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Using	
  Analy+cs	
  to	
  Track,	
  Monitor,	
  
          and	
  Reduce	
  Costs	
  	
  
                                Anne	
  Kirby	
  
      Chief	
  Compliance	
  Officer	
  and	
  Vice	
  President,	
  Medical	
  
               Review	
  Services,	
  Rising	
  Medical	
  Solu+ons	
  	
  

                               James	
  Masingill	
  
      Vice	
  President,	
  Claims	
  Opera+ons,	
  Market	
  First	
  Comp	
  
                             Insurance	
  Company	
  

                               Joe	
  Anderson	
  	
  
       Director	
  of	
  Analy+cal	
  Services,	
  Progressive	
  Medical	
  

                              Dr.	
  Robert	
  Hall	
  
                Medical	
  Director,	
  Progressive	
  Medical	
  	
  
Learning	
  Objec<ves	
  
•  Iden+fy	
  warning	
  signs	
  of	
  misuse	
  and	
  abuse	
  and	
  how	
  
   claim	
  managers	
  can	
  take	
  ac+on.	
  
•  Tell	
  how	
  payers	
  can	
  use	
  effec+ve	
  analy+cs	
  to	
  iden+fy	
  
   relevant	
  trends.	
  
•  Explain	
  how	
  Pharmacy	
  Benefit	
  Managers	
  can	
  use	
  
   analy+cs	
  with	
  strong	
  clinical	
  programs.	
  
•  Describe	
  the	
  role	
  and	
  benefits	
  of	
  predic+ve	
  analy+cs	
  in	
  
   the	
  workers’	
  compensa+on	
  industry.	
  
Disclosure	
  Statement	
  	
  
•  Anne	
  Kirby	
  has	
  no	
  financial	
  rela+onships	
  with	
  
   proprietary	
  en++es	
  that	
  produce	
  health	
  care	
  goods	
  
   and	
  services.	
  
•  James	
  Masingill	
  has	
  no	
  financial	
  rela+onships	
  with	
  
   proprietary	
  en++es	
  that	
  produce	
  health	
  care	
  goods	
  
   and	
  services.	
  	
  
•  Joe	
  Anderson	
  has	
  no	
  financial	
  rela+onships	
  with	
  
   proprietary	
  en++es	
  that	
  produce	
  health	
  care	
  goods	
  
   and	
  services.	
  	
  
•  Robert	
  Hall	
  has	
  no	
  financial	
  rela+onships	
  with	
  
   proprietary	
  en++es	
  that	
  produce	
  health	
  care	
  goods	
  
   and	
  services.	
  	
  

                                                                             3
Using	
  Analy<cs	
  to	
  Track,	
  
 Monitor,	
  and	
  Reduce	
  Costs	
  
                     Anne	
  Kirby,	
  RN	
  
Chief	
  Compliance	
  Officer/VP	
  of	
  Medical	
  Review	
  Services	
  
                  Rising	
  Medical	
  Solu+ons	
  
Accepted	
  Learning	
  Objec+ves	
  
1.  Iden+fy	
  warning	
  signs	
  of	
  misuse	
  and	
  abuse	
  
    and	
  how	
  claim	
  managers	
  can	
  take	
  ac+on.	
  
2.  Tell	
  how	
  payers	
  can	
  use	
  effec+ve	
  analy+cs	
  to	
  
    iden+fy	
  relevant	
  trends.	
  
3.  Explain	
  how	
  Pharmacy	
  Benefit	
  Managers	
  can	
  
    use	
  analy+cs	
  with	
  strong	
  clinical	
  programs.	
  
4.  Describe	
  the	
  role	
  and	
  benefits	
  of	
  predic+ve	
  
    analy+cs	
  in	
  the	
  workers’	
  compensa+on	
  
    industry.	
  
Nothing	
  to	
  Disclose	
  
Challenge	
  for	
  Claims	
  
Claims	
  with	
  long-­‐ac+ng	
  opioid	
  Rx	
  cost	
  	
  
9.3	
  +mes	
  more	
  than	
  claims	
  without	
  	
  	
  
(Journal	
  of	
  Occupa+onal	
  &	
  Environmental	
  Medicine)	
  

•  Very	
  manual	
  process	
  	
  
•  Case	
  selec+on	
  not	
  always	
  on	
  target	
  
•  Trea+ng	
  physicians	
  and	
  pain	
  mgmt	
  
   peer	
  reviewers	
  used	
  drug	
  names	
  	
  
   inconsistently	
  
•  If	
  a	
  person	
  was	
  taking	
  1	
  or	
  2	
  opioids,	
  
   it	
  was	
  likely	
  they	
  were	
  taking	
  upwards	
  	
  
   of	
  7	
  or	
  8	
  other	
  drugs	
  
5	
  Key	
  Problems	
  
1.  Difficult	
  to	
  iden+fy	
  claims	
  with	
  ques+onable	
  	
  
    drug	
  use	
  before	
  cases	
  turn	
  into	
  large	
  losses	
  
2.  Too	
  +me	
  consuming	
  for	
  adjuster	
  	
  
    to	
  find	
  at-­‐risk	
  cases	
  
3.  Not	
  enough	
  to	
  have	
  a	
  pharmacist	
  	
  
    contact	
  a	
  trea+ng	
  physician	
  
4.  Data not	
  comprehensive	
  enough –
    need integrated approach	
  
5.  Viewing	
  opioids	
  in	
  a	
  vacuum	
  –	
  need	
  to	
  	
  
    look	
  at	
  other	
  constella+on	
  of	
  drugs	
  	
  	
  
Addressing	
  the	
  Problems	
  	
  

Rx	
  Intelligence	
  Analy+cs	
  
1.  Expedites	
  file	
  iden+fica+on	
  	
  
2.  Flags	
  poten+ally	
  	
  
    problema+c	
  claims	
  early	
  	
  
3.  Adds	
  another	
  level	
  of	
  	
  
    interven+on	
  
4.  Looks	
  beyond	
  just	
  opioids	
  	
  
5.  Uses	
  data	
  to	
  intervene	
  
Rx	
  Intelligence	
  Analy+cs	
  




Sample	
  Dashboard	
  
Demonstrated	
  Impact	
  
Effect	
  of	
  successful	
  peer-­‐to-­‐peer	
  conversa+on	
  (between	
  
pain	
  management	
  physician	
  and	
  prescribing	
  physician)	
  

                                 Fills	
  before	
  
                                 interven<on	
  




                                                               Fills	
  aFer	
  
                                                            interven<on	
  
Demonstrated	
  Impact	
  

               •  Decreased	
  Rx	
  Refills	
  within	
  6-­‐8	
  months	
  of	
  	
  
                  Peer-­‐to-­‐	
  Peer	
  Review	
  	
  	
  
 65%	
  	
  
Claims	
  

               •  Decreased	
  Opioid	
  Rx	
  Refills	
  
 71%	
  	
  
Claims	
  
               •  Decrease	
  of	
  All	
  Injury	
  Related	
  Drugs	
  
               •  Opioids,	
  Muscle	
  Relaxants,	
  Hypno<cs	
  &	
  	
  
 57%	
  	
        An<-­‐Anxiety	
  meds	
  
Claims	
  
Connec+ng	
  the	
  Dots	
  
          Where	
  do	
  we	
  go	
  from	
  here?	
  


                          Treati
                          ng                     Pain Mgmt
                          Physi                  Peer
Clai                      cian                   Reviewer
ms                                                  UR Nurse
Pers
on
                         PATI
Pharmac                                      TCM
                         ENT
y Benefit                                    Nurse
Mgr     Clinical
        Pharmaci
        st
Using	
  Analy<cs	
  to	
  Track,	
  
Monitor,	
  and	
  Reduce	
  Costs	
  
          Jamey	
  Masingill	
  
         Vice	
  President	
  of	
  Claims	
  
        Markel-­‐FirstComp	
  Insurance	
  
Accepted	
  Learning	
  Objec+ves	
  
1.  Iden+fy	
  warning	
  signs	
  of	
  misuse	
  and	
  abuse	
  
    and	
  how	
  claim	
  managers	
  can	
  take	
  ac+on.	
  
2.  Tell	
  how	
  payers	
  can	
  use	
  effec+ve	
  analy+cs	
  to	
  
    iden+fy	
  relevant	
  trends.	
  
3.  Explain	
  how	
  Pharmacy	
  Benefit	
  Managers	
  can	
  
    use	
  analy+cs	
  with	
  strong	
  clinical	
  programs.	
  
4.  Describe	
  the	
  role	
  and	
  benefits	
  of	
  predic+ve	
  
    analy+cs	
  in	
  the	
  workers’	
  compensa+on	
  
    industry.	
  
Nothing	
  to	
  Disclose	
  
WC	
  Combined	
  Ra+o:	
  1994-­‐2012F	
  
Call	
  To	
  Ac+on…	
  
Priming	
  the	
  Pump	
  by	
  Extrac+ng	
  “Old	
  School”	
  
   Thinking	
  from	
  the	
  Claims	
  Environment	
  
•  There	
  is	
  no	
  right	
  or	
  wrong…only	
  grey	
  

•  Reduce	
  ac+vity	
  checks	
  and	
  surveillance	
  	
  

•  Targeted	
  and	
  directed	
  case	
  management	
  

•  Own	
  your	
  data	
  
     –  Driven	
  down	
  to	
  unit	
  and	
  individual	
  levels	
  

•  Adherence	
  to	
  established	
  best	
  prac+ces	
  

•  Valida+on	
  process	
  
U+liza+on	
  
LT	
  Closing	
  Ra+o	
  Triangles	
  
 Lost	
  
Time	
  	
        2006	
        2007	
        2008	
        2009	
        2010	
        2011	
        2012	
  

    12	
       28.00%	
      22.90%	
      26.10%	
      26.00%	
      28.90%	
      26.20%	
      34.70%	
  

    24	
       64.80%	
      63.90%	
      69.90%	
      68.70%	
      70.20%	
      72.70%	
  

    36	
       82.80%	
      84.20%	
      86.00%	
      85.40%	
      88.20%	
  

    48	
       91.30%	
      92.30%	
      92.90%	
      93.30%	
  

    60	
       95.90%	
      95.20%	
      96.20%	
  

    72	
       97.60%	
      97.20%	
  

    84	
       98.30%	
  
Impact	
  of	
  Reduced	
  Claims	
  Dura+ons	
  
Notes	
  Only	
  
Presenta+on	
  Outline:	
  
•  Preparing	
  the	
  claims	
  environment	
  before	
  
   implemen+ng	
  your	
  program.	
  	
  Analy+cs	
  and	
  program	
  
   will	
  only	
  be	
  effec+ve	
  if:	
  
     –  Extract	
  “old	
  school”	
  thinking	
  from	
  claims	
  processing	
  
     –  Reduce	
  ac+vity	
  checks	
  and	
  inves+ga+ons	
  
     –  Redeploy	
  those	
  resources	
  into	
  added	
  medical	
  exper+se	
  /	
  
        interven+on	
  tools	
  
•  Using	
  claims	
  triangles	
  to	
  track	
  and	
  improve	
  
   performance	
  
•  Importance	
  of	
  integrated	
  approach	
  from	
  mul+ple	
  
   angles	
  to	
  effec+vely	
  tackle	
  prescrip+on	
  drug	
  problem	
  	
  
•  Impact	
  on	
  overall	
  costs	
  
Using	
  Analy<cs	
  to	
  Track,	
  	
  
           Monitor,	
  and	
  Reduce	
  Costs	
  



Joe	
  Anderson,	
  Director	
  of	
  Analy<cs	
  
Robert	
  Hall,	
  MD,	
  Medical	
  Director	
  

Progressive	
  Medical,	
  Inc.	
  
Learning	
  Objec<ves	
  
•  Iden+fy	
  warning	
  signs	
  of	
  misuse	
  and	
  abuse	
  and	
  how	
  
   claim	
  managers	
  can	
  take	
  ac+on.	
  
•  Tell	
  how	
  payers	
  can	
  use	
  effec+ve	
  analy+cs	
  to	
  iden+fy	
  
   relevant	
  trends.	
  
•  Explain	
  how	
  Pharmacy	
  Benefit	
  Managers	
  can	
  use	
  
   analy+cs	
  with	
  strong	
  clinical	
  programs.	
  
•  Describe	
  the	
  role	
  and	
  benefits	
  of	
  predic+ve	
  analy+cs	
  in	
  
   the	
  workers’	
  compensa+on	
  industry.	
  
Disclosure	
  Statement	
  
•  Nothing	
  to	
  disclose	
  
What	
  Is	
  Predic<ve	
  Analy<cs?	
  
                     Predictive Analytics is making decisions with statistics and data.

Company	
   Goal	
  of	
  predic<ve	
  analy<cs	
                                                                                                                     Result	
  
Target	
                                    Iden+fy	
  new	
  mothers	
  as	
  quickly	
  as	
                                                                        Delivered	
  coupons	
  to	
  young	
  
                                            possible	
  to	
  get	
  them	
  in	
  the	
  habit	
  of	
                                                               mothers	
  before	
  their	
  family	
  even	
  
                                            shopping	
  at	
  Target.	
                                                                                               knew	
  they	
  were	
  expec+ng.	
  

Nemlix	
                                    Determine	
  which	
  movies	
  customers	
   Improved	
  their	
  predic+ons	
  by	
  10%;	
  
                                            will	
  like	
  based	
  on	
  what	
  they	
  have	
   a	
  $1	
  million	
  prize	
  was	
  awarded.	
  
                                            already	
  rated.	
  

Oakland	
                                   Choose	
  the	
  best	
  baseball	
  players	
              20	
  consecu+ve	
  wins;	
  the	
  book	
  and	
  
Athle+cs	
                                  available	
  for	
  the	
  next	
  season,	
  with	
  a	
   film	
  Moneyball	
  are	
  based	
  on	
  this.	
  
                                            limited	
  budget.	
  


Sources:	
  
Duhigg,	
  C.,	
  How	
  Companies	
  Learn	
  Your	
  Secrets,	
  The	
  New	
  York	
  Times	
  Magazine.	
  2012	
  February	
  16	
  
Lohr,	
  S.,	
  A	
  $1	
  Million	
  Research	
  Bargain	
  for	
  NeElix,	
  and	
  Maybe	
  a	
  Model	
  for	
  Others,	
  The	
  New	
  York	
  Times,	
  	
  
2009	
  September	
  21	
  
Mahler,	
  J.,	
  Smaller	
  Markets	
  and	
  Smarter	
  Thinking,	
  The	
  New	
  York	
  Times,	
  2011	
  October	
  14	
  
How	
  Can	
  We	
  Use	
  It?	
  
   •  As	
  a	
  PBM,	
  we	
  see	
  some	
  of	
  the	
  data	
  going	
  through	
  the	
  system,	
  but	
  not	
  all	
  
      of	
  it.	
  




   •  Each	
  company	
  in	
  the	
  industry	
  can	
  use	
  analy+cs	
  with	
  their	
  own	
  data:	
  
           –  Imagine	
  if	
  Nemlix	
  wants	
  to	
  know	
  whether	
  you’ll	
  enjoy	
  the	
  movie	
  Moneyball	
  
           –  Nemlix	
  doesn’t	
  know	
  if	
  you	
  have	
  read	
  the	
  book	
  Moneyball,	
  if	
  you	
  studied	
  
              sta+s+cs	
  or	
  if	
  you’re	
  an	
  Oakland	
  Athle+cs	
  fan	
  
           –  They	
  do	
  know	
  if	
  you	
  like	
  other	
  baseball	
  movies,	
  other	
  	
  
              Brad	
  Pir	
  movies	
  and	
  other	
  movies	
  based	
  on	
  nonfic+on	
  books	
  

Image source: http://www.managedcaremag.com/archives/1208/1208.pbm-functions.html
The	
  Problem	
  
            A	
  solu<on	
  is	
  needed	
  that	
  reduces	
  prescrip<ons	
  most	
  efficiently.	
  

Prescrip<on	
  Drug	
  Deaths	
  and	
                         Time	
  Constraints	
  on	
  Nurses,	
  
       Increasing	
  Costs	
                                      Adjustors,	
  Clinicians	
  
•  More	
  people	
  are	
  dying	
  from	
                  •  Cannot	
  examine	
  or	
  intervene	
  on	
  
   prescrip+on	
  drug	
  use.	
                                every	
  claim	
  
•  Prescrip+on	
  drug	
  prices	
  are	
  rising.	
         •  Cannot	
  determine	
  which	
  claims	
  will	
  
•  Workers’	
  compensa+on	
  in	
  par+cular	
                 have	
  high	
  long-­‐term	
  costs	
  
   has	
  seen	
  increases	
  in	
  use	
  of	
             •  Too	
  many	
  “false	
  posi+ves”	
  from	
  
   prescrip+on	
  pain	
  killers.	
                            individual	
  clinical	
  triggers	
  (i.e.	
  only	
  
                                                                10%	
  of	
  claims	
  with	
  morphine	
  
                                                                equivalence	
  of	
  90mg	
  result	
  in	
  high	
  
                                                                long-­‐term	
  costs)	
  
The	
  Solu<on:	
  

            Mul<variate	
  Sta<s<cal	
  Model	
  	
  
             to	
  Predict	
  High-­‐Cost	
  Claims	
  
Our	
  original	
  model,	
  since	
  refined:	
  


     Correlate	
  early	
  data	
                                                …	
  with	
  resul<ng	
  long-­‐
      about	
  an	
  injured	
                                                    term	
  spend	
  of	
  that	
  
          worker…	
                                                                    injured	
  worker.	
  

      Workers	
  injured	
  in	
  2007	
                                  Resul+ng	
  pharmacy	
  costs	
  in	
  2009-­‐2010	
  
Data	
  Used	
  in	
  Sta<s<cal	
  Models
                        100%	
  

                         90%	
  

                         80%	
  

                         70%	
                                                                                      Pharmacy	
  Behavior:	
  Medica+ons,	
  
  Percent	
  of	
  
                                                                                                                    Number	
  of	
  Prescribers,	
  Number	
  of	
  
 Significance	
  
                         60%	
                                                                                      Pharmacies	
  
 (Aggregated	
  
across	
  mul<ple	
                                                                                                 Injury:	
  Body	
  part,	
  nature	
  of	
  injury	
  
   variables)	
          50%	
  

                                                                                                                    Prescriber:	
  Demographics	
  of	
  trea+ng	
  
                         40%	
                                                                                      prescriber	
  

                         30%	
                                                                                      Geographic	
  and	
  Other	
  Demographics	
  

                         20%	
  

                         10%	
  

                           0%	
  
                                    1	
     4	
     6	
            9	
           12	
             18	
     24	
  

                                                    Months	
  Since	
  Date	
  of	
  Injury	
  
The	
  Risk	
  Score	
  
Claim	
       Risk	
  Score	
     Reason	
  

Allison	
          6.5	
          Mul+ple	
  Neck	
  Injury,	
  High	
  Total	
  Medica+on	
  Use	
  (Including	
  
                                  Narco+cs)	
  
Bob	
              5.4	
          Con+nued	
  Medica+on	
  Use,	
  High	
  Risk	
  Prescriber:	
  Allergy	
  and	
  
                                  Immunology	
  Specialist	
  
Cindy	
            5.0	
          Mul+ple	
  Prescribers	
  in	
  Early	
  Months,	
  High	
  Days	
  Supply	
  of	
  
                                  Various	
  Medica+ons	
  
Dwayne	
           4.5	
          High	
  Risk	
  State	
  and	
  Moderate	
  Injury	
  Risk:	
  Dislocated	
  Disc	
  

Elaine	
           3.9	
          Prescriber	
  Risk:	
  Pain	
  Management	
  Specialist,	
  High	
  Narco+cs	
  
                                  Use	
  To-­‐Date	
  
Frank	
            3.1	
          Moderate	
  Injury	
  Risk,	
  Demographic	
  Risk,	
  and	
  Prescriber	
  Risk:	
  
                                  Pain	
  Management	
  Specialist	
  
Predic<ons	
  Become	
  Interven<ons	
  
• Types	
  of	
  clinical	
  interven+ons:	
  
     •  Claims	
  Professional	
  Outreach	
  
     •  Physician	
  Outreach	
  
     •  Drug	
  U+liza+on	
  Evalua+on	
  
     •  Peer-­‐to-­‐Peer	
  Review	
  	
  


• Interven+ons	
  should	
  be	
  completed	
  as	
  soon	
  as	
  possible	
  	
  
  to	
  avoid	
  any	
  developing	
  complica+ons.	
  
Measuring	
  Effec<veness	
  
                                            Statistical Confidence that
                                       Intervention Changes this Outcome
100%	
  

 90%	
             96%	
  
 80%	
  

 70%	
  
                                                                                                70%	
  
 60%	
  

 50%	
                                                     55%	
  
 40%	
  

 30%	
  

 20%	
  

 10%	
  

   0%	
  
            Cost	
  per	
  Claim	
       Morphine	
  Equivalence	
  per	
  Claim	
  Prescrip+ons	
  per	
  Claim	
  
Analy<cs	
  From	
  a	
  Provider’s	
  Perspec<ve	
  

•  Finding	
  common	
  ground	
  	
  
   with	
  analy+cs	
  and	
  providers	
  
•  Embracing	
  challenges	
  that	
  	
  
   can	
  arise	
  with	
  analy+cs	
  
Common	
  Ground	
  –	
  Data	
  Collec<on	
  
•    Personal	
  medical	
  history	
  
•    Family	
  history	
  
•    Social	
  history	
  
•    Physical	
  examina+on	
  
•    Diagnos+c	
  studies	
  
Common	
  Ground	
  –	
  Risk	
  Assessment	
  
                      Stroke	
  
    Modifiable	
  risk	
  factors	
                                           Non-­‐modifiable	
  risk	
  factors	
  
    •  High	
  blood	
  pressure	
  	
                                       •  Age	
  	
  
    •  Atrial	
  fibrilla+on	
  	
                                            •  Gender	
  	
  
    •  High	
  cholesterol	
  	
                                             •  Race	
  	
  
    •  Diabetes	
  	
                                                        •  Family	
  history	
  	
  
    •  Atherosclerosis	
  	
  
                                                                             •  Previous	
  stroke	
  
    •  Circula+on	
  problems	
  	
  
                                                                             •  Fibromuscular	
  dysplasia	
  	
  
    •  Tobacco	
  
    •  Alcohol	
                                                             •  Patent	
  foramen	
  ovale	
  
    •  Physical	
  inac+vity	
  	
  
    •  Obesity	
  	
  
Source: National Stroke Association, Am I at Risk for a Stroke? Stroke Risk Factors. 2013 March 18
Common	
  Ground	
  –	
  Outcome	
  Predictors	
  
                    Stroke	
  
     •  Poor	
  strength	
  recovery	
  predictors	
  
             –  Severe	
  arm	
  weakness	
  at	
  onset	
  of	
  stroke	
  
             –  No	
  hand	
  strength	
  4	
  weeks	
  aLer	
  stroke	
  
     •  30-­‐day	
  mortality	
  
             –  EKG	
  abnormali+es	
  
             –  Brainstem	
  stroke	
  
             –  Elevated	
  blood	
  glucose	
  in	
  non-­‐diabe+c	
  pa+ents	
  


Source: Zorowitz, R., Baerga, E., Cuccurullo, S., Stroke Rehabilitation, Physical Medicine and Rehabilitation Board
Review. New York. Demos Medical Publishing. 2004
Common	
  Ground	
  –	
  Outcome	
  Predictors	
  
                    Stroke	
  
     •  Nega+ve	
  predictors	
  for	
  return	
  to	
  work	
  
             –  Low	
  Barthel	
  Index	
  score	
  
                     •  Ac+vi+es	
  of	
  daily	
  living	
  
             –  Prolonged	
  length	
  of	
  stay	
  in	
  rehabilita+on	
  
             –  Aphasia	
  (language/communica+on	
  deficits)	
  
             –  Prior	
  alcohol	
  abuse	
  



Source: Zorowitz, R., Baerga, E., Cuccurullo, S., Stroke Rehabilitation, Physical Medicine and Rehabilitation Board
Review. New York. Demos Medical Publishing. 2004
Common	
  Ground	
  –	
  Language	
  
•    Data	
  collec+on	
  
•    Risk	
  assessment	
  	
  
•    Risk	
  factors	
  
•    Outcome	
  predictors	
  
•    Interven+ons	
  
•    Behavior	
  
•    Effec+veness	
  
Embracing	
  Challenges	
  	
  
                   Avoid	
  Blame	
  	
  
•  Comprehensive	
  claim	
  evalua+on	
  
•  Interven+ons	
  may	
  need	
  to	
  be	
  mulNfaceted	
  
Embracing	
  Challenges	
  	
  
                                           Validate	
  Success	
  
     •  Hill	
  Physicians	
  Medical	
  Group	
  
              –  2,200	
  physicians	
  
              –  332,000	
  pa+ents	
  
              –  Predic+ve	
  modeling	
  
                       •  Management	
  of	
  chronic	
  diseases	
  
              –  Prospec+ve	
  Risk	
  Score	
  
                       •  Likelihood	
  of	
  pa+ent	
  using	
  physician	
  resources	
  in	
  future	
  
                       •  RNs	
  are	
  assigned	
  to	
  call	
  pa+ents	
  with	
  high	
  risk	
  scores	
  


Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality
and Reduce Costs, The Commonwealth Fund. 2009 March
Embracing	
  Challenges	
  	
  
                                           Validate	
  Success	
  

                           	
  	
  	
  0.5	
  x	
  In-­‐pa+ent	
  days	
  over	
  last	
  365	
  days	
  
                           	
  	
  	
  In-­‐pa+ent	
  days	
  over	
  last	
  90	
  days	
  	
  

              +            	
  	
  	
  2	
  x	
  ER	
  days	
  over	
  last	
  365	
  days	
  	
  
                           	
  	
  	
  ER	
  days	
  over	
  last	
  90	
  days	
  	
  
                           	
  	
  	
  2	
  x	
  (Prospec+ve	
  Risk	
  Score	
  +	
  adjustment	
  factor)	
  	
  


              =                  Priority	
  Score	
  


Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality
and Reduce Costs, The Commonwealth Fund. 2009 March
Embracing	
  Challenges	
  	
  
                                         Validate	
  Success	
  
     •  Diabe+c	
  pa+ents	
  	
  
              –  High	
  Priority	
  Score	
  
              –  Contacted	
  by	
  nurse	
  case	
  managers	
  
              –  Reminders	
  for	
  screenings	
  
                       •  Eyes	
  
                       •  Kidneys	
  
                       •  Cholesterol	
  
              –  Counseling	
  with	
  diabetes	
  educator	
  

Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality
and Reduce Costs, The Commonwealth Fund. 2009 March
Embracing	
  Challenges	
  	
  
                  Be	
  Responsive	
  
•  A	
  provider’s	
  ques+ons	
  
   –  Is	
  my	
  prac+ce	
  style	
  being	
  ques+oned?	
  
   –  Will	
  the	
  care	
  of	
  my	
  pa+ents	
  be	
  affected?	
  
   –  Where	
  is	
  the	
  evidence?	
  
   –  Why	
  now?	
  
Embracing	
  Challenges	
  
                         Reward	
  Posi<ve	
  Outcomes	
  
     •  Should	
  providers	
  be	
  rewarded?	
  
            –  Pay	
  for	
  performance	
  
                    •  Physician	
  payments	
  at	
  the	
  group	
  level	
  (not	
  individual)	
  
                    •  Mee+ng	
  absolute	
  benchmarks	
  
                    •  Soon	
  auer	
  performance	
  period	
  
            –  Preferred	
  provider	
  status	
  
                    •  Recogni+on	
  
                    •  Increased	
  referrals	
  


Source: Gamble, M., GAO: 3 Ways CMS Can Incentivize Physicians Like Private Payors, Becker's Hospital
Review, ASC COMMUNICATIONS. 2012 January 7; 2013 March 11
Takeaways	
  
•  Common	
  ground	
  
   –  Data	
  collec+on	
  
   –  Risk	
  assessment	
  
   –  Outcome	
  predictors	
  
   –  Language	
  
•  Embracing	
  challenges	
  
   –  Avoid	
  blame	
  
   –  Validate	
  success	
  
   –  Be	
  responsive	
  
   –  Reward	
  posi+ve	
  outcomes	
  
Ques<ons?	
  

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Using Analytics to Reduce Healthcare Costs in Workers' Compensation

  • 1. Using  Analy+cs  to  Track,  Monitor,   and  Reduce  Costs     Anne  Kirby   Chief  Compliance  Officer  and  Vice  President,  Medical   Review  Services,  Rising  Medical  Solu+ons     James  Masingill   Vice  President,  Claims  Opera+ons,  Market  First  Comp   Insurance  Company   Joe  Anderson     Director  of  Analy+cal  Services,  Progressive  Medical   Dr.  Robert  Hall   Medical  Director,  Progressive  Medical    
  • 2. Learning  Objec<ves   •  Iden+fy  warning  signs  of  misuse  and  abuse  and  how   claim  managers  can  take  ac+on.   •  Tell  how  payers  can  use  effec+ve  analy+cs  to  iden+fy   relevant  trends.   •  Explain  how  Pharmacy  Benefit  Managers  can  use   analy+cs  with  strong  clinical  programs.   •  Describe  the  role  and  benefits  of  predic+ve  analy+cs  in   the  workers’  compensa+on  industry.  
  • 3. Disclosure  Statement     •  Anne  Kirby  has  no  financial  rela+onships  with   proprietary  en++es  that  produce  health  care  goods   and  services.   •  James  Masingill  has  no  financial  rela+onships  with   proprietary  en++es  that  produce  health  care  goods   and  services.     •  Joe  Anderson  has  no  financial  rela+onships  with   proprietary  en++es  that  produce  health  care  goods   and  services.     •  Robert  Hall  has  no  financial  rela+onships  with   proprietary  en++es  that  produce  health  care  goods   and  services.     3
  • 4. Using  Analy<cs  to  Track,   Monitor,  and  Reduce  Costs   Anne  Kirby,  RN   Chief  Compliance  Officer/VP  of  Medical  Review  Services   Rising  Medical  Solu+ons  
  • 5. Accepted  Learning  Objec+ves   1.  Iden+fy  warning  signs  of  misuse  and  abuse   and  how  claim  managers  can  take  ac+on.   2.  Tell  how  payers  can  use  effec+ve  analy+cs  to   iden+fy  relevant  trends.   3.  Explain  how  Pharmacy  Benefit  Managers  can   use  analy+cs  with  strong  clinical  programs.   4.  Describe  the  role  and  benefits  of  predic+ve   analy+cs  in  the  workers’  compensa+on   industry.  
  • 7. Challenge  for  Claims   Claims  with  long-­‐ac+ng  opioid  Rx  cost     9.3  +mes  more  than  claims  without       (Journal  of  Occupa+onal  &  Environmental  Medicine)   •  Very  manual  process     •  Case  selec+on  not  always  on  target   •  Trea+ng  physicians  and  pain  mgmt   peer  reviewers  used  drug  names     inconsistently   •  If  a  person  was  taking  1  or  2  opioids,   it  was  likely  they  were  taking  upwards     of  7  or  8  other  drugs  
  • 8. 5  Key  Problems   1.  Difficult  to  iden+fy  claims  with  ques+onable     drug  use  before  cases  turn  into  large  losses   2.  Too  +me  consuming  for  adjuster     to  find  at-­‐risk  cases   3.  Not  enough  to  have  a  pharmacist     contact  a  trea+ng  physician   4.  Data not  comprehensive  enough – need integrated approach   5.  Viewing  opioids  in  a  vacuum  –  need  to     look  at  other  constella+on  of  drugs      
  • 9. Addressing  the  Problems     Rx  Intelligence  Analy+cs   1.  Expedites  file  iden+fica+on     2.  Flags  poten+ally     problema+c  claims  early     3.  Adds  another  level  of     interven+on   4.  Looks  beyond  just  opioids     5.  Uses  data  to  intervene  
  • 10. Rx  Intelligence  Analy+cs   Sample  Dashboard  
  • 11. Demonstrated  Impact   Effect  of  successful  peer-­‐to-­‐peer  conversa+on  (between   pain  management  physician  and  prescribing  physician)   Fills  before   interven<on   Fills  aFer   interven<on  
  • 12. Demonstrated  Impact   •  Decreased  Rx  Refills  within  6-­‐8  months  of     Peer-­‐to-­‐  Peer  Review       65%     Claims   •  Decreased  Opioid  Rx  Refills   71%     Claims   •  Decrease  of  All  Injury  Related  Drugs   •  Opioids,  Muscle  Relaxants,  Hypno<cs  &     57%     An<-­‐Anxiety  meds   Claims  
  • 13. Connec+ng  the  Dots   Where  do  we  go  from  here?   Treati ng Pain Mgmt Physi Peer Clai cian Reviewer ms UR Nurse Pers on PATI Pharmac TCM ENT y Benefit Nurse Mgr Clinical Pharmaci st
  • 14. Using  Analy<cs  to  Track,   Monitor,  and  Reduce  Costs   Jamey  Masingill   Vice  President  of  Claims   Markel-­‐FirstComp  Insurance  
  • 15. Accepted  Learning  Objec+ves   1.  Iden+fy  warning  signs  of  misuse  and  abuse   and  how  claim  managers  can  take  ac+on.   2.  Tell  how  payers  can  use  effec+ve  analy+cs  to   iden+fy  relevant  trends.   3.  Explain  how  Pharmacy  Benefit  Managers  can   use  analy+cs  with  strong  clinical  programs.   4.  Describe  the  role  and  benefits  of  predic+ve   analy+cs  in  the  workers’  compensa+on   industry.  
  • 17. WC  Combined  Ra+o:  1994-­‐2012F   Call  To  Ac+on…  
  • 18. Priming  the  Pump  by  Extrac+ng  “Old  School”   Thinking  from  the  Claims  Environment   •  There  is  no  right  or  wrong…only  grey   •  Reduce  ac+vity  checks  and  surveillance     •  Targeted  and  directed  case  management   •  Own  your  data   –  Driven  down  to  unit  and  individual  levels   •  Adherence  to  established  best  prac+ces   •  Valida+on  process  
  • 20. LT  Closing  Ra+o  Triangles   Lost   Time     2006   2007   2008   2009   2010   2011   2012   12   28.00%   22.90%   26.10%   26.00%   28.90%   26.20%   34.70%   24   64.80%   63.90%   69.90%   68.70%   70.20%   72.70%   36   82.80%   84.20%   86.00%   85.40%   88.20%   48   91.30%   92.30%   92.90%   93.30%   60   95.90%   95.20%   96.20%   72   97.60%   97.20%   84   98.30%  
  • 21. Impact  of  Reduced  Claims  Dura+ons  
  • 22. Notes  Only   Presenta+on  Outline:   •  Preparing  the  claims  environment  before   implemen+ng  your  program.    Analy+cs  and  program   will  only  be  effec+ve  if:   –  Extract  “old  school”  thinking  from  claims  processing   –  Reduce  ac+vity  checks  and  inves+ga+ons   –  Redeploy  those  resources  into  added  medical  exper+se  /   interven+on  tools   •  Using  claims  triangles  to  track  and  improve   performance   •  Importance  of  integrated  approach  from  mul+ple   angles  to  effec+vely  tackle  prescrip+on  drug  problem     •  Impact  on  overall  costs  
  • 23. Using  Analy<cs  to  Track,     Monitor,  and  Reduce  Costs   Joe  Anderson,  Director  of  Analy<cs   Robert  Hall,  MD,  Medical  Director   Progressive  Medical,  Inc.  
  • 24. Learning  Objec<ves   •  Iden+fy  warning  signs  of  misuse  and  abuse  and  how   claim  managers  can  take  ac+on.   •  Tell  how  payers  can  use  effec+ve  analy+cs  to  iden+fy   relevant  trends.   •  Explain  how  Pharmacy  Benefit  Managers  can  use   analy+cs  with  strong  clinical  programs.   •  Describe  the  role  and  benefits  of  predic+ve  analy+cs  in   the  workers’  compensa+on  industry.  
  • 25. Disclosure  Statement   •  Nothing  to  disclose  
  • 26. What  Is  Predic<ve  Analy<cs?   Predictive Analytics is making decisions with statistics and data. Company   Goal  of  predic<ve  analy<cs   Result   Target   Iden+fy  new  mothers  as  quickly  as   Delivered  coupons  to  young   possible  to  get  them  in  the  habit  of   mothers  before  their  family  even   shopping  at  Target.   knew  they  were  expec+ng.   Nemlix   Determine  which  movies  customers   Improved  their  predic+ons  by  10%;   will  like  based  on  what  they  have   a  $1  million  prize  was  awarded.   already  rated.   Oakland   Choose  the  best  baseball  players   20  consecu+ve  wins;  the  book  and   Athle+cs   available  for  the  next  season,  with  a   film  Moneyball  are  based  on  this.   limited  budget.   Sources:   Duhigg,  C.,  How  Companies  Learn  Your  Secrets,  The  New  York  Times  Magazine.  2012  February  16   Lohr,  S.,  A  $1  Million  Research  Bargain  for  NeElix,  and  Maybe  a  Model  for  Others,  The  New  York  Times,     2009  September  21   Mahler,  J.,  Smaller  Markets  and  Smarter  Thinking,  The  New  York  Times,  2011  October  14  
  • 27. How  Can  We  Use  It?   •  As  a  PBM,  we  see  some  of  the  data  going  through  the  system,  but  not  all   of  it.   •  Each  company  in  the  industry  can  use  analy+cs  with  their  own  data:   –  Imagine  if  Nemlix  wants  to  know  whether  you’ll  enjoy  the  movie  Moneyball   –  Nemlix  doesn’t  know  if  you  have  read  the  book  Moneyball,  if  you  studied   sta+s+cs  or  if  you’re  an  Oakland  Athle+cs  fan   –  They  do  know  if  you  like  other  baseball  movies,  other     Brad  Pir  movies  and  other  movies  based  on  nonfic+on  books   Image source: http://www.managedcaremag.com/archives/1208/1208.pbm-functions.html
  • 28. The  Problem   A  solu<on  is  needed  that  reduces  prescrip<ons  most  efficiently.   Prescrip<on  Drug  Deaths  and   Time  Constraints  on  Nurses,   Increasing  Costs   Adjustors,  Clinicians   •  More  people  are  dying  from   •  Cannot  examine  or  intervene  on   prescrip+on  drug  use.   every  claim   •  Prescrip+on  drug  prices  are  rising.   •  Cannot  determine  which  claims  will   •  Workers’  compensa+on  in  par+cular   have  high  long-­‐term  costs   has  seen  increases  in  use  of   •  Too  many  “false  posi+ves”  from   prescrip+on  pain  killers.   individual  clinical  triggers  (i.e.  only   10%  of  claims  with  morphine   equivalence  of  90mg  result  in  high   long-­‐term  costs)  
  • 29. The  Solu<on:   Mul<variate  Sta<s<cal  Model     to  Predict  High-­‐Cost  Claims   Our  original  model,  since  refined:   Correlate  early  data   …  with  resul<ng  long-­‐ about  an  injured   term  spend  of  that   worker…   injured  worker.   Workers  injured  in  2007   Resul+ng  pharmacy  costs  in  2009-­‐2010  
  • 30. Data  Used  in  Sta<s<cal  Models 100%   90%   80%   70%   Pharmacy  Behavior:  Medica+ons,   Percent  of   Number  of  Prescribers,  Number  of   Significance   60%   Pharmacies   (Aggregated   across  mul<ple   Injury:  Body  part,  nature  of  injury   variables)   50%   Prescriber:  Demographics  of  trea+ng   40%   prescriber   30%   Geographic  and  Other  Demographics   20%   10%   0%   1   4   6   9   12   18   24   Months  Since  Date  of  Injury  
  • 31. The  Risk  Score   Claim   Risk  Score   Reason   Allison   6.5   Mul+ple  Neck  Injury,  High  Total  Medica+on  Use  (Including   Narco+cs)   Bob   5.4   Con+nued  Medica+on  Use,  High  Risk  Prescriber:  Allergy  and   Immunology  Specialist   Cindy   5.0   Mul+ple  Prescribers  in  Early  Months,  High  Days  Supply  of   Various  Medica+ons   Dwayne   4.5   High  Risk  State  and  Moderate  Injury  Risk:  Dislocated  Disc   Elaine   3.9   Prescriber  Risk:  Pain  Management  Specialist,  High  Narco+cs   Use  To-­‐Date   Frank   3.1   Moderate  Injury  Risk,  Demographic  Risk,  and  Prescriber  Risk:   Pain  Management  Specialist  
  • 32. Predic<ons  Become  Interven<ons   • Types  of  clinical  interven+ons:   •  Claims  Professional  Outreach   •  Physician  Outreach   •  Drug  U+liza+on  Evalua+on   •  Peer-­‐to-­‐Peer  Review     • Interven+ons  should  be  completed  as  soon  as  possible     to  avoid  any  developing  complica+ons.  
  • 33. Measuring  Effec<veness   Statistical Confidence that Intervention Changes this Outcome 100%   90%   96%   80%   70%   70%   60%   50%   55%   40%   30%   20%   10%   0%   Cost  per  Claim   Morphine  Equivalence  per  Claim  Prescrip+ons  per  Claim  
  • 34. Analy<cs  From  a  Provider’s  Perspec<ve   •  Finding  common  ground     with  analy+cs  and  providers   •  Embracing  challenges  that     can  arise  with  analy+cs  
  • 35. Common  Ground  –  Data  Collec<on   •  Personal  medical  history   •  Family  history   •  Social  history   •  Physical  examina+on   •  Diagnos+c  studies  
  • 36. Common  Ground  –  Risk  Assessment   Stroke   Modifiable  risk  factors   Non-­‐modifiable  risk  factors   •  High  blood  pressure     •  Age     •  Atrial  fibrilla+on     •  Gender     •  High  cholesterol     •  Race     •  Diabetes     •  Family  history     •  Atherosclerosis     •  Previous  stroke   •  Circula+on  problems     •  Fibromuscular  dysplasia     •  Tobacco   •  Alcohol   •  Patent  foramen  ovale   •  Physical  inac+vity     •  Obesity     Source: National Stroke Association, Am I at Risk for a Stroke? Stroke Risk Factors. 2013 March 18
  • 37. Common  Ground  –  Outcome  Predictors   Stroke   •  Poor  strength  recovery  predictors   –  Severe  arm  weakness  at  onset  of  stroke   –  No  hand  strength  4  weeks  aLer  stroke   •  30-­‐day  mortality   –  EKG  abnormali+es   –  Brainstem  stroke   –  Elevated  blood  glucose  in  non-­‐diabe+c  pa+ents   Source: Zorowitz, R., Baerga, E., Cuccurullo, S., Stroke Rehabilitation, Physical Medicine and Rehabilitation Board Review. New York. Demos Medical Publishing. 2004
  • 38. Common  Ground  –  Outcome  Predictors   Stroke   •  Nega+ve  predictors  for  return  to  work   –  Low  Barthel  Index  score   •  Ac+vi+es  of  daily  living   –  Prolonged  length  of  stay  in  rehabilita+on   –  Aphasia  (language/communica+on  deficits)   –  Prior  alcohol  abuse   Source: Zorowitz, R., Baerga, E., Cuccurullo, S., Stroke Rehabilitation, Physical Medicine and Rehabilitation Board Review. New York. Demos Medical Publishing. 2004
  • 39. Common  Ground  –  Language   •  Data  collec+on   •  Risk  assessment     •  Risk  factors   •  Outcome  predictors   •  Interven+ons   •  Behavior   •  Effec+veness  
  • 40. Embracing  Challenges     Avoid  Blame     •  Comprehensive  claim  evalua+on   •  Interven+ons  may  need  to  be  mulNfaceted  
  • 41. Embracing  Challenges     Validate  Success   •  Hill  Physicians  Medical  Group   –  2,200  physicians   –  332,000  pa+ents   –  Predic+ve  modeling   •  Management  of  chronic  diseases   –  Prospec+ve  Risk  Score   •  Likelihood  of  pa+ent  using  physician  resources  in  future   •  RNs  are  assigned  to  call  pa+ents  with  high  risk  scores   Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality and Reduce Costs, The Commonwealth Fund. 2009 March
  • 42. Embracing  Challenges     Validate  Success        0.5  x  In-­‐pa+ent  days  over  last  365  days        In-­‐pa+ent  days  over  last  90  days     +      2  x  ER  days  over  last  365  days          ER  days  over  last  90  days          2  x  (Prospec+ve  Risk  Score  +  adjustment  factor)     = Priority  Score   Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality and Reduce Costs, The Commonwealth Fund. 2009 March
  • 43. Embracing  Challenges     Validate  Success   •  Diabe+c  pa+ents     –  High  Priority  Score   –  Contacted  by  nurse  case  managers   –  Reminders  for  screenings   •  Eyes   •  Kidneys   •  Cholesterol   –  Counseling  with  diabetes  educator   Source: Emswiler, T. and Nichols, L., Hill Physicians Medical Group: Independent Physicians Working to Improve Quality and Reduce Costs, The Commonwealth Fund. 2009 March
  • 44. Embracing  Challenges     Be  Responsive   •  A  provider’s  ques+ons   –  Is  my  prac+ce  style  being  ques+oned?   –  Will  the  care  of  my  pa+ents  be  affected?   –  Where  is  the  evidence?   –  Why  now?  
  • 45. Embracing  Challenges   Reward  Posi<ve  Outcomes   •  Should  providers  be  rewarded?   –  Pay  for  performance   •  Physician  payments  at  the  group  level  (not  individual)   •  Mee+ng  absolute  benchmarks   •  Soon  auer  performance  period   –  Preferred  provider  status   •  Recogni+on   •  Increased  referrals   Source: Gamble, M., GAO: 3 Ways CMS Can Incentivize Physicians Like Private Payors, Becker's Hospital Review, ASC COMMUNICATIONS. 2012 January 7; 2013 March 11
  • 46. Takeaways   •  Common  ground   –  Data  collec+on   –  Risk  assessment   –  Outcome  predictors   –  Language   •  Embracing  challenges   –  Avoid  blame   –  Validate  success   –  Be  responsive   –  Reward  posi+ve  outcomes