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Statement of American College of Physicians
ACP strongly believes that
Medicare and other health plans should be reformed to advance the
patient-centered medical home, a model of health-care delivery that has been
proven to result in better quality, more efficient use of resources, reduced utilization,
and higher patient satisfaction. The College greatly appreciates Subcommittee
Chairman Stark and Ranking Member Camp convening today’s hearing which will
provide an opportunity to focus on key advantages of the patient-centered medical
home.
In March, 2007, ACP, the American Academy of Family Physicians, American Academy of Pediatrics, and the American Osteopathic
Association released a joint statement of principles that defines the
characteristics of a patient-centered medical home. These four organizations
represent 333,000 physicians and medical students. The joint principles are
attached to this statement.
As described in the joint
principles, a patient-centered health care medical home is a physician practice
that has gone through a voluntary qualification process to demonstrate that it:
- Provides continuous
access to a personal primary or principal care physician who accepts responsibility for treating and
managing care for the whole patient through an a patient-centered
medical home, rather than limiting practice to a single disease condition,
organ system, or procedure,
- Supports the specific characteristics
of care that the evidence shows result in the best possible outcomes
for patients.
- Recognizes the importance
of implementing systems-based approaches that will enable physicians
and other clinicians to manage care, in partnership with their patients,
and to engage in continuous quality improvement,
- Introduces transparency
in consumer decision-making and accountability for getting better
results by reporting on evidence-based quality, cost and patient
experience measures of care.
The patient-centered medical
home has the support of a broad collaborative of physician organizations,
employers and other stakeholders. The Patient-Centered Primary Care
Collaborative, of which ACP is a founding member, has submitted a statement to
the record of this hearing that endorses the patient-centered medical home.
The Collaborative includes employers that collectively employ more than 50 million
Americans and primary care organizations that represent the physicians that
provide primary care to the vast majority of Americans. Representatives of
consumer organizations have been participating in the Collaborative’s ongoing
discussions and are expected to endorse and join the Collaborative in the near
future. The Collaborative’s joint statement of support for the
patient-centered medical home has been submitted separately for the record of
this hearing.
Evidence that a Patient-Centered Medical Home Will Improve Quality and
Lower Costs
There
is substantial and growing evidence that a health care system built upon a
foundation of patient-centered medical home will improve outcomes, result in
more efficient use of resources, and accelerate systems-based improvements in
physician practices.
According
to an analysis by the Center for Evaluative Clinical Sciences at Dartmouth, States that relied more on primary care:
- have lower Medicare spending (inpatient reimbursements and Part B payments),
- lower resource inputs (hospital beds, ICU beds, total physician labor,
primary care labor, and medical specialist labor)
- lower utilization rates (physician visits, days in ICUs, days in the
hospital, and fewer patients seeing 10 or more physicians), and
- better quality of care (fewer ICU deaths and a higher composite quality
score).[1]
Starfield’s
review of dozens of studies on primary-care oriented health systems found that primary
care is consistently associated with better health outcomes, lower costs, and
greater equity in care.
- Primary care oriented countries, such as Australia, Canada, New Zealand, and the
United Kingdom are rated higher than
the United States on many aspects of care, including the public’s view of the health care system not needing
complete rebuilding, finding that the regular physicians’ advice is helpful,
and coordination of care. “The United States rates the poorest on all aspects
of experienced care, including access, person-focused care over time,
unnecessary tests, polypharmacy, adverse effects, and rating of medical care
received.” An orientation to primary care reduces sociodemographic and
socioeconomic disparities.
- Overall, primary care-oriented countries have better care at
lower cost.
- Within the United States, adults with a primary care physician rather than a
specialist had 33 percent lower cost of care and were 19 percent less likely to
die, after adjusting for demographic
and health characteristics.
- Primary care physician supply
is consistently associated with improved health outcomes for conditions like cancer, heart disease, stroke,
infant mortality, low birth weight, life expectancy, and self-rated care.
- In both England and the United States, each additional primary care
physician per 10,000 population is associated with a decrease in mortality
rates of 3 to 10 percent.
- In the United States, an increase of one primary care physician is
associated with 1.44 fewer deaths per
10,000 population.
- The association of primary care with decreased mortality
is greater in the African-American population than in the white population.
[2
Another
analysis found that when care is managed
effectively in the ambulatory setting by primary care physicians, patients with
chronic diseases like diabetes, congestive heart failure, and adult asthma have
fewer complications, leading to fewer avoidable hospitalizations.[3]
Patient-centered
primary care will also accelerate the transformation of physician practices by making the business case for physicians, including
those in small practice settings, to acquire and implement health information
technologies and other systems-based improvements that contribute to better
outcomes.
“Patient-centeredness, shared decision-making,
teaming, group visits, open access, outcome responsibility, the chronic care
model, and disease management are among the proposals intended to transform
medical practice. The electronic health record’s greatest promise arguably lies
in the support of these initiatives…”[4]
Reform of Medicare
Payment Policies to Support a Patient-Centered Medical Home
Many physicians would like to
redesign their own practices to become a patient-centered medical home, but are
discouraged by doing so by Medicare payment policies that reward physicians for
the volume of services rendered on an episodic basis, rather than for
comprehensive, longitudinal, preventive, multi-disciplinary and coordinated
care for the whole person. The authors of a recent survey found that “a gap
exists between knowledge and practice—between physicians' endorsement of patient-centered
care and their adoption of practices to promote it. Physicians reported several
barriers to their adoption of patient-centered care practices, including lack
of training and knowledge (63 percent) and costs (84 percent). Education,
professional and technical assistance, and financial incentives might
facilitate broader adoption of patient-centered care practices. With the right
knowledge, tools, and practice environment, and in partnership with their
patients, physicians should be well positioned to provide the services and care
that their patients want and have the right to expect.”[5]
Congress should enact
legislation that leads to a fundamental redesign of Medicare payment policies
to support a patient-centered medical home. Such redesign should include the
following five key elements:
1.
Eliminate the SGR and provide stable, positive and predictable updates combined
with performance-based additional payments for reporting on quality measures
relating to care coordination and patient-centered care.
The sustainable growth rate
(SGR) formula must be eliminated. Unless Congress acts, the SGR will cause a
cut of almost 10 percent in physician services in 2008, and a cut of almost 40%
over the next several years. Cuts of this magnitude will make it impossible
for physicians to invest in the systems and technologies needed to become a
patient-centered medical home, will accelerate the trend of physicians turning
away from primary care medicine, and create access problems as primary care
physicians leave medicine in increasing numbers and fewer young physicians go
into primary care.
Specifically,
Congress should enact legislation that would lead to elimination of
the SGR and replace it with an alternative update framework that will:
- Assure
stable, positive and predictable baseline updates for all physicians.
- Set
aside funds for a separate physicians’ quality improvement pool that would
allocate dollars to support voluntary, physician-initiated programs that
have the greatest potential impact on improving quality and reducing
costs, and allow for a portion of savings in other parts of Medicare (such
as reduced hospital expenses under Part A) that are attributable to
programs funded out of this pool to be allocated back to the physicians’
quality improvement pool. Congress
should direct that priority be given to those applications for funding
under the quality pool that are most likely to improve care quality and
efficiency by accelerating and supporting the ability of physicians to
organize care processes to deliver patient-centered services through a
medical home. Priority would also be given to programs that address
regional variations in quality and cost of care. Our specific
recommendations for revamping Medicare’s Physician Quality Reporting
Initiative are presented below.
- Revamp the Physicians Quality Reporting Initiative to focus on
clinical and structural measures related to coordination of chronic
diseases and other “high impact” interventions.
The
PQRI pays physicians a “performance bonus” of up to 1.5% for reporting on
measures of care that are applicable to their specialty and practice.
Physicians will receive the same reporting bonus without regard to the impact
of the measures on quality or cost of care, the costs to the practice
associated with reporting on the measures, or the number of measures that apply
to their specialty or practice. ACP believes that Congress should redesign the
PQRI to:
- Assure
that funding for the program is sufficient to offset the costs to
physicians for reporting on the measures.
- Focus
on structural (health information technologies) measures associated with
patient-centered care through a medical home.
- Place
priority on clinical measures for chronic diseases.
- Pay
physicians on a “weighted basis” for reporting on structural and clinical
measures that will have the greatest potential impact on quality and cost,
so that physicians who are reporting on measure that will have a greater
impact, or that require a greater investment in health information technologies,
will receive a proportionately higher payment than physicians who report
on lower impact measures that do not require a substantial investment in
HIT.
- Create incentives for physicians to acquire the
health information technologies and systems to support patient-centered
care in a medical home.
Medicare
should create payment incentives to encourage physicians to acquire specific
structural enhancements and tools that are directly related to care management
in the ambulatory setting, such as patient registry systems, secure email, and
evidence based clinical decision support, which can be measured and reported
on. (That is, paying doctors for acquiring the systems needed to become medical
homes). This recommendation would be implemented by the National Health
Information Incentive Act of 2007, H.R. 1952, introduced on April 19, 2007 by
Representatives Charles Gonzalez and Phil Gingrey. The bill has been referred
to the Ways and Means Committee. ACP urges the Health Subcommittee and full
Committee to report the bill favorably. This legislation is based on the
Bridges to Excellence program, which uses a scoring system that provides higher
payments for having a fully functional EMR system than having a very basic
registry system, and a similar scoring model, with tiered payments, could be
used for Medicare:
- Tier
1 – the reporting on evidence-based standards of care; the maintenance of
patient registries for the purpose of identifying and following up with
at-risk patients and provision of educational resources to patients;
- Tier
2 – the use of electronic systems to maintain patient records (EHRs); the
use of clinical-decision support tools; the use of electronic orders for
prescriptions and lab tests (e-prescribing), the use of patient
reminders; use of e-consults (communication between patient/physician or
other provider) when an identifiable medical service is provided; and
managing patients with multiple chronic illnesses; [Practices can qualify
that utilize three or more incentives].
- Tier
3 - whether a practice’s electronic systems interconnect and whether they
are “interoperable” with other systems; whether it uses nationally
accepted medical code sets and whether it can automatically send, receive
and integrate data such as lab results and medical histories from other
organizations’ systems.
Such
tiered payments for systems improvements could either be in the form of a
tiered “add on” to the Medicare office visit payment that would increase as the
practice achieves a higher tier, or in the form of a la carte coding and
payment mechanisms to allow physicians to report when they use individual
elements inherent to patient-centered care, such as use of a registry and use
of clinical decision support. Congress should allocate funding to pay physicians
when they appropriately use and report these tools and/or direct HHS to exempt
the expenditures associated with these tools from the budget neutrality
requirement pertaining to payments for Medicare Part B services.
4. Provide oversight of
the Medicare Demonstration Project on Patient Centered Medical Homes
The
Tax Relief and Health Care Act of 2006 mandates that CMS implement a
demonstration project of a Medicare medical home in up to eight states
nationwide. ACP supports and appreciates Congress’s support for the Medicare
Medical Home demonstration project but urges this Subcommittee to exercise
oversight to assure that CMS implements it in a timely manner and provides
sufficient funding for physician practices that choose to participate.
5.
Require that CMS develop and implement additional changes in Medicare payment
methodologies to support patient-centered primary and principal care for (a)
practices that qualify as patient-centered medical homes and (b) practices that
are not fully qualified as PC-MHs but are able to provide defined services,
supported by systems improvements, associated with patient-centered care.
Physicians in practices that
qualify as a patient-centered medical home should be given the option (based on
standards to be established in statute) of being paid under an alternative to
traditional Medicare fee-for-service. This alternative model would consist of
the following:
- Bundled, severity-adjusted
care coordination fee paid on a monthly basis for the physician and non-physician
clinical staff work required to manage care outside a face-to-face visit
and the health information technology and system redesign incurred by the
practice.
- This bundled payment would
be combined with per visit FFS payment for office visits and performance
based bonus payments based on evidence based measures of care
Yesterday, Representative
Gene Green and Senator Blanche Lincoln introduced the Geriatric Care
Improvement Act of 2007, which will create a new Medicare benefit for geriatric
assessments of patients with multiple chronic disease and/or dementia and
monthly care management fees to physicians who enter into an agreement with HHS
to provide ongoing care coordination services to such patients. ACP strongly
supports this bill and urges that it be reported out favorably by the
Subcommittee.
For physicians who are not
practicing in a qualified patient-centered medical home, Medicare should be
directed to pay separately for the following CPT/HCPCS codes that involve
coordinating patient care for which Medicare currently does not make separate
payment.
- Physician supervision of
nurse-provided patient self-management education
- Physician review of data
stored and transmitted electronically, e.g. data from remote monitoring
devices
- Care plan oversight of
patient outside the home health, hospice, and nursing facility
setting—this is reported through CPT 99340, which is described in item
#3, “Create a specific, new alternative and optional patient centered
medical home benefit…”
- Anticoagulant therapy management
- New physician team
conference codes
- New telephone service
codes (scheduled to appear in CPT in 2008)
Conclusion
The
110th Congress has an historic opportunity to join with ACP, other
physician organizations, employers, and health plans to redesign the American
health care system to deliver the care that patients need and want, to
recognize the value of care that is managed by a patient’s personal physician,
to support the value of primary care medicine in improving outcomes, and to
create the systems needed to help physicians deliver the best possible care to
patients. The College’s policy recommendations and implementation road map are
offered today as a comprehensive plan for Medicare to realign payment policies
to support comprehensive, coordinated, and longitudinal care for beneficiaries
through a physician-directed, patient-centered medical home.
American Academy of Family Physicians (AAFP)
American Academy of Pediatrics (AAP)
American College of Physicians (ACP)
American
Osteopathic Association (AOA)
Joint Principles
of the Patient-Centered Medical Home
March 2007
Introduction
The Patient-Centered Medical Home (PC-MH) is an approach
to providing comprehensive primary care for children, youth and adults. The PC-MH
is a health care setting that facilitates partnerships between individual
patients, and their personal physicians, and when appropriate, the patient’s
family.
The AAP, AAFP, ACP, and AOA, representing approximately
333,000 physicians, have developed the following joint principles to describe
the characteristics of the PC-MH.
Principles
Personal physician -
each patient has an ongoing relationship with a personal physician trained to
provide first contact, continuous and comprehensive care.
Physician directed medical
practice – the personal physician leads a team of individuals at the
practice level who collectively take responsibility for the ongoing care of
patients.
Whole person orientation
– the personal physician is responsible for providing for all the patient’s health
care needs or taking responsibility for appropriately arranging care with other
qualified professionals. This includes care for all stages of life; acute
care; chronic care; preventive services; and end of life care.
Care is coordinated and/or
integrated across all elements of the complex health care system (e.g.,
subspecialty care, hospitals, home health agencies, nursing homes) and the
patient’s community (e.g., family, public and private community-based
services). Care is facilitated by registries, information technology, health
information exchange and other means to assure that patients get the indicated
care when and where they need and want it in a culturally and linguistically
appropriate manner.
Quality and safety are hallmarks
of the medical home:
- Practices advocate for their patients to support the
attainment of optimal, patient-centered outcomes that are defined by a
care planning process driven by a compassionate, robust partnership
between physicians, patients, and the patient’s family.
- Evidence-based medicine and clinical decision-support
tools guide decision making
- Physicians in the practice accept accountability for
continuous quality improvement through voluntary engagement in
performance measurement and improvement.
- Patients actively participate in decision-making and
feedback is sought to ensure patients’ expectations are being met
- Information technology is utilized appropriately to
support optimal patient care, performance measurement, patient
education, and enhanced communication
- Practices go through a voluntary recognition process by an
appropriate non-governmental entity to demonstrate that they have the
capabilities to provide patient centered services consistent with the medical
home model.
- Patients and families participate in quality improvement
activities at the practice level.
Enhanced access to
care is available through systems such as open scheduling, expanded hours and
new options for communication between patients, their
personal physician, and practice staff.
Payment appropriately
recognizes the added value provided to patients who have a patient-centered
medical home. The payment structure should be based on the following
framework:
- It should reflect the value of physician and non-physician staff
patient-centered care management work that falls outside of the face-to-face
visit.
- It should pay for services associated with coordination of care
both within a given practice and between consultants, ancillary providers, and
community resources.
- It should support adoption and use of health information
technology for quality improvement;
- It should support provision of enhanced communication access such
as secure e-mail and telephone consultation;
- It should recognize the value of physician work associated with
remote monitoring of clinical data using technology.
- It should allow for separate fee-for-service payments for
face-to-face visits. (Payments for care management services that fall outside
of the face-to-face visit, as described above, should not result in a reduction
in the payments for face-to-face visits).
- It should recognize case mix differences in the patient
population being treated within the practice.
- It should allow physicians to share in savings from reduced
hospitalizations associated with physician-guided care management in the office
setting.
- It should allow for additional payments for achieving measurable
and continuous quality improvements.
Background of the Medical Home Concept
The American Academy of Pediatrics (AAP) introduced the
medical home concept in 1967, initially referring to a central location for
archiving a child’s medical record. In its 2002 policy statement, the AAP
expanded the medical home concept to include these operational characteristics:
accessible, continuous, comprehensive, family-centered, coordinated,
compassionate, and culturally effective care.
The American Academy of Family Physicians (AAFP) and the
American College of Physicians (ACP) have since developed their own models for
improving patient care called the “medical home” (AAFP, 2004) or “advanced
medical home” (ACP, 2006).
For More Information:
American Academy of Family Physicians
http://www.futurefamilymed.org
American Academy of Pediatrics: http://aappolicy.aappublications.org/policy_statement/index.dtl#M
American College of Physicians
http://www.acponline.org/advocacy/?hp
American Osteopathic Association
[1]
Dartmouth Atlas of Health Care, Variation among States in the Management of
Severe Chronic Illness, 2006
[2]
Starfield, presentation to The Commonwealth Fund, Primary Care Roundtable:
Strengthening Adult Primary Care: Models and Policy Options, October 3, 2006
[3]
Commonwealth Fund, Chartbook on Medicare, 2006
[4]
Sidorov, Health Affairs, Volume 25, Number 4, 2006
[5]
Commonwealth Fund study, "Adoption of
Patient-Centered Care Practices by Physicians: Results from a National Survey"
(Archives of Internal Medicine, Apr. 10, 2006)
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