2015 July Affiliate Practice

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JULY 2015

Anthem to Buy Cigna, Creating Biggest U.S. Health Insurer Medical Director Call to Action: Review Your Contractual Arrangements For Legal Compliance Bundled Payments A Better Model Than Accountable Care Organizations



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Co-Publishers and Managing Editors Iris and Michael Goldberg Contributing Writers Iris Goldberg Michael Goldberg Ankur Banerjee Ransdell Pierson John D. Fanburg, Esq. Lani M. Dornfeld, Esq. Anthony Brino John Tozzi Liz Szabo Virgil Dickson Melanie Evans Eric Strauss Layout and Design - Nick Justus Affiliated Practice is published monthly by Montdor Medical Media, LLC., PO Box 257 Livingston NJ 07039 Tel: 973.994.0068

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C O N T E N T S

4 Anthem To Buy Cigna, Creating Biggest U.S. Health Insurer 6 Medical Director Call to Action: Review Your Contractual Arrangements for Legal Compliance 7 Bundled Payments A Better Model Than Accountable Care Organizations

8 What Do Anthem, Aetna and Bernie Sanders Have in Common

9 Medicare Deaths, Hospitalizations and Costs Reduced

10 Medicare Test Would Make Hospitals Bear Risk for Hip and Knee Surgeries

12 Children’s Specialized Hospital Pediatric Practice Earns ‘Patient-Centered Medical Home’ Designation

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Cover Story

Anthem to Buy Cigna, Creating Biggest U.S. Health Insurer By Ankur Banerjee and Ransdell Pierson Anthem Inc said on Friday it would buy Cigna Corp for about $54.2 billion, creating the largest U.S. health insurer by membership and accelerating the industry's consolidation from five national players to three. The proposed acquisition, the health insurance industry's largest, comes three weeks after Aetna Inc agreed to buy Humana Inc for $37 billion. Health insurers are finding it tougher to raise prices following the roll-out of President Barack Obama's healthcare law, while grappling with soaring expenses of medications including cancer drugs that can cost each patient more than $100,000 a year. Anthem said buying Cigna would help it reduce costs and negotiate lower prices with doctors and hospitals. State insurance regulators and federal antitrust authorities are expected to scrutinize how the Anthem-Cigna and Aetna-Humana deals would affect competition for Medicare and individual and commercial insurance. Within a few hours of the announcement, several U.S. lawmakers and a leading physicians group said they feared the pending acquisitions would hurt consumers by raising prices or limiting access to healthcare providers. "The lack of a competitive health insurance market allows the few remaining companies to exploit their market power, dictate premium increases and pursue corporate policies that are contrary to patient interests," the American Medical Association (AMA) said in a statement. Under the deal, which the companies expect to close in the second half of 2016, Anthem Chief Executive Joseph Swedish would serve as CEO and chairman. Cigna CEO David Cordani would be president and chief operating officer. In a joint conference call, Swedish told analysts Anthem had no prior discussions "at all" with regulators about the deal, but was confident about approval. Shares of Cigna on Friday fell 5.6 percent to $145.72, far below the $188 offered in the buyout, suggesting major Wall Street concern over the antitrust risk. "Strategically and financially it's very attractive, but they will face regulatory scrutiny," said Ana Gupte, analyst with Leerink Partners. "They also both possibly face divestitures and may have to make concessions to consumers to make the merger go through." The AMA said its own analysis shows 41 percent of U.S. metropolitan areas already have a single health insurer with a commercial market share of 50 percent or more. It believes the Anthem-Cigna merger would be presumed anticompetitive in at least nine of the states where Anthem operates. "It is imperative that we closely examine changes in the healthcare market, and what has caused these changes, to ensure that consumers are not harmed," said Senator Mike Lee, a Republican from Utah who is chairman of the Senate's antitrust panel. Apparent worries about regulatory scrutiny have also hit Humana shares, which closed at $181.76 on Friday, well below the value of Aetna's cash-and-stock offer of $230 per share when it was announced on July 3. Cigna has 15 million members, and about 80 percent of its business is with self-insured companies which pay it a management fee, according to Leerink. It also serves large and small employers, Medicare Advantage customers and individuals. About 61 percent of Anthem's 39 million members are served through self-insured companies, while 15 percent have Medicaid coverage. Large and small group policies make up about 12 percent of its business, while Medicare Advantage accounts for 1 percent. The combined company would have about 53 million members, surpassing UnitedHealth Group's 45.86 million as of June 30. Anthem said it will pay $103.40 in cash and 0.5152 of its shares for each Cigna share. The deal is valued at $181.12 per share based on Anthem's Friday close of $150.86. Anthem said on Friday the offer was valued at $188 per share based on its stock price on May 28 before media reports surfaced that the two companies were in talks. The offer's equity portion is valued at $49.11 billion, according to Reuters calculations based on 261.2 million Cigna shares outstanding as of March 31. Another question is whether Anthem would violate rules of the Blue Cross and Blue Shield Association, a federation of 36

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independent insurers of which it is the biggest member. The association collectively insures 106 million Americans. Anthem provides coverage to the most people and operates in 14 states. No other Blue Cross member operates in more than five states. Blue Cross operators are not supposed to compete with one another, but Cigna does compete against Blue Cross members in a handful of states, which could cause controversy in the association. "There will no doubt be debate among the board of directors," said a person knowledgeable about Blue Cross who requested anonymity to protect business relationships. "We will remain Blue," Swedish said on the conference call, adding that Anthem feels confident that even after acquiring Cigna, the combined company will satisfy "the Blue rules." Swedish said he would serve as CEO for only two years, and remain as chairman afterward. Cordani could be a contender for the CEO role at that point, but no guarantees were provided, said a source familiar with the matter who requested anonymity because the person was unauthorized to publicly discuss details of the transaction. Both Anthem and Cigna would be liable to pay the other a fee equivalent to 3.8 percent of the deal's value if either walks away from the planned merger. Anthem's lead financial adviser is UBS Investment Bank. Credit Suisse also served as financial adviser, and White & Case LLP as legal adviser.

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Medical Director Call to Action: Review Your Contractual Arrangements for Legal Compliance By: John D. Fanburg, Esq. and Lani M. Dornfeld, Esq. Physicians providing services as medical directors recently received a sharp warning and call to action from the Department of Health and Human Services, Office of Inspector General (OIG). In a rare Fraud Alert issued on June 9, the OIG warned physicians to steer clear of the legal pitfalls of these arrangements, and urged the reporting to federal authorities of non-compliant and “no show” agreements. Nine days later, the U.S. Department of Justice (DOJ) publicly announced the largest “coordinated takedown” in history by the Medicare Fraud Strike Force. The nationwide sweep resulted in charges against 243 individuals for approximately $712 million in false billing, with defendants including physicians, patient recruiters, home health care providers, pharmacy owners and others. Together, these public announcements indicate a strong showing by federal agencies that arrangements are being scrutinized for legal compliance. By way of background to the Fraud Alert, the OIG recently entered into a series of settlements with twelve individual physicians who were, according to the OIG, parties to “questionable medical directorship and office staff arrangements.” In particular, the OIG alleged that payments to the physicians under these arrangements took into account the physicians’ volume or value of referrals, did not reflect fair market value for the services to be performed, and that the physicians did not actually provide the services required under the arrangements. As such, the OIG claimed the physicians received improper remuneration under the federal anti-kickback statute. The OIG also alleged the office staffing arrangements entered into by some of the physicians also constituted improper remuneration because the arrangements relieved the physicians of the financial burden they otherwise would have incurred for front office staff. Importantly, the OIG determined that “the physicians were an integral part of the scheme and subject to liability under the Civil Monetary Penalties Law.” The federal anti-kickback statute prohibits the “knowing and willful” solicitation, payment, offer or acceptance of anything of value (“remuneration”), including any kickback, bribe or rebate, to induce or reward referrals or generate federal health care program business. As interpreted by the courts, a compensation arrangement may violate the anti-kickback statute if even one purpose of the arrangement is to compensate a physician for his or her past or future referrals of federal health care program business, even if other legitimate reasons for the arrangement exist. Convicted offenders may be subject to criminal penalties of fines and/or imprisonment up to five years. Federal authorities may also (or in the alternative) impose civil and administrative penalties, including civil monetary penalties, civil assessment of up to three times the amount of the kickback, federal health care program exclusion and federal False Claims Act liability. Because the language of the statute is broad and Congress became concerned that its application might render legitimate health care businesses or transactions illegal, in the late 1980s, Congress ordered the OIG to promulgate “safe harbor” regulations to provide shelter to certain business arrangements that would otherwise violate the broad prohibitions of the law. As a result, starting in 1991, the OIG promulgated a series of safe harbor regulations. Included in the list of safe harbors are employment arrangement and personal services and management contract safe harbors, both of which may be available in medical directorship arrangements. Even though there is no legal requirement to structure each business relationship under a safe harbor, as OIG determinations regarding anti-kickback compliance are made on a case-by-case basis, regulatory protections are afforded only to arrangements that fit “squarely within” the precise elements of the applicable safe harbor. Physicians in medical directorship and other compensation arrangements with hospitals or hospital systems, ambulatory surgery centers, nursing homes, home health agencies and other health care services should engage in a legal compliance review of these arrangements. The compliance review should, at minimum, address the following questions: Are the services to be provided under the arrangement legitimately needed? Is the arrangement set forth in a signed written agreement between the parties? Is the term of the arrangement set forth in the agreement and for a duration of at least one year? Does the agreement set forth in specific detail all of the services to be provided under the arrangement? Are only legitimatelyneeded services included in the arrangement? If the review is of an existing arrangement, have all of the services been provided in strict accordance with the terms of the written agreement? Are time records required? If the review is of an existing arrangement, have the time records been accurately and consistently recorded and provided to the other contracting party? Were the recorded hours true and accurate? Is the rate of compensation consistent with fair market value in an arms length transaction? Did the parties utilize national compensation surveys, a compensation appraisal expert or some other reliable and substantiated method to determine fair market value?

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Did the parties ensure that none of the compensation, in any way and whether in whole or in part, takes into account the volume or value of any referrals or business otherwise generated between the parties for which payment may be made, in whole or in part, by federal health care programs? With respect to office staffing arrangements, the review should also entail an analysis of whether the result of the arrangement is to transfer financial risk to the other contracting party. If so, the arrangement may be non-compliant. Additionally, if a physician is a party to multiple arrangements, especially if the arrangements are with the same contracting party, all of the arrangements should be analyzed in the aggregate to ensure that compensation and other factors, taken as a whole, do not create regulatory risk. Although the OIG Fraud Alert focused on anti-kickback statute compliance, these types of arrangements may implicate other fraud and abuse laws, including the federal Stark (anti-referral) Statute and its state counterparts and the federal False Claims Act and its state counterparts. With federal regulatory agency oversight and investigations on the uptick, physicians and other health care providers should be on “high alert” to ensure their financial arrangements are compliant with applicable fraud and abuse laws.

Bundled payments a better model than accountable care organizations Mixed results among CMS programs causes faith to sink in ACOs. Anthony Brino A former advisor to President Barack Obama is warning healthcare providers to embrace bundled payments as accountable care organizations fall behind in reaping savings from value-based payment models. A former advisor to President Barack Obama is warning healthcare providers to embrace bundled payments as accountable care organizations fall behind in reaping savings from value-based payment models. According to Ezekiel Emanuel, MD, and Topher Spiro, accountable care organizations, the much-hoped-for drivers of delivery and payment transformation, aren’t working so well. In an op-ed in the Wall Street Journal, the duo point to mixed results among Centers for Medicare and Medicaid Services ACO models. For example, 13 of 32 participating Pioneer ACOs have dropped out. In the Medicare Shared Savings ACO program that awards savings for care ratings and penalties for overspending, the number of participants is falling and around half may not continue. “The fundamental problem with a voluntary program is that to attract participants, Medicare needs to make it easy for the ACO to be rewarded. Paradoxically, this makes it hard to achieve substantial savings,” said Emanuel, a former Obama healthcare advisor and now a University of Pennsylvania provost, and Spiro, health policy VP at the Center for American Progress.. “Time is running out,” they said. “A cost-control strategy that relies on expanding the number of ACOs won’t be successful.” Before time runs out, “the Obama administration must focus on a reform that can be scaled,” Emanuel and Sprio argue. Bundled payments, according to them, are the answer. “Medicare should lump together physician services, hospital costs, tests, medical devices, drugs and rehabilitation services related to common ailments—such as broken hips, heart stents and cancer treatments— into a bundle. It could then pay a medical provider a discounted amount for the whole array of services.” Bundling is an approach that has seen some uptake among private insurers and hospital systems. Our Lady of the Lakes, in Louisiana, is participating in the CMS bundled payment program for both total joint replacement and coronary bypass surgery— the only Medicare bundled payment pilot with both upside and downside potential. In Texas, UnitedHealthcare and the MD Anderson Cancer Center are piloting a bundled payment model for patients with head and neck cancers, and UnitedHealth is bullish on using bundling for oncology broadly. Emanuel and Spiro are optimistic about bundled payments because they see it as a way to broach the cost variation problem, where Medicare payments to hospitals for common surgeries such as hip replacement and heart bypass can differ. “First, the discount means that savings are immediate and guaranteed. Second, private payers, i.e., employers and insurance companies, can also adopt the Medicare bundle as their payment method, amplifying the incentive. Finally, this reform is not just for big health systems that think they will do better financially by participating. It can work in rural areas and for smaller hospitals and practices and become the standard method of payment nationwide.” JULY 2015

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What Do Anthem, Aetna, and Bernie Sanders Have in Common? by John Tozzi A series of mergers have been proposed in recent weeks that would cut the number of major national insurers from five to three. In the process, the CEOs say, they would deliver savings for consumers by eliminating inefficiencies. You know who else wants that? Bernie Sanders, the senator from Vermont, and others on the far left who have long argued that the country has too many health insurers. Instead of three mammoth insurers, however, they have proposed just one, run by the government, a system known as single-payer health care. Obviously the insurers don't share the long-shot Democratic presidential candidate's long-shot goal of replacing the private health insurance industry with a "Medicare for all" system. But the arguments for letting giant health insurers combine are strikingly similar to some of the arguments that single-payer proponents have made for years. Here are some things Joe Swedish, chief executive of Anthem, said on a call on June 22 announcing a bid for Cigna that would create a combined company with 53 million enrollees and $115 billion in revenue:

It would have a strong position across growth markets and the scale to drive greater efficiency and affordability for our customers. ... Customers benefit from the clear improvements in cost efficiency, choice of solutions, and continued investments in simplifying the health-care experience. The companies announced a $48.4 billion deal on Friday. Swedish expects "synergies" to save the new company $2 billion a year. And here's an excerpt from a 2013 press release from Physicians for a National Health Program, which advocates for a singlepayer system: Upgrading the nation’s Medicare program and expanding it to cover people of all ages would yield more than a half-trillion dollars in efficiency savings in its first year of operation. ... "Such a financing scheme would vastly simplify how the nation pays for care, restore free choice of physician, guarantee all necessary medical care, improve patient health and, because it would be financed by a program of progressive taxation, result in 95 percent of all U.S. households saving money,” [economist Gerald] Friedman said. Aetna CEO Mark Bertolini, announcing a merger with Humana on July 6, said the deal would "promote greater operational efficiencies that enable us to lower cost to compete with more cost-effective products and create value for our customers and provider partners." The new company, with $115 billion in combined revenue, would enjoy cost savings of $1.25 billion a year, Aetna and Humana executives said. Put aside, for a minute, whether insurance industry mergers would deliver the savings they promise, and whether reduced competition would really lower prices for employers and consumers. Put aside the political and practical obstacles to creating a national, government-run health plan in the U.S. Even Sanders's home state, famously agreeable to policies far left of the American mainstream, abandoned its attempt to form a single-payer system. Everybody seems to agree that shrinking the number of insurers in the health-care system at least has the potential to save money by reducing overhead and paperwork. Consolidation also gives insurers more bargaining power to negotiate with doctors and hospitals, which have been on their own merger streak in recent years. Single-payer proponents say letting the government negotiate (or, more likely, dictate) prices would save billions in hospital, doctor, and drug spending. Bernie Sanders and the leaders of the health insurance industry that he would abolish agree on more than you might think.

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Medicare deaths, hospitalizations AND costs reduced Liz Szabo The U.S. health care system has scored a medical hat trick, reducing deaths, hospitalizations and costs, a new study shows. Mortality rates among Medicare patients fell 16% from 1999 to 2013. That’s equal to more than 300,000 fewer deaths a year in 2013 than in 1999, said cardiologist Harlan Krumholz, lead author of a new study in the Journal of the American Medical Association (JAMA) and a professor at the Yale School of Medicine. “It’s a jaw-dropping finding,” Krumholz said. “We didn’t expect to see such a remarkable improvement over time.” Researchers based the study on records from more than 68 million patients in Medicare, the federal health insurance program for people age 65 and older. Researchers were able to find additional information about hospitalization rates and costs among Medicare’s traditional “fee-forservice” program, in which doctors and hospitals are paid for each procedure or visit. This information wasn’t available for people in the managed-care portion of Medicare, which had about 29% of patients in the overall Medicare program in 2013.

Among fee-for-service patients, hospitalization rates fell 24%, with more than 3 million fewer hospitalizations in 2013 than 1999, Krumholz said. When patients were admitted to the hospitals, they were 45% less likely to die during their stay; 24% less likely to die within a month of admission; and 22% less likely to die within a year, the study found. Costs for hospitalized patients also fell by 15% among fee-for-service patients. Krumholz said these improvements are probably driven by several important trends. Hospitals and their staffs get some of the credit. “There has been tremendous focus on making sure that our hospitals are safer and that treatments are more timely and effective,” Krumholz said. A 1999 report from the Institute of Medicine, which found that hospital errors killed up to 98,000 people a year, jump-started a movement to improve health care, said P.J. Brennan, chief medical officer at the University of Pennsylvania Health System. “That was one of the first shots fired in the patient safety movement,” said Brennan, who was not involved in the new study. Public health improvements also likely played a part in cutting death rates, Krumholz said. While more Americans today are obese than in the 1990s, the air is generally cleaner and fewer people smoke. New drugs for common conditions such as cancer and heart disease also may have kept people alive longer. “What’s gratifying is the cost savings don’t appear to have come at the expense of quality,” said Helen Burstin, chief scientific officer at the National Quality Forum, a non-partisan group that aims to improve the quality of health care. Burstin said she hopes the country will expand its efforts to improve health care quality by focusing on outpatient care, such as that given in nursing homes or by home health aides. Krumholz said his results shouldn’t encourage complacency. “The things we’re trying to do to make things better are working,” Krumholz said. “Rather than wave the victory flag, we want to see that trend continue. There’s no reason to take our foot off the pedal.” JULY 2015

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Medicare test would make hospitals bear risk for hip and knee surgeries By Virgil Dickson and Melanie Evans The CMS is planning to require hospitals in 75 geographic areas, including Los Angeles and New York City, to participate in a test of bundled payments for hip and knee replacements. The procedures are among the most common that Medicare beneficiaries receive, and the price varies significantly. The average Medicare payment for surgery, hospitalization and recovery ranges from $16,500 to $33,000, the CMS said in a news release announcing the initiative, which would be administered by the CMS Innovation Center. Hip and knee replacements are among the procedures included in Medicare's voluntary Bundled Payments for Care Improvement initiative. But the CMS has determined certain kinds of hospitals aren't signing up. The approach of the new program, the agency said in a proposed rule (PDF), would capture hospitals with a variety of utilization patterns, roles within their local markets, access to capital and other factors. The initiative should send a clear message that the Obama administration is serious about rapidly moving away from the fee-forservice model and an acknowledgement that voluntary efforts in the industry aren't likely to achieve that goal, said Brian Fuller, a vice president with consulting firm Avalere. “This is the first really strong signal that this is where the industry is going,” Fuller said. The program would begin Jan. 1 and run for five years. Episodes included in the bundle would begin with the admission to the hospital and end 90 days after discharge. The hospitals would bear financial risk for the procedure, the inpatient stay and all care related to the patient's recovery. The geographic areas chosen for the program range from large markets like New York City and Los Angeles to smaller ones like Flint, Mich., and Florence, S.C. (See a map and list of the areas below.) In all, more than 800 hospitals would be subject to the rule. Critical-access hospitals would be excluded. The hospitals would continue to get paid for their services under Medicare's fee-for-service system. At the end of the year, depending on the hospital's quality and cost performance, the hospital would receive an additional payment or be required to repay Medicare for a portion of the episode costs. Hospitals will not be at risk the first year but must absorb losses starting in year two. Still, that could be a challenge for hospitals that haven't made the necessary investments in data infrastructure or care coordination and suddenly find themselves under payment bundles in January, Avalere's Fuller said. The CMS, though, said the program will give hospitals an incentive to work with physicians, home health agencies and nursing homes to make sure Medicare patients get coordinated care and reduce avoidable hospitalizations and complications. The program would include quality measures for complications, readmissions and patient experience. “We're doing this because we believe there's an opportunity to improve care for Medicare beneficiaries who are undergoing hip and knee replacements,” said Dr. Patrick Conway, the deputy CMS administrator for innovation and quality. The American Hospital Association declined to comment Thursday, saying its experts were still reviewing the proposal. But Premier, the hospital purchasing, consulting and performance improvement company, said rolling out a mandatory bundled payment was "too much, too fast." “A voluntary, national program would ensure that only providers who are ready to take on this challenge enter the program, avoiding unintended consequences,” Premier Senior Vice President Blair Childs said. Bundled payment advocates Dr. Ezekiel Emanuel and Topher Spiro applauded the announcement but urged the CMS to go even farther. Bundles should be used for spine surgery and other procedures and the orthopedic bundles should be “the standard method of payment nationwide,” they said in a statement. Emanuel, head of the University of Pennsylvania's medical ethics and health policy department, and Spiro, vice president for health policy of the Center for American Progress, championed bundled payments in a Wall Street Journal commentary published days ahead of the CMS announcement. They argued that more must be done to curb spending growth as new economic data suggest an acceleration in health spending after a historic slowdown. Efforts to expand accountable care organizations—another Affordable Care Act payment-reform model—cannot be expanded as easily as bundles, they wrote. “A cost-control strategy that relies on expanding the number of ACOs won't be successful,” they wrote. “Before it is too late, the Obama administration must focus on a reform that can be scaled. Medicare should lump together physician services, hospital

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costs, tests, medical devices, drugs and rehabilitation services related to common ailments—such as broken hips, heart stents and cancer treatments—into a bundle. It could then pay a medical provider a discounted amount for the whole array of services.� ACOs have seen mixed results. Medicare savings have been minor in early years, though a broad, commercial ACO-type initiative in Massachusetts has produced more significant savings after four years. An early test of bundles, the Medicare Acute Care Episode Demonstration, did save Medicare $319 per episode during a threeyear program with the largest savings from orthopedics. However, published results are very limited for the Affordable Care Act's Bundled Payments for Care Improvement initiative. The CMS acknowledged the lack of data from that program but asserted the results have been positive and that the experience would inform the new experiment. Most hospitals participating in the bundled payments initiative would be excluded from the new program. In January, HHS announced a goal to have 50% of its fee-for-service spending under contracts that include cost and quality incentives. In 2014, approximately 430,000 Medicare beneficiaries had discharges for lower-extremity joint replacements, costing Medicare more than $7 billion for the hospitalizations alone. The CMS estimates that the new bundled-payment test will cover about 25% of the hip and knee replacements that Medicare pays for. The program would put about $2.2 billion in Medicare spending in the new bundles in 2016, and that figure would grow to $2.7 billion in 2020. The agency expects the model to yield $153 million in net savings during its five-year run. Comments on the proposal are due Sept. 8. JULY 2015

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Children's Specialized Hospital pediatric practice earns 'patient-centered medical home' designation By Eric Strauss, Children's Specialized Hospital announced Thursday that its Pediatric Primary Care is the first special-needs pediatric practice in New Jersey to earn the “patient-centered medical home” designation. The Mountainside hospital, part of the Robert Wood Johnson Health System, said in a news release that the National Committee for Quality Assurance has recognized it after an assessment of its standards of care and scientific evidence of success. Patient-centered medical homes are a new model of care that combines teamwork and information technology to improve care and patient experience, as well as reduce costs. Patient care is overseen by clinician-led teams that coordinate treatment across the practice or system. “The PCMH designation recognizes our commitment to providing children access to coordinated, quality care, and shows we are committed to continuously improving the practice so our patients and their families may benefit even more,” Dr. Matthew B. McDonald III, chief of special needs pediatrics, Children’s Specialized Hospital, said in a prepared statement. “In addition, being a patient-centered medical home means we can better support our patients’ families beyond the walls of our practice, especially in navigating the complexities of the network of care our medically involved patients face on a daily basis.” Pediatric Primary Care at Children’s Specialized Hospital treats approximately 1,600 children with complex physical and mental health needs each year, it said. It will hold the patient-centered medical home designation for two years, then go through a reassessment process.

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