Senate Finance Subcommittee Issues Testimony From Essentia Health CEO Herman
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Introduction and Background
Chairman Cardin, Ranking Member Daines, and members of the
On behalf of
* The unique challenges providing care in our rural communities.
* How we embarked on value-based care models.
* What we've learned along the way.
* How these models serve as a pathway for the future of rural health care.
Serving
Addressing the needs of our rural communities and the social determinants of health
Providing access to health care services across rural communities presents unique challenges in addressing the social determinants of health. Our rural patients across
Access to care is the largest, most complex issue currently facing rural health. Patients with access to a primary care physician spend less time in the hospital, have fewer visits to the emergency department, achieve better outcomes and have lower health care costs.56 But rural residents face significant barriers in simply accessing care. Patients across rural
Residents in rural
Rural hospitals and health care systems significantly impact their local communities, both on health and economic sustainability.13 As anchor institutions, rural hospitals and clinics play critical roles in the economic and social vitality of their communities.14 In 2022,
Organizational Commitment from Volume to Value
Building an organizational culture and infrastructure to embrace value-based care Nationwide, health care spending grew to
* An emphasis on treatment at the expense of prevention and wellness.
* Providing no incentives for integrating and coordinating care.
* Discouraging practice transformation and clinician-driven innovation.
Recognizing the failure of volume-based reimbursement to meet the needs of patients,
* Improving overall patient health.
* Connecting patients with the appropriate care at right time.
* Providing access to integrated care through the entire patient journey.
* Investing in practice transformation and quality improvement.
Value-based care is cost effective and improves care for all patients, particularly those with chronic illnesses, by improving patient outcomes, experience, and quality of life by:
* Limiting duplicative testing.
* Avoiding medication mistakes and overuse.
* Reducing avoidable emergency department visits and hospital admissions.
* Increasing patient engagement and adherence to care plans and medication.
As we face significant workforce challenges, value-based care supports our clinicians and care teams. Provider wellness has been at risk in our nation's health care system, and the pandemic heightened these challenges further. Implementing value-based care programs enhances the care clinicians can provide through care coordination and other services that connect patients with the resources they need to be healthy. A team-based approach to care allows clinicians to spend valuable time with their patients and to contribute their own innovations. Value-based care provides opportunities to make the delivery of health care more rewarding and fulfilling.
The model of care developed to improve outcomes in value-based programs leads to the implementation of best practices for all patients. Because it is neither practical nor proper to differentiate the way we care for patients based on whether they are enrolled in a value-based program, we are creating a best practice standard for all patients. It is the right thing to do for our communities to ensure that health care is sustainable. Simply put: Value-based care delivery is the best care model for all patients.
How we did it: Analytics, Action, and Accountability
Create a model of care delivery that is as standard as possible and as unique as necessary to meet the needs of our patients and communities.
Our strategy for success focused on three "A's": Analytics, Action, and Accountability. Each of these helps to support a value-based care system with an emphasis on continuous improvement. Strategies for value-based care success include:
* Identifying the patients.
* Determining patients' care needs.
* Managing chronic illness.
* Providing care needs in a proactive and coordinated way.
* Driving appropriate utilization - lower health care spending.
* Addressing social determinants of health.
* Partnerships with government, private payers, and community organizations.
Analytics
Clinical and information technology infrastructure is a fundamental building block to invest in and maintain value-based care programs. Robust electronic health record (EHR) functionality and data collection systems are necessary to understanding patient populations and screening for the social determinants of health. Payer partnerships are also critical to the success of value-based programs. Payer and EMR data are integrated into clinical data registries to stratify the populations. The results of the analysis support the development of population-specific and actionable cost containment and health improvement strategies, such as:
* Risk stratification.
* The evaluation of utilization patterns.
* Care gap identification.
* Referral management.
Health is created through social, economic, and environmental factors in addition to health care access and individual health behaviors, and
Actions: Implementation of the Strategies Informed by data on our populations, nurses, physicians, pharmacists, and community care associates work together to develop programs that address the needs of our patients. Clinical data registries are created to integrate EHR and payer data. The registries stratify the population, identifying those with the highest level of needs. Using this information, the team can engage with the patient to develop an individualized care management plan. As an example, through pharmacy care management, pharmacists review medications with patients to ensure they have the information needed to manage their medications and work with prescribers to identify the most cost-effective medication options. These efforts result in improved health outcomes, better patient experience, and lower overall utilization and cost.
The approaches used to serve patients have evolved along our journey. Changes in the population require new strategies, including:
* Use of alternative care delivery models, such as virtual care and remote monitoring.
* Improving transitions of care, such as after hospital discharge or when leaving the emergency department.
* Addressing social factors influencing health and well-being.
* Chronic illness management.
Patient-centered primary care encompasses strategies and services oriented around the patient to achieve their best health. Clinical and non-clinical experts support the care needs of the population working together in team-based care. Community care associates in rural areas are critically important to improve care outcomes by facilitating access, adding value to the health care team, and enriching the quality of life for their patients, including those who are poor, underserved, and in racial and ethnic minority communities.
At the core of patient-centered care is connection via the EHR. This critical tool allows providers to facilitate care with closed loop referral processes to ensure patients receive timely access to specialists and that the primary care provider remains involved in the patient's care throughout their journey. Several tools connected to the EHR support timely, efficient communication between patients and providers, including Essentia's online patient portal, our Nurse Care Line program, and Virtual Visits on Demand. This improves the patient's journey and engages them in the continuum of care. Care coordination identifies and supports patients with high-risk conditions by helping to arrange services and communicate with multiple providers while transitional care management services help patients transition between hospitalization and community setting.
While collecting data on social determinants of health helps to establish intervention plans, creating connections to community-based organizations is critical in addressing the social factors influencing health.
Expansion to new partners and payers
Much like health care providers, government and commercial health plans are at varying levels of maturity in the value-based care journey. While through the years our government payer programs have been primarily in Medicare and Minnesota Medicaid, we are pleased that the
While the government remains a key part of value-based payment strategy, private payer partnerships are just as fundamental to success.
Accountability
Oversight and accountability are key to advancing the journey from volume to value. We have developed a governance model with oversight committees with clinical and administrative leaders within
Transparency on performance brings everyone together to identify improvement strategies that support the achievement of standard work through process and care design. We set targets for achievement that can measurably improve outcomes, and we have developed the tools needed to track progress. Examples include dashboards to monitor clinical quality metrics, surgical outcomes, and hospital inpatient length of stay.
Success in Value-based Care
From 2018 to 2021,
Value-based care is a continuous journey as we learn, evolve, and expand our efforts across our organization.
Outcomes from our value-based care programs include:
* Medicare Shared Savings Program (MSSP) savings
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* Nearly 40% of our revenue flowing through value-based programs.
* Approximately 80% of value-based contracts having downside risk.
We have demonstrated our commitment to providing affordable, high-quality health care services for our patients and communities. As a participant in MSSP since 2013,
Quality of care has not been comprised but enhanced in our journey. While focusing on care coordination, appropriate utilization, improving outcomes and lowering cost, our quality of care has continued to increase. This year,
Learnings and Recommendations to Rural Health Care Providers
We have implemented a system and created a culture that supports value-based care to many communities and care sites that have joined
To be successful in value-based care, it starts with a desire and commitment to start the journey and achieve the goals. A culture of teamwork and care management is key to building a valuebased care program. For small and rural practices, a foundation of EHR and other
A common electronic health record with strong population health capabilities is necessary to understand social determinants of health and preventative care interventions. Health care providers must also be able to access measurement and data resources to track progress and develop local insights in care successes and care gaps to be addressed. They also benefit from tools for standardizing metrics across programs.
In rural areas, health systems must extend their capabilities by partnering with community resources to address local non-medical needs. Connecting to other social services is a critical part of population health improvement, including access to healthy food, transportation, and housing.
Other key learnings include:
* Set short-term goals that reward development and implementation of the infrastructure with a path to more complex models in later years.
* Align all payers within the same model redesign so rural value-based care participants do not have the burden of managing multiple different systems.
* Design models to accommodate lower patient volumes in rural settings to assist with setting benchmarks and targets and in the management of outlier cases.
Public Policy Recommendations
What policymakers can do to advance value-based care to the next level Policymakers play an important role in supporting value-based care.
Continued support for critical resources
Extend the Bonus Payment for Advanced Alternative Payment Models (APMs)
Enacted in the Medicare Access and CHIP Reauthorization Act (MACRA),
Protect the 340B Prescription Drug Discount Program
The 340B Prescription Drug Discount Program helps rural hospitals stretch limited federal resources and is used to support health services and programs throughout our communities.
Protecting this program is crucial for rural hospitals. The savings help provide essential services to their communities, but unfortunately the program is also coming under attack from drug manufacturers placing unlawful restrictions on covered entities, negatively impacting hospitals and the ability to acquire prescription drugs under the program.
Reduce regulatory burden
The COVID-19 pandemic brought unprecedented challenges and strain on
Continue to remove regulatory barriers to improve access to telehealth
Throughout the pandemic, telehealth and virtual platforms has increased access and safely provided appropriate levels of care.
Extend the 96-hour rule waiver for Critical Access Hospitals (CAH)
CAHs are required to maintain an average patient length-of-stay under 96 hours but was waived during the PHE. 21 With the PHE now expired, CAHs are faced with compliance risk of the 96-hour rule while continuing to provide services to patients that cannot be discharged in a timely manner.
Enhance value-based payment models
Enact the Value in Health Care Act
Introduced in the previous
Incentivize Participation in Alternative Payment Models (APMs)
To incentivize APM participation, it is essential to remove barriers and give additional flexibility and tools to innovate care. Specifically,
Establish Alignment and Parity Between Alternative Payment Model (APM) and Medicare Advantage (MA) Program Requirements Overall, we support increased alignment between APMs and the MA program to ensure that APMs are not disadvantaged. This includes establishing parity between program flexibilities and network adequacy requirements including telehealth to reduce clinician burdens and improve patient access to care. Additionally,
Conclusion
On behalf of
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Appendix A: Map of income and poverty levels in
Appendix B: Financial performance indicates savings achieved under benchmark while quality remained at a high level
Appendix C: Minneosta Community Measurement Results
We are called to make a healthy difference in people's lives.
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Notes
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9 Dobis and Todd, The Most Rural Counties have Fewest Health Care Services Available.
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14 "Leveraging Position as an Economic Anchor to Improve Health Equity," Rural Health Information Hub, Accessed
15 https://www.essentiahealth.org/about/facts-figures/
16 "NHE Fact Sheet, Historical HE, 2021,"
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19 Consolidated Appropriations Act, 2023, Public Law No: 117-328, https://www.congress.gov/bill/117thcongress/house-bill/2617 (Accessed
20 Consolidated Appropriations Act, 2023.
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22 Value in Health Care Act of 2021, H.R. 4587, https://www.congress.gov/bill/117th-congress/house-bill/4587 (Accessed
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URL:
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Original text here: https://www.finance.senate.gov/imo/media/doc/Herman%20Written%20Testimony.pdf



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