that payment
       mechanisms will have to change to better align incentives toward reducing total healthcare
       costs while continuing to provide high-quality care


 •     Summa will use its Integrated Delivery System to provide continually improving, value-
       based, high-quality, transparently accountable care to patients, populations and payers it
       serves


 •     Summa will build upon its relationships to continually advance accountability by partnering in a
       deeper way with patients, populations, and payers toward improving the health of our
       communities while reducing costs




                                      Copyright 2012Ohio State Medical Association                        3
Community Collaborations: Physician Joint Ventures
• Summa Health Center at Lake Medina
    – Joint venture outpatient surgery center with 2 ORs and 1
      procedure room opening in conjunction with the new Summa
      Health Center at Lake Medina development
    – Includes physicians from the following specialties:
      OB/Gyn, General Surgery, Pain, Podiatry, Ophthalmology, Hand


• Summa Western Reserve Hospital
    – Joint venture started in June 2009 between Summa Health System
      and Western Reserve Hospital Partners
    – Began the for-profit Summa Western Reserve Hospital at the
      current Summa Cuyahoga Falls General Hospital location

• Crystal Clinic Orthopaedic Center (CCOC)
    – Orthopaedic Hospital Joint venture between Summa Health
      System and Crystal Clinic (a local group of approximately 30
      orthopedic surgeons)
    – Began operations in May 2009 on the Summa St. Thomas Hospital
      Campus




                                  Copyright 2012Ohio State Medical Association   4
Critical Issues
Three critical issues threatening the stability of today’s
healthcare system:

1. Uninsured and underinsured populations are increasing.

2. Healthcare costs are escalating.

3. Government regulations are expanding and government
   reimbursement is not keeping the pace with the cost of
   providing care.


                      Copyright 2012Ohio State Medical Association   5
Summa Physicians Inc. Governance
• 501(c) 3 organization
• Independent Board of Directors which include
  physicians and senior management appointed by
  system governance committee
• Oversee all aspects of SPI operations and finance
  except compensation
• Physician Advisory Council to CMO
• Both fully employed and leased models

                  Copyright 2012Ohio State Medical Association   6
SPI Overview
• 270 Physicians
• 59 Advanced Practice Nurses and Physician
  Assistants
• 671 non-Provider Employees
• Summit, Medina, Portage, Wayne, and Stark
• Physicians hired based on Community Need, Mission
  and preventing physician “leakage” from Summa
• New planned growth to be based on System needs
  and focused strategic growth

                  Copyright 2012Ohio State Medical Association   7
Satisfied, Engaged, and Aligned Physicians
                    SPI Growth as of December 2011
•   Summa Physicians, Inc. continues to have success with its model for physician employment




                    Number of Employed Physicians
    300
                                                                                                255266
                                                                                         220
    200                                                                            187

    100                                                             81
                                                       41
               7        8       14        17
       0
           2002     2003     2004     2005          2006         2007         2008       2009   2010   2011



                                    Copyright 2012Ohio State Medical Association                              8
SPI – Business Model
• Physician Compensation is Productivity Based
• Will soon be implementing a model looking at quality
  metrics, patient satisfaction and issues such as community
  service and System performance
• Ancillary Services have transferred to Provider Based Billing
  under the Hospitals
• Mission focus helps eliminate unnecessary System costs
• All physicians are employed under a Hospital or System
  approved business plan
• Reviewing Leased vs. Employed Model


                       Copyright 2012Ohio State Medical Association   9
2011 SPI ACCOMPLISHMENTS
• Outstanding Budget
   – Performance through December $3.9 million better than budget.
• Vast Improvement in health risk assessment
   – Over 1000 this year have been completed leading to better
      documentation of care provided to Medicare patients and enhanced
      reimbursement.
• Our newly added 24 physicians
• Outstanding performance in light of a year of transition featuring three
  different presidents in 2011.
• EMR implementation with 113 providers and 37 doctors attested for
  Meaningful Use at $18,000 each and 15 more by year end which aids in
  care coordination and integration.


                          Copyright 2012Ohio State Medical Association   10
The Future - SPI
• Implement Strategic Plan
   – Enhance Physician Engagement and System
     Integration
   – Expand Market Penetration (selectively and
     strategically) and Increase our Patient
     Population
   – Achieve superior Operative and Clinical
     Performance
   – Improve Population Health through ACO and
     Medical Homes

                 Copyright 2012Ohio State Medical Association   11
Patient Center Medical Home (PCMH)
                             The Affordable Care Act Main Objectives
Focus on Measurably Improving Population Health              Meaningful Measures of System Performance
Organizational Accountability for Capacity, Cost and Quality Right Workforce
Payment for Value, Not Volume

   Healthy
  Consumer
                                                             Overall Goal is to move healthcare cost
                                                                 from downstream to upstream
  Continued              Preventable
   Health                 Condition
                                                                                                            ACO
     PCMH             No Hospitalization                  Acute Care
                                                           Episodes


                                                           Successful                     High Cost   Complications, Re
                                                            Outcome                       Outcome       admissions


 In order to achieve the objectives of reform, we need to transform our current delivery system from high cost, low
                       value to low cost, high value through a strong primary care foundation




                                           Copyright 2012Ohio State Medical Association                               12
PCMH Impact on Stakeholders Across Continuum Care

Better, safer, less costly, more                                                         Improved member and employer
convenient care                                                                           satisfaction
Better overall health                                                                    Lower costs
Productive long-term relationship                                                        Opportunity for new business
                                                             Payer                        models
with a PCP


                                       Patient                                  Specialists
Increased focus on the
patient and their health                                                                         Better referrals
Greater access to health                                                                        Whole patient care integration
information                                                                                      Better follow up
Higher reimbursement                                       PCMH
More PCPs
                                     PCP                                            Government



                                                                                                     Lower healthcare costs
                                                                                                     Healthier population
                                                 Hospital              Employer

Lower number of chronic care
admissions and readmissions
                                                            Lower healthcare costs
Increased focus on procedures.
                                                            More productive workforce
                                                            Improved employee satisfaction




                                           Copyright 2012Ohio State Medical Association                                            13
What is PCMH?
A PCMH puts patients at the center of the health care system, and provides
primary care that is “accessible, continuous, comprehensive, family-
centered, coordinated, compassionate, and culturally effective.”
 Features of PCMH
 A personal physician who coordinates all care for patients and leads the team.
 Physician-directed medical practice – a coordinated team of professionals who work together
 to care for patients.
 Whole person orientation – this approach is key to providing comprehensive care.
 Coordinated care that incorporates all components of the complex health care system.
 Quality and safety – medical practices voluntarily engage in quality improvement activities to
 ensure patient safety is always being met.
 Enhanced access to care – such as through open-access scheduling and communication
 mechanisms.
 Payment – a system of reimbursement reflective of the true value of coordinated care and
 innovation.




                                  Copyright 2012Ohio State Medical Association                14
How Features of PCMH are Implemented?
Enhanced Access                                                   Physician Directed Medical Practice Team
     Extended Hours, Open Schedule
                                                                  Team approach
     Internet, e-mail
                                                                       Low complexity tasks handled by other
Increased same day access avoids ER and
increase continuity                                                    members of the team
                                                                       Team members can be internal/external
                                                                  Collaborative relationship between physician and
Quality and Safety
                                                                  non-physician practitioners
      Evidence Based Medical care
      QI projects at the practice level
                                                                  Personal Physician & Whole Person Orientation
                                                                  First contact, continuous and comprehensive care
Coordinated/Integrated Care
                                                                  Contextual Care
     Registries
     Proactive care                                   Having a usual source of care is associated with a greater
                                                       likelihood that people receive appropriate care, preventive
     Information Technology                           care, better outcomes, lower cost
     Health Information Exchange
     Chronic care coordination
           Internal/external care coordination
           Part of a patient’s health plan Reduced duplication and improved
                                                  coordination across the spectrum of care




                                           Copyright 2012Ohio State Medical Association                               15
Summa PCMH Pilot Project Roadmap
 Highlights of Project
    6 practices involved
    IT and Policy Subcommittees
    PCMH Performance Metric Team
                                                                                            SUMMA
    NCQA Recognition
                                                                                             PCMH
    Transformation                                             Transformation
                                                       Cultural Change
                                                       Redefining staffing roles
                                                       Improve Outcomes


                   NCQA Recognition Program
  Offered at three level–basic, intermediate and advanced                          Measure improvements
  Goal is to obtain Level 3                                                        Support ACO Initiatives
                                                                                      Publically report
                 Gap Analysis                                                          achievements
    Identification of PCMH Metrics
    EHR Upgrades
    Policy Creation and Standardization



                                    Copyright 2012Ohio State Medical Association                        16
PCMH
• ACO paying for part-time physician leader, full-
  time analyst, and project director.

• PHO will pay for NCQA Certification Fees.




                   Copyright 2012Ohio State Medical Association   17
Accountable Care Organization
                       Our ACO is a clinician-led care collaborative
                            that partners with communities
                 to compassionately care for and serve our populations
                 in an accountable, value- and evidence-based manner.


Organizational Facts
•   Start Date – Began operations January 1, 2011
•   Initial Pilot Population – 11,000 SummaCare Medicare Advantage members that
    currently see a participating primary care physician
•   Legal Entity – Non-profit taxable structure allows for physician majority on the Board
•   Board Composition – 4 community primary care physicians, 1 medical specialist, 1
    surgical specialist, 3 Summa representatives




                                Copyright 2012Ohio State Medical Association                 18
PCMH




Primary   Specialty                     Patients
                                         Hospital                 Skilled   Nursing   Home
                      Ambulatory                                             Home
 Care       Care                           and ED                 Nursing             Health




                            Copyright 2012Ohio State Medical Association                       19
Financials:
PMPM Target and Results - 2011
                         Medical Spend     Shared Savings
                              PMPM           Annualized
      Breakeven              $793.62            $0
 SC Medicare NHC ACO         $733.79        $7,400,000
                  2010 Milliman Benchmarks
   Loosely Managed           $752.45        $5,089,600
Competitively Managed        $639.56        $19,045,513
    Well Managed             $522.36        $33,534,246




                     Copyright 2012Ohio State Medical Association   20
Progress Milestones: 2011
• Began Operations

• Heart Failure Readmission Initiative

• Heart Failure Education

• Discharge-to-Home Care Transition




                     Copyright 2012Ohio State Medical Association   21
Progress Milestones
• Population-based Actuarial Analysis

• ACO Finance Committee

• ACO Clinical Value Committee

• ACO Medical Home Initiative

• Call Center Plan

• Harmony Plan


                     Copyright 2012Ohio State Medical Association   22
PHYSICIAN COMPENSATION PLAN

   Summa Physicians, Inc. (SPI)




           Copyright 2012Ohio State Medical Association   23
PHYSICIAN COMPENSATION PLAN
• High Performance Team appointed in late 2011 by new SPI President to
  outline a new compensation model by early 2012.
• Multispecialty group including representatives from the following areas:
   – Family Medicine
   – Psychiatry
   – Surgery (Colorectal)
   – Gastroenterology
   – Hematology / Oncology
   – Cardiology
   – General Internal Medicine
   – Geriatrics



                          Copyright 2012Ohio State Medical Association   24
PHYSICIAN COMPENSATION PLAN
• Began with weekly meetings with a goal for the
  new model to be part of new and updated
  contracts
• Agreement for a one year “shadow” program to
  see how the model works
• Outlined a set of Guiding Principles and an
  Incentive Plan Proposal was developed



                  Copyright 2012Ohio State Medical Association   25
GUIDING PRINCIPLES
                               SPI CMO COMPENSATION COMMITTEE

                                GENERAL CONTRACTING PRINCIPLES

1.    All should share in the success of the organization.

2.    Incentive plan is calculated on 20% of base compensation. Base compensation is not reduced to
      fund incentive plan.

3.    A shadowing program will be used the first six months, the new system will start in 2013.
      Standardized contract language will be used with an agreed upon compensation plan.

4.    Incentive Dimensions required for all. Metrics include Success of SPI/Summa Health System,
      Citizenship, Information Management, Quality/Service.    (Incentive Plan Proposal attached)

5.    Quality metrics for primary care and specialties are different and subgroups may be needed to
      work out details.

6.    Annual performance review required and passing review will be required to qualify for bonus
      distribution.

7.    Patient satisfaction review will be part of all metrics. One standardized survey will be used.

8.    Changes in base compensation are being considered.

9.    Incentives obtained from some bonus dollars and possibly ACO shared savings dollars.

10.   MGMA should remain the salary benchmark of choice.

11.   Blends of education, teaching, and work productivity will remain part of the contracts.




                                     Copyright 2012Ohio State Medical Association                      26
INCENTIVE PLAN PROPOSAL
TARGET: TOP QUARTILE                                                                                      TOTAL POINTS = 20
Incentive Dimensions:                                                                                             2/6/12
         Success of SPI / Summa                    Citizenship                  Information Management                  Quality / Service
 (Individual & Group)

Growth of Established and Loyal          Attendance @ SPI meetings          Measures of Integration             Access to Care – Same Day
Patients - SPI                           ≥ 75% of meeting                        Keep the patient @ home        Established Patient and
                                                                                 Information Management           New Patient
                                         Major Conditional Incentive                within Network
Source: eCW counted charts, billings                                             In Network Use of Lab/            (1% Group)
of unique patients during the prior                ½ point                          Radiology/PT-Rehab
year vs. next year                                                          Source: Referral Tracking in eCW,   Source: Phone survey for
                                         Source: Attendance sign in and     lab/imagining/pt by ordering        established and new patients
               2 points                  sign out sheets monitored by       physician
                                         SPI ops.                                            3points                          2 points
Profitability of Summa Hospital          Completion of Records on a         Measures of Coordination            Inpatient SCIP & Core Measures at
Operations / Meet or Exceed Budget       timely basis                            Hand off Measures             98% attainment
Expectations - Summa Hospital                                                    Two-way Communication
                                         Major Conditional Incentive             Satisfaction with
Source: Summa Financials, booked                   ½ point                         Referring Physicians Info    Source: CMS/JCHAO List of Top
year end hospitals only                                                          Collegiality / Stellar APR    performers
                                         Source: eCW “closed files          Source: Referral Sender/Receiver
               2points                   report”, Med Records               survey                                           3 points
                                         Procedures                                          3 points
Patient Satisfaction > 75th percentile                                                                          Inpatient patient satisfaction with
Source: Press Ganey OP, C. Natale                                                                               physicians above 50th percentile
               2points                                                                                          Source: HCAHPS
                                                                                                                                   2points
                                                                                                                  6 Dimensions of Quality (IOM)
                                                                                                                  Safe           Pt. Centered
                                                                                                                  Effective      Timely
                                                                                                                  Efficient      Equitable




                                                     Copyright 2012Ohio State Medical Association                                                27
PHYSICIAN COMPENSATION PLAN


• Further discussion by specialty of quality metrics




                   Copyright 2012Ohio State Medical Association   28
Example of Quality Metrics for Diabetic Care in
Primary Care Practices
      B        D     E         F         G            H              I           J           K   L         M        N           O
                                                                                                       Eye Exam
1   Insurer   DOS   HbA1c     Date      LDL         Date        Urine date    Result    BP Sys BP Dias          Foot Exam    CPT/ICD
                                                                                                          Date
2    MC    7/9/11    6.4     7/19/11     59        3/22/11      N                N       112     62        N        N       250.00/214
3 SC SEC 6/30/11     9.4     6/27/11    110        6/27/11      N                N       150     67      5/5/11     N       250.00/214
4    MC   3/22/11    7.3     3/16/11     94        6/16/11   1/21/10            Neg      115     49      9/2/01     N       250.00/214
5 SC SEC 5/19/11     7.2     5/19/11     92        4/21/11      N                N       149     75        N     8/16/10    250.00/214
6    MC   3/30/11   10.9     8/15/11     73         8/3/11      N                N       156     12        N      5/3/10    250.00/214
7    MC    2/3/11    6.2     2/17/11     61        5/20/11  12/30/10            POS      153     74        N    12/20/10    250.41/214
8    MC   7/22/11     6      7/15/11 High Trig      7/1/11      N                N       146     63    11/10/11     N       250.00/214
9    MC   7/11/11    7.5      6/9/11     67         6/9/11      N                N       113     67      4/8/11     N       250.00/214
10   MC   7/13/11    5.6      7/7/11     43         7/6/11      N                N       129     61        N        N       250.00/215
11   MC   6/15/11    6.4      6/9/11     69         6/8/11      N                N       117     62      8/2/11     N       250.00/214
12   MC   4/19/11    8.4     4/19/11     74        1/11/11   4/19/11            Neg      140    102        N     5/11/11    250.02/205
13 SC SEC 8/22/11    6.4      8/8/11     51         1/3/11      N                N       150     85      8/1/11     N       250.00/214
14   MC   8/18/11    6.6    10/18/10     83        1/10/11   1/10/11            Neg      133     61     4/11/11     N       250.00/214
15  MC    8/17/11    7.3     8/10/11    160        8/10/11      N                N       141     61     3/17/11     N       250.00/214
16   MC    8/9/11    8.9      8/2/11     78         8/2/11      N                N       144     68    11/18/10     N       250.02/214
17   MC    2/1/11    6.5     1/26/11     78        1/26/11      N                N       123     62        N        N       250.00/214
18   MC   3/25/11    6.8      3/9/11     59        6/15/11      N                N       128     66     2/24/11     N       250.02/214
19   MC   3/25/11    6.9      3/9/11 3/9/1900       3/9/11   9/15/10            Neg      126     73        N        N       250.00/214
20   MC   6/16/11    5.5    6/9/2011     42      1/25/2011 10/10/2011           Neg      124 3/3/1900 8/18/11 12/23/10      250.00/214
21   MC   7/14/11    6.6      2/3/11     57       11/23/10      N                N       128     65     4/27/11     N       250.00/214




                                              Copyright 2012Ohio State Medical Association                                          29
Example of Quality Metrics for Diabetic Care in
Primary Care Practices
         B         D        E        F       G           H            I         J           K    L  M         N                O
                                                                                                 Eye Exam
 1    Insurer     DOS      HbA1c    Date     LDL       Date     Urine date Result BP Sys BP Dias          Foot Exam        CPT/ICD
                                                                                                   Date
22      MC       3/28/11    7.3    3/21/11   34       3/21/11         N         N       140      85      N         N       250.00/215
23      MC       6/29/11    6.2    6/22/11   71       6/22/11         N         N       138      80    3/4/11      N       250.00/214
24      MC       7/11/11    6.9    7/5/11    51       3/2/11          N         N       122      64      N         N       250.00/214
25      MC       5/4/11     6.2    4/13/11   89       4/13/11         N         N           95   60      N         N       250.00/214
26      MC       7/27/11     5     7/20/11   126      7/13/11     7/13/11      POS      144      88   7/11/11      N       250.00/214
27      MC       8/23/11    6.4    5/13/11   102      5/13/11     9/17/10      NEG      126      68   10/2/11      N       250.00/214
28      MC       7/13/11    6.4    7/1/11    38       7/1/11          N         N       123      66    9/8/10    2/11/11   250.00/214
29      MC       6/22/11    5.9    6/15/11   83       6/15/11      3/7/11      POS      138      80      N         N       250.00/214
30      MC       8/23/11    7.1    8/16/11   76       6/14/11         N         N       130      74      N         N       250.00/214
31    MMO MC     8/25/11    7.3    6/17/11   63       8/18/11         N         N       138      78   1/11/11      N       250.00/214
32      MC       2/1/11     5.8    1/4/11    55       1/4/11          N         N       111      52   10/19/10   1/19/10   250.00/214
33      MC       2/1/11     6.9    6/7/11    89       1/4/11      5/21/10      POS      134      64    2/3/11    1/19/10   250.00/214
34      MC       1/5/11     6.5    3/2/11    87      12/30/10         N         N       166      77   10/12/10     N       250.00/214
35      MC       9/6/11     7.5    9/1/11    52       5/10/11         N         N       120      79   8/11/11      N       250.00/214
36   Anthem SR   6/15/11    6.5    6/7/11    56       6/8/11          N         N       133      70      N         N       250.00/214
37      MC       5/11/11    7.8    5/4/11    104      8/4/11          N         N       137      75    4/-/11      N       250.02/214
38      MC       8/3/11     6.2    7/20/11   57       7/20/11     7/20/11      Neg      114      63   9/13/10      N       250.00/214
39      MC       8/1/11     7.3    7/6/10     N          N            N         N       150      96   1/20/11      N       250.00/203
40      MC       6/29/11    6.1    7/2/10    67       7/2/10          N         N       144      82    4/9/11      N       250.00/214
41    SC SEC     7/20/11    7.4    7/6/11    97       3/8/11       3/8/11      Neg      160      70   6/22/11      N       250.00/214
42      MC       6/30/11    8.4    6/23/11   47       6/23/11         N         N       151      81   5/12/10      N       250.02/214
43      MC       6/17/11    6.1    6/10/11   63       6/10/11         N         N       126      77   5/11/11      N       250.00/214




                                             Copyright 2012Ohio State Medical Association                                          30
Example of Quality Metrics for Diabetic Care in
Primary Care Practices
       B           D         E            F          G        H            I          J          K    L  M         N        O
                                                                                                      Eye Exam
1    Insurer      DOS       HbA1c        Date        LDL    Date     Urine date Result BP Sys BP Dias          Foot Exam CPT/ICD
                                                                                                        Date
44     MC       5/12/11       6         4/5/11       56    4/5/11         N           N         122   66      N       N   250.00/214
45     MC       4/28/11      6.4        4/25/11      77    4/25/11        N           N         134   71   10/10/11   N   250.00/214
46     MC       6/16/11      7.3        3/9/11       59    6/8/11      12/9/10       POS        122   64   4/7/11     N   250.00/214


                             SPI          Dr.
               Total # of
               Patients
               Studied            903           45
               Average
               HbA1C              7.1         7.0
               Average
               LDL                 91           73
               Percentage
               of Urine
               Samples
               collected      43%          29%
               Average BP
               Systolic           133       133
               Average BP
               Diastolic           75           70
               Percentage
               of Eye
               Exams
               Performed      35%          67%
               Percentage
               of Foot
               Exams
               Performed      21%          18%




                                                      Copyright 2012Ohio State Medical Association                               31
COMPENSATION GUIDELINES
A. Base Compensation
   – Uses 85% of MGMA Median by Specialty to determine base.
   – Will be reset each year (WRVU target) based on prior year
     WRVU production and market adjustments.
   – Adjusted upward if WRVU exceeds base target. Based on
     tiered compensation formula.
   – Adjusted downward if WRVU is below base target.
   – Maximum amount of base compensation to be paid through
     bi-weekly payroll = 80% of MGMA national 90% compensation.




                       Copyright 2012Ohio State Medical Association   32
COMPENSATION GUIDELINES
B. Excess WRVU Above Base Compensation Targets
   – Tiered structure adds a portion of excess WRVU to base
      compensation (not extra bonus) and a portion to incentive pool
                         Base & Performance Bonus WRVU Tier descriptions
        Tier 1 = Nat Med to Avg Nat Med / Nat 75th The level of Physician production utilized in the Tiers =
    Tier 2 = Avg Nat Med / Nat 75th to national 75th higher of 2 yr avg production or the prior yr production
                Tier 3 = all WRVUs over the Nat 75th

            1.0 FTE New Base = 85% Nat Median + Tier 1 + Tier 2 + Tier 3 % to payroll
                                85% of Nat Median +                           For that Physician's specialty
                   Tier 1 - Base @ 50% of SPI rate +
                      Tier 2 - Base 45% of SPI rate +        This component added to Base and paid through bi-
                      Tier 3 - Base 40% of SPI rate +                         weekly payroll
                                     Total New Base

             1.0 FTE Performance Bonus Funding = Tier 1 + Tier 2 + Tier 3 + SPI % Perf Bonus Fund
                     Tier 1 -Bonus 50% of SPI rate +
                                                              This component held until contract year end and
                     Tier 2 - Bonus 55% of SPI rate +
                                                             amount to be awarded determined thorough annual
                     Tier 3 - Bonus 60% of SPI rate +
                                                               performance review - pre-defined performance
              SPI added Perf $ (% PCP or % other) +
                                                                                 metrics.
                 Total Performance Bonus Funding




                                     Copyright 2012Ohio State Medical Association                                33
COMPENSATION GUIDELINES
C. WRVU Production Below WRVU Target
   – At a certain level may not be eligible for a bonus
D. Incentive Plan Pool
   – Using tiered approach amount not added to base is
      placed in incentive pool.
   – Physician has ability to add back a comparable amount
      using different incentives.
   – 15% Primary Care addition for recognition of primary
      care.
   – 5% Specialist addition to pool


                     Copyright 2012Ohio State Medical Association   34
COMPENSATION GUIDELINES
• There will always need to be market
  considerations.
• Outliers will have to be looked at on an individual
  basis.




                   Copyright 2012Ohio State Medical Association   35
Questions and Discussion




      Copyright 2012Ohio State Medical Association   36

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Williamson-Chatman 3.23 Symposium

  • 1. Clinical Integration and Quality Improvement Jay C. Williamson, M.D. CMO, Summa Physicians Inc. Robin Chatman, MD Trinity Family Medicine Copyright 2012Ohio State Medical Association 1
  • 2. The Integrated Healthcare Delivery System Hospitals Physicians Health Plan Foundation Inpatient Facilities Multiple Geographic Reach System Foundation • Tertiary/Academic Campus Alignment Options • 19 Counties for Commercial Focused On: • 3 Community Hospitals • Employment • 18 Counties for Medicare • Development • 1 Affiliate Community Hospital • Joint Ventures • 60-hospital Commercial • Education • 2 JV Hospitals with Physicians • EMR provider network • Research • Clinical Integration • 41-hospital Medicare • Innovation Outpatient Facilities • Health Plan provider network • Community Benefit • Multiple ambulatory sites • National accounts in • Diversity • Locations in 3 Counties Summa Physicians, Inc. multiple states • Government Relations • 260+ Employed Physician • Advocacy Service Lines Multi-Specialty Group 191,000 • Cardiac, Oncology, Neurology, O Total Members rthopaedics, Surgery, Seniors, B Summa Health Network • Commercial Self Insured ehavioral • PHO with over 1,000 • Commercial Fully Insured Health, Women’s, Emergency, R physician members • Group Process Outsourcing espiratory • EMR/Clinical Integration • Medicare Advantage Program • Individual PPO Key Statistics • 2,000+ Licensed Beds • 62,000 Inpatient Admissions • 47,000+ Surgeries • 660,000+ Outpatient Visits Net Revenues: Over $1.5 Billion • 226,000+ ED Visits Total Employees: Nearly 11,000 • 4,300+ Births • Over 220 Residents Copyright 2012Ohio State Medical Association 2
  • 3. The Next Evolution of the Integrated Delivery System Summa fundamentally believes that accountability in healthcare is a moral imperative with Integration being a means to that end • We believe that the current healthcare payment system is unsustainable and that payment mechanisms will have to change to better align incentives toward reducing total healthcare costs while continuing to provide high-quality care • Summa will use its Integrated Delivery System to provide continually improving, value- based, high-quality, transparently accountable care to patients, populations and payers it serves • Summa will build upon its relationships to continually advance accountability by partnering in a deeper way with patients, populations, and payers toward improving the health of our communities while reducing costs Copyright 2012Ohio State Medical Association 3
  • 4. Community Collaborations: Physician Joint Ventures • Summa Health Center at Lake Medina – Joint venture outpatient surgery center with 2 ORs and 1 procedure room opening in conjunction with the new Summa Health Center at Lake Medina development – Includes physicians from the following specialties: OB/Gyn, General Surgery, Pain, Podiatry, Ophthalmology, Hand • Summa Western Reserve Hospital – Joint venture started in June 2009 between Summa Health System and Western Reserve Hospital Partners – Began the for-profit Summa Western Reserve Hospital at the current Summa Cuyahoga Falls General Hospital location • Crystal Clinic Orthopaedic Center (CCOC) – Orthopaedic Hospital Joint venture between Summa Health System and Crystal Clinic (a local group of approximately 30 orthopedic surgeons) – Began operations in May 2009 on the Summa St. Thomas Hospital Campus Copyright 2012Ohio State Medical Association 4
  • 5. Critical Issues Three critical issues threatening the stability of today’s healthcare system: 1. Uninsured and underinsured populations are increasing. 2. Healthcare costs are escalating. 3. Government regulations are expanding and government reimbursement is not keeping the pace with the cost of providing care. Copyright 2012Ohio State Medical Association 5
  • 6. Summa Physicians Inc. Governance • 501(c) 3 organization • Independent Board of Directors which include physicians and senior management appointed by system governance committee • Oversee all aspects of SPI operations and finance except compensation • Physician Advisory Council to CMO • Both fully employed and leased models Copyright 2012Ohio State Medical Association 6
  • 7. SPI Overview • 270 Physicians • 59 Advanced Practice Nurses and Physician Assistants • 671 non-Provider Employees • Summit, Medina, Portage, Wayne, and Stark • Physicians hired based on Community Need, Mission and preventing physician “leakage” from Summa • New planned growth to be based on System needs and focused strategic growth Copyright 2012Ohio State Medical Association 7
  • 8. Satisfied, Engaged, and Aligned Physicians SPI Growth as of December 2011 • Summa Physicians, Inc. continues to have success with its model for physician employment Number of Employed Physicians 300 255266 220 200 187 100 81 41 7 8 14 17 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Copyright 2012Ohio State Medical Association 8
  • 9. SPI – Business Model • Physician Compensation is Productivity Based • Will soon be implementing a model looking at quality metrics, patient satisfaction and issues such as community service and System performance • Ancillary Services have transferred to Provider Based Billing under the Hospitals • Mission focus helps eliminate unnecessary System costs • All physicians are employed under a Hospital or System approved business plan • Reviewing Leased vs. Employed Model Copyright 2012Ohio State Medical Association 9
  • 10. 2011 SPI ACCOMPLISHMENTS • Outstanding Budget – Performance through December $3.9 million better than budget. • Vast Improvement in health risk assessment – Over 1000 this year have been completed leading to better documentation of care provided to Medicare patients and enhanced reimbursement. • Our newly added 24 physicians • Outstanding performance in light of a year of transition featuring three different presidents in 2011. • EMR implementation with 113 providers and 37 doctors attested for Meaningful Use at $18,000 each and 15 more by year end which aids in care coordination and integration. Copyright 2012Ohio State Medical Association 10
  • 11. The Future - SPI • Implement Strategic Plan – Enhance Physician Engagement and System Integration – Expand Market Penetration (selectively and strategically) and Increase our Patient Population – Achieve superior Operative and Clinical Performance – Improve Population Health through ACO and Medical Homes Copyright 2012Ohio State Medical Association 11
  • 12. Patient Center Medical Home (PCMH) The Affordable Care Act Main Objectives Focus on Measurably Improving Population Health Meaningful Measures of System Performance Organizational Accountability for Capacity, Cost and Quality Right Workforce Payment for Value, Not Volume Healthy Consumer Overall Goal is to move healthcare cost from downstream to upstream Continued Preventable Health Condition ACO PCMH No Hospitalization Acute Care Episodes Successful High Cost Complications, Re Outcome Outcome admissions In order to achieve the objectives of reform, we need to transform our current delivery system from high cost, low value to low cost, high value through a strong primary care foundation Copyright 2012Ohio State Medical Association 12
  • 13. PCMH Impact on Stakeholders Across Continuum Care Better, safer, less costly, more Improved member and employer convenient care satisfaction Better overall health Lower costs Productive long-term relationship Opportunity for new business Payer models with a PCP Patient Specialists Increased focus on the patient and their health Better referrals Greater access to health Whole patient care integration information Better follow up Higher reimbursement PCMH More PCPs PCP Government Lower healthcare costs Healthier population Hospital Employer Lower number of chronic care admissions and readmissions Lower healthcare costs Increased focus on procedures. More productive workforce Improved employee satisfaction Copyright 2012Ohio State Medical Association 13
  • 14. What is PCMH? A PCMH puts patients at the center of the health care system, and provides primary care that is “accessible, continuous, comprehensive, family- centered, coordinated, compassionate, and culturally effective.” Features of PCMH A personal physician who coordinates all care for patients and leads the team. Physician-directed medical practice – a coordinated team of professionals who work together to care for patients. Whole person orientation – this approach is key to providing comprehensive care. Coordinated care that incorporates all components of the complex health care system. Quality and safety – medical practices voluntarily engage in quality improvement activities to ensure patient safety is always being met. Enhanced access to care – such as through open-access scheduling and communication mechanisms. Payment – a system of reimbursement reflective of the true value of coordinated care and innovation. Copyright 2012Ohio State Medical Association 14
  • 15. How Features of PCMH are Implemented? Enhanced Access Physician Directed Medical Practice Team Extended Hours, Open Schedule Team approach Internet, e-mail Low complexity tasks handled by other Increased same day access avoids ER and increase continuity members of the team Team members can be internal/external Collaborative relationship between physician and Quality and Safety non-physician practitioners Evidence Based Medical care QI projects at the practice level Personal Physician & Whole Person Orientation First contact, continuous and comprehensive care Coordinated/Integrated Care Contextual Care Registries Proactive care Having a usual source of care is associated with a greater likelihood that people receive appropriate care, preventive Information Technology care, better outcomes, lower cost Health Information Exchange Chronic care coordination Internal/external care coordination Part of a patient’s health plan Reduced duplication and improved coordination across the spectrum of care Copyright 2012Ohio State Medical Association 15
  • 16. Summa PCMH Pilot Project Roadmap Highlights of Project 6 practices involved IT and Policy Subcommittees PCMH Performance Metric Team SUMMA NCQA Recognition PCMH Transformation Transformation Cultural Change Redefining staffing roles Improve Outcomes NCQA Recognition Program Offered at three level–basic, intermediate and advanced Measure improvements Goal is to obtain Level 3 Support ACO Initiatives Publically report Gap Analysis achievements Identification of PCMH Metrics EHR Upgrades Policy Creation and Standardization Copyright 2012Ohio State Medical Association 16
  • 17. PCMH • ACO paying for part-time physician leader, full- time analyst, and project director. • PHO will pay for NCQA Certification Fees. Copyright 2012Ohio State Medical Association 17
  • 18. Accountable Care Organization Our ACO is a clinician-led care collaborative that partners with communities to compassionately care for and serve our populations in an accountable, value- and evidence-based manner. Organizational Facts • Start Date – Began operations January 1, 2011 • Initial Pilot Population – 11,000 SummaCare Medicare Advantage members that currently see a participating primary care physician • Legal Entity – Non-profit taxable structure allows for physician majority on the Board • Board Composition – 4 community primary care physicians, 1 medical specialist, 1 surgical specialist, 3 Summa representatives Copyright 2012Ohio State Medical Association 18
  • 19. PCMH Primary Specialty Patients Hospital Skilled Nursing Home Ambulatory Home Care Care and ED Nursing Health Copyright 2012Ohio State Medical Association 19
  • 20. Financials: PMPM Target and Results - 2011 Medical Spend Shared Savings PMPM Annualized Breakeven $793.62 $0 SC Medicare NHC ACO $733.79 $7,400,000 2010 Milliman Benchmarks Loosely Managed $752.45 $5,089,600 Competitively Managed $639.56 $19,045,513 Well Managed $522.36 $33,534,246 Copyright 2012Ohio State Medical Association 20
  • 21. Progress Milestones: 2011 • Began Operations • Heart Failure Readmission Initiative • Heart Failure Education • Discharge-to-Home Care Transition Copyright 2012Ohio State Medical Association 21
  • 22. Progress Milestones • Population-based Actuarial Analysis • ACO Finance Committee • ACO Clinical Value Committee • ACO Medical Home Initiative • Call Center Plan • Harmony Plan Copyright 2012Ohio State Medical Association 22
  • 23. PHYSICIAN COMPENSATION PLAN Summa Physicians, Inc. (SPI) Copyright 2012Ohio State Medical Association 23
  • 24. PHYSICIAN COMPENSATION PLAN • High Performance Team appointed in late 2011 by new SPI President to outline a new compensation model by early 2012. • Multispecialty group including representatives from the following areas: – Family Medicine – Psychiatry – Surgery (Colorectal) – Gastroenterology – Hematology / Oncology – Cardiology – General Internal Medicine – Geriatrics Copyright 2012Ohio State Medical Association 24
  • 25. PHYSICIAN COMPENSATION PLAN • Began with weekly meetings with a goal for the new model to be part of new and updated contracts • Agreement for a one year “shadow” program to see how the model works • Outlined a set of Guiding Principles and an Incentive Plan Proposal was developed Copyright 2012Ohio State Medical Association 25
  • 26. GUIDING PRINCIPLES SPI CMO COMPENSATION COMMITTEE GENERAL CONTRACTING PRINCIPLES 1. All should share in the success of the organization. 2. Incentive plan is calculated on 20% of base compensation. Base compensation is not reduced to fund incentive plan. 3. A shadowing program will be used the first six months, the new system will start in 2013. Standardized contract language will be used with an agreed upon compensation plan. 4. Incentive Dimensions required for all. Metrics include Success of SPI/Summa Health System, Citizenship, Information Management, Quality/Service. (Incentive Plan Proposal attached) 5. Quality metrics for primary care and specialties are different and subgroups may be needed to work out details. 6. Annual performance review required and passing review will be required to qualify for bonus distribution. 7. Patient satisfaction review will be part of all metrics. One standardized survey will be used. 8. Changes in base compensation are being considered. 9. Incentives obtained from some bonus dollars and possibly ACO shared savings dollars. 10. MGMA should remain the salary benchmark of choice. 11. Blends of education, teaching, and work productivity will remain part of the contracts. Copyright 2012Ohio State Medical Association 26
  • 27. INCENTIVE PLAN PROPOSAL TARGET: TOP QUARTILE TOTAL POINTS = 20 Incentive Dimensions: 2/6/12 Success of SPI / Summa Citizenship Information Management Quality / Service (Individual & Group) Growth of Established and Loyal Attendance @ SPI meetings Measures of Integration Access to Care – Same Day Patients - SPI ≥ 75% of meeting  Keep the patient @ home  Established Patient and  Information Management New Patient Major Conditional Incentive within Network Source: eCW counted charts, billings  In Network Use of Lab/ (1% Group) of unique patients during the prior ½ point Radiology/PT-Rehab year vs. next year Source: Referral Tracking in eCW, Source: Phone survey for Source: Attendance sign in and lab/imagining/pt by ordering established and new patients 2 points sign out sheets monitored by physician SPI ops. 3points 2 points Profitability of Summa Hospital Completion of Records on a Measures of Coordination Inpatient SCIP & Core Measures at Operations / Meet or Exceed Budget timely basis  Hand off Measures 98% attainment Expectations - Summa Hospital  Two-way Communication Major Conditional Incentive  Satisfaction with Source: Summa Financials, booked ½ point Referring Physicians Info Source: CMS/JCHAO List of Top year end hospitals only  Collegiality / Stellar APR performers Source: eCW “closed files Source: Referral Sender/Receiver 2points report”, Med Records survey 3 points Procedures 3 points Patient Satisfaction > 75th percentile Inpatient patient satisfaction with Source: Press Ganey OP, C. Natale physicians above 50th percentile 2points Source: HCAHPS 2points 6 Dimensions of Quality (IOM) Safe Pt. Centered Effective Timely Efficient Equitable Copyright 2012Ohio State Medical Association 27
  • 28. PHYSICIAN COMPENSATION PLAN • Further discussion by specialty of quality metrics Copyright 2012Ohio State Medical Association 28
  • 29. Example of Quality Metrics for Diabetic Care in Primary Care Practices B D E F G H I J K L M N O Eye Exam 1 Insurer DOS HbA1c Date LDL Date Urine date Result BP Sys BP Dias Foot Exam CPT/ICD Date 2 MC 7/9/11 6.4 7/19/11 59 3/22/11 N N 112 62 N N 250.00/214 3 SC SEC 6/30/11 9.4 6/27/11 110 6/27/11 N N 150 67 5/5/11 N 250.00/214 4 MC 3/22/11 7.3 3/16/11 94 6/16/11 1/21/10 Neg 115 49 9/2/01 N 250.00/214 5 SC SEC 5/19/11 7.2 5/19/11 92 4/21/11 N N 149 75 N 8/16/10 250.00/214 6 MC 3/30/11 10.9 8/15/11 73 8/3/11 N N 156 12 N 5/3/10 250.00/214 7 MC 2/3/11 6.2 2/17/11 61 5/20/11 12/30/10 POS 153 74 N 12/20/10 250.41/214 8 MC 7/22/11 6 7/15/11 High Trig 7/1/11 N N 146 63 11/10/11 N 250.00/214 9 MC 7/11/11 7.5 6/9/11 67 6/9/11 N N 113 67 4/8/11 N 250.00/214 10 MC 7/13/11 5.6 7/7/11 43 7/6/11 N N 129 61 N N 250.00/215 11 MC 6/15/11 6.4 6/9/11 69 6/8/11 N N 117 62 8/2/11 N 250.00/214 12 MC 4/19/11 8.4 4/19/11 74 1/11/11 4/19/11 Neg 140 102 N 5/11/11 250.02/205 13 SC SEC 8/22/11 6.4 8/8/11 51 1/3/11 N N 150 85 8/1/11 N 250.00/214 14 MC 8/18/11 6.6 10/18/10 83 1/10/11 1/10/11 Neg 133 61 4/11/11 N 250.00/214 15 MC 8/17/11 7.3 8/10/11 160 8/10/11 N N 141 61 3/17/11 N 250.00/214 16 MC 8/9/11 8.9 8/2/11 78 8/2/11 N N 144 68 11/18/10 N 250.02/214 17 MC 2/1/11 6.5 1/26/11 78 1/26/11 N N 123 62 N N 250.00/214 18 MC 3/25/11 6.8 3/9/11 59 6/15/11 N N 128 66 2/24/11 N 250.02/214 19 MC 3/25/11 6.9 3/9/11 3/9/1900 3/9/11 9/15/10 Neg 126 73 N N 250.00/214 20 MC 6/16/11 5.5 6/9/2011 42 1/25/2011 10/10/2011 Neg 124 3/3/1900 8/18/11 12/23/10 250.00/214 21 MC 7/14/11 6.6 2/3/11 57 11/23/10 N N 128 65 4/27/11 N 250.00/214 Copyright 2012Ohio State Medical Association 29
  • 30. Example of Quality Metrics for Diabetic Care in Primary Care Practices B D E F G H I J K L M N O Eye Exam 1 Insurer DOS HbA1c Date LDL Date Urine date Result BP Sys BP Dias Foot Exam CPT/ICD Date 22 MC 3/28/11 7.3 3/21/11 34 3/21/11 N N 140 85 N N 250.00/215 23 MC 6/29/11 6.2 6/22/11 71 6/22/11 N N 138 80 3/4/11 N 250.00/214 24 MC 7/11/11 6.9 7/5/11 51 3/2/11 N N 122 64 N N 250.00/214 25 MC 5/4/11 6.2 4/13/11 89 4/13/11 N N 95 60 N N 250.00/214 26 MC 7/27/11 5 7/20/11 126 7/13/11 7/13/11 POS 144 88 7/11/11 N 250.00/214 27 MC 8/23/11 6.4 5/13/11 102 5/13/11 9/17/10 NEG 126 68 10/2/11 N 250.00/214 28 MC 7/13/11 6.4 7/1/11 38 7/1/11 N N 123 66 9/8/10 2/11/11 250.00/214 29 MC 6/22/11 5.9 6/15/11 83 6/15/11 3/7/11 POS 138 80 N N 250.00/214 30 MC 8/23/11 7.1 8/16/11 76 6/14/11 N N 130 74 N N 250.00/214 31 MMO MC 8/25/11 7.3 6/17/11 63 8/18/11 N N 138 78 1/11/11 N 250.00/214 32 MC 2/1/11 5.8 1/4/11 55 1/4/11 N N 111 52 10/19/10 1/19/10 250.00/214 33 MC 2/1/11 6.9 6/7/11 89 1/4/11 5/21/10 POS 134 64 2/3/11 1/19/10 250.00/214 34 MC 1/5/11 6.5 3/2/11 87 12/30/10 N N 166 77 10/12/10 N 250.00/214 35 MC 9/6/11 7.5 9/1/11 52 5/10/11 N N 120 79 8/11/11 N 250.00/214 36 Anthem SR 6/15/11 6.5 6/7/11 56 6/8/11 N N 133 70 N N 250.00/214 37 MC 5/11/11 7.8 5/4/11 104 8/4/11 N N 137 75 4/-/11 N 250.02/214 38 MC 8/3/11 6.2 7/20/11 57 7/20/11 7/20/11 Neg 114 63 9/13/10 N 250.00/214 39 MC 8/1/11 7.3 7/6/10 N N N N 150 96 1/20/11 N 250.00/203 40 MC 6/29/11 6.1 7/2/10 67 7/2/10 N N 144 82 4/9/11 N 250.00/214 41 SC SEC 7/20/11 7.4 7/6/11 97 3/8/11 3/8/11 Neg 160 70 6/22/11 N 250.00/214 42 MC 6/30/11 8.4 6/23/11 47 6/23/11 N N 151 81 5/12/10 N 250.02/214 43 MC 6/17/11 6.1 6/10/11 63 6/10/11 N N 126 77 5/11/11 N 250.00/214 Copyright 2012Ohio State Medical Association 30
  • 31. Example of Quality Metrics for Diabetic Care in Primary Care Practices B D E F G H I J K L M N O Eye Exam 1 Insurer DOS HbA1c Date LDL Date Urine date Result BP Sys BP Dias Foot Exam CPT/ICD Date 44 MC 5/12/11 6 4/5/11 56 4/5/11 N N 122 66 N N 250.00/214 45 MC 4/28/11 6.4 4/25/11 77 4/25/11 N N 134 71 10/10/11 N 250.00/214 46 MC 6/16/11 7.3 3/9/11 59 6/8/11 12/9/10 POS 122 64 4/7/11 N 250.00/214 SPI Dr. Total # of Patients Studied 903 45 Average HbA1C 7.1 7.0 Average LDL 91 73 Percentage of Urine Samples collected 43% 29% Average BP Systolic 133 133 Average BP Diastolic 75 70 Percentage of Eye Exams Performed 35% 67% Percentage of Foot Exams Performed 21% 18% Copyright 2012Ohio State Medical Association 31
  • 32. COMPENSATION GUIDELINES A. Base Compensation – Uses 85% of MGMA Median by Specialty to determine base. – Will be reset each year (WRVU target) based on prior year WRVU production and market adjustments. – Adjusted upward if WRVU exceeds base target. Based on tiered compensation formula. – Adjusted downward if WRVU is below base target. – Maximum amount of base compensation to be paid through bi-weekly payroll = 80% of MGMA national 90% compensation. Copyright 2012Ohio State Medical Association 32
  • 33. COMPENSATION GUIDELINES B. Excess WRVU Above Base Compensation Targets – Tiered structure adds a portion of excess WRVU to base compensation (not extra bonus) and a portion to incentive pool Base & Performance Bonus WRVU Tier descriptions Tier 1 = Nat Med to Avg Nat Med / Nat 75th The level of Physician production utilized in the Tiers = Tier 2 = Avg Nat Med / Nat 75th to national 75th higher of 2 yr avg production or the prior yr production Tier 3 = all WRVUs over the Nat 75th 1.0 FTE New Base = 85% Nat Median + Tier 1 + Tier 2 + Tier 3 % to payroll 85% of Nat Median + For that Physician's specialty Tier 1 - Base @ 50% of SPI rate + Tier 2 - Base 45% of SPI rate + This component added to Base and paid through bi- Tier 3 - Base 40% of SPI rate + weekly payroll Total New Base 1.0 FTE Performance Bonus Funding = Tier 1 + Tier 2 + Tier 3 + SPI % Perf Bonus Fund Tier 1 -Bonus 50% of SPI rate + This component held until contract year end and Tier 2 - Bonus 55% of SPI rate + amount to be awarded determined thorough annual Tier 3 - Bonus 60% of SPI rate + performance review - pre-defined performance SPI added Perf $ (% PCP or % other) + metrics. Total Performance Bonus Funding Copyright 2012Ohio State Medical Association 33
  • 34. COMPENSATION GUIDELINES C. WRVU Production Below WRVU Target – At a certain level may not be eligible for a bonus D. Incentive Plan Pool – Using tiered approach amount not added to base is placed in incentive pool. – Physician has ability to add back a comparable amount using different incentives. – 15% Primary Care addition for recognition of primary care. – 5% Specialist addition to pool Copyright 2012Ohio State Medical Association 34
  • 35. COMPENSATION GUIDELINES • There will always need to be market considerations. • Outliers will have to be looked at on an individual basis. Copyright 2012Ohio State Medical Association 35
  • 36. Questions and Discussion Copyright 2012Ohio State Medical Association 36