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Carilion Clinic Tackles Accountable Care on Multiple Fronts

February 22, 2014
by Mark Hagland
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Carilion Clinic’s Stephen Morgan, M.D. discusses the challenges and opportunities of accountable care

At the 600-physician Carilion Clinic integrated health system, Stephen Morgan, M.D., senior vice president and CMIO, is helping to lead transformative change along a number of dimensions. To begin with, the Roanoke, Virginia-based Carilion organization joined the Medicare Shared Savings Program (MSSP) for accountable care organizations (ACOs) in January 2013, and that step in itself has helped to spur the development of more coordinated approaches to care delivery and the acceleration of the creation of IT foundations to support the ACO financing and delivery model.

What’s more, the avoidable readmissions reduction mandate embedded in the Affordable Care Act (ACA), as well as implied in sharing risk with the federal Centers for Medicare & Medicaid Services (CMS), has further spurred activity already underway at Carilion Clinic to improve the management of such chronic illnesses as congestive heart failure (CHF), coronary artery disease (CAD), diabetes, and chronic obstructive pulmonary disease (COPD).

Both the challenges and opportunities have been many; and Dr. Morgan will be speaking to both, when he participates as a panelist in a discussion entitled “Insights from Patient Data: Managing the Health of a Population,” and being held during the the Health IT Summit in Atlanta, sponsored by the Institute for Health Technology Transformation (iHT2), being held April 15-16. The Institute became a part of Vendome Group, LLC, Healthcare Informatics’ parent company, in December 2013. Below are excerpts from HCI Editor-in-Chief Mark Hagland’s recent interview with Dr. Morgan.

Tell me a bit about Carilion Clinic’s participation in the Medicare MSSP for ACOs, as well as your private ACO participation?

Certainly. Yes, we were selected for participation in the Medicare MSSP program in January 2013. Like everyone else, we’ve had problems getting usable data from CMS. In the first few months of our participation, we received at least two or three corrupt files from them. It was really August when we got that first round of data; that was an incredibly frustrating process. We have about 45,000 members in that cohort; we also have a commercial ACO with Aetna that involves another 5,000 members; that’s mainly upside with a little downside [with regard to risk], in that contract. And our self-insured employees—we consider that group an ACO, in effect, and really try to operate and run that like ACO, since we own the premium. We have 12,000 employees, and that equates to 17,000 covered lives, with family members.

Stephen Morgan, M.D.

What have been the biggest challenges in all this accountable care-related work so far?

The first has been getting the data. And you need to understand that that may not be the easiest process. It was in fact very frustrating with Medicate. And even with Medicare, in terms of claims data, we were not prepared to bring in that data right away, on our end. So we’ve really learned a lot, and quite honestly, I think we underestimated the amount of time, and the complexity, involved in bringing claims and clinical data together in the enterprise data warehouse, and making that useful information. And we use [the Jersey City, N.J.-based] Verisk to help us with the claims analytics for our MSSP population, because that was another area of challenge—we realized we did not have the internal resources to be able to do the detailed claims analysis necessary. So part of the resolution [of the problem] was around time; part was that we had to develop some skill sets that we did not have internally, as far as bringing in the claims data; so we engaged some consultants.

And then the next challenge was really understanding the information, because it brought forward data—and this was our first foray into any type of relatively sophisticated claims analysis. Because really, we’re having to learn how to interpret that data and then bring it to our clinicians. And we’re just starting to do that. In fact, we spent about a year or two trying to bring education to our providers about PMPMs, utilization, appropriateness, etc.

Taking on risk is like a whole new ballgame as a provider organization, isn’t it?

It is. And physicians have started to understand risk. And in our organization (and I’m a family practitioner by training), it’s both primary care and specialists who need to understand the data. And clinicians are starting to understand what some of the risk means, and what the dollars and cents mean to the organization. So they’re starting to ask good questions. And that requires that physicians trust the data and learn to understand it. And so educating them on what the data means and getting them to the point of trusting the data and not questioning it every single time you’re bringing up metrics, that’s critical. And the transparency of the data is very important, too.

CHF, CAD, diabetes, and COPD—many organizations focus on those chronic illnesses first.

Yes, those are exactly the key four that we’ve started with! When we looked at our internal data at the outset to find out where the high-spend utilization was, just looking at our mortality data, those were the end-stage chronic diseases we were seeing. And of course, we were looking at those, understanding that hypertension and hyperlipidemia often lead to those. And we actually started with COPD, realizing that we had put less emphasis on it in the past. It seemed there had been so much more emphasis on CHF, CAD, and diabetes. And it was bigger than we had thought, that population—nor surprisingly, because in Virginia, there’s still a lot of smoking.