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paccr.org Improving Medicare PostAcute Care Transformation (IMPACT) Act of 2014 June 24, 2016 Erin Smith, JD Executive Director, PACCR Agenda IMPACT Act Background Quality reporting Discharge planning rules Unified PAC PPS 2 IMPACT Act of 2014 Bipartisan bill passed on September 18, 2014 and signed into law on October 6, 2014 Requires Standardized and Interoperable Patient Assessment Data that will enable: • • • • • • Assessment and QM uniformity Quality care and improved outcomes Comparison of quality across PAC settings Improve discharge planning Interoperability Facilitate care coordination 3 How did we get here? 1999: MedPAC recommendations (1999, March 2014) 2000: Benefits Improvement & Protection Act (BIPA)Report on developing standardized assessment instruments 2005: Deficit Reduction Act (DRA)tested the concept of a common standardized assessment tool in the form of the post-acute care reform demonstration (PAC PRD). Developed the Continuity Assessment Record and Evaluation (CARE) Item Set 2013: PAC Reform hearing and letter to stakeholders “The resounding theme across the more than 70 letters received was the need for standardized post-acute assessment data across Medicare PAC provider settings.” 4 paccr.org Quality Reporting IMPACT Act Requires Standardization IMPACT Act added new section 1899(B) to Title XVIII of the Social Security Act (SSA) Post-Acute Care (PAC) providers must Report standardized assessment data: • Data on quality measures • Data on resource use and other measures The data must be standardized and interoperable to allow for the: • Exchange of data using common standards and definitions • Facilitation of care coordination • Improvement of Medicare beneficiary outcomes PAC assessment instruments must be modified to: • Enable the submission of standardized data • Compare data across all applicable providers 6 Why target PAC? Important Part of the Health Care System • 42% of Medicare FFS beneficiaries discharged from hospitals go to at least one PACEscalating costs associated with PAC Lack of data standards/interoperability across PAC settings Goal of establishing payment rates according to the individual characteristics of the patient, not the care setting 7 PAC Quality Reporting Programs (QRP) Nursing Home and Home Health (HH) Compare 2005 – Deficit Reduction Act • HH QRP 2010 – Patient Protection and Affordable Care Act (ACA) • Long-Term Care Hospital (LTCH) QRP • Inpatient Rehabilitation Facility (IRF) QRP • Hospice QRP 2014 – Protecting Access to Medicare Act (PAMA) • Skilled Nursing Facility (SNF) VBP 2014 – Improving Medicare Post-Acute Care Transformation (IMPACT) • SNF QRP 8 Current Tools Differ by Setting Acute Care Hospitals no standard tool, varies by hospital Long-Term Care Hospitals LTCH CARE Inpatient Rehabilitation Facilities IRF PAI Skilled Nursing Facilities MDS Home Health Agencies OASIS Similarities • • • • Medical complexity Motor Functional status Cognitive status Social support and environmental factors Differences • Individual items that measure each concept • Number of functional items • Rating scales used to measure items • Look-back or assessment period 9 Categories for Standardization Function • e.g., self care and mobility Cognitive Function • e.g., express & understand ideas; mental status, such as depression and dementia Special services, treatments & interventions • e.g., need for ventilator, dialysis, chemotherapy, and total parenteral nutrition Medical conditions and co-morbidities • e.g., diabetes, heart failure, and pressure ulcers Impairments • e.g., incontinence; impaired ability to hear, see, or swallow 10 Implementation Timelines FY/CY Year IMPACT Act (standardized measures) Quality Domain Functional status and cognitive functioning SNF IRF LTCH 2017 2019 HHA October 1, 2016 October 1, 2016 October 1, 2018 January 1, 2019 Skin integrity October 1, 2016 October 1, 2016 October 1, 2016 January 1, 2017 Major falls October 1, 2016 October 1, 2016 October 1, 2016 January 1, 2019 Medication reconciliation Communication of health info and preferences October 1, 2018 October 1, 2018 October 1, 2018 January 1, 2017 Resource Use - MSPB-PAC October 1, 2016 October 1, 2016 October 1, 2016 January 1, 2017 October 1, 2018 October 1, 2018 October 1, 2018 January 1, 2019 11 paccr.org Discharge Planning Requirements Proposed Rule The IMPACT Act Created New Requirements Discharge Planning and Discharge Summary CoPs Hospital Discharge Planning Process CAH Discharge Planning HHA Discharge Planning LTCHs and IRFs are subject to the same hospital CoPs 13 Hospitals, CAHs, and HHAs Would Have Additional Discharge Requirements Provide discharge instructions to patients who are discharged home Have a medication reconciliation process, with the goal of improving patient safety by enhancing medication management Send specific medical information to the receiving facility (for patients transferred to another facility) Establish a post-discharge follow-up process 14 Proposed Timelines for Discharge Planning • Hospitals and CAHs would be required to Begin discharge planning process within 24 hours of admission or registration Complete and document a discharge plan before the patient is discharged home or transferred to another facility • HHAs would be required to Complete an evaluation of the patient’s discharge needs Complete and document a discharge plan before the patient is discharged or transferred to another facility 15 Discharge Planning Process Regular reevaluation of patient Involve the responsible practitioner Consider caregiver availability and patient’s/caregiver’s capabilities Involve the patient and caregiver Address patient’s goals and preferences Assist in selecting PAC provider (for patients who are transferred) Timely documentation to avoid delays Ongoing assessment of discharge plans* *not specifically required for HHAs in the proposed rule 16 Assisting Patients in Selecting PAC Providers Utilize and share data on quality and resource use measures Data must be relevant to the PAC setting for the patient (HHA, SNF, IRF, LTCH) Data must be relevant to the patient’s goals and preferences 17 Hospital and CAH Criteria for Evaluating Patient Needs Admitting diagnosis or reason for registration Relevant co-morbidities and past medical and surgical history Anticipated ongoing care needs post-discharge Readmission risk Relevant psychosocial history Communication needs, including language barriers, diminished eyesight and hearing, and self-reported literacy of the patient (and patient’s representative or caregiver/support person(s), as applicable) Patient’s access to non-health care services and community-based care providers Patient’s goals and treatment preferences 18 Discharge Planning for Patients Discharged Home from a Hospital or CAH Discharge instructions at time of discharge • Patient and/or caregiver • PAC provider, if referred to community-based services Information for follow-up provider • Discharge instructions and summary (48 hours of discharge) • Pending test results (24 hours of availability) • All other medical information Instructions include • Post-discharge care instructions for patient in home • Warning signs and symptoms, and what to do if warning signs present • Prescriptions and medication information • Medication reconciliation • Follow-up appointments and care instructions Establish a follow-up process 19 Discharge Planning for Patients Transferred to Another Health Care Facility Provider must send necessary medical information to the receiving facility Necessary medical information, includes • Demographic information • Contact information • Diagnosis • Lab tests and other diagnostic testing • Functional status assessment • Medication reconciliation • Patient’s goals and treatment preferences Full list can be found in the appendix of this presentation 20 Additional Hospital Requirements for Post-Acute Care For patients who are discharged home with HHA services or transferred to a SNF, IRF, or LTCH Provide a list of available HHAs, SNFs, IRFs, or LTCHs • In the relevant geographic area • Participating in Medicare or in the MCO network • Document that the list was given to the patient Inform patient of right to choose provider • Not limit the availability of qualified providers • Respect the patient’s preferences among participating Medicare providers Disclose financial interests • Any financial interest with any provider to which the patient is referred 21 The Proposed Rule Notes Some Additional Expectations of Providers Improve focus on psychiatric and behavioral health Know the availability of community-based services and organizations Take reasonable steps to provide individuals with limited English proficiency or other communication barriers Focus on person-centered care to increase patient participation in postdischarge care decision making 22 Hospitals and PACs Would Face Significant Financial Implications • In the first year, compliance would cost providers $454M, and $396M annually in the following years • HHAs would bear a majority of the costs Provider Type # of Entities Frequency Est. Cost (Millions) Hospitals 4,900 1st Year Annually $17 $107 CAHs 1,328 1st Year Annually $7 $6 HHAs 11,930 1st Year Annually $34 $283 Total for first implementation year $454 23 paccr.org Unified PAC PPS Timeline for Creating a Unified PPS The IMPACT Act requires research and reporting on a Prospective Payment System for all PAC providers Would replace the four payment systems that are in use today Timeline • • • • June 2016: MedPAC report – concludes feasibility of PAC PPS 2022: HHS report in response 2023: MedPAC report with prototype of PAC PPS 2025(?): Possible implementation of PAC PPS MedPAC encourages quicker implementation of a unified payment system 25 MedPAC Goals for a Unified PAC PPS June 2016 Report: Conclusion that PAC PPS is both feasible and within reach General structure: Episode-based payments focusing on the care needs & outcomes for Discouraging provision of unnecessary services Common payment framework across SNFs, HHAs, IRFs, & LTCHs Minimize financial incentives for providers to admit certain types of patients over others 26 Transitioning to a PAC PPS Working towards uniformity Need time for providers to adjust their costs • Particularly for high-cost providers to lower their costs to match the PAC PPS payments MedPAC foresees a transition period where: • Payments remain based on patient characteristics to focus on care needs • Unnecessary spending is financially discouraged 27 Key Elements of a PAC PPS Presented by MedPAC Uniform unit of service Base rate for defined unit of service Case mix adjustments to base rate. Must reflect: • Differences in patient severity • Differences in cost of labor, space, etc. • Other differences in cost beyond provider’s control Policies to adjust for both unusually low-cost and high-cost stays 28 Need for Companion Policies Alongside PAC PPS Supporting the adoption of the PAC PPS at start Dampening incentives that encourage fee-forservice (FFS) MedPAC proposes: • Readmission policy to prevent unnecessary hospital readmissions • Value-based purchasing policy to tie payments to outcomes & resource use 29 Connect with PACCR! Post-Acute Care Center for Research www.paccr.org @PAC_CR [email protected] Post-Acute Care Center for Research (PACCR) [email protected] 30 Appendix: Acronym Library CAH CMS CoPs EHR HHA IMPACT IRF LTCH MCO PAC PDMP SNF Critical Access Hospital Centers for Medicare and Medicaid Services Conditions of Participation Electronic Health Records Home Health Agency Improving Medicare Post-Acute Care Transformation Act of 2014 Inpatient Rehab Facility Long-Term Care Hospital Managed Care Organization Post-Acute Care Prescription Drug Monitoring Program Skilled Nursing Facility 31 Appendix: Information for Transfer to Another Health Care Facility • • • • • • • • • • • • • • • • • • • • • Demographic information, including but not limited to name, sex, date of birth, race, ethnicity, preferred language Contact information for the practitioner responsible for the care of the patient, as described at paragraph (b)(4) of this se ction, and the patient’s caregiver/support person(s), if applicable; Advance directive, if applicable Course of illness/treatment Procedures Diagnoses Laboratory tests and the results of pertinent laboratory and other diagnostic testing Consultation results Functional status assessment Psychosocial assessment, including cognitive status Social supports Behavioral health issues Reconciliation of all discharge medications with the patient’s pre-CAH admission/registration medications (both prescribed and overthe-counter) All known allergies, including medication allergies Immunizations Smoking status Vital signs Unique device identifier(s) for a patient’s implantable device(s), if any All special instructions or precautions for ongoing care, as appropriate Patient’s goals and treatment preferences Any other necessary information including a copy of the patient’s discharge instructions, the discharge summary, and any othe r documentation as applicable instructions or precautions for ongoing care, as appropriate 32