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Value-Based Care

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The increased emphasis that the Affordable Care Act and Medicare accountable care organizations (ACOs) placed on prevention is important in reducing the high cost of older patients, especially as the baby boomer generation reached retirement age, explained Mariétou Ouayogodé, PhD, post-doctoral fellow at The Dartmouth Institute for Health Policy and Clinical Practice at the Geisel School of Medicine at Dartmouth.

This week, the top news in managed care included President Donald Trump's first address to Congress, which included guiding principles for replacing the Affordable Care Act, a leaked version of the House GOP's own draft for healthcare reform, and a study finds a concerning trend in colorectal cancer rates among young adults.

The transition to value-based care has been helpful in getting providers to examine their own performance and find ways to improve quality, said Andrei Gonzales, director of value-based reimbursement initiatives at McKesson Health Solutions.

CMS has been making efforts to reduce administrative burdens for physicians as the healthcare industry moves to value-based care through the implementation of the Medicare Access and CHIP Reauthorization Act (MACRA), said Mark McClellan, MD, PhD, director of the Duke-Margolis Center for Healthy Policy.

Research into the financial performance of Medicare accountable care organizations (ACOs) has found that organizations benefit from having prior experience with risk-bearing contracts, but that organizations that had reduced growth in healthcare spending before joining an ACO would find it difficult to improve further and share in savings, according to Marietou Ouayogode, PhD.

In Hennepin County, Minnesota, the local government has gotten into the business of healthcare and linked a variety of services into an accountable care organization (ACO) model that not only addresses beneficiaries' health needs, but also their social determinants of health, explained Ross Owen, health strategy director of Hennepin County..

The FDA has been willing to explore the utilization of surrogate endpoints like tumor response in clinical trials, but it is unclear whether these endpoints correlate with overall survival, said David Fabrizio of Foundation Medicine, Inc. However, he emphasized that overall survival does not necessarily benefit the patient if the additional days gained are not quality days.

Underinsurance, which occurs when people have insurance but aren't covered for services they need, is a serious problem in the US, according to A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design at the University of Michigan. He proposed some strategies to alleviate this phenomenon, like smarter deductibles and revised Internal Revenue Service (IRS) rules.

CMS understands that not all physicians will report quality measures under the Medicare Access and CHIP Reauthorization Act or join advanced alternative payment models, especially immediately, said Kate Goodrich, MD, director of the Quality Measurement and Value-Based Incentives Group in CMS. However, there are efforts in place to make it as easy as possible for these providers, which will hopefully increase participation over time.

Physicians have shown great interest in understanding how to transition into value-based processes, especially with the new rules under the Medicare Access and CHIP Reauthorization Act (MACRA), said Roy Beveridge, MD, chief medical officer of Humana. While these transitions take time and effort, they eventually lead to physicians being reimbursed more for longer visit times and improved outcomes.

At the fall live meeting of The American Journal of Managed Care®'s ACO & Emerging Healthcare Delivery CoalitionTM, speakers discussed how to care for complex patients, and the latest in reimbursement.