Health Care Rounds

Why Accountable Care Models Are So Important w/ Bill Lane

Episode Summary

Having equal access to quality health care across the United States shouldn't be a privilege, but a reality. Yet, seniors battling multiple chronic conditions often face disparities. The challenges are significant, from struggling to reach appointments to affording basic needs. Enter Accountable Care Organizations (ACOs). Are they the answer to improving coordinated care and reducing costs for seniors? In this episode of Health Care Rounds, Bill Lane joins John to explore how Accountable Care Organizations (ACOs) are transforming health care delivery, particularly for seniors.

Episode Notes

ABOUT HEALTH CARE ROUNDS 

Health Care Rounds is a weekly podcast developed for health care leaders who are at the forefront of health care delivery and payment reform. Join Darwin Research Group founder and CEO John Marchica as he discusses the latest advancements in healthcare business news and policy developments. 

ABOUT BILL LANE 

Bill is ilumed’s Executive Vice President of Network Development, leading the ACO REACH’s contracted provider and beneficiary growth over 200% from 2022 to 2024. Prior to ilumed, he spent over 15 years with Humana and held leadership roles in hospital/hospital system contracting, alternative payment model creation and deployment, including the nationwide lead for Humana’s adoption of CMS’ Primary Care First model. Before Humana, Bill was with the national PPO, MultiPlan for over ten years, where he held progressively responsible network leadership roles in the southeast. 

Bill and his wife of 32 years, Kathy, live in south Florida, where he enjoys golf most of the time and looks forward to welcoming his three grown children home as much as possible.

ABOUT JOHN MARCHICA, HOST OF HEALTH CARE ROUNDS 

John Marchica is a veteran health care strategist and CEO of Darwin Research Group, a strategic consulting and market intelligence firm focused on hospitals, health systems, physician groups, and the evolving health care ecosystem. John has a degree in economics from Knox College, an MBA and M.A. in public policy from the University of Chicago, and completed his Ph.D. coursework at The Dartmouth Institute. He is an active member of the American College of Health care Executives and is pursuing certification as a Fellow. 
 

Episode Transcription

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Welcome to Health Care Rounds.

 

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I'm John Marchica, your host today, and

I'm really excited.

 

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I'm going to be speaking with Bill Lane,

Executive Vice President of Network

 

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Development at Ilamed.

 

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So Bill has spent, he's spent over 15

years with Humana and has had many

 

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leadership roles regarding hospital system

contracting, alternative payment models.

 

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I mean, actually was part of Humana's

adoption of

 

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CMS' first, or primary care first model.

 

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So we're going to get into more of his

background here, but today the focus is on

 

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value -based care, accountable care

organizations, and why we need to pay

 

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attention to these things.

 

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And what sort of what the state of the

union is today.

 

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So Bill, thank you so much for taking time

to talk.

 

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I really appreciate it.

 

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My pleasure.

 

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So we were talking for just a minute

before we started recording and I...

 

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And I said, you know, I really feel like,

you know, where we are today, it's almost

 

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like population health, this term that

everybody throws around population health,

 

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pop elf, are you in pop health?

 

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Yeah, I'm in pop.

 

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But it means different things to different

people.

 

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And it's almost like it's taken on this,

this, era of almost like it doesn't mean

 

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anything.

 

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So that's kind of how I feel about value

-based care.

 

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Like a lot of people have a sense of what

it's about, but.

 

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maybe definitionally, they're not quite

there on really what we're talking about.

 

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And so maybe a good place to start from

your perspective, if we were to roll back

 

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the clock to like the, you know, late

eighties, nineties and managed care

 

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revolution, right?

 

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Talk to me about where we were at that

point in time.

 

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And then when we started to see the sort

of

 

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idea of value -based care take shape?

 

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Hmm.

 

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Well, that's a, it's a big question.

 

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That's a big question.

 

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well, understand, you know, I'm, I'm, I'm

not that old, but old enough to remember,

 

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back in the day when, you know, your

parents were guiding you through your life

 

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and you know, you want to get a good job

with insurance, right?

 

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Right.

 

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Make sure that insurance.

 

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And I'm talking as far back to the early

eighties, you know, when I was graduating

 

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high school and going into college and,

you know, back when you had employer

 

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sponsored healthcare, it was an indemnity

plan and health health plans were known,

 

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you know, the Cadillacs, right?

 

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Blue Cross, Blue Shield, indemnity, go to

any doctor you want.

 

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And the physician, the provider is

indemnified for that covered service.

 

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And then you have, you know, usual and

customary and all these terminologies.

 

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It's whether people are aware, or have an

understanding of what those terms were.

 

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There was little attention paid to, my

God, HMOs, you know, that was a dirty

 

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word, dirty, dirty acronym, right?

 

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Yeah.

 

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Well, I mean, just to interrupt briefly

the, the, the insurance that you're

 

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talking about, the indemnity insurance,

 

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If we have anybody like under 40, I'm not

that old either, Bill, you and I are about

 

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the same age.

 

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So let's just say we're both we're both

young.

 

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But anybody under 3035, they might not

even know what that is.

 

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I mean, that's like, the way I describe it

is it's it's almost like your car

 

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insurance.

 

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And of course, you pay a premium.

 

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Your car insurance isn't paid for by your

employer, the indemnity insurance very

 

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often was right, or at least most of it

was paid for.

 

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And then all of the machinations and the

agreements and everything was kind of

 

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happening in the background.

 

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And maybe you would get a bill, right?

 

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This is what this is what was not covered.

 

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And now you've got to write a check for

your whatever part of the doctors,

 

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whatever the difference was, but it

operated very much so like car insurance.

 

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And then into the dirty word, as you said,

HMO, what was different about that?

 

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Yeah.

 

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So population health value based care,

alternative payment models.

 

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weren't even a gleam in people's eyes back

in the, to any great extent, right?

 

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In the eighties.

 

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And it was largely driven not by Medicare,

but by private health insurance, you know,

 

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starting with the HMO Act in 74, you know,

Kaiser Permanente latched onto that and

 

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their staff model.

 

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I'm gonna throw some, probably add fuel to

the fire of confusion.

 

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That's okay.

 

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The acronyms, right?

 

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That's fine.

 

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But then you had...

 

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an initiative where how can we best

control care, managed care?

 

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How do you manage the care?

 

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Hopefully not to the detriment of the

wellness of those patients being treated,

 

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but for the cost of care.

 

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It was really largely a cost model.

 

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We're going back to the 70s, early 80s,

the introduction as a diversion from

 

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health maintenance organizations where you

had the pre -authorizations, the referrals

 

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and so forth.

 

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PPO's preferred provider networks,

basically HMO Lite.

 

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You didn't need a referral.

 

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They were broader networks and they did

cost more money in terms of premium, but

 

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that seemed to be the solution.

 

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And I'm talking from the lens of, from the

health carrier.

 

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So PPO's, those preferred provider

networks proliferated largely.

 

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And that became kind of the currency of

value -based care.

 

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not really value -based care, but in terms

of managed care.

 

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So it wasn't really until the 90s that it

became a little more better understood of,

 

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I have a PPO.

 

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I can only see these doctors on this

printed directory.

 

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Otherwise I'm out of network and I'll have

to pay the freight like an indemnity plan.

 

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And that didn't go sober because then they

have out of network claims and so forth.

 

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Urgent and emergent care was cared for as

a network and so forth.

 

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But the advent of what we now know as

value -based care, really its origins hark

 

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back to those times where you had either a

gated network, in other words, the

 

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referral required or a PPO, still the

conundrum of making care effective and

 

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cost effective, most importantly, that

became the onus of a lot of private

 

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insurance companies.

 

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So think of Blue Cross Blue Shield, Aetna.

 

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Humana, where I came from and so forth and

some of the smaller players.

 

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Again, from our perspective, what we

hopefully wouldn't talk about is

 

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alternative payment models or value -based

care and the Medicare space.

 

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It wasn't until the passage of the

Affordable Care Act, back in the early

 

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aughts where you had CMS by, by that

legislation creating the centers of

 

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Medicare and Medicaid.

 

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innovation.

 

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Okay.

 

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And that was the advent of accountable

care organizations going back to 2012, the

 

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pioneer model was the first dip of the toe

into the value -based care arena or

 

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alternative payment models, which CMS

launched the pioneer model.

 

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And then from there expanded that reach to

what we now know as MSSP, Medicare Shared

 

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Savings Program.

 

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the hundreds of ACOs out there that are

participating in that program, and

 

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there've been iterations above and beyond

that.

 

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Okay, not answering the question, right?

 

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That's right.

 

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That's right.

 

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So, but before you answer the question, I

just want to put some context.

 

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I've talked about this before, probably,

and in healthcare rounds, but just to put

 

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it in context of my role in all of this.

 

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So when I started in graduate school, the

first time around, I was at Chicago,

 

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And I got a I got an inch I got lucky

actually, through a contact, I got an

 

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internship.

 

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My my internship was for the American

Association of Preferred Provider

 

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Organizations.

 

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sure.

 

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And they were doing an employer survey.

 

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And so my internship was to conduct a

survey is probably a couple 100 people

 

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somewhere in my mementos box, I still have

a copy of the results of this.

 

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Because it was one of my first projects

that I worked on.

 

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So I had that familiarity pretty early on

I started working on that project back in,

 

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gosh, 1988.

 

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And then I was the managed care analyst at

Abbott.

 

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So I had exposure at that time to the

dirty words, the HMOs, right, the dirty

 

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acronyms.

 

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Although I don't think that we really

approached it that way.

 

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But it was kind of like in the early 90s,

it was this new customer class, you know,

 

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that you really had to work with.

 

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And but the thing that I would say is, at

that time, the managed care, at least the

 

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perception was that it was all that you

could get to where you wanted to go by

 

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cutting, by denying claims, or cutting

costs.

 

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And there really wasn't at least, again,

this is retrospectively looking back.

 

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a lot of talk about the AAA, which didn't

come about until what, one or something

 

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like that.

 

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Yeah.

 

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And then the final piece of the puzzle,

then I'll turn it back to you.

 

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When I went back to school, the second

time around, at Dartmouth, in our doctoral

 

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seminars, we were talking about these

value based care models.

 

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I mean, that was among other things, but

that was part of it.

 

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And, you know, Elliot Fisher from

Dartmouth was one of the people who

 

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And actually, you can see him on

healthcare rounds.

 

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And I think an episode we did a few years

ago, but Elliott Fisher being kind of that

 

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ACO, I don't know, father of the ACOs,

sometimes he gets credit in that area.

 

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But we were looking at these models back

in 06, 07, you know, kind of like, as just

 

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different, different ways to pay for

different models for paying for healthcare

 

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and delivering healthcare.

 

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So fast forward now back to you, Bill and

 

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the Affordable Care Act and all these

different models.

 

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And then back to the original question,

which was around, you know, how value

 

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-based care evolved from this concept of

managed care and why they're different.

 

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Yeah, it's really, it's almost stupefying

in terms of the amount of information out

 

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there.

 

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It's overwhelming to most people, even

myself included at times as to where do I

 

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start?

 

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And when I hear population health, value

-based contracting, value -based care,

 

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accountable care, they're used to a degree

interchangeably because there's a lot of

 

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common threats.

 

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starting with population health.

 

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So let's talk pop health and what do we

mean by population health and improving

 

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the health, well -being, quality of care,

reducing social inequities in healthcare

 

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delivery for an entire population.

 

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So that's the, from my eyes, right or

wrong, the overarching concept of

 

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population health.

 

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Sure, we want people to be healthy.

 

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We want people to...

 

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live longer and high quality of life,

quality of life, not just prolonging life

 

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for the sake of prolonging life, but

improving the population, regardless of

 

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race, creed, rural, urban, suburban, et

cetera.

 

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that's our main focus.

 

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And from my perspective as being part of

an accountable care organization and we'll

 

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talk great segue.

 

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What's a kind of care.

 

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Okay.

 

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Well,

 

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It's really drilling down.

 

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It's more of a vehicle to achieve

population health.

 

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So in a accountable care organization, we

can talk about what does accountable care

 

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mean?

 

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And I believe most physicians bristle,

rightly so, accountable care.

 

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I'm accountable.

 

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I'm a physician.

 

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I'm the primary care physician for this

patient or this patient panel, whether

 

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it's 500 or 5 ,000, I'm accountable.

 

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How dare you say I'm going to be in an

accountable care organization.

 

205

00:12:58,280 --> 00:12:59,450

My goodness.

 

206

00:12:59,450 --> 00:13:01,790

And I take I get that.

 

207

00:13:01,790 --> 00:13:02,910

I'm not a clinician.

 

208

00:13:02,910 --> 00:13:07,070

I took biology and I think I skated by

with a C plus.

 

209

00:13:07,070 --> 00:13:12,010

And that's the extent of my life sciences

training.

 

210

00:13:12,130 --> 00:13:16,990

But, you know, I've been in this business

for 30 years.

 

211

00:13:16,990 --> 00:13:17,980

I grew up.

 

212

00:13:17,980 --> 00:13:20,700

My mother was actually an office manager

for a pulmonologist.

 

213

00:13:20,700 --> 00:13:23,502

I can recall doing my homework in the

chart room.

 

214

00:13:23,502 --> 00:13:26,382

before PHI requirements.

 

215

00:13:26,382 --> 00:13:30,062

And I sat there on the charts doing my

math workbook in fifth grade.

 

216

00:13:30,062 --> 00:13:36,552

But the point is I'm very much attuned to

physicians' perspective.

 

217

00:13:36,552 --> 00:13:42,682

We're not suggesting anything that is not

accurate, that physicians, of course, are

 

218

00:13:42,682 --> 00:13:43,162

accountable.

 

219

00:13:43,162 --> 00:13:44,582

They're doing a great job.

 

220

00:13:44,582 --> 00:13:51,702

How can we improve the delivery of care

without impairing their, not getting in

 

221

00:13:51,702 --> 00:13:52,634

their way?

 

222

00:13:52,686 --> 00:13:58,646

but empowering them with the tools to do

even a greater job at the top of their

 

223

00:13:58,646 --> 00:13:59,946

license.

 

224

00:14:00,646 --> 00:14:03,746

Accountable care is a vehicle to

accomplish that.

 

225

00:14:03,746 --> 00:14:06,526

So what do we mean by accountable care?

 

226

00:14:06,526 --> 00:14:10,026

Really, it's these two facets to it.

 

227

00:14:10,026 --> 00:14:14,466

There's the cost equation and there's the

outcomes equation.

 

228

00:14:14,466 --> 00:14:16,566

And hopefully they intersect, right?

 

229

00:14:16,566 --> 00:14:21,710

So if you're doing a good job in terms of

care management, seeing your patient,

 

230

00:14:21,710 --> 00:14:26,810

keeping them out of the hospital for

unnecessary admissions, keeping them post

 

231

00:14:26,810 --> 00:14:32,370

-discharge, going back to the hospital for

another 30 -day readmission, keeping

 

232

00:14:32,370 --> 00:14:34,620

control of their polychronic condition.

 

233

00:14:34,620 --> 00:14:41,090

And most seniors have more than one

condition, whether it's diabetes, COPD,

 

234

00:14:41,430 --> 00:14:44,050

chronic kidney disease, among other

things.

 

235

00:14:44,050 --> 00:14:49,470

How can we help that, and I'm talking

primary care, specialists are a whole

 

236

00:14:49,470 --> 00:14:50,900

nother conversation.

 

237

00:14:51,310 --> 00:14:55,430

But when I'm talking about is where the

rubber hits the road with those primary

 

238

00:14:55,430 --> 00:15:00,190

care physicians and how can we help

empower them to be not more accountable,

 

239

00:15:00,190 --> 00:15:07,170

but more effective in the cost and quality

of delivery of health care.

 

240

00:15:07,170 --> 00:15:11,210

And that's really what accountable care

organizations hope to accomplish.

 

241

00:15:11,210 --> 00:15:16,550

And there are many out there that are

doing a phenomenal job improving the care

 

242

00:15:16,550 --> 00:15:20,150

delivery, helping the physician,

empowering them, especially with the

 

243

00:15:20,150 --> 00:15:20,942

headwinds.

 

244

00:15:20,942 --> 00:15:26,742

of overhead staffing, EMR systems, people

knocking your door, selling all the

 

245

00:15:26,742 --> 00:15:28,082

different things that they do.

 

246

00:15:28,082 --> 00:15:31,142

There's a lot of distractions out there.

 

247

00:15:31,142 --> 00:15:37,062

So an accountable care organization helps

facilitate that and can help you with that

 

248

00:15:37,062 --> 00:15:41,582

glide path, that journey with your

patients and not just, again, improving

 

249

00:15:41,582 --> 00:15:46,522

the bottom line, but also improving the

care and delivery to those aligned

 

250

00:15:46,522 --> 00:15:48,562

patients that you have.

 

251

00:15:49,222 --> 00:15:50,606

You know, I wanted to make a

 

252

00:15:50,606 --> 00:15:52,326

a couple of comments.

 

253

00:15:52,326 --> 00:15:58,666

The first is when you mentioned the

doctors and their initial reaction, we

 

254

00:15:58,666 --> 00:16:00,826

definitely saw a lot of that initially.

 

255

00:16:00,826 --> 00:16:08,366

And if you went to, you know, kind of like

2016, 2017, some of the ACO conferences

 

256

00:16:08,366 --> 00:16:14,166

that were out there, I think by that time,

most of the doctors, at least the ones

 

257

00:16:14,166 --> 00:16:17,386

that go to those conferences had

completely drank the Kool -Aid.

 

258

00:16:17,386 --> 00:16:17,986

Yeah, right.

 

259

00:16:17,986 --> 00:16:20,750

I mean, they were all in on the model.

 

260

00:16:20,750 --> 00:16:28,130

One of the things though that I think

criticisms, I don't know, maybe that's too

 

261

00:16:28,130 --> 00:16:33,390

heavy of a word of the ACO model, is that

people say, especially doctors will say

 

262

00:16:33,390 --> 00:16:36,910

this, hey, my patients are accountable

too.

 

263

00:16:36,910 --> 00:16:44,878

And when you think about the diabetic

patient that refuses to stay on her diet,

 

264

00:16:44,878 --> 00:16:49,838

or the smoker that refuses to stop

smoking, or any other whole host of things

 

265

00:16:49,838 --> 00:16:54,478

that doctors deal with, the primary care

doctors deal with, that they say, you

 

266

00:16:54,478 --> 00:16:56,738

know, how do we get the patient to be more

accountable?

 

267

00:16:56,738 --> 00:17:03,138

Because, hey, if I'm accountable for my,

you know, hemoglobin A1c scores through

 

268

00:17:03,138 --> 00:17:08,398

the ACO, well, my patients, I don't have

control over them, but they need to learn

 

269

00:17:08,398 --> 00:17:10,178

to be accountable too.

 

270

00:17:10,178 --> 00:17:12,632

But I don't want, and maybe,

 

271

00:17:12,814 --> 00:17:14,904

So there's that, there's that component,

right?

 

272

00:17:14,904 --> 00:17:17,374

I'm sure you've heard that a lot on

patient accountability.

 

273

00:17:17,374 --> 00:17:18,594

Absolutely.

 

274

00:17:18,594 --> 00:17:19,594

Right.

 

275

00:17:19,594 --> 00:17:25,764

And then the other thing is I don't want

to, I don't want to gloss over this.

 

276

00:17:25,764 --> 00:17:29,244

You said costs and outcomes, and I want

you to talk a little bit more about that.

 

277

00:17:29,244 --> 00:17:36,814

But for me, you know, when you think about

the triple aim and I've been working on

 

278

00:17:36,814 --> 00:17:37,486

kind of this,

 

279

00:17:37,486 --> 00:17:41,746

grumpy piece about why it's not a good

idea to say things like quadruple aim and

 

280

00:17:41,746 --> 00:17:44,346

quintuple aim and all of these other

sextuple aim.

 

281

00:17:44,346 --> 00:17:50,066

I'm sure we'll have that by 2025, but the

general concept of you can actually

 

282

00:17:50,066 --> 00:17:58,366

provide better care for either the same

cost or for lower costs is foreign to a

 

283

00:17:58,366 --> 00:18:04,666

lot of people because I think that we

equate price with value or I mean, just

 

284

00:18:04,666 --> 00:18:05,518

think of it, you know, like,

 

285

00:18:05,518 --> 00:18:08,938

going to buy a Ferrari or you're going to

buy Honda, you know, you're going to buy

 

286

00:18:08,938 --> 00:18:14,318

an Armani suit or you know, you know, off

the rack at, you know, men's warehouse.

 

287

00:18:14,318 --> 00:18:16,078

And we use price as a signal.

 

288

00:18:16,078 --> 00:18:18,818

And we think about those things.

 

289

00:18:18,818 --> 00:18:21,647

We've applied it to healthcare in some

way.

 

290

00:18:21,647 --> 00:18:26,258

And the ACO model says, Well, wait a

minute, and this comes back to the, you

 

291

00:18:26,258 --> 00:18:33,158

know, Don Berwick and the IHI and all

that, hey, we can if we if we do this,

 

292

00:18:33,158 --> 00:18:34,702

right, we can actually take

 

293

00:18:34,702 --> 00:18:38,882

better care of populations and save money.

 

294

00:18:38,882 --> 00:18:43,842

And all the while have people have a

better experience with healthcare.

 

295

00:18:43,922 --> 00:18:48,022

And I just I don't think that we can

underscore that enough that that's for a

 

296

00:18:48,022 --> 00:18:49,242

lot of people.

 

297

00:18:49,242 --> 00:18:54,142

If we were to go back in time, the

mismanaged care days, people would say,

 

298

00:18:54,142 --> 00:18:56,902

Well, wait a minute, no, you just you pay

more, you get better care.

 

299

00:18:56,902 --> 00:19:00,992

Or if you want to reduce costs, you just

don't approve things, right?

 

300

00:19:00,992 --> 00:19:02,862

That old managed care mindset.

 

301

00:19:02,862 --> 00:19:06,742

But that's not what accountable care or

value -based care models are saying.

 

302

00:19:06,742 --> 00:19:12,882

It's saying how do we improve care while

not ringing the cash register or

 

303

00:19:12,882 --> 00:19:14,472

constantly increasing?

 

304

00:19:14,472 --> 00:19:15,502

How do we make it better?

 

305

00:19:15,502 --> 00:19:17,522

How do we improve outcomes?

 

306

00:19:18,502 --> 00:19:24,242

And so the nuts and bolts of the way that

I describe the ACO model, and please tell

 

307

00:19:24,242 --> 00:19:27,526

me if I'm wrong on this, is if...

 

308

00:19:28,110 --> 00:19:31,930

you know, see, if we just look at the

Medicare example, but a lot of the

 

309

00:19:31,930 --> 00:19:34,610

commercial ones try to be similar to this.

 

310

00:19:34,610 --> 00:19:39,390

And the Medicare example says, Look, we

think it's 2024, we're going to look

 

311

00:19:39,390 --> 00:19:40,470

forward to 2025.

 

312

00:19:40,470 --> 00:19:43,270

And we think you're going to spend this

much money.

 

313

00:19:43,550 --> 00:19:43,660

Right?

 

314

00:19:43,660 --> 00:19:47,910

Are you going to get reimbursed by this

much money, we're going to project that.

 

315

00:19:47,910 --> 00:19:50,170

And then 2025 happens.

 

316

00:19:50,170 --> 00:19:55,490

And then at some point in 2026, we look

back and we say, Well, we had a

 

317

00:19:55,490 --> 00:19:57,774

projection, we had a budget of what

 

318

00:19:57,774 --> 00:20:03,994

we think that you would have spent on this

population of people, given how sick these

 

319

00:20:03,994 --> 00:20:07,554

people have been, all risk adjusted and

all of that.

 

320

00:20:07,554 --> 00:20:14,754

And if you came in under budget, great,

we're gonna have what's called shared

 

321

00:20:14,754 --> 00:20:15,954

savings.

 

322

00:20:16,474 --> 00:20:21,834

And at least in a full risk model or two

sided risk model, if you come in over

 

323

00:20:21,834 --> 00:20:26,190

budget, if you spent more or were

reimbursed more technically,

 

324

00:20:26,190 --> 00:20:30,070

you spent more than we said you were going

to spend, then you got to write a check to

 

325

00:20:30,070 --> 00:20:30,850

the government.

 

326

00:20:30,850 --> 00:20:34,520

And we're going to split those losses,

right?

 

327

00:20:34,520 --> 00:20:40,130

So if we said you were going to spend 110

million, and you spend 120, that $10

 

328

00:20:40,130 --> 00:20:44,930

million is going to have to be paid for

somehow, and half of it's going to come

 

329

00:20:44,930 --> 00:20:46,090

out of your pocket.

 

330

00:20:46,090 --> 00:20:46,750

Did I?

 

331

00:20:46,750 --> 00:20:48,430

Did I say that?

 

332

00:20:48,430 --> 00:20:49,670

Is that about right, Bill?

 

333

00:20:49,670 --> 00:20:55,310

Yeah, well, there's a there's a common, a

common theme when we

 

334

00:20:55,310 --> 00:20:57,930

People talk about a kind of a care

organizations.

 

335

00:20:57,930 --> 00:21:01,310

It's all about the benchmark.

 

336

00:21:01,890 --> 00:21:04,930

Yeah, that's what you just said.

 

337

00:21:04,930 --> 00:21:11,170

And as well for us to give some context, I

represent an ACO REACH model.

 

338

00:21:11,170 --> 00:21:17,770

So you have the MSSP's A, B, C, D, E

enhanced, next generation is gone, was

 

339

00:21:17,770 --> 00:21:23,510

superseded to a large extent by direct

contracting the DCE model program, which

 

340

00:21:23,510 --> 00:21:24,742

has now been

 

341

00:21:25,294 --> 00:21:27,394

overtaken by ACO Reach.

 

342

00:21:27,394 --> 00:21:34,294

So I sit squarely within an ACO Reach

global risk model, 100 % part A and part

 

343

00:21:34,294 --> 00:21:35,494

B, not D.

 

344

00:21:35,494 --> 00:21:40,134

So for all those original Medicare

beneficiaries that we're responsible for

 

345

00:21:40,134 --> 00:21:47,094

in 14 states, 74 ,000 and change,

traditional Medicare beneficiaries, we're

 

346

00:21:47,094 --> 00:21:52,714

responsible for the total cost of care for

Medicare reimbursement.

 

347

00:21:52,714 --> 00:21:54,382

We've performed the function.

 

348

00:21:54,382 --> 00:21:55,022

as a payer.

 

349

00:21:55,022 --> 00:22:00,462

So the ACO REACH is significantly

different than MSSP where CMS continues to

 

350

00:22:00,462 --> 00:22:01,422

pay the claims.

 

351

00:22:01,422 --> 00:22:07,182

So the ACO REACH model, we're the

delegated payer for physicians, for

 

352

00:22:07,182 --> 00:22:09,382

primary care physicians in particular.

 

353

00:22:09,382 --> 00:22:09,782

Okay.

 

354

00:22:09,782 --> 00:22:12,442

So with that, we can get creative.

 

355

00:22:12,442 --> 00:22:18,182

And so how to build that platform to

incentivize the, again, that, that best

 

356

00:22:18,182 --> 00:22:19,822

practice behavior.

 

357

00:22:19,822 --> 00:22:22,002

That's one side.

 

358

00:22:22,002 --> 00:22:24,014

You, you teased out another.

 

359

00:22:24,014 --> 00:22:25,934

patient behavior.

 

360

00:22:25,934 --> 00:22:29,674

So how can we make that marriage as happy

as possible?

 

361

00:22:29,674 --> 00:22:34,804

The PCPs and the patients, those aligned

beneficiaries.

 

362

00:22:34,804 --> 00:22:38,534

And there's a couple ways that the

traditional Medicare beneficiaries are

 

363

00:22:38,534 --> 00:22:43,634

aligned to a PCP that we contract with and

we're the claim payer for.

 

364

00:22:43,634 --> 00:22:48,334

It's either claims -based, CMS tells us

the aligned beneficiaries to that PCP we

 

365

00:22:48,334 --> 00:22:52,622

have in a contract, or in the instance

where they're seeing that PCP,

 

366

00:22:52,622 --> 00:22:55,142

they have the ability to voluntarily

align.

 

367

00:22:55,142 --> 00:22:56,332

And why would they do that?

 

368

00:22:56,332 --> 00:23:01,302

Because ACA reaches such as my

organization, we offer beneficiary

 

369

00:23:01,302 --> 00:23:02,462

enhancements.

 

370

00:23:02,462 --> 00:23:07,002

So there's a couple of things that we

approach, cost sharing, cost share

 

371

00:23:07,002 --> 00:23:07,682

support.

 

372

00:23:07,682 --> 00:23:13,222

So instead of you paying the 20 % to see

that PCP for your, whether it's annual

 

373

00:23:13,222 --> 00:23:16,422

visit, hopefully it's more, I'll get to

that in a moment.

 

374

00:23:16,422 --> 00:23:17,922

We take that.

 

375

00:23:17,922 --> 00:23:21,518

In other words, we pay the PCP for that

cost share.

 

376

00:23:21,518 --> 00:23:24,158

removing a barrier to that care.

 

377

00:23:24,158 --> 00:23:28,698

So a lot of instances a patient will say,

we have patient outreach, non -clinical

 

378

00:23:28,698 --> 00:23:32,178

that reaches out to those line

beneficiaries and saying, hey, it's been

 

379

00:23:32,178 --> 00:23:34,028

two months since you've seen your primary

care.

 

380

00:23:34,028 --> 00:23:37,858

It's like, well, it's either I eat or I

see the doctor.

 

381

00:23:37,918 --> 00:23:44,258

Some people are in that scenario for their

socioeconomic situation, they can't afford

 

382

00:23:44,258 --> 00:23:47,438

that cost share, that 20 % of that part P

cost.

 

383

00:23:47,718 --> 00:23:50,058

So they go, wait.

 

384

00:23:50,542 --> 00:23:52,752

It's no cost to you to see your PCP.

 

385

00:23:52,752 --> 00:23:53,322

What's that?

 

386

00:23:53,322 --> 00:23:54,662

You need transportation.

 

387

00:23:54,662 --> 00:23:59,202

Yet another beneficiary enhancement, the

ACO reach affords us to deploy.

 

388

00:23:59,202 --> 00:24:02,042

We can provide transportation to the PCP.

 

389

00:24:02,042 --> 00:24:03,742

Again, no cost.

 

390

00:24:03,742 --> 00:24:08,402

And some other bills and whistles that we

have, you know, chronic care reward

 

391

00:24:08,402 --> 00:24:09,282

program.

 

392

00:24:09,282 --> 00:24:14,482

If they adhere to a treatment plan,

there's a gift card that we can put out

 

393

00:24:14,482 --> 00:24:14,802

there.

 

394

00:24:14,802 --> 00:24:19,662

So on the patient side, we meet them where

they are as well.

 

395

00:24:19,662 --> 00:24:25,662

And in terms of the PCP, we provide them

with upfront per beneficiary per month

 

396

00:24:25,662 --> 00:24:30,702

upfront cash, no cost, no recovery, no

clawback.

 

397

00:24:30,702 --> 00:24:35,082

That's an investment that the ACO Illumid

does for those PCPs.

 

398

00:24:35,082 --> 00:24:39,982

So the expectation is that they will see

the patient at least four times once a

 

399

00:24:39,982 --> 00:24:41,362

quarter, four times a year.

 

400

00:24:41,362 --> 00:24:43,842

And with that, a lot of magic happens.

 

401

00:24:43,842 --> 00:24:47,758

You can, you can get ahead of those.

 

402

00:24:47,758 --> 00:24:52,578

conditions that are either being not

treated or maybe not even diagnosed.

 

403

00:24:52,578 --> 00:24:58,158

So a lot of people have, when I say

dormant, unidentified conditions that can

 

404

00:24:58,158 --> 00:25:03,138

be addressed if they're seeing the

physician on a regular basis.

 

405

00:25:03,658 --> 00:25:05,418

And with that, yeah, go ahead.

 

406

00:25:05,418 --> 00:25:06,698

Just quick, quick question.

 

407

00:25:06,698 --> 00:25:10,268

What is your compliance like on that?

 

408

00:25:10,268 --> 00:25:14,894

If your goal is once a quarter, what's the

reality of?

 

409

00:25:14,894 --> 00:25:19,674

what you're seeing with patients in this

model, how often that they actually make

 

410

00:25:19,674 --> 00:25:20,574

it in?

 

411

00:25:20,574 --> 00:25:25,934

It's probably in the mid to high 50s.

 

412

00:25:25,934 --> 00:25:31,874

So 50 % of our PCPs and our contractors

seen our patients four times a year.

 

413

00:25:31,874 --> 00:25:33,614

That's incredible.

 

414

00:25:33,774 --> 00:25:38,274

That's, I mean, because the way I'm

thinking of it, if you can get somebody in

 

415

00:25:38,274 --> 00:25:41,702

at least once a year, but if you can beat

that.

 

416

00:25:41,710 --> 00:25:44,770

and have them coming in two, three, four

times a year.

 

417

00:25:44,770 --> 00:25:51,530

To your point, you're flagging things

before they become a problem, hopefully.

 

418

00:25:51,530 --> 00:25:54,690

Or if they have chronic conditions,

they're being better managed because

 

419

00:25:54,690 --> 00:25:56,850

they're being seen more frequently.

 

420

00:25:57,090 --> 00:26:02,510

And I would think there's a kind of a

knockoff effect of patients sort of

 

421

00:26:02,510 --> 00:26:07,822

feeling more accountable in the sense that

just they're engaging more often.

 

422

00:26:07,822 --> 00:26:09,042

with their doctors.

 

423

00:26:09,042 --> 00:26:12,322

So maybe they feel like they're more of a

part of their healthcare.

 

424

00:26:12,322 --> 00:26:13,062

Right.

 

425

00:26:13,062 --> 00:26:14,212

Does that sound right?

 

426

00:26:14,212 --> 00:26:15,362

No, 100%.

 

427

00:26:15,362 --> 00:26:15,622

Yeah.

 

428

00:26:15,622 --> 00:26:20,162

I'll even go one step further in terms of

outcomes or, you know, let's, where does

 

429

00:26:20,162 --> 00:26:25,962

the, the, the cost equation intersect with

quality and outcome and whether or not

 

430

00:26:25,962 --> 00:26:28,082

this is an outcome per se, it is not.

 

431

00:26:28,082 --> 00:26:32,582

But when I look at the financial

performance, because again, it's a cost

 

432

00:26:32,582 --> 00:26:34,782

model, but also cost and quality.

 

433

00:26:34,782 --> 00:26:37,910

So when I look at our top performing

physicians,

 

434

00:26:38,062 --> 00:26:44,562

And one of our guide posts is seeing the

patient within three days post discharge.

 

435

00:26:45,002 --> 00:26:48,462

wait, CMS tells us 14 days.

 

436

00:26:48,622 --> 00:26:50,222

Isn't that good enough?

 

437

00:26:50,582 --> 00:26:51,582

Quick answer?

 

438

00:26:51,582 --> 00:26:52,242

No.

 

439

00:26:52,242 --> 00:26:54,242

No, it's not.

 

440

00:26:54,242 --> 00:26:55,422

It's not.

 

441

00:26:55,422 --> 00:26:56,172

So, okay.

 

442

00:26:56,172 --> 00:27:00,782

Is this some abstract number pulled out of

the air?

 

443

00:27:01,002 --> 00:27:05,614

understand the leadership here, myself

included, came from immersed in.

 

444

00:27:05,614 --> 00:27:08,254

managing global risk for Medicare

Advantage.

 

445

00:27:08,254 --> 00:27:14,694

You had all the levers, you had the gated

network, you had sub caps, you had either

 

446

00:27:14,694 --> 00:27:17,234

you covered or not covered.

 

447

00:27:17,234 --> 00:27:17,814

Okay.

 

448

00:27:17,814 --> 00:27:21,764

So what we have here is traditional

Medicare beneficiaries, no gated network,

 

449

00:27:21,764 --> 00:27:25,234

no network, even though we say it's a

network, you can go anywhere you want.

 

450

00:27:25,234 --> 00:27:27,954

So how do we best control the

uncontrollable?

 

451

00:27:27,954 --> 00:27:31,714

Well, one of the things that we do, as I

talked about, is seeing a patient at least

 

452

00:27:31,714 --> 00:27:33,074

once a quarter.

 

453

00:27:33,166 --> 00:27:36,506

And most importantly, if they do find

themselves in the hospital, and I say do

 

454

00:27:36,506 --> 00:27:38,806

find themselves, that's so glib.

 

455

00:27:38,806 --> 00:27:41,486

Unfortunately, people do have to go to the

hospital.

 

456

00:27:41,486 --> 00:27:46,526

Of course, when they get discharged, the

expectation of the PCP with that upfront

 

457

00:27:46,526 --> 00:27:51,726

cash that we pay them, the expectation,

they're going to do that follow up within

 

458

00:27:51,726 --> 00:27:54,286

72 hours post discharge.

 

459

00:27:55,146 --> 00:27:58,026

What's the results?

 

460

00:27:58,026 --> 00:27:59,986

Let me check here.

 

461

00:28:00,626 --> 00:28:02,308

About 40%.

 

462

00:28:03,854 --> 00:28:05,074

Really good.

 

463

00:28:05,074 --> 00:28:06,614

No, it's not.

 

464

00:28:06,614 --> 00:28:11,214

But what I will share with you is that the

top for your standards are higher than

 

465

00:28:11,214 --> 00:28:12,054

mine, Bill.

 

466

00:28:12,054 --> 00:28:21,254

The top performers who are seeing the

patients 60 % or more within three days of

 

467

00:28:21,254 --> 00:28:24,998

discharge are killing it on the cost side.

 

468

00:28:28,142 --> 00:28:35,122

Their benchmark is here, wait here, okay,

and their spend is here on a per

 

469

00:28:35,122 --> 00:28:37,202

beneficiary per month basis.

 

470

00:28:37,282 --> 00:28:42,142

So what that means is that they're not

only delivering awesome care and seeing

 

471

00:28:42,142 --> 00:28:46,962

the patients as much as possible, but

they're beating the pants off their

 

472

00:28:46,962 --> 00:28:47,906

benchmark.

 

473

00:28:49,678 --> 00:28:52,358

That's that's that is amazing.

 

474

00:28:52,878 --> 00:28:57,538

One thing I don't want people to to lose

this part.

 

475

00:28:57,697 --> 00:29:06,338

So in the traditional MSSP model, and by

the way, Bill listed off a whole bunch of

 

476

00:29:06,338 --> 00:29:07,338

models.

 

477

00:29:07,338 --> 00:29:11,698

If there's any demand for somebody to

explain all of these and to do a

 

478

00:29:11,698 --> 00:29:15,518

supplement on healthcare rounds, I'm happy

to do that.

 

479

00:29:15,558 --> 00:29:19,138

It might put some people to sleep, which

is why Bill I don't want you to go through

 

480

00:29:19,138 --> 00:29:19,534

those.

 

481

00:29:19,534 --> 00:29:20,354

through these now.

 

482

00:29:20,354 --> 00:29:27,414

But but in the re in the ACA reach model,

you're paid, you're given a global payment

 

483

00:29:27,414 --> 00:29:31,054

or a per payment per member estimate,

right?

 

484

00:29:31,054 --> 00:29:32,814

And then you're the payer.

 

485

00:29:32,814 --> 00:29:36,274

Yeah, so you're actually with every claim.

 

486

00:29:36,274 --> 00:29:41,994

And so you're really close to knowing

who's above benchmark and who's below

 

487

00:29:41,994 --> 00:29:46,014

because you're it's like it's all

happening in real time.

 

488

00:29:46,014 --> 00:29:46,554

Yes.

 

489

00:29:46,554 --> 00:29:47,894

Yeah.

 

490

00:29:48,206 --> 00:29:53,126

what we do to give you a little insight

there, well in advance of us signing

 

491

00:29:53,126 --> 00:29:53,926

someone up.

 

492

00:29:53,926 --> 00:29:54,866

Yes, indeed.

 

493

00:29:54,866 --> 00:29:56,966

We are making informed decisions.

 

494

00:29:56,966 --> 00:30:03,286

We partner with one of the well -known CMS

data aggregators care journey, shameless

 

495

00:30:03,286 --> 00:30:04,286

plug for them.

 

496

00:30:04,286 --> 00:30:09,386

So we have ready access to historical

original Medicare claims data.

 

497

00:30:09,386 --> 00:30:15,366

So within that, it gets very, very

granular in terms of, you know, the NPI,

 

498

00:30:15,366 --> 00:30:16,808

the practitioner.

 

499

00:30:16,814 --> 00:30:22,614

how many aligned beneficiaries they have,

where they're spending the money, what are

 

500

00:30:22,614 --> 00:30:25,714

they spending Medicare's money, I should

say.

 

501

00:30:25,974 --> 00:30:30,834

How often they see the patient, what's

their average risk score of their aligned

 

502

00:30:30,834 --> 00:30:34,694

beneficiaries, hierarchical condition

category, HCCs.

 

503

00:30:34,714 --> 00:30:36,394

So we have line of sight to that.

 

504

00:30:36,394 --> 00:30:40,984

So we can pretty much project as to if

they were participating in a model today,

 

505

00:30:40,984 --> 00:30:42,474

how they do.

 

506

00:30:42,834 --> 00:30:45,070

And there's some folks out there,

 

507

00:30:45,070 --> 00:30:47,170

They're focused, you know, right or wrong.

 

508

00:30:47,170 --> 00:30:50,150

That's like I see him once for their in

real wellness visit.

 

509

00:30:50,150 --> 00:30:50,850

Good to go.

 

510

00:30:50,850 --> 00:30:51,970

See you later.

 

511

00:30:52,570 --> 00:30:57,310

That's probably not the practice that we

want to engage with unless they're just

 

512

00:30:57,310 --> 00:31:00,090

champion at the bit to be schooled up.

 

513

00:31:00,090 --> 00:31:05,110

But there's not enough time because as you

said, we get a we get a benchmark from CMS

 

514

00:31:05,110 --> 00:31:10,830

based on the historical, you know, claims

utilization of that physician.

 

515

00:31:10,830 --> 00:31:13,582

So to ramp them up.

 

516

00:31:13,582 --> 00:31:18,142

You know, we're not in the training wheels

stage in our model.

 

517

00:31:18,422 --> 00:31:25,542

Those are some of the tech to off the A,

B, C, D, E enhanced and starting after A

 

518

00:31:25,542 --> 00:31:29,802

and B, getting to the risk share part with

MS with CMS.

 

519

00:31:29,802 --> 00:31:33,042

But it's not 100%.

 

520

00:31:33,042 --> 00:31:37,342

The top run with enhances 75 % upside

only.

 

521

00:31:37,342 --> 00:31:41,742

But anyway, we could go down that rabbit

hole very, very quickly.

 

522

00:31:41,742 --> 00:31:43,470

But in our world,

 

523

00:31:43,470 --> 00:31:50,750

with this particular model, this is a high

risk, high reward.

 

524

00:31:50,750 --> 00:31:56,070

And for that, we have to be very mindful

as to what partners we select.

 

525

00:31:56,070 --> 00:31:57,060

So far, so good.

 

526

00:31:57,060 --> 00:32:02,860

We had a very good year in 22, likely to

be similar for this past year.

 

527

00:32:02,860 --> 00:32:07,850

Of course, with the CMS models, whether

it's MSSP, AC or REACH or anything else

 

528

00:32:07,850 --> 00:32:12,062

for that matter, it's always the

reconciliation period occurs.

 

529

00:32:12,270 --> 00:32:15,690

months after the close of the performance

year.

 

530

00:32:15,830 --> 00:32:24,610

So we will see how CMS MSSP models did

sometime this coming fall for 2023 last.

 

531

00:32:24,610 --> 00:32:25,650

For the last one.

 

532

00:32:25,650 --> 00:32:25,810

Right.

 

533

00:32:25,810 --> 00:32:26,880

Right.

 

534

00:32:26,880 --> 00:32:29,924

And, you know, I mean, in my opinion,

 

535

00:32:31,534 --> 00:32:37,574

One of the problems with the with the ACO

model is the delay, you know, in in when

 

536

00:32:37,574 --> 00:32:41,394

you actually get punished or rewarded for

your behavior.

 

537

00:32:41,394 --> 00:32:42,594

Yes.

 

538

00:32:42,594 --> 00:32:50,414

And to some degree, the actual degree to

which you get penalized or rewarded for

 

539

00:32:50,414 --> 00:32:56,234

your behavior, you know, if if you've

spent as a physician, as a physician

 

540

00:32:56,234 --> 00:32:59,618

practice, let's say you're a physician led

ACO.

 

541

00:32:59,758 --> 00:33:03,718

I think of like Commonwealth here in town,

that's kind of like that about 100

 

542

00:33:03,718 --> 00:33:04,978

doctors.

 

543

00:33:06,398 --> 00:33:14,038

You know, if if you invest all this time

and effort, and you get a check back or

 

544

00:33:14,038 --> 00:33:19,338

your investment or something, for you

know, $800 at the end of the year, it's

 

545

00:33:19,338 --> 00:33:22,438

kind of like, well, why did I invest all

this time and effort?

 

546

00:33:22,438 --> 00:33:26,638

You know, but Mike, I had two questions

for you.

 

547

00:33:26,638 --> 00:33:29,658

One is, in 2024,

 

548

00:33:30,030 --> 00:33:35,710

Do you find that doctors are self

selecting to be part of things like ACO

 

549

00:33:35,710 --> 00:33:37,630

reach and part of your organization?

 

550

00:33:37,630 --> 00:33:43,210

Or are you still getting a whole bunch of,

you know, I guess it's an ACO.

 

551

00:33:43,210 --> 00:33:44,830

I guess I should be part of it.

 

552

00:33:44,830 --> 00:33:48,510

Do you find that there's at the like the

ACO model has been around long enough that

 

553

00:33:48,510 --> 00:33:52,910

you're getting some self selection of, of

better performers or at least people who

 

554

00:33:52,910 --> 00:33:55,600

have bought into the model?

 

555

00:33:55,600 --> 00:33:56,930

Well, I'll check my phone.

 

556

00:33:56,930 --> 00:33:57,170

Nope.

 

557

00:33:57,170 --> 00:33:58,930

No one's calling me.

 

558

00:34:01,830 --> 00:34:06,438

Now, when all seriousness, there's a,

there's a, there's a,

 

559

00:34:08,046 --> 00:34:10,846

Significant market consolidation.

 

560

00:34:11,126 --> 00:34:14,196

Okay, so there's been about 1200.

 

561

00:34:14,196 --> 00:34:15,246

Let's start from the top.

 

562

00:34:15,246 --> 00:34:19,246

There's approximately 1200 ACOs since its

inception 2012.

 

563

00:34:19,246 --> 00:34:20,966

There are currently around 500.

 

564

00:34:20,966 --> 00:34:26,266

There are more ACOs that dropped out of

ACOs than there are today.

 

565

00:34:26,266 --> 00:34:28,086

Still participating.

 

566

00:34:28,386 --> 00:34:29,406

Okay.

 

567

00:34:29,846 --> 00:34:33,326

So MSSP, the pretty, the battle lines have

been drawn.

 

568

00:34:33,326 --> 00:34:35,946

Those that are in those ACOs,

 

569

00:34:36,622 --> 00:34:40,142

probably going to stay there because

they've been in there multiple years,

 

570

00:34:40,142 --> 00:34:45,142

assuming of course that their organization

is transparent and giving them the

 

571

00:34:45,142 --> 00:34:48,521

reporting data and providing them the

support.

 

572

00:34:48,602 --> 00:34:55,102

If they earn $20 million, I'm sorry, if

they earned a surplus of $20 million, that

 

573

00:34:55,102 --> 00:34:59,062

will be distributed fairly and equitably

according to the contract.

 

574

00:34:59,062 --> 00:35:03,022

And for those that don't, we do find some

attrition.

 

575

00:35:03,022 --> 00:35:05,042

and those people seeking options.

 

576

00:35:05,042 --> 00:35:05,922

I think that's what you're talking.

 

577

00:35:05,922 --> 00:35:12,162

My phone is still not ringing by the way,

but you know, those are the folks that are

 

578

00:35:12,162 --> 00:35:16,042

considering options, you know, Hey, I'm in

this economy organization.

 

579

00:35:16,042 --> 00:35:20,702

I've heard of you or you know, I've seen

your flyer.

 

580

00:35:20,702 --> 00:35:24,042

I saw your conference, you know, that's

I'd like to learn more.

 

581

00:35:24,042 --> 00:35:26,682

And that's kind of where that is coming

from.

 

582

00:35:26,682 --> 00:35:32,366

A lot of referrals, a lot of folks that

are dissatisfied where they are today.

 

583

00:35:32,366 --> 00:35:35,546

But to your point, yes, there's what we

call the selection effect.

 

584

00:35:35,546 --> 00:35:39,786

Those that are successful are eager to

earn more.

 

585

00:35:39,786 --> 00:35:45,986

And the ACO reach affords them that

vehicle to do that versus the just upside

 

586

00:35:45,986 --> 00:35:48,606

only, you know, risk reward, right?

 

587

00:35:48,606 --> 00:35:50,936

This is economics 101.

 

588

00:35:50,936 --> 00:35:54,236

The more you put at stake, the better the

payout could be.

 

589

00:35:54,236 --> 00:36:00,066

It's like, I don't want to say the analogy

is Vegas, but if you put the odds, right?

 

590

00:36:00,066 --> 00:36:00,622

All right.

 

591

00:36:00,622 --> 00:36:03,902

It kind of plays out that way.

 

592

00:36:03,902 --> 00:36:06,702

But again, it's not a land grab as it was.

 

593

00:36:06,702 --> 00:36:11,742

Not that we were involved with a land

grab, but there are a lot of folks out

 

594

00:36:11,742 --> 00:36:14,566

there that are still engaged with the.

 

595

00:36:16,174 --> 00:36:22,334

trying to build market share in here too,

but good market share.

 

596

00:36:22,394 --> 00:36:26,294

Hopefully those folks that do my phone

still not ringing, John.

 

597

00:36:26,294 --> 00:36:31,774

But anyway, the, the, the point of the

story is, you know, there's a lot of out

 

598

00:36:31,774 --> 00:36:37,934

there and, yeah, this is selected

selection effect indeed that they, why are

 

599

00:36:37,934 --> 00:36:38,544

they calling me?

 

600

00:36:38,544 --> 00:36:43,594

Yeah, they're still not calling it, but

the follow -up question is, and I don't

 

601

00:36:43,594 --> 00:36:44,686

know, I don't know if you,

 

602

00:36:44,686 --> 00:36:50,366

I don't know if you track this, but it's

always been my sense that there's a pretty

 

603

00:36:50,366 --> 00:36:56,786

substantial spillover effect in terms of,

let's use your example.

 

604

00:36:56,786 --> 00:37:05,026

If of your ACO patients, your Medicare

patients that are in the ACO, that you,

 

605

00:37:05,026 --> 00:37:07,946

it's sort of a goal to see them once a

quarter.

 

606

00:37:07,946 --> 00:37:12,306

And then you start seeing the benefits of

seeing patients more regularly.

 

607

00:37:12,346 --> 00:37:14,350

Wouldn't you take that same,

 

608

00:37:14,350 --> 00:37:19,510

approach with your entire panel of

patients like, Hey, maybe it's a good idea

 

609

00:37:19,510 --> 00:37:25,070

that that I go talk to, or that john comes

in for him because he's not of Medicare

 

610

00:37:25,070 --> 00:37:29,850

age, that john comes in at least a couple

of times a year.

 

611

00:37:29,850 --> 00:37:33,850

And the same thing for your diabetic

populations, those that aren't part of the

 

612

00:37:33,850 --> 00:37:35,190

population.

 

613

00:37:35,190 --> 00:37:42,926

Like, it seems to me that habits developed

or habits encouraged in the ACO model.

 

614

00:37:42,926 --> 00:37:45,926

spill over into patient care generally.

 

615

00:37:45,926 --> 00:37:47,626

What is your experience?

 

616

00:37:47,626 --> 00:37:52,446

That's me as a sort of researcher, but

what's been your experience there?

 

617

00:37:52,446 --> 00:37:57,406

You teased out something that I was

meaning to talk about in terms of

 

618

00:37:57,406 --> 00:38:00,246

influencing physician behavior.

 

619

00:38:00,246 --> 00:38:03,806

And a question came to me about 18 months

ago.

 

620

00:38:03,806 --> 00:38:07,026

I wish it came to me much earlier.

 

621

00:38:07,026 --> 00:38:12,558

And that is, what is, okay, okay, doctor

or doctors,

 

622

00:38:12,558 --> 00:38:17,038

You know, you were a primary care

physician organization like Sleepy Hills

 

623

00:38:17,038 --> 00:38:19,598

Primary Care and fictitious state.

 

624

00:38:19,598 --> 00:38:20,618

OK, there's two.

 

625

00:38:20,618 --> 00:38:23,738

There's a thousand beneficiaries that yay,

we win.

 

626

00:38:23,738 --> 00:38:27,578

You know, wow, what a great pickup that a

little bit just got another thousand

 

627

00:38:27,578 --> 00:38:28,938

beneficiaries.

 

628

00:38:29,958 --> 00:38:37,338

What percentage of this thousand

represents of your total patient panel?

 

629

00:38:38,178 --> 00:38:40,098

Is it 10 percent?

 

630

00:38:40,098 --> 00:38:41,798

Is it 20 percent?

 

631

00:38:42,030 --> 00:38:47,410

If it's underneath 20%, the likelihood of

us, whether it's me, my chief medical

 

632

00:38:47,410 --> 00:38:52,890

officer, our clinical team, our CEO, a

CFO, a COO influencing their behavior is

 

633

00:38:52,890 --> 00:38:54,510

going to diminish greatly.

 

634

00:38:54,510 --> 00:38:56,650

If it gets under 20%.

 

635

00:38:56,650 --> 00:38:57,890

That makes sense.

 

636

00:38:57,890 --> 00:38:58,170

Okay.

 

637

00:38:58,170 --> 00:38:59,190

That makes sense.

 

638

00:38:59,190 --> 00:39:04,170

And that, that came, came, I came to that

realization like, why aren't they, this

 

639

00:39:04,170 --> 00:39:04,890

is, this is great.

 

640

00:39:04,890 --> 00:39:05,880

They're doing so well.

 

641

00:39:05,880 --> 00:39:07,390

They could do be so much better.

 

642

00:39:07,390 --> 00:39:10,414

They should cross pollinate this best

practice.

 

643

00:39:10,414 --> 00:39:14,514

to their entire, and that would make it so

much easier separate apart from EMR

 

644

00:39:14,514 --> 00:39:20,654

systems and remote patient monitoring and

data analytics and pop health platforms

 

645

00:39:20,654 --> 00:39:23,034

and all these things that are

distractions.

 

646

00:39:23,034 --> 00:39:26,054

Quite frankly, it's shovels and picks.

 

647

00:39:26,054 --> 00:39:27,854

We're talking shovels and picks here.

 

648

00:39:27,854 --> 00:39:31,274

If you go to one of these managed care

conferences, your head's going to spin.

 

649

00:39:31,274 --> 00:39:32,674

I love all those vendors.

 

650

00:39:32,674 --> 00:39:36,214

They have great products, but they're

peripheral.

 

651

00:39:37,214 --> 00:39:38,566

They're peripheral.

 

652

00:39:38,670 --> 00:39:42,390

Okay, they're nice compliments to have and

we use many of them.

 

653

00:39:42,390 --> 00:39:46,650

But at the end of the day, it's

practicing.

 

654

00:39:47,270 --> 00:39:51,930

Again, I don't mean to say they're not

practicing good medicine, but seeing the

 

655

00:39:51,930 --> 00:39:56,810

patient, it's like, see the patients, see

the patients and if they find themselves

 

656

00:39:56,810 --> 00:40:01,390

in hospital, make sure you have an open

slot for them to come in.

 

657

00:40:01,390 --> 00:40:04,550

Or, you know, it's not just a face to

face.

 

658

00:40:04,550 --> 00:40:07,758

We do provide support for telemedicine.

 

659

00:40:07,758 --> 00:40:11,278

as well, but you need to have that patient

engaged.

 

660

00:40:11,278 --> 00:40:15,300

They took home, they came home with a big

bag of medicine.

 

661

00:40:16,814 --> 00:40:19,454

10 prescriptions.

 

662

00:40:19,974 --> 00:40:26,758

How is an 80 year old widow going to

manage through that bag of scripts?

 

663

00:40:29,646 --> 00:40:30,766

Not very easily.

 

664

00:40:30,766 --> 00:40:31,946

Not very easily.

 

665

00:40:31,946 --> 00:40:36,526

The likelihood of her bouncing back to the

hospital because of either adverse adverse

 

666

00:40:36,526 --> 00:40:40,856

drug reaction or not taking it twice a

daily, whatever the case.

 

667

00:40:40,856 --> 00:40:43,426

I'm not a pharmacist, but I've seen this

in action.

 

668

00:40:43,426 --> 00:40:50,466

And for those doctors, the top physician,

top, I mean, top, actually, he's a

 

669

00:40:50,466 --> 00:40:51,766

phenomenal practitioner.

 

670

00:40:51,766 --> 00:40:55,826

He spun off from an existing group and he

came to me and said, I like to go out on

 

671

00:40:55,826 --> 00:40:57,226

my own.

 

672

00:40:57,346 --> 00:40:59,526

I go, you have our support.

 

673

00:41:00,366 --> 00:41:05,026

Do you know how many aligned beneficiaries

he had on day one he came on with us?

 

674

00:41:05,026 --> 00:41:06,406

Zero.

 

675

00:41:06,726 --> 00:41:09,466

We deployed voluntary alignment forces.

 

676

00:41:09,466 --> 00:41:12,546

We got them up to 600 within one month.

 

677

00:41:12,546 --> 00:41:13,786

Wow.

 

678

00:41:14,386 --> 00:41:16,686

That's, that's really good.

 

679

00:41:16,686 --> 00:41:17,826

You know what his hit?

 

680

00:41:17,826 --> 00:41:25,246

He's seen the patients 83 .3 % of the time

within three days discharge.

 

681

00:41:27,886 --> 00:41:35,426

So he's, he's clearly sees the, not only

the benefit, but the results.

 

682

00:41:35,426 --> 00:41:39,486

And if he's one of your top performing

people, absolutely.

 

683

00:41:39,486 --> 00:41:41,926

It's nothing magical here.

 

684

00:41:41,966 --> 00:41:48,586

And that's what always, it seems to me

like so much of this is common sense, but

 

685

00:41:48,586 --> 00:41:54,146

you know, I forget the saying, but it's

like that, which you don't measure, you

 

686

00:41:54,146 --> 00:41:56,626

can't improve or something along those

lines.

 

687

00:41:56,626 --> 00:41:57,446

And so,

 

688

00:41:57,742 --> 00:42:01,842

it just simply the fact that you're paying

attention to some of these things that

 

689

00:42:01,842 --> 00:42:03,602

seem like no brainers.

 

690

00:42:03,602 --> 00:42:08,442

But for other people, you know, like you

said, if, if, if they've got a small

 

691

00:42:08,442 --> 00:42:15,552

Medicare population, they're probably not

right for you, but maybe they're just,

 

692

00:42:15,552 --> 00:42:18,402

they're, they just have a different view

and they're not going to be in, even if

 

693

00:42:18,402 --> 00:42:21,342

they became part of your group, they're

not going to be influenced by some of the

 

694

00:42:21,342 --> 00:42:23,182

things that you're looking to accomplish.

 

695

00:42:23,182 --> 00:42:25,262

Yeah, no, it can get overwhelmed.

 

696

00:42:25,262 --> 00:42:29,532

It can be and some of the early complaints

were all the reporting right?

 

697

00:42:29,532 --> 00:42:31,562

Yeah, like we got to put all these systems

in place.

 

698

00:42:31,562 --> 00:42:32,922

We got to report this to here.

 

699

00:42:32,922 --> 00:42:35,182

Here you're pulling from this database

here.

 

700

00:42:35,182 --> 00:42:38,542

We got to report directly and so it kind

of got.

 

701

00:42:38,902 --> 00:42:43,540

Confusing for a lot of the at least early

on so.

 

702

00:42:45,358 --> 00:42:50,298

If we had another hour or two, Bill, I'd

really like would really get into it.

 

703

00:42:50,298 --> 00:42:54,438

But where I want to go from here, because

we don't, we only have a few more minutes.

 

704

00:42:54,438 --> 00:42:59,898

I want to be respectful of your time and

of the audiences as well.

 

705

00:42:59,958 --> 00:43:07,258

So where we are just looking to the future

that there's this, I would submit that at

 

706

00:43:07,258 --> 00:43:14,738

least in concept, the idea of value based

care has been around long enough that,

 

707

00:43:14,738 --> 00:43:15,654

that,

 

708

00:43:16,110 --> 00:43:17,010

Pretty much so.

 

709

00:43:17,010 --> 00:43:21,910

I think most people are on board, most

doctors, whether they're actually engaged

 

710

00:43:21,910 --> 00:43:26,310

in doing that, but they understand the

concept and they understand we're moving

 

711

00:43:26,310 --> 00:43:34,230

to this, hopefully this goal of improved

outcomes without raising costs.

 

712

00:43:34,230 --> 00:43:41,590

Where do you see things headed in terms of

value -based agreements and maybe, maybe

 

713

00:43:41,590 --> 00:43:42,630

just starting.

 

714

00:43:42,630 --> 00:43:44,686

Cause as I said, we only have a few

minutes left.

 

715

00:43:44,686 --> 00:43:49,746

starting like what you think Medicare

might do and then on the commercial side,

 

716

00:43:49,746 --> 00:43:55,486

how you see what you see for value -based

care models in the next two to three

 

717

00:43:55,486 --> 00:43:56,646

years.

 

718

00:43:57,666 --> 00:44:01,426

boy, deep breath.

 

719

00:44:03,406 --> 00:44:09,216

Well, I hesitate to speak on behalf of

CMS.

 

720

00:44:09,294 --> 00:44:11,854

This is Bill Lane's perspective.

 

721

00:44:11,854 --> 00:44:13,414

This is not CMS's.

 

722

00:44:14,014 --> 00:44:15,024

Or Elements' perspective.

 

723

00:44:15,024 --> 00:44:16,164

It's just your perspective.

 

724

00:44:16,164 --> 00:44:17,394

No, absolutely.

 

725

00:44:17,394 --> 00:44:23,134

And I say that a little tongue in cheek

because we do have a very strong and

 

726

00:44:23,134 --> 00:44:26,114

productive relationship with the

leadership team, the deputy director of

 

727

00:44:26,114 --> 00:44:28,074

the CMMI, Liz Fowler.

 

728

00:44:28,074 --> 00:44:30,694

We have an open channel communication.

 

729

00:44:30,694 --> 00:44:34,974

Actually, a few weeks ago, it was a

national association of ACOs conference in

 

730

00:44:34,974 --> 00:44:38,094

the spring in Baltimore.

 

731

00:44:38,094 --> 00:44:41,054

And the direction is thus, it's not gonna

stop.

 

732

00:44:41,274 --> 00:44:43,494

I'll make that very clear.

 

733

00:44:44,274 --> 00:44:50,274

The DIA is cast, ACOs are going to be with

us to give you the distinction.

 

734

00:44:50,274 --> 00:44:51,314

We're a model.

 

735

00:44:51,314 --> 00:44:54,854

ACO REACH is a model, demonstration model.

 

736

00:44:54,854 --> 00:45:00,674

Medicare Shared Savings Program is a

program that is now bolted on the CMS.

 

737

00:45:01,634 --> 00:45:03,404

That's not going anywhere fast.

 

738

00:45:03,404 --> 00:45:06,974

So the question comes, okay, where's ACO

gonna go?

 

739

00:45:07,630 --> 00:45:11,990

likely either dovetail as a program,

unlikely they're going to create a new

 

740

00:45:11,990 --> 00:45:13,010

model.

 

741

00:45:13,110 --> 00:45:17,550

They may extend ACR -Reach because it was

a five -year demonstration, direct

 

742

00:45:17,550 --> 00:45:19,850

contracting, change to ACR -Reach.

 

743

00:45:19,850 --> 00:45:21,230

Hey, we're a new model.

 

744

00:45:21,230 --> 00:45:23,050

Give us a couple of extra years.

 

745

00:45:23,050 --> 00:45:27,370

So that has promise as well.

 

746

00:45:27,370 --> 00:45:33,390

But at the end of the day, whether it's

ACR -Reach, MSSP, they introduced a few

 

747

00:45:33,390 --> 00:45:37,230

weeks ago, actually a month or so ago.

 

748

00:45:37,230 --> 00:45:44,470

the ACL PCP flex model, which is a tack on

to low revenue MSSP.

 

749

00:45:44,470 --> 00:45:48,490

We're going to really confuse people when

I just talk about low revenue MSSP's, but

 

750

00:45:48,490 --> 00:45:49,730

that's okay.

 

751

00:45:49,730 --> 00:45:57,730

It's a smaller subset or small subset of

MSSP's whereby CMS will offer an

 

752

00:45:57,730 --> 00:46:04,290

additional program that blends it or

incorporates with the MSSP strictly for

 

753

00:46:04,290 --> 00:46:05,536

PCP's.

 

754

00:46:05,870 --> 00:46:13,870

for the ACO rather, but the investment

model is a $250 ,000 upfront investment.

 

755

00:46:13,970 --> 00:46:15,070

It's a low interest.

 

756

00:46:15,070 --> 00:46:16,890

No, it's a grant, not a low interest loan.

 

757

00:46:16,890 --> 00:46:17,670

It's a grant.

 

758

00:46:17,670 --> 00:46:19,130

We can go on about that.

 

759

00:46:19,130 --> 00:46:25,050

But at the end of the day, these are all

advancements to the ultimate coal of CMS,

 

760

00:46:25,050 --> 00:46:31,770

which has been stated thousands of times

that CMS wants to have every single

 

761

00:46:31,770 --> 00:46:34,126

Medicare beneficiary.

 

762

00:46:34,126 --> 00:46:36,966

aligned to a value -based arrangement.

 

763

00:46:36,966 --> 00:46:42,466

Here we go again, another value -based

arrangement, whether that's primary care

 

764

00:46:42,466 --> 00:46:49,836

first, an ACO model, which up to and

including the PCP Flex model, ACO Reach,

 

765

00:46:49,836 --> 00:46:53,806

which may have another iteration either as

part of MSSP.

 

766

00:46:54,186 --> 00:46:58,926

So all these things again are advancing

toward the ultimate goal of CMS stated

 

767

00:46:58,926 --> 00:47:03,796

multiple times to have everyone in an

accountable care.

 

768

00:47:03,982 --> 00:47:08,382

like model doesn't have to be an ACO by

2030.

 

769

00:47:08,442 --> 00:47:10,842

So what happened here advantage fall under

that?

 

770

00:47:10,842 --> 00:47:12,542

Actually, yes, it does.

 

771

00:47:12,542 --> 00:47:13,072

Yeah.

 

772

00:47:13,072 --> 00:47:14,042

Yeah.

 

773

00:47:14,072 --> 00:47:15,462

so let's take a step back.

 

774

00:47:15,462 --> 00:47:16,442

So what does that mean?

 

775

00:47:16,442 --> 00:47:23,882

60 million Medicare eligible folks out

there.

 

776

00:47:23,882 --> 00:47:27,692

Me within a few arms reach of that, as I'm

not sure what I'm going to do.

 

777

00:47:27,692 --> 00:47:32,422

But the point of the story is half of

them, 52 % actually are in Medicare

 

778

00:47:32,422 --> 00:47:34,132

Advantage plans.

 

779

00:47:35,630 --> 00:47:37,300

So what about the other 48 %?

 

780

00:47:37,300 --> 00:47:38,610

What are we going to do about them?

 

781

00:47:38,610 --> 00:47:39,540

That's where we're here.

 

782

00:47:39,540 --> 00:47:40,330

Right.

 

783

00:47:40,490 --> 00:47:45,020

And from CMS's perspective, they don't

care.

 

784

00:47:45,020 --> 00:47:47,690

I mean, it's just they want 100 % of

their...

 

785

00:47:47,690 --> 00:47:52,530

They want all people either being quote

unquote managed through a Medicare

 

786

00:47:52,530 --> 00:47:59,050

Advantage plan or through any one of these

accountable...

 

787

00:47:59,050 --> 00:48:02,930

Whether it's a demonstration project or

it's a fully functioning program.

 

788

00:48:03,374 --> 00:48:04,674

Fully covered.

 

789

00:48:04,674 --> 00:48:09,414

And the backdrop of that is because, you

know, this is not talking about economics,

 

790

00:48:09,414 --> 00:48:14,414

but it's been kicked around for some time

in terms of the solvency of the Medicare

 

791

00:48:14,414 --> 00:48:15,674

Trust Fund.

 

792

00:48:15,674 --> 00:48:20,694

And that has been projected to be, we're

talking the Part A, that's the

 

793

00:48:20,694 --> 00:48:26,334

hospitalization P of the benefits that

will be unable to meet its obligations by

 

794

00:48:26,334 --> 00:48:27,694

2030.

 

795

00:48:27,714 --> 00:48:29,814

that sounds familiar, 2030.

 

796

00:48:30,094 --> 00:48:30,794

Hmm.

 

797

00:48:31,134 --> 00:48:33,574

So that's where that

 

798

00:48:33,742 --> 00:48:38,002

Intersects and whether it's 20, 20, 30,

you know, 20, 30, and you know, not again,

 

799

00:48:38,002 --> 00:48:42,702

we could cover so much ground here because

people are living longer.

 

800

00:48:42,702 --> 00:48:44,792

Are they living better and healthier

lives?

 

801

00:48:44,792 --> 00:48:46,162

That's up to debate.

 

802

00:48:46,162 --> 00:48:47,222

Sure.

 

803

00:48:47,222 --> 00:48:53,282

But in understanding that there are more

people like you and me, unless people age

 

804

00:48:53,282 --> 00:48:57,462

wise that is then are going into the

payment system.

 

805

00:48:57,462 --> 00:49:01,822

So think of, you know, social security,

Medicare, these entitlement programs, I

 

806

00:49:01,822 --> 00:49:02,638

say entitlement.

 

807

00:49:02,638 --> 00:49:06,767

wincing because entitlement I paid into

it.

 

808

00:49:06,767 --> 00:49:08,018

Don't I get it back?

 

809

00:49:08,018 --> 00:49:09,348

Yeah, so right.

 

810

00:49:09,348 --> 00:49:10,758

I'm kind of with you on that one.

 

811

00:49:10,758 --> 00:49:12,028

I'm with you on that one.

 

812

00:49:12,028 --> 00:49:17,218

Well, listen, Bill, we could talk we have

so much more to talk about.

 

813

00:49:17,218 --> 00:49:18,658

But again, timing.

 

814

00:49:18,658 --> 00:49:24,558

Maybe we can do another one in in six

months or whatever the case I'd appreciate

 

815

00:49:24,558 --> 00:49:28,598

that I just do another one kind of kind of

go through how things are progressing with

 

816

00:49:28,598 --> 00:49:29,238

you.

 

817

00:49:29,238 --> 00:49:30,098

Yeah.

 

818

00:49:30,926 --> 00:49:34,486

Lots to talk about with respect to ACOs

and value -based care.

 

819

00:49:34,486 --> 00:49:40,346

So I'll look forward to part two, and I'm

promising our listeners that we're not

 

820

00:49:40,346 --> 00:49:45,086

gonna wait two years to make that happen,

that Bill will come on again and we'll

 

821

00:49:45,086 --> 00:49:46,526

continue to talk about these.

 

822

00:49:46,526 --> 00:49:47,986

But I mean, this has been great.

 

823

00:49:47,986 --> 00:49:49,706

Thanks so much, Bill.

 

824

00:49:49,706 --> 00:49:54,206

I really appreciate starting the

conversation here.

 

825

00:49:54,286 --> 00:49:55,966

So it's exciting.

 

826

00:49:55,966 --> 00:49:57,466

It's really exciting.

 

827

00:49:57,466 --> 00:49:59,630

I'm aware, and a lot of people look at

this with...

 

828

00:49:59,630 --> 00:50:02,970

a lot of trepidation and worry, where are

we going?

 

829

00:50:02,970 --> 00:50:04,490

I think it's exciting.

 

830

00:50:04,490 --> 00:50:09,490

I think that enough people are looking at

it, at healthcare improvement and doing it

 

831

00:50:09,490 --> 00:50:11,770

right, that these are good times.

 

832

00:50:11,770 --> 00:50:12,540

So I appreciate it.

 

833

00:50:12,540 --> 00:50:15,280

I welcome the opportunity to speak again

with you.

 

834

00:50:15,280 --> 00:50:17,630

You're a great host.

 

835

00:50:17,870 --> 00:50:18,830

Excellent.

 

836

00:50:18,830 --> 00:50:19,810

Thanks again.

 

837

00:50:19,810 --> 00:50:24,238

So everybody that'll do it for another

episode of healthcare rounds.

 

838

00:50:24,238 --> 00:50:28,178

Our guest today has been Bill Lane

executive vice president of network

 

839

00:50:28,178 --> 00:50:33,838

development at Illam -Ed as always I'm

your host John Marchica CEO of Darwin

 

840

00:50:33,838 --> 00:50:39,718

research group now listen You guys hear me

say this and usually it's a recording, but

 

841

00:50:39,718 --> 00:50:43,758

I'm not like a recording that's going

again and again now I'm actually asking

 

842

00:50:43,758 --> 00:50:49,178

please Spotify Apple podcast wherever you

get your pot now.

 

843

00:50:49,178 --> 00:50:52,478

We're up on YouTube wherever you get your

podcasts

 

844

00:50:52,750 --> 00:50:56,490

If you like what you see and what you

hear, please give us a rating.

 

845

00:50:56,490 --> 00:50:59,310

If you don't like it, don't bother.

 

846

00:50:59,690 --> 00:51:04,890

If you don't like it, certainly give us

that rating, but maybe reach out to me and

 

847

00:51:04,890 --> 00:51:08,110

tell me why and maybe we can make

healthcare rounds better.

 

848

00:51:08,110 --> 00:51:13,050

So again, thanks to everybody and we'll

see you next next healthcare rounds.

 

849

00:51:13,050 --> 00:51:14,214

Thank you, John.