Oregon Initiative Depicts Successful Medical Home Reimbursement Model
By Richard Scott December 30, 2011

Ever since CareOregon, a Medicaid managed care plan, adopted a payment modality structured around the elements of the highly touted medical home model, patients and providers throughout the state of Oregon have reaped significant benefits in care, costs and reimbursement practices. Four years after its launch, the Primary Care Renewal project – as the medical home initiative is known – has cemented its place within 50 primary care teams across approximately a dozen sites, and its latest round of outcomes data depicts an access-improving, performance-enhancing, cost-cutting delivery model that has created sizable improvements in the health and well-being of the uninsured and underinsured populations throughout the state – all while maintaining viable operating costs for participating physicians. According to data published in late 2011, the Primary Care Renewal program has delivered improved outcomes across a number of vital areas, including: - Decreased hospitalizations. From 2008 to 2010, practices that implemented the medical home model saw a decrease in total hospitalizations between 16-18 percent. Practices that did not implement the model saw no decrease.
- Improved clinical outcomes. Looking at the diabetes population, primary care practices using the medical home model witnessed a jump in several quality indicators, including a 20 percent rise in patients showing blood glucose levels below 8 percent and a 14 percent rise in patients who have undergone blood glucose testing.
- Enhanced access. By implementing patient-centered strategies, practices saw improved access to care, with one practice reducing their average wait times from 17 to three days, and another reducing missed appointments by 20 percent.
- Reduced cost differential. Traditionally, a small portion of patients make up a large percentage of costs and this was no different for CareOregon. Prior to its medical home initiative, 12 percent of enrollees accounted for approximately two-thirds of cost utilization. After implementation, the average cost of a high-risk member who is treated in a medical home practice is now equal to the cost of a “regular risk” member in a clinic not using a medical home.
- Boosted patient satisfaction. As of November 2011, nearly two-thirds of patients (61 percent) would rate their patient care experience as a “9” or “10” on a scale of one to 10.
Sparking Innovation, Defining Standards To achieve a consistent stream of improvements in the delivery of care to a population that is, historically, difficult to treat, CareOregon laid out a reimbursement model focused on four pillars of care provision. For interested practices, according to the latest report published by the Agency for Healthcare Research and Quality, the provisions are all quality-driven – and mandatory: “Practices must agree to implement team-based and customer-driven care, barrier-free access, proactive panel health improvement, and onsite or otherwise integrated behavioral health,” reads the study. In an effort to achieve the goal of comprehensive, coordinated care, the Primary Care Renewal project called for practices to meet the following four stipulations. - Team-based, customer-driven care. All providers created team-based care units consisting of four individuals – a clinician (primarily a doctor, but occasionally a nurse practitioners or physician assistant), medical assistant, care manager, and a behaviorist. Each team provides care for a specified panel of patients, and daily meetings between all team members ensure that appointments are kept and any looming care gaps are addressed.
- Barrier-free access. According to the research, “Participating clinics agree to offer same-day appointments and telephone contact with patients, thus reducing the incentive to use more expensive sites such as the ED for primary care.” Strategies to optimize access varied by site, though most have adopted an “open-access” model, which limits advance scheduling, reduces unnecessary visits, decreases the size of the patient population, or another strategy aimed at streamlining care.
- Continuous, collaborative improvement. Taking a page from the Institute for Healthcare Improvement’s book of quality, practices subscribed to the concept of “max-packing” every patient visit. “The goal,” says researchers, “is to use every encounter as an opportunity to bring the patient up to date on his or her preventive services and screening needs and to review and reconcile all medications being taken to boost compliance with an appropriate regimen.” This may involve the medical assistant pre-screening a patient’s medical records prior to a visit to identify needed services, for example, or hands-on medication reconciliation during the visit itself.
- Integrated behavioral health. Key to bridging any gaps in care is the integration of behavioral health services, which the majority of these practices offered through an onsite clinician. Smaller practices, on the other hand, often collaborated with an offsite provider. The behaviorist is part of the “core team,” addressing problems related to anxiety, depression, tobacco use, chronic pain and other behavioral health issues.
With these elements providing a solid foundation from which providers could launch into a new stratosphere of care, the necessary rocket fuel came in the form of aligned reimbursements that pushed beyond the traditional fee-for-service payments and incentivized physicians to create lasting changes within the structures of their practice. In addition to traditional payments, the Primary Care Renewal model offers three tiers of extra reimbursement options. The three tiers align with a practice’s implementation of the medical home standards cited above, and they correlate with monthly, per-member payouts. Tier one, for instance, provides a base level of payments for practices that show a “capacity to do work,” while tier three provides elevated payments for practices that show robust outcomes.
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Please feel free to e-mail me at above email address.
Respectfully,
Catherine R. Cabungcal, MD
Internal Medicine physician
Wayne Health Medical Clinic
Wayne Health Physicians (parent company)
Goldsboro, NC 27534
919-587-4947
Also, I'd like to direct you to the medical home webinar series that we produce, which may touch on important topics for your endeavors:
http://www.dorlandhealth.com/webinars/
Best of luck,
Richard Scott