Using Metrics for Marketing

If I could offer one key to getting your foot in the door with potential partners and referral sources, it would be, “know your metrics.” Don’t just tell the local health system that you provide great hospice care and your patients love you. Tell them that you can prevent those patients from bouncing back into the hospital or ER. And then prove it.  

You can use your own patients’ histories to make the case. Gather aggregate statistics on your patients’ hospital admissions or ED visits in the period prior to hospice admission. You may cover the 30, 60 or 90 days prior to the hospice admit; then look at their care patterns afterwards. Be sure you know what percentage of your hospice patients are admitted to a hospital while on service and break it out by diagnosis, so you look closely at those diagnoses that we know are highly likely to run the risk of readmission. In particular, check hospital utilization for patients admitted to hospice after hospital admissions for COPD, CHF or stroke. 

One key measure that will pique the interest of ACO referral sources is the overall cost of care for your patients. ACO shared savings targets depend on reducing the total cost of care for the lives assigned to the ACO, regardless of where that care is received. If you can demonstrate a mean Medicare payment per admission that’s lower than your competitors, you might consider sharing that information with the leadership of the ACO with whom you seek preferred status. You may be able to get that comparative data from your state survey of hospices, or from one of the national hospice data analytics firms that gathers Medicare claims. 

Consider external sources of data as well. If your relationship with the local health system permits, you may be able to run a cooperative study, drawing from their inpatient data to find out which diagnoses and which patients are creating avoidable costs to the system. And don’t forget to check the CMS consumer site, Hospital Compare. That site shows rates of readmission for several key diagnoses, and how well each individual hospital is doing at meeting targets for avoidable readmits. 

Be imaginative and try to see through the lens of your referral partners’ needs. If hospice and palliative providers are truly to take a seat at the table, we need be seen as the problem solvers we are.

Sue Lyn Schramm, MA
Director, Consulting Services, NHPCO

See the previous NHPCO Edge Blog article, "The Gentle Art of Teaching Hospital CEOs."

 

The Gentle Art of Teaching Hospital CEOs

One of the challenges for hospice and palliative leaders has always been that their services were seen as a small part of the healthcare continuum. Over and over, I’ve had hospice CEOs and administrators tell me their greatest frustration was getting the time of day from hospital and health system execs.

Lately, however, I’m not hearing that as much. Instead, I hear clients and friends telling me their local system seems interested in post-acute care in a new way. In January of this year, the Society for Healthcare Strategy & Market Development published results from a survey of hospital and health system executives, CEOs and CFOs, mostly. They were asked, “How likely is it that by 2021, the proportion of your hospital or health system’s expenditures devoted to post-acute care capabilities (palliative care, hospice, or skilled nursing) will increase?” Fully 92% of them said it was Likely. 54% of them even said “Very Likely.”

The reason for this new attention to post-acute care is that new payment incentives are strongly encouraging acute care providers to care about what happens after patients are discharged from the hospital more than ever before. This hasn’t always been the case. Jeff Goldsmith, the well-known healthcare futurist, recently wrote about this issue: “Traditionally, the hospital’s responsibility ended abruptly upon discharge. In candor, the discharge process often was not focused on patient outcomes. In many institutions, the main focus was on clearing the bed and making sure the patient had a safe ride home.”

Now however, inattention to what happens immediately after an acute care episode can cost the hospital, health system or ACO money. If the patient comes back as a re-admission or Emergency Department visitor, that’s bad, not only for the patient, but also for the at-risk provider’s bottom line.

Cost avoidance is the name of the game, and post-acute care is finally getting its due as a key component in improving outcomes and reducing costs. Unfortunately, that doesn’t always mean that the hospital CEOs know clearly what they want or need from hospice. Nor does it mean they always have a good understanding of why hospices can make vital partners in a health system’s efforts to reduce costs of care.

Hospice leaders may find themselves in the position of (gently) helping their local hospitals and health systems to understand the new imperatives of managing costs when revenue is at risk. After all, managing patient costs on a fixed payment is something that the hospice industry has been doing since 1983.

This post is a preview from a longer article on working with ACOs and hospitals that will appear in the Summer edition of NHPCO’s Newsline out June 15. 

Sue Lyn Schramm, MA
Director, Consulting Services, NHPCO

New Strategic Opportunities for Hospice

On Tuesday, March 8, Medicare announced a new five-year initiative that has the potential to radically change the way it pays for outpatient drugs. This is just another part of CMS’ ongoing migration of provider incentives from volume to value. These changes are already altering the landscape for hospices and their relationships with professional referral sources, including hospitals, health systems, physicians and ACOs.

Healthcare payment reform is creating a new set of challenges and opportunities for hospitals and health systems. This seminar will help the hospice administrator evaluate opportunities to become an active partner with hospitals, Accountable Care Organizations (ACOs) and other at-risk organizations in your market. In this session, you’ll gain clarity and a sense of direction for your organization’s strategies by learning from the perspective of three speakers: a hospice strategist, a hospice provider, and an ACO physician and owner.

Are you comfortable that you understand all the implications for your hospice?

In April, at the NHPCO Management and Leadership Conference, Sue Lyn Schramm, M.A., Director of NHPCO Edge, will be leading a half-day preconference session on the topic of hospice strategies for working with ACOs. Taking Hospice Skills Upstream: New Ways Hospice Can Partner with Health Systems and ACO’s is being presented on Wednesday, April 20, 9:00am - 12:00pm and online registration is open until March 31, 2016.

Of additional interest, attendees may want to consider combining attendance at this cutting-edge preconference session with the 2^nd Annual Executive Business Summit, Beyond the Benefit: Delivering on the triple aim in healthcare through palliative care, happening April 20 from 5:00 - 6:00pm (separate registration is required.)

Sue Lynn Schramm, MA
NHPCO Director, Consulting Services

See Sue Lyn Schramm's article in Spring 2016 NewsLine on ACOs and Alternative Payment Models.