Latest / Becker’s Payer Issues Podcast / Lawrence Hamilton, Executive Vice President, The Permanente Medical Group
Transcript
- 0:00Evernorth brings the power of wonder and relentless
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- 0:29Hello, and welcome to the Becker's Healthcare podcast.
- 0:31My name is Chanel Banger recording live at
- 0:33the Becker's
- 0:36and sitting down with Lawrence Hamilton,
- 0:39the executive vice president at the Permanente Medical
- 0:42Group. Lawrence, thank you so much for joining
- 0:43me today. It's my pleasure. Good good to
- 0:45be with you. Perfect. Well, to get us
- 0:47started out, can you please introduce yourself and
- 0:49share a bit about your organization?
- 0:51Sure. So the Permanente Medical Group is part
- 0:53of Kaiser Permanente.
- 0:56We care for in
- 0:58the Permanente Medical Group, we care for 4,600,000
- 1:00members in Northern California,
- 1:02and we do that through 55,000
- 1:05colleagues, including 10,000 physicians
- 1:08across 21 hospitals.
- 1:10Perfect. And moving forward into the meat of
- 1:12the podcast a bit,
- 1:13balancing affordability and quality is a constant challenge
- 1:16for health plans. How is your organization innovating
- 1:19to manage the cost of care while maintaining
- 1:21or improving member outcomes?
- 1:23I actually think the framing of,
- 1:25tension between
- 1:27quality and affordability is a symptom of,
- 1:31the relate when the relationship between payers and
- 1:33the delivery system is
- 1:36contractual and transactional,
- 1:38it tends to reduce very quickly to,
- 1:40we want you to do more in this
- 1:42area that will improve quality,
- 1:44and the delivery system says this is what
- 1:46it will cost, and you get into this
- 1:47spiral of who's gonna pay for what.
- 1:51I think a much more advantageous way to
- 1:54is to seek alignment between payers and the
- 1:57delivery system so that together, you're
- 2:00all focused on how do we provide the
- 2:02best quality,
- 2:04equity,
- 2:05access,
- 2:06care experience,
- 2:07and provider and clinician
- 2:10satisfaction
- 2:11at the lowest possible cost for the communities
- 2:13that we serve.
- 2:14When you frame it that way and you've
- 2:16got genuine
- 2:17alignment and you've got hospital systems and medical
- 2:20groups that are
- 2:22see success as population health,
- 2:24then the trade off
- 2:26reframes dramatically where we know that when you
- 2:28provide great preventive care, that's
- 2:31best for the patients, and it also avoids
- 2:33downstream costs of more hospitalizations.
- 2:36When you avoid a patient having to say
- 2:38to the emergency room because of care that
- 2:40you've done upstream,
- 2:41better for the patients and avoids,
- 2:44the most costly parts of the health system.
- 2:47So when we've got genuine alignment,
- 2:49we're aligning,
- 2:50quality and affordability
- 2:52much more often than they're at a trade
- 2:54off of one another.
- 2:56Absolutely. And now kinda switching gears a bit,
- 2:59addressing health equity has become a critical focus
- 3:01for many health plans. Can you share an
- 3:03overview of a key initiative here
- 3:06that you're involved in or particularly
- 3:09excited about? And what are you hoping to
- 3:11achieve with that?
- 3:12Yeah. So
- 3:13I'm really proud that our members have a
- 3:1620% less chance of dying from cancer and
- 3:19thirty three percent less chance of dying from
- 3:21cardiac related diseases.
- 3:24Our sister organization, Mid Atlantic, did research showing
- 3:26that our members,
- 3:28on average, live six years longer, and African
- 3:31Americans live nine years longer than people who
- 3:33don't benefit from our health system.
- 3:36In certain areas, we've managed to close and
- 3:38eliminate
- 3:40racial health care gap, particularly around colorectal cancer
- 3:43screening,
- 3:44some of the diabetic prevention measures,
- 3:46and we know that we've got a ton
- 3:48more work to do.
- 3:49If you ask me what what am I
- 3:50most proud of in addition to closing some
- 3:52of those gaps,
- 3:53I'll just a couple of areas. One is
- 3:56our board
- 3:57follows just five KPIs,
- 3:59relates to quality,
- 4:01to care experience,
- 4:03to
- 4:04physician satisfaction and engagement,
- 4:07making our care affordable, and then the one
- 4:09is around health equity.
- 4:11So that commitment from board level throughout the
- 4:13organization,
- 4:14I think, is really important.
- 4:16And then secondly,
- 4:18often our health equity efforts have been very
- 4:20focused on on prevention
- 4:23in primary care, which is the core of
- 4:25our organization.
- 4:26But we've actually challenged all of our service
- 4:29lines
- 4:30to look at health equity gaps.
- 4:33I was really proud the other day. I
- 4:34was in one of our medical centers in
- 4:35San Francisco,
- 4:37and they'd, taken our TAVR program.
- 4:40That's a program that I think very seldom
- 4:43gets viewed through an equity lens, and they
- 4:45looked at the national data and found that
- 4:48that,
- 4:49different racial groups just don't get access to
- 4:52TAVR at all for a myriad of reasons
- 4:54around health system design,
- 4:57around care that doesn't connect
- 4:59culturally with with different groups.
- 5:02And so now that we've got that data
- 5:03and then we've managed we've looked at our
- 5:05own data, which isn't as
- 5:07exaggerated as the national data,
- 5:09but it's given us absolute clarity about a
- 5:12gap that we need to close. So doing
- 5:14that, we've got about a 120 service lines.
- 5:16Doing that in every service line, means that
- 5:19we'll get completely clear about the gaps that
- 5:21we need to close and then work through
- 5:23what we need to do to close that
- 5:24gap.
- 5:26Got it. Got it. Now
- 5:27moving forward,
- 5:29member satisfaction is essential to thrive in today's
- 5:31competitive health care market. What experience or engagement
- 5:35strategies have proven effective for organization, and how
- 5:38are you measuring success?
- 5:40Yeah. This is an area where we've changed
- 5:41dramatically in the last,
- 5:43eighteen months.
- 5:45Previously, we'd had a paper based survey that
- 5:47were mailed to people's homes,
- 5:49and so we are only able to sample
- 5:51a small proportion of patients, and we got
- 5:53an even smaller response rate.
- 5:55In the last year and a half, we
- 5:57moved to a digital platform,
- 5:59where we can survey
- 6:01everybody that comes in with care for care.
- 6:03We still get a low response rate, although
- 6:06compared to many other surveys,
- 6:08it's about two to three times the response
- 6:10rate.
- 6:11But instead of having survey feedback patient feedback
- 6:15in the,
- 6:16tens of thousands, we're now getting it in
- 6:18the in the tune of millions.
- 6:21And the volume of data has enabled us
- 6:22to get much, much more
- 6:24precise around,
- 6:26seeing where we have gaps. So we know
- 6:28that our overall net promoter score is 87.
- 6:32But when we break down by age, there's
- 6:34almost a 30 gap between different groups, just
- 6:37as one example.
- 6:39So that's enabling us to get much more
- 6:41focused and targeted
- 6:43on
- 6:44where is our service,
- 6:46not landing in the way that we'd like
- 6:47it to.
- 6:48Now the area is what we call closed
- 6:50loop resolution,
- 6:51where when we get
- 6:53feedback where we could have done better,
- 6:56that immediately routes to the operational leaders, physicians
- 7:00and administrative leaders in those areas
- 7:03so that we're able
- 7:05to, wherever we can, immediately respond.
- 7:08And we've got some great examples of being
- 7:10able to,
- 7:12catch patients before they've reached their car
- 7:15and call them back to rectify the problem
- 7:17they had or or examples where patients have
- 7:20been
- 7:20initially very unhappy.
- 7:22And then as they've seen us take action
- 7:24to respond,
- 7:26they've then taken upon themselves to sort of
- 7:28re regrade their response to us.
- 7:30So like every health system, we've got plenty
- 7:33of opportunity to get better in our daily
- 7:35interactions.
- 7:36And this the closed loop feedback's giving us
- 7:39some enabling us to be much more agile
- 7:41in responding to patients',
- 7:42patients' needs.
- 7:44Absolutely. Well, Lawrence, I wanna thank you for
- 7:46your time today. But before I let you
- 7:47go, I have one more question. Looking ahead,
- 7:50what do you see as the biggest opportunity
- 7:52for payers to lead the change in transforming
- 7:54care delivery and driving better outcomes for all
- 7:56stakeholders?
- 7:57And how can leaders take a step in
- 7:59this direction now?
- 8:01Yeah. It really goes back to what I
- 8:02said at the beginning that
- 8:04so often our provider,
- 8:07the delivery system, and payer is stuck in
- 8:10a cycle
- 8:11of,
- 8:12who's gonna get paid for what.
- 8:14And, of of course, the the flow of
- 8:16resources is important,
- 8:18but the real breakthrough comes
- 8:20when we've got, the delivery system,
- 8:23medical groups, hospital systems, all aligned around using
- 8:27limited resources as we know affordability for our
- 8:30patients is probably the biggest challenge that we
- 8:32face in The US,
- 8:33and trying to use those limited resources,
- 8:36make care more affordable,
- 8:38and provide great quality equity experience access. And
- 8:43we know with shortages
- 8:45in in health professions, it's also gotta work
- 8:47for health professionals.
- 8:49When we get that alignment, I think we
- 8:51can do extraordinarily better. We know that The
- 8:54US health system was spending $5,000,000,000,000,
- 8:5718% of the entire economy,
- 8:59and we're getting the worst outcomes of any
- 9:01developed,
- 9:02developed economy on the globe.
- 9:04So it's not through lack of resources, but
- 9:06the way that we're using resources just isn't
- 9:08delivering population health. So where we get that
- 9:11alignment and where we really
- 9:14enable
- 9:15medical groups and hospitals,
- 9:18to be successful
- 9:19by delivering population health,
- 9:21that I think is the brightest hope for
- 9:23how we can improve the care of our
- 9:25nation.
- 9:26Absolutely. Well, that's a great spot. And, Lawrence,
- 9:28I wanna thank you once again for your
- 9:30time today and for joining me on the
- 9:31Becker's Healthcare podcast. Thanks. It's been a privilege.