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Bundled Payments for Care Improvement:
Application Consideration for Models 2-4

                  Patient Care Models Group
                       Innovation Center
           Centers for Medicare & Medicaid Services


                    September 12th, 2012
Presenters




•   Jeffrey Clough, MD, MBA, Patient Care Models Group
•   Amy Harbaugh, MBA , Patient Care Models Group
•   Pamela M. Pelizzari, MPH, Patient Care Models Group
•   Elizabeth Truong, MHS, Patient Care Models Group




                                                          2
Thank you

 Thank you for your continued engagement
   in this initiative. We have received an
enthusiastic response from providers across
the country, and we look forward to working
       with you in the coming months.




                                              3
Agenda



• Timeline
• Episode convergence
• Questions




                        4
Timeline for Application Consideration


• Late September, 2012: External expert review panels
  review and provide recommendations to CMS on each
  application
• Early October, 2012: CMMI staff initiates group and
  individual discussions with candidate awardees (derived
  from panel recommendations combined with CMS
  program judgment)
• Late October, 2012: CMMI staff engages in work to
  address questions and issues raised by candidate
  awardees

                                                            5
Timeline for Application Consideration



• Next steps commence: Recommended awardee vetting
  and clearance of model plan by federal agencies
• Model 2,3, and 4 agreements shared and discussed with
  recommended awardees
• Agreements signed; implementation begins




                                                          6
Episode Convergence


• Diversity of proposed episodes
• Operational need for convergence
• Informed by applications submitted and CMS
  program policy objectives
• Topics will be discussed in various formats
  during candidate interviews and throughout the
  process
• CMMI plans for significant engagement with
  candidates in the coming months


                                                   7
Episode Convergence




• Anchor Clinical Conditions
• Part A and Part B Exclusions
• Episode Length




                                 8
Episode Convergence




• Methodology for determining the target price and
  performing payment reconciliation
   – Addressing outlier cases
   – Approach to MS-DRGs with small numbers of episodes
   – Trending target prices into performance years


• Risk-adjustment




                                                          9
Episode Convergence




• Beneficiary exclusion
• Proration methodology




                          10
Episode Convergence




• Discount Percentage
• Waivers




                        11
Further specific questions and issues
  identified by candidate awardees




We will address these following the early October
communication with candidate awardees (applicants
   who reach the next stage of consideration).

     We look forward to hearing from you.




                                                    12
Questions?


At this time, we will accept questions via the chat
               feature on your screen.

For further questions, please email BundledPayments@cms.hhs.gov




                                                                  13

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Webinar: Bundled Payments for Care Improvement - Models 2, 3, and 4 Application Considerations and Next Steps

  • 1. Bundled Payments for Care Improvement: Application Consideration for Models 2-4 Patient Care Models Group Innovation Center Centers for Medicare & Medicaid Services September 12th, 2012
  • 2. Presenters • Jeffrey Clough, MD, MBA, Patient Care Models Group • Amy Harbaugh, MBA , Patient Care Models Group • Pamela M. Pelizzari, MPH, Patient Care Models Group • Elizabeth Truong, MHS, Patient Care Models Group 2
  • 3. Thank you Thank you for your continued engagement in this initiative. We have received an enthusiastic response from providers across the country, and we look forward to working with you in the coming months. 3
  • 4. Agenda • Timeline • Episode convergence • Questions 4
  • 5. Timeline for Application Consideration • Late September, 2012: External expert review panels review and provide recommendations to CMS on each application • Early October, 2012: CMMI staff initiates group and individual discussions with candidate awardees (derived from panel recommendations combined with CMS program judgment) • Late October, 2012: CMMI staff engages in work to address questions and issues raised by candidate awardees 5
  • 6. Timeline for Application Consideration • Next steps commence: Recommended awardee vetting and clearance of model plan by federal agencies • Model 2,3, and 4 agreements shared and discussed with recommended awardees • Agreements signed; implementation begins 6
  • 7. Episode Convergence • Diversity of proposed episodes • Operational need for convergence • Informed by applications submitted and CMS program policy objectives • Topics will be discussed in various formats during candidate interviews and throughout the process • CMMI plans for significant engagement with candidates in the coming months 7
  • 8. Episode Convergence • Anchor Clinical Conditions • Part A and Part B Exclusions • Episode Length 8
  • 9. Episode Convergence • Methodology for determining the target price and performing payment reconciliation – Addressing outlier cases – Approach to MS-DRGs with small numbers of episodes – Trending target prices into performance years • Risk-adjustment 9
  • 10. Episode Convergence • Beneficiary exclusion • Proration methodology 10
  • 11. Episode Convergence • Discount Percentage • Waivers 11
  • 12. Further specific questions and issues identified by candidate awardees We will address these following the early October communication with candidate awardees (applicants who reach the next stage of consideration). We look forward to hearing from you. 12
  • 13. Questions? At this time, we will accept questions via the chat feature on your screen. For further questions, please email BundledPayments@cms.hhs.gov 13