Women occupy 65% of the healthcare workforce yet seem to be missing in C-suite roles, holding approximately 30% of senior leadership positions and a mere 13% of coveted CEO titles. With female consumers making the majority of buying and usage decisions when it comes to healthcare products and services, the disparity between female leaders and end users in the industry is difficult to ignore.
In fact, we must pay attention to this gap that is slowly closing at a snail’s pace, as fortune 500 healthcare company boards slightly grew female leadership from 22.6% in 2018 to 26% the following year. And although U.S. hospitals tend to have more women at the top, a 2019 Rock Health report revealed that the metric of female representation is just over 37% in this arena. Certainly, progress is being made, but the diversity of welcoming women into leadership roles in all facets of healthcare – particularly healthtech – is crucial to meeting the diverse care needs of all patients and consumers across the board.
Diversity is a Must in the Industry
Spanning all industries, diversity is crucial at all levels of the workforce. Not only is it socially the right thing to do, but studies prove that a diverse workplace improves financial returns by 35%. Additionally, having a variety of perspectives boosts innovation, creativity, decision making, and opportunities to reach new customer demographics like never before.
Inclusive companies are almost two times more innovative and are better at making decisions 87% of the time. Similar to how diverse voices drive business outcomes, gender diversity is needed to continue pushing tech advancements in healthcare to deliver improved care for people of all backgrounds.
In the healthtech sphere specifically, women make up 20% of executive roles at the top 100 medical device companies. While many companies are hiring diversity and inclusion leadership roles to quicken the pace of change in the lack of diversity in healthtech, it’s crucial to share how gender diversity is taking control of the market and benefiting the industry. As a female executive of a telehealth platform with over 15 years of industry experience, I have seen significant growth as well as process and product improvements in our company – a company that is proud to possess a workplace culture that has been recognized by Forbes, Comparably, Inc. Magazine, Modern Healthcare, USA Today, and San Diego Magazine.
By Rebecca Chi, chief client experience officer, AristaMD.
Accessing specialty medical care shouldn’t be difficult, yet 27% of people in the U.S. wait one month or more to see healthcare specialists. A survey by AristaMD of four in-demand specialties – cardiology, dermatology, endocrinology, and gastroenterology, revealed that appointment wait times for some specialties exceed 90-days.
Endocrinology has an average wait period of 67 days, which surpasses the overall survey average by 19 days. Gastroenterology generally has more providers per clinic, yet still averages a 64-day wait time per provider and a 16-day increase from the overall average.
While these metrics reflect a broader trend of rising healthcare wait times across the country, the daily impact on individuals is cause for concern. Each day that patients wait to receive specialty care, the likelihood the appointment will be canceled, or the person will suffer additional medical complications rises. The time-lapse to see a specialist is lengthening in the U.S., but one solution is working to effectively combat the wait-time challenge – eConsults.
The Issue of Long Wait Times
While endocrinology and gastroenterology top the wait-per-provider by specialty, several states are experiencing higher-than-average wait times as compared to the rest of the nation. For example, Oregon has the most extreme wait times with an above-average wait time across cardiology, dermatology, endocrinology and gastroenterology. Specifically, the city of Portland ranks as having one of the highest appointment wait times in the country, averaging a total of two months to secure a patient appointment for an emergent condition. Additionally, areas such as Tacoma, Washington and Richmond, Virginia are seeing staggering appointment scheduling challenges with dermatology appointments booked 139 days out, which is 103-days greater than the specialty’s average.
Complicated referral process that delays appointment scheduling
Shortage of specialists nationwide
Poor distribution of specialists across the country
Office staffing shortages
Challenges finding a specialist who participates in health plan’s provider network
Regardless of the issue behind the rising delay in scheduling patients needing advice from a specialist, the outcomes are:
Increasing health risks
Driving patients to more expensive alternatives, like the emergency department
Decreasing patient satisfaction
Negatively impacting primary care physicians’ health plan star ratings
The Benefits of eConsults
As wait times continue to soar at healthcare clinics, there is a solution to reduce the impact of the shortage of available specialist appointments. With electronic physician-to-physician consultations, or eConsults, primary care physicians are empowered to provide specialist-guided care to patients – efficiently and effectively. All patients deserve timely, cost-effective access to healthcare, and eConsults are available to help reach this goal.
Electronic consultations are online medical consultations between physicians to communicate about a patient’s current symptoms, possible diagnosis and appropriate treatment plan with the benefit of the expertise of a physician specialist. This collaboration between primary care providers and specialists not only improves the patient experience but also optimizes clinical revenue, offers rapid access to specialty care and reduces routine clinical referrals by 70 percent. Instead of sending patients to find a specialist who participates in their health plan’s provider network, primary care physicians can reach out to specialists and get back to their patients within hours with the next steps in their treatment plan. A process that required multiple trips to the specialist’s office and traditionally spanned months is completed within hours.
It’s time to challenge the status quo against unprecedented healthcare wait times with a solution that advocates for timely patient care and less unnecessary face-to-face referrals and repeated diagnostics. eConsults can connect primary care physicians to specialists to decrease wait times, expand care capacity, and improve quality ratings. With the average wait per specialty provider growing, physicians can take the issue into their own hands and meet patients’ needs in the primary care setting.
We have turned a page to the next chapter in healthcare for the US. At its core is a new delivery system in which we leverage all available tools to allocate our precious resources, and the patient is at the center of it all.
We have a severe shortage of providers in the U.S. and must utilize the right tools at the right time to match patients to the right resources in the right place. In addition, healthcare needs to be more consumer-centric, as we are witnessing a rising demand of patients seeking options like telehealth that deliver high quality care faster, more conveniently, and affordably.
Lastly, as we adapt our care deliver models in the future, we need to keep an eye on reducing the stark inequities that have become glaringly apparent during this pandemic. Modalities like telehealth hold the promise to provide culturally and linguistically appropriate access to care through expanded networks and to help close gaps in care and address social determinants of health.
Telehealth solutions can be used to optimize the efficiency of healthcare delivery and ultimately improve patient experience. One mode of telehealth, eConsults, ensure that patients are treated by the right provider in the right setting, by facilitating effective peer collaboration that can support all providers to operate at the top of their license. What that means in practice is that primary care providers can get guidance from specialists to help design care plans, and that in-person visits to specialists can be reserved for those patients with more complex issues who cannot be treated virtually.
AristaMD, connecting primary care providers (PCPs) with timely, documented specialist insights, announced investments from Ascension Ventures, a strategic healthcare venture firm representing 13 of the nation’s leading non-for-profit health systems, and .406 Ventures, a venture capital firm investing in early-stage disruptive enterprise technology and digital health companies.
These investments top off the company’s Series B funding round, which was co-led by Cigna Ventures and MemorialCare Innovation Fund, at $24 million. The new capital will be used to accelerate commercial growth as well as continue the expansion of its proprietary eConsult platform supporting payors and health systems across the country.
“Delivering more timely care to patients has become even more crucial during the COVID-19 pandemic and will remain important in the future, as we must reserve precious in-person specialty appointments for those who critically need them,” said Brooke LeVasseur, CEO of AristaMD. “This additional funding will help us accelerate our vision and contribute to shaping a world where all patients have timely, cost-effective access to health care.”
Designed by practicing physicians, AristaMD’s eConsult solution empowers PCPs to expand their scope and collaborate on patient care with a world-class panel of on-demand specialists. AristaMD significantly increases access to appropriate and timely care to improve outcomes and reduce costs.
“With its innovative solution and industry-leading team, AristaMD is positioned to make a considerable improvement in the way health care is delivered,” said John Kuelper, managing director of Ascension Ventures. “AristaMD has built a highly scalable solution that continues to deliver tangible ROI for health systems and payors, and improves the level of care for all patients.”
The need for eConsults has never been more critical. According to recently published data, since the COVID-19 pandemic started, outpatient hospital visits declined by 31%. Additionally, preventative screenings for cervix, colon and breast cancer have dropped between 86% and 94%, compared to the last three years. With non-emergency, proactive care and elective procedures being canceled throughout the pandemic, there is a backlog of appointments. eConsults will be an effective triage tool now and moving forward to improve access and reduce healthcare strain.
“AristaMD enables patients to efficiently obtain the appropriate level of care when they need it most,” said Payal Divakaran, partner at .406 Ventures. “We’re excited to partner with Brooke, her team and a great group of co-investors to expand the reach of AristaMD’s enterprise-grade platform.”
The shortage of specialist physicians in the United States continues to receive a great deal of attention as an area of concern. However, a lesser-known compounding factor is the increase in referral rates. In a 2012 study, the National Ambulatory Medical Care Surveys found that between 1999 and 2009, the probability of receiving a specialist referral during an ambulatory patient visit increased from 4.8% to 9.3%, a 92% increase, nearly double. While this study is now several years old, we can surmise that this trend has continued due to the persistence of several factors contributing to the overall disparity between specialist referrals and the number of available specialist physicians.
The clear impact of these compounded problems is substantially increased wait times among patients with a physician referral for specialist appointment. In 15 major metro areas, a recent Merritt Hawkins study covering the medical specialties of cardiology, dermatology, orthopedic surgery, and obstetrics and gynecology, found appointment wait times increased 25% from 2014 to 2017. Wait times averaged 24.1 days across the study, with some extreme cases waiting 165 days for an appointment.
Long wait times impact patient outcomes and healthcare operations
On top of the anguish and emotional impact of waiting for care, diseases and illnesses can progress as patients sit in appointment queues for weeks or even months on end. As NEJM describes, “long waits before appointments, particularly specialist appointments, often contribute to the development of avoidable complications,” which cause more difficult health cases both for the patient and for the physicians caring for them.
There are notable effects on healthcare operations that add to the case for reducing patient wait times as a crucial avenue for improving healthcare overall. For example, long wait times for appointments increase the prevalence of no-shows, indicating that patients are either frustrated enough to not follow through on scheduled appointments or forget appointments altogether because of the long interim period. Sometimes appointments can even be moved around by specialist physicians at the last minute, leaving patients in limbo for even longer.
Additionally, long wait times frequently lead to patients receiving inefficient care. Firstly, extended waits often deter patients from seeking initial care. This shifts the healthcare industry away from proactive to reactive care, which is less effective and more costly for all parties involved. Secondly, the inability to access the care they need and when they need it, leads to patients seeking care within inappropriate settings. These patients are more likely to be admitted to EDs, as the 30-day rate of ED and inpatient usage was 8.7 times higher for patients awaiting a specialist appointment. A study by Truven Health Analytics noted that 71% emergency room visits are unnecessary and avoidable. Each of these issues alone make strong cases for reducing patient wait times; these issues combined suggest reducing patient wait times is a crucial goal that must be prioritized when it comes to streamlining healthcare delivery and improving quality of care.
In light of these concerning figures and effects, healthcare organization operations are turning their focus toward reducing wait times and improving patient outcomes. This fits well as part of an overall strategy to increase quality and efficiency of healthcare delivery. Below, we will focus on how telehealth platforms, specifically eConsults, combat multiple factors driving specialist appointment wait times, streamlining the physician referral process and thereby reducing patient wait times for happier and healthier patients.
Positive impacts of reducing patient wait times by accessing specialty care from within primary care
Increasingly, healthcare providers are entering into value-based payment arrangements. Telehealth solutions, and specifically eConsults, can support the drive toward more efficient care by increasing access to specialists while better optimizing time and place of care.
eConsults are is an electronic form of peer-to-peer collaboration, providing PCPs with a platform to consult with specialists on specific patient cases. eConsult interaction occurs using a secure, HIPAA-compliant messaging platform, where specialist guidance is received within 24 hours, drastically reducing the interim time between referral and treatment. eConsults can replace more than 70% of routine referrals with immediate, specialist-guided treatment from the PCP, without the wait and additional cost. Keeping lower acuity patients out of the specialist referral queue means faster access to face-to-face visits for the higher acuity patients, expediting care and improving outcomes for all.
One provider (and frequent user of AristaMD eConsults) at a Federally Qualified Healthcare Center describes the challenges of securing specialty care for the patients at her clinic: “Especially with MediCal patients, it usually takes at least four or five months for a patient to complete a referral. Very often, patients end up waiting three to five months, then receive notification their appointment has changed, the specialist has moved, or even that the specialist is no longer taking that patient’s insurance. Some of these patients are then in limbo for more than six to nine months. This is where the benefit of AristaMD’s eConsult platform comes in. AristaMD specialists provide guidance on patient care plans, for example diagnostic or medication recommendations, within 24 hours.”
Several studies have already noted demonstrable decreases in wait times once eConsults were introduced in large health systems. The San Francisco Department of Public Health saw dramatic improvements following the introduction of their eConsult program. The median wait time for a non-urgent appointment with a rheumatology specialist was drastically reduced from 126 days to 29 days. Additionally, patients visiting specialists needed fewer follow-up appointments as a result of a more extensive pre-visit workup made possible by this telehealth platform. Other similar successes have been observed in Los Angeles and the NYC Health + Hospitals System, with the latter finding that median wait times for high-urgency specialist visits decreased from 30 days to 16 days as a result of eConsult implementation.
eConsults are ideal for addressing the growing problem of lengthy patient wait times. They empower PCPs to deliver specialist-guided care to lower acuity patients in a timely manner while freeing up the capacity for in-person specialist visits for the more complex, higher acuity patients who need them most.
Over the past few years, there have been encouraging improvements in the realm of mental health care in the United States. Initiatives to improve mental health outcomes, such as the Affordable Care Act (2010), have been primarily aimed at requiring increased insurance coverage to encompass mental health services at levels comparable with physical medical care.
Despite these improvements, such policies do not address issues caused by access challenges within the referral system, and many of the one in five adults suffering from mental illness in the United States still are not accessing the mental health care they require and need. In particular, there exists a shortage of mental health providers across the country, and these health professionals are likely to be out-of-network for many patients. Further barriers preventing patients from obtaining care include travel, missed work time associated with appointments, and the social stigma of seeking mental health care.
Faced with these challenges, patients with mental health issues are resorting to emergency departments in search of mental health services. Hospital emergency departments lack access to psychiatric services and mental health resources. Further, as patients are improperly treated in urgent care settings, this can lead to reduced access to care for those with acute medical issues, which then results in poorer overall outcomes at the highest cost of care.
To address these multi-faceted challenges, value-based care models have placed particular importance on the role of primary care, as these organizations are uniquely positioned to promote innovation and efficiency through proactive and coordinated care. When it comes to mental health services, primary care providers (PCPs) serve at the front line of care and are positioned to be an excellent means of providing access to mental health care to a patient population in need. However, many PCPs lack adequate resources to treat these often complex and specialized issues.
Telehealth technologies, such as telepsychiatry and eConsults, can support primary care practices by creating networks to provide timely, documented, and standardized access to mental health professionals. This equips PCPs to more effectively manage patients with mental health concerns, reducing wait times and improving mental health outcomes.
AristaMD’s eConsult platform connects PCPs with adult and pediatric psychiatry, addiction medicine, and behavioral health specialists to provide care planning support and treatment recommendations. Ninety-one percent of AristaMD’s mental and behavioral health eConsults have been shown to include medication regimen guidance including initiation of treatments, diagnostic recommendations, and medication dosage adjustment, all of which can be managed within the primary care setting with the support of specialty insight.
AristaMD is now available in the Epic App Orchard marketplace. AristaMD being accepted into App Orchard marks another cutting-edge innovation built upon AristaMD’s history of proven integration scalability.
Enabling PCP to specialist collaboration on care plans, AristaMD’s eConsult solution improves access to timely specialty care for patients who would have otherwise had to wait for a separate face-to-face visit. The AristaMD app makes this process even more streamlined for health system specialists using Epic. Providers can now quickly launch the eConsult platform directly through Epic’s electronic health record (EHR), creating a user-friendly experience for answering eConsults with minimal provider burden and workflow changes.
“We know providers are pressed for time and health systems are trying to streamline technology solutions, ideally with a single touchpoint,” said Brooke LeVasseur, CEO of AristaMD. “The AristaMD app in the App Orchard allows organizations to leverage our eConsult platform directly through their EHR with the benefits of baseline data, proven efficacy, full reporting, and platform management. It’s an important step and part of our continued innovation plan focused on helping providers reduce the challenges of change management and ultimately, provide better care for patients.”
LeVasseur continued, “Using the SMART on Fast Healthcare Interoperability Resources framework, AristaMD is able to leverage an integration with any Epic customer. We hope to work with other EHRs in order to help drive the future of interoperability that delivers new important capabilities along with enhanced provider experience.”
By Chris Jaeger, advisor for ACO and health system strategy, AristaMD.
In April 2019, CMS announced the Primary
Cares Initiative which is expected to reduce administrative burdens and
increase patient care while decreasing healthcare costs. Learn more about the
payment models of the Primary Cares Initiatives, and how eConsults directly
support this new initiative.
While the healthcare landscape has never
been static, rarely has it seen such radical changes as within recent decades.
The United States’ population continues to age, and the prevalence of chronic
conditions such as obesity, diabetes, heart disease, and anxiety/depression contribute
to a substantially increased demand for care. These factors are pushing a shift
from a provider-centric model toward more efficient, outcomes-based models that
put the patient at the center and heavily rely on primary care as the steward
of patient care.
Primary care is a vital resource in
dealing with the many factors altering the healthcare landscape. A 2019 study
published in JAMA Internal Medicine
corroborates this, finding that for every 10 additional primary care physicians
per 100,000 people, patients saw a 51.5-day increased life expectancy—more than
2.5 times the increase associated with additional
nonprimary care physicians. For years, primary care delivery has shifted along with
changes in the healthcare landscape. Innovations in primary care and aligned
incentive models reward more continuous and comprehensive healthcare, as
opposed to care delivery and reimbursement models for discrete moments or
episodes of care highlighted by numerous appointments and separate visits to
different providers. These innovations strive to put patients at the center of
care above all else.
To promote further adoption of
primary-care based models, the U.S. Department of Health and Human Services
(HHS) and Centers for Medicare & Medicaid Services (CMS) recently announced
a set of payment models meant to further transform primary care through
value-based options under the new Primary Cares Initiative. This
voluntary initiative will test financial risk and payments for primary care
physicians (PCPs) based on performance and efficiency, including five new
payment models under two paths: Primary Care First (PCF) and Direct Contracting
(DC). These models, slated to hit 20 states in the year 2020, seek to address
the many difficulties in paying for, and incentivizing, valuable primary care
within current payment models.
Primary Cares Initiative payment models
aimed to PCPs
All five of the payment models described
in the Primary Cares Initiative are aimed at PCPs in the hopes of improving
services at these linchpins within the healthcare system. However, these models
can be grouped into two distinct categories–Primary
Care First and Direct Contracting–and there are variations within these groups.
Primary Care First
The models categorized under PCF are aimed
squarely at relieving strained hospital resources and improving health outcomes
through primary care. These models aim to more adequately reward primary care
providers through performance-based payment adjustments, in the hopes that this
will be an effective way to reduce the overuse of hospitals for healthcare
needs. These two models are:
Primary Care First
(PCF): The general PCF model will test whether
risk- and performance-based payments for primary care practitioners will reduce
Medicare expenditures while preserving or improving quality of care. Under this
option, payment will be provided to an advanced primary care site based on the
size of its patient population (on top of a flat primary care visit fee), and adjusted
based on performance within “easily understood, actionable outcomes,” according
to CMS. The performance-based adjustment represents a potential quarterly
upside of up to 50 percent of revenue as well as a potential small downside (10
percent of revenue).
Primary Care First
–High Need Populations: In
addition to the general PCF model, the Primary Cares Initiative includes a
payment model specifically geared toward practices specializing in care for
high-need patient populations. This includes patients with chronic care needs
and a group the model refers to as seriously ill populations (SIP). This
payment model creates an option for high-need patients without a primary care
physician to receive care from a participating practice if the patient
The direct contracting path includes a pair of risk-sharing payment models, both voluntary, along with a third payment model for which CMS is seeking public input. Like the PCF models, these models aim to reward those providing more efficient, high-quality care. However, these models are geared toward organizations with experience serving broader patient populations rather than individual primary care practices. The three models are:
– Global Population-Based Payment (PBP): Participants
in the Global model will take on the full share of risk, but also be eligible
for 100 percent of any savings achieved on the total cost of care for aligned beneficiaries.
– Professional PBP: Under the
Professional model, participants will retain both savings and losses accrued on
the total cost of care for aligned beneficiaries, but at a rate of 50 percent.
– Geographic PBP: The Geographic
model is similar to the Global model, but with an important caveat:
Participants would accrue 100 percent of savings or losses on the total cost of
care, but only for aligned beneficiaries within a target region. The
stated aim for this model is to drive accountability to a local level so that
communities can develop strategies tailored to more individualized needs. CMS
is still seeking input on this model, however.
Additional healthcare initiatives strengthening
As mentioned above, primary care is a
crucial avenue for fostering improved health outcomes for a wide range of
patients and populations. In addition to increased life expectancy, some
motivations for focusing on improved primary care include the following:
Adults in the U.S. who have a primary care provider have 19 percent lower odds of premature death than those who only see specialists for their care.
People who have a primary care provider save 33 percent on healthcare over their peers who only see specialists.
A study in a North Carolina ER found that nearly 60 percent of the patients’ problems could have been addressed in a primary care clinic for a savings of 320 percent to 720 percent — that’s a value of a three to seven times reduction in healthcare spend.
For many, primary care serves as the entry point to the healthcare system, as individuals and families alike head first to their primary care physician for treatment. Primary care emphasizes population health and managing chronic illness. As such, primary care is an ideal means for improving our healthcare system on many fronts including access, cost of care, and quality of healthcare services.
Given the benefits listed above, it’s no surprise that so much attention has been paid to improve primary care, and the Primary Cares Initiative is not the first such effort. Programs such as the Patient-Centered Medical Home (PCMH), the Comprehensive Primary Care (CPC+) program, and Medicare Advantage Value-based Insurance Design (VBID) test model give healthcare stakeholders the means to promote triple and quadruple goals of allocating resources more efficiently, improving health outcomes, and improving the experience of all individuals involved–including both physicians and patients.
As its name implies, the PCMH is focused
on putting patients at the center of healthcare. It recognizes the value of team-based
primary care, and five core attributes are
included in this model:
quality and safety
Beyond PCMH is the CPC+ program, an
initiative aimed squarely at care sites that have demonstrated significant
improvement and transformation in pursuit of value-based goals. Payers are invited by CMS to participate in
the program if they provide, or aim to provide, care practices that go beyond
fee-for-service payments based solely on visits and episodic appointments. Through
this program, CMS aims to work with payers representing 5 to 7 markets and accounting
for roughly 525 practices (around 75 practices in each market). Some 330,750
patients would be reached by this initiative, which focuses on several
functions for practices to achieve greater healthcare successes including:
Planned care and
By their nature, Medicare Advantage (MA) plans
seek to optimize the delivery of healthcare for their members. Receiving
capitated payments to provide all Medicare-covered services to plan
participants, plan objectives are the perfect setting to test models of care
delivery that may reduce cost while being able to offer beneficiaries improved access,
options, and quality of care–versus traditional Medicare plans. MA plans have proven to be more efficient in
reducing expenditures than both Accountable Care Organizations (ACOs) and
traditional Medicare. The Medicare
Advantage Value-Based Insurance Design (VBID) model was introduced in 2017 by CMS to allow MA plans the opportunity to
offer supplemental benefits or reduced cost-sharing for enrollees with certain
chronic conditions who engage with services/providers that are of highest
clinical value to them. CMS released major changes to the VBID model in January 2019, and plans to
test new additions 2020 to 2024. The updates are intended to
lower costs while increasing the quality and coverage of care for Medicare
beneficiaries and include:
Allowing customization of cost-sharing based on chronic condition, socioeconomic status, or both, including some non-health related benefits, such as transportation.
Expanding eligibility to include chronic condition special needs plans (SNPs), dual eligible SNPs, institutional SNPs, and regional preferred provider organizations.
Bolstering the rewards and incentives programs that plans can offer beneficiaries to take steps to improving their health.
Increasing access to telehealth services.
Thus, the Primary Cares Initiative
represents not just a single push to improve the healthcare system as a whole
through primary care, but an overarching drive to do so via many initiatives
and programs. Bringing more practices on board with initiatives such as the
PCMH, CPC+, innovation within Medicare Advantage, and the Primary Cares
Initiative will undoubtedly solidify the success of these and future programs,
as stakeholders and policymakers come to a greater understanding of how to
incentivize and create a path toward improved healthcare outcomes.
eConsults directly support Primary Cares Initiatives
by maximizing primary care’s value in healthcare delivery
A continuing challenge in maximizing the
efficiency and effectiveness of primary care is that of managing specialist
referrals. Electronic consultations (eConsults) have gained favor in meeting
this challenge. eConsults help in reducing variations in referrals, increasing
access to specialist care and consultations among broader populations, and
reducing wait times for specialist visits.
With the new CMS Primary Cares Initiative
targeting advanced primary care practices for these payment models, eConsults
are becoming increasingly valuable. Advanced primary care practices are defined as those that
demonstrate an aim toward implementing fundamental strategies that focus on
patient needs, with primary care as the foundation for maximizing value in
healthcare delivery. These practices focus squarely on improving primary care
in terms of health outcomes and lower costs. A key component of such advanced
primary care practices is shepherding resources to improve efficiency and
effectiveness in order to achieve their goals.
eConsults — which directly support
improved health outcomes, reduced costs, and increased provider and patient
satisfaction — are one such resource. As more health systems look toward
creating PCMH models and consider adopting new value-based payment models under
the Primary Cares Initiative to better manage the health of their patient
population, eConsult systems will be instrumental in improving team-based care
coordination and communication.
By Chris Jaeger, head of ACO and health system strategy, AristaMD.
Rural hospitals are facing severe challenges in maintaining operating margin, with uncompensated care being a major factor. Telehealth eConsult platform use in local primary care settings to improve “right time, right place, right provider care” have been shown to decrease the number of patients receiving avoidable and unnecessary care within the hospital setting, thus supporting hospital’s ability to mitigate uncompensated care.
Uncompensated care is an overall measure of hospital care provided for which payment was not received from the patient or payer group. It equates to the sum of a hospital’s bad debt — the financial assistance it provides. Financial assistance includes care for which hospitals never expected to be reimbursed and care provided at a reduced cost for those in need. A hospital incurs bad debt when it cannot obtain re-imbursement for care provided; this happens when patients are unable to pay their bills, but do not apply for financial assistance, or are unwilling to pay their bills.
Hospitals, both nonprofit and for-profit, provide uncompensated care for individuals who are uninsured and under insured.
Though there has been a noted decline in uncompensated care since the 2014 passage of the Affordable Care Act and Medicaid expansion, this has not carried over to states not part of the expansion. States that expanded Medicaid to low-income adults under the ACA recognized a 47 percent decrease in uncompensated care costs, on average, compared to an 11 percent decrease in states that did not expand Medicaid.
(Coverage map as of Feb 2019)
Uncompensated care and dropping revenue margins are causing hospitals, especially in rural areas, to close. “While Medicaid expansion has improved all hospitals’ operating margins and total margins, the effect was particularly pronounced in rural areas,” noted a report from the Center on Budget and Policy Priorities. A recent study by the North Carolina Rural Health Research Program (NC-RHRP) at the University of North Carolina Cecil G. Sheps Center for Health Services Research (UNC-CH) showed that since 2010, 89 rural hospitals in 26 states have closed.
Much of this uncompensated care could be prevented through primary care intervention. A report, released by Premier, found that six common chronic conditions accounted for 60 percent of 24 million Emergency Department (ED) visits in 2017; out of that 60 percent, approximately one third of the visits (4.3 million) were likely preventable and could be treated in a less expensive outpatient setting.
If it isn’t already clear, the headlines are signaling that the era of healthcare innovation is upon us and moving swiftly. Managed Medicaid plans could be losing out on millions of contracted lives (and money) by lagging in the adoption of digital telehealth resources to improve access to care and patient outcomes. Leveraging an eConsult solution is a proven way to increase access to high-quality care while lowering system cost, ensuring innovation scoring opportunities are not missed.
Innovation is the new constant
Although the pace of innovation in healthcare has traditionally been slow, organizations are increasingly seeking new ways to innovate in order to support value-based care models. Recent partnerships formed between Amazon, Berkshire Hathaway and JPMorgan Chase, CVS and Aetna, Cigna and Express Scripts, and so on strongly indicate that innovations rooted in providing better care for lower costs are paramount to the success and growth of healthcare.
Payers whose ongoing strategies are not placing precedence upon innovation will be left in the dust. Not only will this be costly for access and quality, it can jeopardize managed Medicaid payers’ chance of re-procuring and expanding contracts.
Managed Medicaid Plans must innovate to reach objectives
Managed Medicaid plans need innovations to improve the value and efficiency of healthcare provided. To ensure they’re getting the best value, state Medicaid programs re-procure contracts with managed care payer groups on a perpetual basis — sometimes as frequently as every three years. States use these periods as an opportunity to seek updated solutions to long-standing or emerging challenges, often assigning points to questions that speak to innovations in care delivery for Medicaid recipients.
Key Medicaid challenges
Barriers to care and access within Medicaid programs are often among the most important issues states and managed care plans are attempting to address. The Kaiser Family Foundation 2017 survey of Medicaid managed care plans reported high rates of difficulty in recruitment for some specialties and listed provider supply as a leading challenge.
Timely access to care is key to healthcare goals, as delays in accessing necessary care exacerbate health conditions, in turn leading to more costly treatment and poor outcomes. This lack of care access worsens a health crisis that could have been easily avoided with more proactive (and less expensive) care.
A key takeaway from 2018’s 11th annual Medicaid Managed Care Summit was that, “Reforming healthcare in the U.S. is not about spending more money, but about moving around the dollars that we’re already spending.” Adoption of eConsult platforms allows health plans to solidify their value-based initiatives and Medicaid payers to expand access to needed specialist services, bring new physician access points to urban and rural areas and leverage the latest in technology and sophisticated referral protocols to help meet members’ care needs.