Presentation by John Marchica (Darwin Health) and Bob Roth (Cypress HomeCare Solutions) at the Home Care Association of America Leadership Conference, Sep. 30, 2016.
Disruptive Transformation and the Accountable Care Organization
1. Bob Roth
Managing Partner, Cypress HomeCare Solutions
(602) 264-8009 bobroth@cypresshomecare.com
John Marchica
President/CEO, Darwin Health
(480) 652-0008 jm@darwinhealth.net
“Disruptive Transformation and the
Accountable Care Organization”
2. • ACOs and Value-Based Care
Defined
• Creating a winning value
proposition: The Readmission Story
• Working with ACOs
• Targeting and approaching the right
ACO partner
• Discussion, Q&A
AGENDA
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
5. “Health information about total
populations is a prerequisite for
sound decision-making and planning
in the health care field. Experience
with a population-based health data
system in Vermont reveals that there
are wide variations in resource input,
utilization of services, and
expenditures among neighboring
communities.”
- John E. Wennberg
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
6. GENESIS OF ACOs
• Accountable Care Organization coined by Dr. Elliott
Fisher (Dartmouth) in 2005 at a MedPac meeting to
describe “Groups of doctors, hospitals, and other health
care providers, who come together voluntarily to give
coordinated high quality care”
• Fisher and former Medicare and FDA chief Mark McClellan
(Brookings), along with Jonathan Gruber (M.I.T.), were
highly influential in shaping health care reform and
included ACOs as a key piece of the ACA
• Dartmouth-Hitchcock Medical Center and nine other IDNs
part of a Medicare demonstration project testing the
concept (2009-2012)
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
7. • In general, comprised of physician groups,
health systems, hospitals, insurers—and any
combination of these providers
• In most cases, they form a separate LLC
• Contract states some form of baseline for
quality and budget, set annually
• Bonus for beating budget, penalty for
exceeding budget
• ACOs are NOT managed care, like an HMO
• Mission-driven to achieve the Triple Aim
ACOs DEFINED
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
8. Patient
Experience
Lower Costs
Population
Health
Achieving all
Three
•Improve the health of
populations of people
•Improve the patient
experience with
healthcare
•Reduce per-capita
healthcare costs
THE TRIPLE AIM
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
9. ACO MODELS
• Medicare: Pioneer, Shared Savings Program,
Advance Payment, Investment, Next Generation
• Commercial
• Medicaid
• Employer
• Specialty
• Local Government
ACO TYPES
• Physician-Led
• Hospital-Led
• Insurer-Led
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
10. HospitalHospital Hospital
MONTEFIORE HEALTH
SYSTEM
Care
Management
Organization
University
Behavioral
Associates
Managed
Behavioral
Care IPA
Montefiore
IPA
Department of
PsychiatryMontefiore
Home Care
EXAMPLE: MONTEFIORE
• Montefiore has largest
commercial agreement
with UnitedHealthcare -
1,000 affiliated facilities
and 4,000 docs
• Also has an ACO
Agreement with Empire
BCBS, started in 2012
• Pioneer ACO: 40,287
assigned beneficiaries,
and 2,200 docs
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
11. 2014 Actual: $356M
Difference: $13M
Montefiore’s cut: $8.4M (63% of total savings)
SHARED SAVINGS
2014 Target: $369M
Per Beneficiary: $549
HOW IT WORKS
Important: Wouldn’t have earned shared savings if quality goals were not met!
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
12. INTEGRATED HEALTH NETWORK OF WISCONSIN
Agnesian HealthCare
Columbia St. Mary’s
Froedtert & The Medical College of Wisconsin
Hospital Sisters Health System
Ministry Health Care
SSM Health
Wheaton Franciscan Healthcare
• 8,400 Caregivers
• 1,180 Clinics
• 53 hospitals
• 100 associated providers, including DME, SNF & HHC
FoundingHealthSystems
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
13. INTEGRATED HEALTH NETWORK OF WISCONSIN
• Founded on the idea that “coopetition”
would optimize patient care
• Wisconsin market fragmented
• IHN’s formation was an alternative to
mergers and acquisitions, allowing for
economies of scale
• Four key areas of focus:
- Centralized data analytics
- Patient care coordinated across member
health systems
- Emphasis on patient/provider
relationships
- Shared contracting capabilities
✓ Competition
promotes innovation
and lower costs
✓ Collaboration drives
best practice and
improved efficiency
✓ Shared data and
management
infrastructure
✓ Unique contracting
structure
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
14. INTEGRATED HEALTH NETWORK OF WISCONSIN
• IHN’s platform aggregates disparate
data from 3.1 million individuals
• Includes clinical data from patients in
all eight health systems
• Comprehensive payer claims data
provides a 360° view of approximately
200,000 lives managed through 12
contracts
• IHN’s care model requires clinical data,
claims data and financial data
✓ Clinical claims submitted to payers
✓ EMR – vitals and health maintenance
✓ Laboratory
✓ Eligibility
✓ Post-adjudicated claims
✓ Risk score
✓ Transitions of care outreach
✓ Complex conditions care coordination
✓ Frequent flier outreach
✓ Care gap closure
Source: Kurt Janavitz, “Moving Beyond the ACO: Four ‘Game-Changing’ Approaches to Value-Based Contracting.” Adapted
from July 17, 2016 presentation from Janavitz at the Health Forum Leadership Summit.
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
15. INTEGRATED HEALTH NETWORK OF WISCONSIN
• 2015 case study: 3,500 IHN members
✓Identify high-risk members for care navigation
✓Align with IHN Member system
✓Contact member
✓Schedule PCP visit
✓Correctly code visit to minimize risk adjustment variability
• Results after one year:
✓Readmissions declined below national expected rate
✓Breast cancer screenings up 7%
✓Colorectal cancer screenings up 5%
✓Diabetes screenings up 4%
✓Increase in generic prescriptions (2%)
Total Spend Inpatient Outpatient Physician Pharmacy
Non-engaged patients 10% 2% 17% 0% 20%
Engaged patients -26% -40% 4% -14% 14%
Percent spending change over 1-year period, 2014-2015
Source: Kurt Janavitz, “Moving Beyond the ACO: Four ‘Game-Changing’ Approaches to Value-Based Contracting.” Adapted
from July 17, 2016, presentation by Janavitz at the Health Forum Leadership Summit.
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
16. INTEGRATED HEALTH NETWORK OF WISCONSIN
Forecasted 2014
& 2015 Spend
Increase
Actual %
Spend
Increase
% Savings
Actual vs.
Forecast
Savings per
Employee
Total Savings
2014 & 2015
Health System
1
21.0% 1.3% 19.5% $3,473 $23,113,393
Health System
2
15.6% 2.1% 13.2% $2,497 $18,119,039
Conclusion: significant savings were achieved in calendar
years 2014 and 2015 for two of IHN’s Member self-insured
groups. The most significant factors were reduced
readmissions and emergency room utilization.
Source: Kurt Janavitz, “Moving Beyond the ACO: Four ‘Game-Changing’ Approaches to Value-Based Contracting.” Adapted
from July 17, 2016, presentation by Janavitz at the Health Forum Leadership Summit.
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
17. VALUE-BASED CARE
• Maximizing value for patients: the best
care at the lowest cost
• Move away from supply-driven system
to patient-centric system
• Move away from volume and profitability
of services to patient outcomes
• Move away from fragmented care to
coordinated care
• Right person, right place, right time
“It’s time for a fundamentally different strategy.”
- Michael Porter
VALUE =
QUALITY
COST
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
19. • “Single payment to a provider or health care facility
for all services to treat a given condition or provide a
given treatment. Providers assume financial risk for the
cost of services for a particular treatment or condition,
as well as costs associated with preventable
complications.” (Health Affairs 1/15)
• Bundled payment can be triggered by a hospitalization
(such as CMS BPCI) or by a diagnosis (heart failure,
diabetes)
• Bundles work best for procedures or conditions with
measurable and somewhat predictable outcomes
BUNDLED PAYMENTS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
20. “Have you had any formal meetings or discussions with an ACO?”
PercentYesResponse
0
20
40
60
80
Home Health Hospice Private Duty
39
43
72
June 2016, n=63
Source: Darwin Health
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
21. “Do you currently have a preferred provider relationship with an ACO?”
PercentYesResponse
0
12.5
25
37.5
50
Home Health Hospice Private Duty
6
20
33
June 2016, n=63
Source: Darwin Health
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
22. “Have you ever entered into a risk sharing agreement?”
PercentYesResponse
0
12.5
25
37.5
50
Home Health Hospice Private Duty
9
6
28
June 2016, n=63
Source: Darwin Health
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
23. “Financially speaking, what was the effect on your business?”
REVENUE
Home Health
Hospice
Private Duty
Percentage Response
0 25 50 75 100
0
0
60
33
0
0
66
100
40
Increased
Decreased
Stayed the Same
June 2016, n=63
Source: Darwin Health
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
24. “Financially speaking, what was the effect on your business?”
NET PROFIT
Home Health
Hospice
Private Duty
Percentage Response
0 25 50 75 100
60
0
60
15
0
10
0
100
30
Increased
Decreased
Stayed the Same
June 2016, n=63
Source: Darwin Health
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
25. “Do you currently have a contractual relationship with…?”
PercentYesResponse
0
7.5
15
22.5
30
Hospital/Health System Skilled Nursing/Rehab Health Plan/MCO
2424
18
June 2016, n=33
Source: Darwin Health
PRIVATE DUTY ONLY
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
26. 24Hr HomeCare
• Question: Where does in-home care services fit in the new
world of bundled payments and value-based care?
• First MHC contract in 2012 (ongoing)
- High-risk patients selected by payer to receive home
care for the first 24 hours following discharge
- High-risk patients sent to home care if refuses SNF or
don’t meet the criteria for SNF
- Provided the payer a discount for services, no risk
- Tracking at 7% readmission rates
• Bundled payment for joint replacement with HealthSouth
- 60-day period
- $1000 per patient
• Currently about 20 MHC and hospital relationships for
“funded care” in Orange County, AZ and TX
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
27. 24Hr HomeCare: LESSONS LEARNED
• Hospitals, ACOs and payers are willing to pay out of pocket for home
care services for high-risk patients and to prevent readmissions
• Collect your data, as difficult as it may be
• Build the right relationships over time to establish trust and confidence
• Need a warm introduction and a capable workforce
• Invest in strategic research and development!
• Establish criteria with your partner: teach the case managers
• Sometimes meet patient in the hospital
• Always get a signed agreement for 30 day minimum
• Look for clients with little support in the home: establish this up front
with your partner
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
28. I think we are interested because at the end of the
day, if you don't manage those patients well, you're
going to wind up paying fines or get denials or be in
a penalty phases. There is a little bit of money that
we are willing to pay to make sure this happens.
Source: Darwin Health personal interview, January 29, 2016
“Would you be willing to come out-of-pocket to pay for non-medical home care?”
ONE HOSPITAL CEO SAYS…
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
29. I'd like to see the patients that they're monitoring,
readmission rates. That's a big one I'd like to see. I'd like to
see for ones that they're treating with wound, I'd like to
see their would healing rates.
Clinical types of how many visits they're providing on
average per patient because there are metrics to see what
the appropriate number of visits should be.
Are there any national rankings or any national databases
that they submit to or state databases? Are they on specific
prohibited lists? Things like that.
Source: Darwin Health personal interview, January 29, 2016
“What kind of metrics would you like to see? Would you like to see a
financial argument? What do they come to the table with?”
ONE HOSPITAL CEO SAYS…
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
30. Domain: Patient/Caregiver Experience
ACO-1 Getting timely care, appointments, and information
ACO-2 How well your providers communicate
ACO-3 Patients’ rating of provider
ACO-4 Access to specialists
ACO-5 Health promotion and education
ACO-6 Shared decision making
ACO-7 Health status/functional status
Domain: Care Coordination and Patient Safety
ACO-8 Risk standardized all condition readmission
ACO-9
Ambulatory Sensitive conditions admissions: COPD or
asthma in older adults
ACO-10
Ambulatory sensitive conditions admissions: heart
failure (HF)
ACO-11
Percent of primary care physicians who
successfully qualify for an EHR program incentive
payment
ACO-12 Medication reconciliation
ACO-13 Falls: screening for future fall risk
Domain: Preventive Health
ACO-14 Preventive care and screening: influenza immunization
ACO-15 Pneumonia vaccination status for older adults
ACO-16 Body mass index screening and follow-up
ACO-17 Tobacco use: screening and cessation Intervention
ACO-18 Screening for clinical depression and follow-up plan
ACO-19 Colorectal cancer screening
ACO-20 Breast cancer screening
ACO-21
Screening for high blood pressure and follow-up
documented
Domain: At-risk Population—Diabetes
ACO-22 High blood pressure control
ACO-23 Low density lipoprotein control
ACO-24 Hemoglobin A1c control
ACO-25
Daily aspirin or anti-platelet medication use for
patients with diabetes and IVD
ACO-26 Tobacco non-use
ACO-27 Diabetes: hemoglobin A1c poor control
Domain: At-risk Population—Hypertension
ACO-28 Controlling High Blood Pressure
ACO-29
Ischemic vascular disease: complete lipid panel and LDL
control
ACO-30
Ischemic vascular disease: use of aspirin or another
antithrombotic
ACO-31
Heart failure: beta-blocker therapy for left ventricular
systolic dysfunction (ACO-31)
ACO-32 Drug therapy to lower LDL
ACO-33
ACE inhibitor or ARB therapy—diabetes or left
ventricular systolic dysfunction
Composite Scores
Diabetes Management Composite (ACO 22-26)
Coronary Artery Disease Composite (ACO 32-33)
Which metrics can you improve?
That leads to the Value Proposition…
ACO QUALITY METRICS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
31. Domain: Patient/Caregiver Experience
ACO-1 Getting timely care, appointments, and information
ACO-2 How well your providers communicate
ACO-3 Patients’ rating of provider
ACO-4 Access to specialists
ACO-5 Health promotion and education
ACO-6 Shared decision making
ACO-7 Health status/functional status
ACO QUALITY METRICS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
32. Domain: Care Coordination and Patient Safety
ACO-8 Risk standardized all condition readmission
ACO-9
Ambulatory Sensitive conditions admissions: COPD or asthma
in older adults
ACO-10
Ambulatory sensitive conditions admissions: heart failure
(HF)
ACO-11
Percent of primary care physicians who successfully qualify
for an EHR program incentive payment
ACO-12 Medication reconciliation
ACO-13 Falls: screening for future fall risk
ACO QUALITY METRICS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
33. Domain: Preventive Health
ACO-14 Preventive care and screening: influenza immunization
ACO-15 Pneumonia vaccination status for older adults
ACO-16 Body mass index screening and follow-up
ACO-17 Tobacco use: screening and cessation Intervention
ACO-18 Screening for clinical depression and follow-up plan
ACO-19 Colorectal cancer screening
ACO-20 Breast cancer screening
ACO-21
Screening for high blood pressure and follow-up
documented
ACO QUALITY METRICS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
36. 1. Utilizing Home Care as a part of the solution to
transitioning a patient from a hospital or post
acute setting to the home
2. Communication is paramount to the success of
making this transition
3. Strategies together will keep the patient, in our
case client, from re-entering your facility
PREVENTING HOSPITAL READMISSIONS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
37. REDUCING HOSPITAL READMISSIONS:
Partnering for success
State of the Industry: What has changed?
20% readmission rate = $17 Billion annual cost to Medicare
• CMS Mandates major cuts to Medicare Programs
• First Focus is on:
✓Heart Failure (broader than CHF)
✓Pneumonia
✓AMI (heart attack)
✓Diabetes
✓Will be adding more chronic conditions in the future
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
38. CMS reports that up to 75% of re-admissions to
hospitals are potentially preventable.*
(New England Journal of Medicine reported that half of all patients re-admitted
within 30 days hadn’t visited a doctor since discharge)
3 Main Reasons most patients are re-admitted to the hospital:
1) They miss follow-up visits
2) They have difficulty complying with their medication schedule
3) They have a poor understanding of “red flag” symptoms
*Medicare Payment Advisory Commission (MedPac), “Report to the Congress: Promoting Greater Efficiency in Medicare” June 2007
REDUCING HOSPITAL READMISSIONS:
Partnering for success
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
39. Hospitals are being financially penalized 3% of each
payment for readmission for the following diagnosis:
• Congestive heart failure
• Myocardial infarction (heart attack)
• Pneumonia
• Chronic obstructive pulmonary disease (COPD)
• Orthopedic Hip and Knee
HOSPITAL READMISSIONS:
What’s the Problem?
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
41. “Not all of the responsibility is the hospital’s” said Arnie
Kimmel, CEO, MetroSouth Medical Center in Blue Island, IL,
referring to why patients are readmitted within 30 days. “A
significant part of the reason we have to attribute to (patients)
lack of compliance with medical recommendations.”
Hospitals are a little upset (and they deserve to be) about
being penalized for something that they have very little control
over: HUMAN BEHAVIOR.
DON’T PLACE ALL THE BLAME ON THE HOSPITAL!
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
42. The Goal: Disease or condition management during
the 30 day post acute discharge and beyond
• Who will help the patient understand the challenges
of disease/condition management?
• Who will provide solutions for a smooth transition to a
lower level of care?
• Who else is involved in helping patients stay at home
for 30 days and beyond?
DEVELOPING AN EFFECTIVE STRATEGY
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
43. Older adults are particularly vulnerable to poor
transition outcomes:
• Multiple medical conditions
• Multiple care providers
• Multiple medications
• Physical and cognitive limitations
• Health literacy
• Burdened caregivers
PATIENT CONFUSION UPON DISCHARGE
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
44. Illinois Study* – 83% of patients had problems identified
by the social worker during the assessment at 2 days
post-discharge – “surprises”
• Management of post-discharge care – 25%
• Obtaining community services – 24%
• Understanding discharge plan – 17%
• Caregiver Stress – 35%
• Patient stress/coping – 35%
• Social support – 10%
*The Illinois Transitional Care Consortium (ITCC) presentation at the 2011 American Society on Aging
Conference the Bridge Model of Transitionary Care.
PATIENT CONFUSION UPON DISCHARGE
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
45. Gut reaction – Medicare Home Health will take care of all of this
Reality – Medicare nurse – 30 minute visit, 2-3x/week for 2-3 weeks
We believe preventing readmissions is a shared responsibility –
private duty homecare can take much of the burden off of the
family and help pull the team together.
WHO PULLS IT ALL TOGETHER?
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
46. Basics of Private Duty Homecare
• ADL’s
• Meal Prep
• Laundry/linens
• Light Housekeeping
• Transportation
Historically seen as something a select minority of older
adults could afford
Increased competition in the private duty homecare
industry has resulted in:
• Lower cost to consumer
• Greater flexibility in scheduling around the client’s needs
• Higher expectations of the caregiver and agency
PRIVATE DUTY HOMECARE: THE BENEFITS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
47. Role of Private Duty Homecare in delivering high quality care
and reducing readmissions:
• Private Duty Homecare aides spend more time in the home with patient
than any other provider
• Medicare home health aide – 30 to 60 minute visit, 2-3x/week for 2-3
week – personal care only
• Average Cypress HomeCare Solutions client that discharges from a
hospital or post acute provider receives 60 hours of care/week!
Main Reasons Patients are
Re-admitted to Hospital
What Private Duty Homecare can do
1. Miss follow-up visits Arrange and accompany clients to
follow-up physician visits
2. Difficulty complying with medication
schedule
Medication reminders
3. Poor understanding of “red flag”
symptoms
Not all private duty agencies are the
same
PRIVATE DUTY HOMECARE: THE BENEFITS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
48. “It costs too much.”
It will cost you more if the patient gets readmitted to the hospital.
“The patient is already getting Medicare home health services –
we don’t need private duty home care also.”
• They can go home with both – the first 48 hours is critical! 50% of the Cypress
HomeCare Solutions clients discharge from the hospital discharge from the
hospital with both Medicare and Private Duty home care, it should be 100%!
• Patients often come home weak, debilitated and tired – have challenges
because too tired to eat, take meds, get out of bed.
• Home health cannot be there to ensure proper nutrition, medication
compliance, help a patient get to the bathroom, etc.
COMMON BARRIERS TO PRIVATE DUTY HOMECARE
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
49. “The patient is going to rehab.”
Rehab typically lasts around 20 days, leaving 10 days left when they could
still be readmitted during the 30 day period. Who will be there to support
them and what will their needs be when they leave rehab?
“Some patients are in and out so quickly, we don’t have time to set up a
lot of services.”
Tag them early so they can get appropriate referrals.
“We have transitional specialist working with the patient.”
• Great! We can begin coordinating the discharge plans with him/her as
soon as the patient steps into the ER.
• The transitional specialist is not going to be with the patient in the home
environment, that’s where our expertise comes in.
COMMON BARRIERS TO PRIVATE DUTY HOMECARE
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
50. • Private duty homecare needs to share the
responsibility of preventing hospital readmissions
• Private duty homecare is the only post-acute
provider who can be in the home consistently with
the patient after discharge (avg. 60 hours/wk)
CONCLUSIONS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
52. CHANGING YOUR SALES PARADIGM
• Multiple decision makers
• Complex problems to solve
• Frequently create buying criteria
• Long time to make decisions
• Contracts
STRATEGIC SELLINGTRANSACTIONAL SELLING
• Few decision makers
• Simple problems to solve
• May create buying criteria
• Short time to make decisions
• One-time transaction
(Fee-for-service) (Value-based care)
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
53. MILLER HEIMAN’S 4 BUYING INFLUENCES
User Buyer
Economic Buyer
Technical Buyer
Coach
Selling complex solutions is
defined as more than one
buyer, more than one sales
call, with a service and
solution that is not cookie
cutter. Selling complex
solutions and services require
that you have a complete
understanding of how the
client decides.
Source: Joseph Murphy. A Short Primer on Strategic Selling.
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
54. THE RELATIONSHIP LADDER
CHAMPION
PARTNER
CLIENT
VENDOR
PROSPECT
T
R
U
S
T
“You can get what you want by giving them what they want.”
Advocates for you
Relies on you
Trusts you
Heard of you
Doesn’t know you
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
55. • The stereotypes are true: the industry is viewed with
skepticism, cynicism and distrust
• BEHAVIORS build or erode trust
• At a minimum, what ACOs want: DATA
• Data will get you in the door, but won’t create champions
• Are you a problem solver? What problems do they face?
• What is your position relative to your competition?
• What is your message?
• What is your strategy for engagement?
PREPARING FOR PARTNERSHIPS
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
56. Collecting 53 data points on every client
• “Does the client have this diagnosis…”
- CAD
- COPD
- Depression/Anxiety
- Diabetes, etc.
• Do you record:
- DNR
- Advance Directive
• Has the client been hospitalized during
our service?
24-Hour HomeCare Example
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
64. Patient
Experience
Lower Costs
Population
Health
Achieving all
Three
• Improve the health of
populations of people
• Improve the patient
experience with healthcare
• Reduce per-capita
healthcare costs
What data do you have that proves:
ALIGN YOUR MESSAGE
ALIGN WITH ACO METRICS!
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
65. ALIGN YOUR MESSAGE
Preventive Health
ACO-14
Preventive care and
screening: influenza
immunization
ACO-15
Pneumonia vaccination
status for older adults
ACO-16
Body mass index screening
and follow-up
ACO-17
Tobacco use: screening and
cessation Intervention
ACO-18
Screening for clinical
depression and follow-
up plan
ACO-19
Colorectal cancer
screening
ACO-20 Breast cancer screening
ACO-21
Screening for high blood
pressure and follow-up
documented
% Vaccina(on Check
Influenza Pneumonia
CLIENT Comp1 Comp2 Comp3 CLIENT Comp1 Comp2 Comp3
68.9%
70.7% 71.3%
69.6% 70.0%
71.3%
85.1%
79.2%
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
66. Know your ROI: What is the
Lifetime Value of a client?
Know the ACO
Market Potential:
How many covered
beneficiaries?
$/hour, hours per week,
average number of weeks per
client
Quantify the relationship.
Estimate expected market
share using traditional
marketing. Now estimate
estimated share under a
preferred partnership. What’s
the benefit?
Are they willing to listen to
your story?
Some people simply won’t.
What is your value
proposition?
And have you quantified it?
Know your capacity.
What’s the right ACO
size?
Are you willing to go
at risk?
Or reduce fees? Alter
payment schedule?
CHOOSING THE RIGHT PARTNER
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
67. ACO Name
States where
beneficiaries reside
Number of
Beneficiaries
Readmission
%
Atlantic ACO New Jersey, Pennsylvania 73,694 15.37
Meridian Accountable Care Organization, LLC New Jersey 40,133 13.73
Palm Beach Accountable Care Organization, LLC Florida 36,268 15.56
Optimus Healthcare Partners, LLC New Jersey 34,542 15.14
Memorial Hermann Accountable Care Organization Texas 34,430 14.41
Scott & White Healthcare Walgreens Well Network, LLC Texas 34,149 14.14
Accountable Care Coalition of Texas, Inc. Texas 33,739 13.89
ProHealth Physicians ACO, LLC Connecticut 32,216 14.92
Millennium Accountable Care Organization Florida 28,957 14.23
Accountable Care Clinical Services, PC
Iowa, Pennsylvania, Connecticut,
Massachusetts, California
19,637 15.08
Central Jersey ACO LLC New Jersey 19,340 15.43
Saint Francis HealthCare Partners ACO Inc. Connecticut 19,210 15.17
Medical Practitioners For Affordable Care, LLC Florida 17,974 16.46
BHS Accountable Care LLC Texas 17,210 14.07
Hackensack Alliance ACO New Jersey, New York 16,383 15.52
Accountable Care Coalition of Mount Kisco, LLC New York, Connecticut 16,326 14.60
Northern Maryland Collaborative Care LLC Maryland 15,470 15.58
Maryland Collaborative Care, LLC. District of Columbia, Maryland 15,465 14.78
Methodist Patient Centered ACO Texas 15,013 14.70
Largest ACOs in Client high-performing states
Average readmission rate, target market: 14.97
Average readmission rate, national: 14.89
ACO TARGETING
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
68. ACO Name
States where
beneficiaries reside
Number of
Beneficiaries
Atlantic ACO New Jersey, Pennsylvania 73,694
Palm Beach Accountable Care Organization Florida 36,268
Optimus Healthcare Partners, LLC New Jersey 34,542
Accountable Care Clinical Services, PC
Iowa, Pennsylvania, Connecticut,
Massachusetts, California
19,637
Central Jersey ACO LLC New Jersey 19,340
Saint Francis HealthCare Partners ACO Inc. Connecticut 19,210
Medical Practitioners For Affordable Care, LLC Florida 17,974
Hackensack Alliance ACO New Jersey, New York 16,383
Northern Maryland Collaborative Care LLC Maryland 15,470
TOTAL ELIGIBLE BENEFICIARIES 252,518
Largest ACOs, Client high-performing states with
higher-than-average readmission rates
ACO TARGETING
Disruptive Transformation and the Accountable Care Organization
Presentation by Bob Roth, Managing Partner, Cypress HomeCare Solutions and John Marchica, President/CEO, Darwin Health
69. Thank you for attending this session.
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