Latest / Becker’s Payer Issues Podcast / Medicare Advantage, Value-Based Care and Improving Outcomes for Vulnerable Populations with Dr. Ken Cohen
Transcript
- 0:02- GLP ones, Medicare Advantage Headwinds, a Medicaid landscape
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- 0:33- benefit design, value based care, and the strategies
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- 0:51- Hello, everyone. This is Jacob Emerson with the
- 0:53- Becker's Payer Issues podcast.
- 0:55- Thrilled today to be joined by doctor Ken
- 0:57- Cohen, who serves as chief medical officer at
- 1:00- Optum Health. Doctor Cohen, thank you so much
- 1:02- for taking the time to be with me
- 1:04- on the podcast today. Great to be with
- 1:06- you, Jacob.
- 1:07- Absolutely. Likewise, Ken, and, great to have you
- 1:09- back on the podcast with us.
- 1:12- We we've talked with you a lot in
- 1:14- the past,
- 1:15- about some of the research that you've done,
- 1:18- with with Optum and into the Medicare population.
- 1:21- But before we dive into your latest research,
- 1:24- hoping you could fill in our audience on
- 1:27- a little bit more about yourself,
- 1:29- your background in health care, and what it
- 1:31- is that you do today at Optum Health.
- 1:34- Happy to do that. So I'm an internist
- 1:36- by training, spent my first ten years in
- 1:38- academics,
- 1:39- and the next twenty five years as the
- 1:41- chief medical officer of a large physician group
- 1:43- in Denver. For the past ten years, I've
- 1:45- served various roles within OptumHealth. And as you
- 1:48- noted, today, I'm the chief medical officer of
- 1:51- OptumHealth.
- 1:52- And and that's where the physicians and patients
- 1:55- live within Optum.
- 1:57- Optum Health is a national
- 2:00- medical group, comprised
- 2:02- of around 7,000 or so employed,
- 2:05- physicians
- 2:06- and about 80,000 contracted physicians.
- 2:09- And we take care of 23,000,000
- 2:11- patients and about 5,000,000 of those are in
- 2:14- full risk, fully accountable care contracts.
- 2:17- Wonderful. Well, appreciate some context there, Ken. So
- 2:21- I mentioned at the start of our conversation
- 2:23- that you you've got some new research out,
- 2:26- published in the June edition of the American
- 2:28- Journal of Managed Care,
- 2:30- and you looked at social vulnerability across at
- 2:32- risk Medicare Advantage, fee for service,
- 2:35- Medicare, and traditional Medicare,
- 2:38- using the CDC social vulnerability index as a
- 2:41- proxy for social determinants of health. So,
- 2:45- tell our listeners
- 2:47- what ultimately was the most significant finding that
- 2:49- emerged from this this latest round of research
- 2:52- from you and and others,
- 2:54- that joined you?
- 2:55- Certainly. So the impact of social determinants
- 2:59- of health on health outcomes is a critical
- 3:01- issue,
- 3:02- and multiple studies suggest that this is a
- 3:05- major factor driving overall health outcomes.
- 3:08- For example, studies have been done showing marked
- 3:10- differences in mortality just in adjacent zip codes,
- 3:13- and these differences are largely accounted for and
- 3:16- by social determinants.
- 3:18- With this latest study, our Optum Health Outcomes
- 3:21- Research Team
- 3:22- in collaboration with APG, America's Physician Groups,
- 3:26- has now published a total of five studies,
- 3:29- all of which unequivocally
- 3:31- established that when physicians and physician organizations
- 3:34- accept responsibility
- 3:36- for total cost of care and full risk
- 3:38- models,
- 3:39- that patients experience both improved quality and efficiency
- 3:42- of care.
- 3:44- So to conduct these five studies, we amassed
- 3:46- a large dataset that included, 17 physician groups,
- 3:49- all members of APG,
- 3:51- over 15,000
- 3:53- PCPs,
- 3:54- and over 5,000,000 patient years, coming from 35
- 3:57- different health plans.
- 3:58- And this latest study
- 4:00- extended this research
- 4:02- by focusing on the population within Medicare and
- 4:05- Medicare Advantage
- 4:06- that had the highest levels of social vulnerability,
- 4:10- as you noted as measured by the SVI.
- 4:13- That was a tool developed by the CDC
- 4:16- that scores census tracks across the country according
- 4:19- to levels of poverty, unemployment,
- 4:22- minority status,
- 4:23- types of housing,
- 4:24- and other factors that reflect, social determinants of
- 4:28- health.
- 4:29- And the first take home point from this
- 4:31- study is that the population of beneficiaries
- 4:34- in Medicare Advantage are more socially vulnerable than
- 4:37- those in traditional Medicare.
- 4:39- This analysis showed that nearly 68% of the
- 4:42- beneficiaries
- 4:43- in full risk MA
- 4:45- and approximately sixty three percent of the beneficiaries
- 4:48- in fee for service MA
- 4:50- lived in areas with high levels of social
- 4:52- vulnerability,
- 4:54- which compared to only about fifty percent of
- 4:56- traditional Medicare beneficiaries.
- 4:58- And this is important because there has been
- 5:00- continued controversy
- 5:02- as to whether the MA population is more
- 5:04- ill and more costly
- 5:06- than the traditional Medicare population.
- 5:09- And these data confirm a higher level of
- 5:11- social vulnerability in the MA population,
- 5:13- which we know is correlated with higher burden
- 5:16- of illness and higher cost of care.
- 5:19- Next point was, as in our four prior
- 5:21- studies, we demonstrated that full risk Medicare Advantage
- 5:25- was associated with significantly higher care quality and
- 5:28- efficiency
- 5:29- compared to traditional Medicare.
- 5:31- But what was unique about the study and
- 5:33- is the important take home point
- 5:35- is that if you focus on the beneficiaries
- 5:38- with the highest social vulnerability risk,
- 5:41- you see the greatest improvements in care quality
- 5:43- and efficiency
- 5:45- comparing full risk MA to the traditional Medicare
- 5:48- population.
- 5:49- In other words, the higher the level of
- 5:51- social vulnerability,
- 5:53- the better the full risk MA model cares
- 5:56- for patients.
- 5:57- And the specific
- 5:58- examples of this that we derive from the
- 6:00- study
- 6:01- is if we look at acute inpatient hospital
- 6:04- admissions, for example,
- 6:06- there were 13%
- 6:08- fewer admissions in the less social vulnerable group,
- 6:12- but close to 17%
- 6:14- fewer admissions in the more socially vulnerable group.
- 6:17- Looking at inpatient admissions through the emergency department
- 6:20- is one of the most important metrics we
- 6:22- have. And here there were 11%
- 6:25- fewer hospital admissions in the less socially vulnerable
- 6:29- group, but 14%
- 6:30- fewer admissions in the more socially vulnerable group.
- 6:34- And then looking at reducing the use of
- 6:36- high risk medications,
- 6:38- there was a 23%
- 6:40- lower use in the less socially vulnerable group,
- 6:43- but 30 lower use
- 6:45- in the more socially vulnerable group. Just three
- 6:48- examples of how these data played out in
- 6:50- that study.
- 6:52- Understood. And I appreciate you laying that all
- 6:54- out for us, Ken, in a concise manner.
- 6:57- Basically, your your research is showing that the
- 6:59- gap between at risk Medicare Advantage and traditional
- 7:02- Medicare
- 7:03- has has widened for beneficiaries in high higher
- 7:06- vulnerability
- 7:07- areas, bigger reductions in admissions, ED visits,
- 7:11- high risk medication use than for lower vulnerability
- 7:14- beneficiaries.
- 7:16- It seems like then, you know, across your
- 7:18- body of research that you've done over the
- 7:20- years, there's there's a theme that keeps emerging
- 7:23- around,
- 7:24- the the greater the social risk, the the
- 7:27- greater the differences in outcomes between care models.
- 7:30- So we've got a lot of health care
- 7:31- leaders listening in from a lot of different
- 7:33- parts of the industry.
- 7:36- Why is that finding significant for them specifically?
- 7:40- It's a great question, Jacob.
- 7:42- Health care leaders need to understand
- 7:45- that not only can this high needs population
- 7:49- be successfully
- 7:50- managed in a fully accountable care model,
- 7:53- but the improvement in outcomes from this management
- 7:56- is even greater
- 7:57- than in other less vulnerable populations.
- 8:00- So this therefore represents not only an opportunity
- 8:03- for great health and social impact on these
- 8:06- patient lives,
- 8:07- but it's also a financially successful care model
- 8:10- when done well.
- 8:12- It's a double win.
- 8:14- However, it's not easy work and success isn't
- 8:17- guaranteed
- 8:18- because of the particular aspects of this population.
- 8:22- So therefore, in order to be successful, you
- 8:24- need to first address the factors that drive
- 8:26- their health care utilization.
- 8:29- This includes a lack of primary care access,
- 8:32- lack of transportation,
- 8:34- behavioral health and substance use needs,
- 8:36- medication affordability
- 8:38- adherence, and food insecurity, just to name a
- 8:41- few.
- 8:42- In the full risk Medicare Advantage model, part
- 8:44- of the premium dollars saved from the sufficient
- 8:46- care management
- 8:48- can be redirected to build infrastructure
- 8:51- to manage these aspects of care resulting in
- 8:53- the improved patient outcomes that we observe. And
- 8:55- next, these populations have a disease burden that's
- 8:58- higher than those that are less socially vulnerable.
- 9:02- They have higher incidence of tobacco use, air
- 9:04- pollution exposure,
- 9:06- obesity and diabetes, hypertension and coronary disease, just
- 9:10- to name a few.
- 9:11- So fully accountable care models require sophisticated population
- 9:15- risk stratification
- 9:16- technology
- 9:17- and intensive disease management programs
- 9:21- that reduce these preventable
- 9:22- ED visits and admissions.
- 9:25- And similarly, these patients have very high readmission
- 9:27- rates, and all of these things can be
- 9:30- avoided by programs including transitions of care and
- 9:33- care in the home post discharge.
- 9:36- And, Ken, I think what was interesting when
- 9:38- I read through the study myself is that
- 9:40- when you ran the same analysis
- 9:43- on dually eligible beneficiaries as a as a
- 9:46- sensitivity check, the effect was much smaller than
- 9:48- in the non dual population. And so
- 9:52- it seems like this is also highlighting highlighting
- 9:54- important differences between
- 9:56- dually eligible beneficiaries and other socially vulnerable populations.
- 10:00- And so
- 10:01- going off of what you just said about,
- 10:03- the the importance of building infrastructure around these
- 10:06- specific
- 10:07- populations to support them, What do you think
- 10:11- health care organizations overall that that serve these
- 10:14- patients,
- 10:14- what can they learn from these differences,
- 10:17- when it comes to designing support systems for
- 10:20- for these specific kinds of patients?
- 10:23- So,
- 10:25- we'll spend a little bit of time talking
- 10:27- about the infrastructure
- 10:28- in in just a moment because I really
- 10:30- think that's a foundationally important point. But you
- 10:33- you bring up a really, important observation about
- 10:36- this study. We specifically excluded duals from this
- 10:38- population.
- 10:39- And the reason we did so is that
- 10:42- duals have
- 10:43- a separate set of interventions that you can
- 10:46- apply to that population,
- 10:48- that the, socially vulnerable populations
- 10:51- that aren't in duals cannot avail themselves of.
- 10:54- And that's important that the duals population is
- 10:56- 19% of Medicare, but counts for 35% of
- 10:59- the spend with rates that are rapidly going
- 11:01- up. And interestingly, of the five studies that
- 11:04- we did,
- 11:05- the greatest improvements when you're comparing Medicare Advantage
- 11:08- to traditional Medicare
- 11:10- were actually seen when we looked at that
- 11:12- dually eligible population.
- 11:15- For example, hospital admissions and readmissions were 2433%
- 11:19- lower relative to TM. So so huge, huge
- 11:22- differences.
- 11:23- And I think that,
- 11:25- the striking differences
- 11:27- are
- 11:28- related to a couple of things. One is
- 11:30- the skill set of the physicians managing these
- 11:33- patients, and we'll talk about that a little
- 11:34- bit later as well.
- 11:36- But also duals have a specific infrastructure
- 11:39- that addresses health related social needs that no
- 11:42- other,
- 11:42- Medicare Advantage program has.
- 11:45- And then patients that are in MA D
- 11:47- SNP plans
- 11:48- have a whole another set of care interventions
- 11:50- that aren't available in traditional Medicare Advantage.
- 11:54- So that duals population, we've really been able
- 11:56- to focus,
- 11:57- so much
- 11:59- resource upon that we're driving very, very significant
- 12:02- improvements in that population.
- 12:04- Understood. And so, Ken, let's let's dive into
- 12:07- what you just mentioned, the infrastructure and the
- 12:09- capabilities that
- 12:11- organizations need in place to improve outcomes
- 12:14- for high risk populations.
- 12:17- The paper pointed to things like population risk
- 12:19- stratification,
- 12:20- case management,
- 12:22- integrated behavioral health, and social work support as
- 12:26- likely drivers.
- 12:28- But as I understand, it wasn't designed to
- 12:30- isolate which piece
- 12:31- matters most.
- 12:33- So can you talk a little bit about
- 12:34- that, some of the the infrastructure and capabilities
- 12:37- needed,
- 12:38- in place here to improve outcomes?
- 12:41- That's a critical element. And and, frankly,
- 12:44- as I mentioned, we believe that most of
- 12:46- the improvements that we see when we compare,
- 12:49- Medicare Advantage to traditional Medicare come from that
- 12:52- infrastructure.
- 12:53- So that that full medical management infrastructure
- 12:56- begins with active patient outreach
- 13:00- and sophisticated
- 13:01- population health risk stratification.
- 13:04- A significant part of this infrastructure, therefore, are
- 13:07- the IT and the tech components.
- 13:10- For example, within OptumHealth, we use AI driven
- 13:13- large language models for our population risk stratification
- 13:16- infrastructure.
- 13:17- We can identify those at high risk for
- 13:20- admission,
- 13:21- frailty. We can look at fall risk, polypharmacy
- 13:24- risk,
- 13:25- and we have highly accurate models of disease
- 13:28- progression for diabetes, COPD, heart failure, and chronic
- 13:31- kidney disease.
- 13:33- This infrastructure then moves to early engagement
- 13:36- with disease management capabilities,
- 13:39- including RNs, respiratory therapists,
- 13:42- embedded pharmacists and behavioral health professionals,
- 13:46- social workers, and community health workers among others.
- 13:50- And then when patients experience serious illness, care
- 13:53- then moves to the inpatient and sniff,
- 13:56- facilities.
- 13:57- And here, wherein many of our OptumHealth markets,
- 14:00- we have our own hospitalists, our own sniff
- 14:02- providers,
- 14:03- and they work hand in glove with our
- 14:05- care management teams.
- 14:07- When patients are discharged, we provide robust care
- 14:10- in the home.
- 14:11- So in short, when you think about this
- 14:13- holistic environment that is necessary to manage fully
- 14:16- accountable care models,
- 14:18- success requires that you engage your patients at
- 14:21- every point in their care journey.
- 14:23- And as you can imagine, this is costly.
- 14:26- And the funding of this infrastructure
- 14:29- can only come from the revenue that is
- 14:31- saved by providing better and more efficient care.
- 14:34- This possibility
- 14:35- to repurpose that revenue exists in Medicare Advantage,
- 14:40- but traditional Medicare doesn't provide the funding for
- 14:43- this infrastructure,
- 14:44- and this accounts for much of the difference
- 14:46- that we think we're seeing in our studies.
- 14:49- So, Ken, when we started our conversation today,
- 14:51- you had mentioned that this is now the
- 14:54- the fifth study in your series with America's
- 14:56- Physicians
- 14:57- physician groups,
- 14:58- and that follows the the fee for service,
- 15:01- Medicare Advantage, traditional Medicare spillover,
- 15:04- and dually eligible comparisons.
- 15:07- So,
- 15:08- can I ask you to step back for
- 15:09- a minute and reflect across your entire body
- 15:12- of work?
- 15:14- What do you think is the clearest message
- 15:15- the industry should take away from from all
- 15:18- of this research that you've done?
- 15:20- I think the defining message
- 15:23- is that when physicians and physician organizations
- 15:26- take accountability for the total cost of care,
- 15:29- patient outcomes and total cost of care both
- 15:32- improve.
- 15:34- CMS and CMMI appreciate this, and that's exactly
- 15:37- where they're going with advanced track MSSP and
- 15:40- the new ACO lead model.
- 15:43- And once you understand this, you then need
- 15:45- to ask, why are the outcomes better?
- 15:48- And I believe that there are three main
- 15:50- components to the model success.
- 15:53- First and
- 15:55- and problematically,
- 15:56- traditional Medicare pays exactly the same for high
- 15:59- value care and low value care.
- 16:01- And we won't be successful in expunging low
- 16:03- value care from our health care system until
- 16:05- we stop paying for it.
- 16:07- Fully accountable care models are disincented from providing
- 16:11- low value care. It's a really important point.
- 16:14- Second point is the infrastructure that I just
- 16:16- described, and it's funded in the full risk
- 16:18- MA model, but not in traditional Medicare.
- 16:21- And then the third, I hinted about just
- 16:22- a moment ago, and that's the skill set
- 16:24- of the physicians who practice in these full
- 16:26- risk models.
- 16:28- Recall that around 30% of care delivered in
- 16:30- this country doesn't improve health outcomes or quality
- 16:33- of life.
- 16:34- At best, this is wasted care, but quite
- 16:36- often, it's it's frankly harmful care.
- 16:39- If you can eliminate that one third of
- 16:41- care,
- 16:42- think about the resources you can then deploy
- 16:44- to those who will benefit.
- 16:46- And physicians that are practicing in fully accountable
- 16:49- care models have been educated around best evidence
- 16:52- based medicine.
- 16:53- They tend to not over order tests and
- 16:55- procedures.
- 16:56- They try to refer to the highest performing
- 16:59- specialists who practice at the most efficient sites
- 17:01- of service,
- 17:02- and they pay attention to drug costs.
- 17:05- One of the papers that you alluded to
- 17:07- in this series was was a fascinating
- 17:09- exploration of this impact.
- 17:11- We refer to spillover
- 17:13- when interventions in one cohort of patients spillover
- 17:16- into other cohorts.
- 17:18- And our spillover paper documents how the skill
- 17:20- set acquired
- 17:22- when patients are caring for full risk patients
- 17:25- actually improves outcomes in traditional Medicare.
- 17:28- So in this study, we looked at quality
- 17:30- and efficiency outcomes in two cohorts
- 17:33- of traditional Medicare patients. There was no MA
- 17:36- in this study, so both cohorts were traditional
- 17:39- Medicare.
- 17:40- However, one cohort was cared for by PCPs
- 17:43- who were highly experienced in full risk MA,
- 17:46- and the second cohort was cared for by
- 17:49- the broad US primary care population.
- 17:52- Relative to that broad PCP
- 17:54- population,
- 17:56- the risk experienced PCPs provided significantly better care
- 18:00- to their traditional Medicare patients
- 18:02- despite there being no incentive to do this.
- 18:04- It was just the care management, that skill
- 18:07- set that they had learned and adopted for
- 18:10- risk
- 18:11- now being applied to traditional Medicare because physicians
- 18:14- tend to treat all of their patients equally.
- 18:16- For example, in that study, eight of nine
- 18:19- of the causes for preventable hospital admission
- 18:22- were on average about ten to fifteen percent
- 18:25- lower in the risk experienced physicians.
- 18:28- Also, ED visits,
- 18:30- overall hospital admissions and hospital readmissions
- 18:33- were also significantly lower in the risk experienced
- 18:37- physicians,
- 18:38- again in that ten percent to fifteen percent
- 18:40- lower range.
- 18:42- And lastly, in that study, we saw that
- 18:44- overall office visits were 62%
- 18:46- higher
- 18:47- and annual wellness visits were 82% higher. So
- 18:51- remembering that all of these patients were in
- 18:53- traditional Medicare,
- 18:55- these benefits accrued directly to CMS as a
- 18:58- result of the risk experience physicians patient management.
- 19:01- If every PCP in The US practice the
- 19:04- same patterns as these risk experienced physicians,
- 19:07- the savings to CMS would literally be in
- 19:09- the tens of billions of dollars yearly.
- 19:12- Wow. I mean, there's just some amazing numbers
- 19:14- you decided there, Ken. And, going back to
- 19:17- what you just said at the start of
- 19:18- your answer there in terms of CMS pushing
- 19:21- toward full accountability for all beneficiaries,
- 19:24- by the end of the decade, 2030,
- 19:26- it's not that far away. And so as
- 19:29- we see the industry continue to move toward
- 19:31- greater accountability for outcomes and and total cost
- 19:34- of care,
- 19:36- Your your final thoughts for us, and for
- 19:39- the health care leaders listening in about how
- 19:41- they should be applying your findings to the
- 19:44- future of care delivery,
- 19:47- for for patients and members all across the
- 19:49- country?
- 19:51- Well, we could spend another podcast on that
- 19:53- topic, but, yeah, I'll I'll try to just,
- 19:56- give a few examples. I I think
- 19:58- first is the development
- 20:01- of the necessary infrastructure,
- 20:03- which is infrequently
- 20:04- present when physician groups and health systems are
- 20:06- not participating in full risk models.
- 20:10- Next, as I touched on, is the elimination
- 20:12- of wasted and harmful care.
- 20:14- And as I mentioned, this is 30% of
- 20:16- our spend. So I'll give just a one
- 20:18- really quick example of this.
- 20:20- Patients presenting with suspected coronary disease
- 20:23- can be evaluated by various forms of stress
- 20:25- testing, which we've been doing for years,
- 20:28- or they can undergo a new test known
- 20:30- as a coronary CTA with FFR
- 20:33- that uses a standard CAT scan but has
- 20:35- an AI software enhancement.
- 20:38- One of the most frequently used stress tests
- 20:40- today utilizes a PET scan and is reimbursed
- 20:42- in Medicare at $1,700.
- 20:45- The coronary CTA that I just mentioned is
- 20:47- less than a third of the cost,
- 20:50- and there is clear evidence from three well
- 20:52- done trials now that it reduces
- 20:54- unneeded heart catheterizations
- 20:56- by up to seventy five percent
- 20:58- and unnecessary coronary stents by up to forty
- 21:01- percent.
- 21:02- And yet nationwide,
- 21:03- less than fifteen percent of coronary evaluations are
- 21:06- currently done using CCA.
- 21:08- So when you think about this applied to
- 21:10- every specialty, there is just an enormous opportunity.
- 21:15- Next, we need to redesign specialty care.
- 21:18- Primary care has been practicing accountable care for
- 21:20- well over a decade now. However, ninety three
- 21:23- percent of specialists are paid straight fee for
- 21:25- service, and we have largely disenfranchised
- 21:27- them from value based care.
- 21:30- Within OptumHealth, we've begun to measure and transparently
- 21:34- report on quality and cost outcomes at the
- 21:37- level of every individual specialty,
- 21:39- and we are now beginning to change the
- 21:41- compensation models to include a component that is
- 21:44- calculated
- 21:45- from their individual value based care performance.
- 21:48- This would dramatically advance the success of fully
- 21:51- accountable care models if this was widely scaled.
- 21:54- And I think the last point is that
- 21:56- CMS and CMMI,
- 21:58- as I mentioned, are on a path that
- 21:59- will likely lead to mandatory full risk models
- 22:02- in order to meet their 2030 goal
- 22:05- of having all traditional Medicare beneficiaries
- 22:08- and fully accountable care models.
- 22:10- Healthcare leaders who have stayed on the sidelines
- 22:13- up till now
- 22:14- need to understand that future success will be
- 22:17- difficult
- 22:18- unless they quickly engage and develop the core
- 22:20- competencies
- 22:21- that are necessary
- 22:23- to manage patients in a full risk environment.
- 22:26- I think that's a fantastic
- 22:27- great last piece of advice,
- 22:29- to leave things on, doctor Cohen,
- 22:32- that the health care leaders who who may
- 22:34- have been sitting on the sidelines
- 22:35- need to get involved now, because it will
- 22:38- certainly not get any easier. So I wanna
- 22:41- thank you for taking the time to join
- 22:43- me here on the podcast
- 22:45- for breaking down this very important research for
- 22:47- our listeners,
- 22:49- and making it easy for for us all
- 22:51- to understand. Really appreciate you taking the time
- 22:53- to do so, Ken.
- 22:54- Great to be with you today, Jacob. Thank
- 22:56- you. And to our listeners, if you'd like
- 22:58- to listen to more podcasts from Becker's Healthcare,
- 23:01- you can visit beckershospitalreview.com.