Texas Primary Care and Health Home Summit Public Policy/Payment

1. Texas Primary Care and Health Home SummitPublic Policy/Payment The Texas 1115 Waiver: The Impacts of Projects and the Systematic Improvement Opportunities Going Forward Craig Kovacevich, MA Associate Vice President, Waiver Operations & Community Health Plans Office of the President University of Texas Medical Branch at Galveston April 5, 2018

2. Excerpt from DSRIP Approval Letter “We believe the DY 7-8 protocols will set a strong baseline for the next era of delivery system reform within Texas, and the Transition Plan will help Texas lay out its strategy for continuing its delivery system reform efforts.” -CMS

3. Today we will: Review the Texas 1115 Waiver’s Impact to Date Outline the Programmatic Changes to the 1115 Waiver Discuss the Power of the Collaborative Learning Structure

4. Background: 1115 Healthcare Transformation Waiver Five-year demonstration waiver approved by CMS in December 2011; expired September 2016 Approximately $29 billion value inclusive of Uncompensated Care (UC) and Delivery System Reform Incentive Payment (DSRIP) Purpose: Preserve supplemental funding under a new methodology Expand Medicaid managed care statewide (transition from fee-for-service payment model) Transform patient care delivery through innovative projects that advance the Triple Aim of Healthcare: • Improve the patient experience of care • Improve the health of populations • Reduce the per capita cost of health care

5. 1115 Waiver Extension 15-month Extension (October 1, 2016 to December 31, 2017) Approval received on May 2, 2016 Maintains current funding levels for both UC and DSRIP • $6.2 billion per year – $3.1 billion for UC and $3.1 billion for DSRIP Promotes sustainability planning and Medicaid managed care alignment Additional 5 years (January 1, 2018 to September 30, 2022) Approval received on December 21, 2017 UC: maintains current funding levels for 2 years, subsequent years will be determined based on provider charity care data DSRIP: maintains current funding levels for 2 years, followed by 2 years of funding which will decrease each year (5th year will not include any funding) Transitions from individual projects to “system” approach

6. Evolution from Project to System Approach Updated protocol proposed for DY7-11, October 1, 2017 to September 30, 2022 Builds upon current DSRIP project structure • Individual projects evolve into larger, system-level initiatives, defined as “bundles” Continues advancing the Triple Aim of Healthcare Bundles to include pay-for-reporting (P4R) and/or pay-for-performance (P4P) measures • Examples: chronic disease management, pediatric and maternal care, behavioral health Clinical outcomes and quality standards remain priorities Promotes collaboration for organizations who share patients

7. Proposed DY7 Structure and Funding Distribution

8. Hospital Example

9. Hospital Example

10. CMHC Example

11. CMHC Example

12. DSRIP Focus and Goals Target population: Medicaid recipients and low-income uninsured individuals Initiatives are aimed at enhancing patient care through increased access, better coordination, and improved quality outcomes Collaborative efforts have focused on sharing best practices in order to facilitate better overall outcomes New proposed protocol encourages continuation of collaboration and potential new partnership opportunities Trend towards transformation to “system networks” Hospital and health systems expanding to function more as integrated networks, to include mix of outpatient and post-acute services in addition to traditional hospital services Able to capture revenue sources from diverse group of patients, changing their patient mix to add those who need less hospital care

13. Regional Healthcare Partnership (RHP) Structure 20 RHPs 254 counties >300 Performing Providers RHP 2 16 counties 15 Performing Providers

14. UTMB, Anchor for Regional Healthcare Partnership 2 UTMB’s primary roles and responsibilities Serve as liaison between HHSC and Performing Providers • Community mental health centers • Federally Qualified Health Center (FQHC) • Private, public, and state-owned hospitals • Physician group practices Coordinate RHP plans, including public outreach and regional stakeholder engagement Facilitate regional learning collaborative opportunities Manage regional database and assist with reporting Provide Intergovernmental Transfer (IGT) funding as necessary for various capacities served

15. Regional Learning Collaborative Opportunities UTMB, as Anchor, has implemented two regional learning collaboratives that have been successful for both UTMB and regional providers Learning Collaborative activities will continue in DY7-11 Collaborative efforts have focused on sharing best practices in order to facilitate better overall outcomes for RHP 2 30-day Readmissions Continuation of regional engagement to promote best practices Parallel Plan-Do-Study-Act (PDSA) efforts to promote improved chronic disease management strategies amongst regional performing providers Behavioral Health Focus areas include: integration of primary and behavioral care, peer support, crisis services, and substance abuse Identification of implementable practices to improve whole person wellness

16. Opportunities: Enhanced Collaboration Continuation of transformational region-wide initiatives, with additional focus on cross-regional efforts Strong desire by providers to build on individual work with more robust collaboration Continue to build on existing relationships and develop new opportunities to expand Greater partnership with Medicaid Managed Care Organizations to enhance: Exploration of alternative payment models, such as “bundled payments” and “shared savings arrangements” Quality reporting Better, coordinated care management for shared chronic disease and/or complex patient populations Development of “systems of care”

17. Opportunities: Community Health DSRIP projects are “incubators” for population health Outcome metrics are tied to target populations, based on community needs and project scope

18. Opportunities: Population Health Management DSRIP initiatives are “incubators” for population health Shift to system-level Measure Bundles further transforms and focuses quality outcomes on target populations Source: http://www.mckesson.com/population-health-management/population-health/prepare-for-change/

19. Want to Know More? Craig S. Kovacevich, MA Associate Vice President, Waiver Operations & Community Health Plans 409-766-4047 cskovace@utmb.edu www.utmb.edu/1115

20. 1115 Demonstration WaiverDSRIP Program Update Natasha Boston Healthcare Transformation Waiver April 5, 2018

21. Waiver Renewal - DSRIP • CMS approved four additional years for the Texas DSRIP program. • DY7 (10/1/17 – 9/30/18): $3.1B (All Funds) • DY8 (10/1/18 – 9/30/19): $3.1B (All Funds) • DY9 (10/1/19 – 9/30/20): $2.91B (All Funds) • DY10 (10/1/20 – 9/30/21): $2.49B (All Funds)

22. DY7-8 Recap • The major change to the DSRIP project structure in DY7-8 will be the movement from project-level reporting to targeted Measure Bundles and measures that are reported by DSRIP Performing Providers as a provider system. • The DSRIP pool allocation for DY7-8 will be $3.1 billion per DY. • A DSRIP provider’s valuation per DY for DY7-8 is equal to its total valuation for DY6 with some exceptions. • The regional structure will continue with 20 Regional Healthcare Partnerships (RHPs).

23. DY7-8 Recap For DY7-8, providers will: • Define their “system.” • Select measure bundles or measures to meet their “minimum point threshold.” • Establish CY17 baselines for selected measures. • Take steps to improve upon baselines in CY18-19 by closing the gap toward a high performance level or improvement over self. • Work to maintain a steady level of service to the Medicaid, low-income and/or uninsured (MLIU) population at the provider system level.

24. RHP Plan Update Timeline • Feb. 2 or 5, 2018 - Template available. • Feb. 8, 2018 - Webinar. • TBD - Providers submit templates to anchor. • April 30, 2018 – Deadline for Anchor to submit templates to HHSC. • Providers will also be able to report achievement of any DY6 carryforward metrics during the regular April 2018 reporting period. • May-June 2018 - HHSC reviews and may request additional information. • June 30, 2018 - HHSC approves RHP Plans. • July 2018 - Providers receive 20% of DY7 valuation.

25. DY7-8 Structure • Category A - Required qualitative reporting • Category B - Medicaid and Low-income or Uninsured (MLIU) Patient Population by Provider (PPP) • Category C - Measure Bundles and Measures • Category D - Statewide Reporting Measure Bundle

26. DY7-8 Structure: Funding Distribution * Percentages for Cat. C and D are based on the RHP’s maintenance of private hospital participation.

27. DSRIP Attributed Population for Cat C Step 1 Step 2 Step 3 Step 4 *Denominator specifications include specific visit types as part of the denominator inclusion criteria.

28. Category C • Targeted measure bundles developed for hospitals and physician practices. • Bundles consist of measures that share a unified theme, apply to a similar population, and are impacted by similar activities. • Lists of measures are available for community mental health centers and local health departments.

29. Measure Bundle Protocol – Cat C

30. DY9-11 Protocols • DSRIP pool amounts decrease in DY9-10. • DY7: $3.1B per year (all funds) • DY8: $3.1B per year (all funds) • DY9: $2.91B (all funds) • DY10: $2.49B (all funds) • DY11: $0 • Same overall framework will remain in place. • In late 2018, HHSC will begin working with stakeholders to: • Determine how the reduced funding pools for DY9-10 will be distributed • Refresh the menu of Measure Bundles and measures for DY9-10 • HHSC must submit revised protocols to by CMS 7/31/19.

31. Transition Plan • HHSC must also submit a DSRIP Transition Plan to CMS by 10/1/19. • The Transition Plan will include Texas’ planned milestones for making progress toward Value-Based Purchasing (VBP) and other initiatives when DSRIP ends. • For example, a milestone could relate to VBP contractual targets for Medicaid MCOs in 2020-2021, or to other pay-for-quality efforts in Medicaid Managed Care.

32. Alignment Between DSRIP and Medicaid Managed Care • National and statewide movement toward paying for value with "Value-based Purchasing" (VBP) or "Alternative Payment Models“ (APM) • The goal of VBP or APMs is to pay for value instead of quantity.

33. Overlay of RHPs on MCO Service Delivery Areas

34. HHSC Collaboration Activities • Encouraging DSRIP and MCO relationships and collaboration opportunities • Performance Improvement Project (PIP) requirements • Cost analysis for DSRIP providers for DY7-8 to support sustainability efforts • Quarterly calls with MCOs • Connecting MCOs and providers/RHP anchors • Developing prototypes/models for collaboration

35. HHSC Collaboration Activities • Analyzing DSRIP reported outcomes (Cat. 3 and Cat. C). • Looking at Medicaid policies to facilitate integration (e.g., Quality Initiative costs, other social services) • Working to clarify and emphasize aligned goals (i.e., DSRIP, Pay-for-Quality program, VBP contractual targets, etc.) • Implementing Value-Based Purchasing (VBP) Roadmap • Working with CMS partners to overcome barriers

36. Potential Outcomes for MCO and DSRIP Collaborations • Benefits for MCOs • Meet contractual targets for VBP • Achieve the PIP or P4Q Goals • Enhance working relationships between MCOs and DSRIP providers • Incorporate best practices of DSRIP projects across providers • Potential cost savings

37. Potential Outcomes for MCO and DSRIP Collaborations • Benefits for DSRIP Providers • Enhance working relationships between MCOs and DSRIP providers • Potential partnerships for further collaboration, including value-based purchasing arrangements • Data exchange/enhancements for Medicaid members • Steps toward sustainability beyond the 1115 Waiver

38. What Can DSRIP Providers Do? • Reach out to MCOs in the service areas • Develop Health Information Technology capacity • Focus on achieving outcomes • Work toward increasing number of Medicaid clients • What about individuals who are low-income and uninsured? • The APM model is applicable with other community partners – grants, county funding, non-profits.

39. Questions? E-mail: TXHealthcareTransformation@hhsc.state.tx.us See HHS 1115 Waiver Site for Updates