Innovations in Oncology Management - Part 3

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Innovations in Oncology Management

PART 3 OF A SERIES

http://innovationsinoncologymanagement.com

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Emerging Payment and Delivery Models

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he unsustainable rise in healthcare costs, the growing lack STAKEHOLDER PERSPECTIVE of access to healthcare, and the increasing disparities in care have contributed to the recognition that our existing Evolution of the Oncology Patienthealthcare system must change to meet the nation’s future healthCentered Medical Home ............. 6 care needs. The current fee-for-service payment system has been criticized for An Interview with John Sprandio, MD depending too heavily on the volume of care delivered to patients Chief of Medical Oncology and Hematology B:8.375” rather than on the quality of care.1 Currently, providers are predomOncology Management Services T:8.125” inantly rewarded based on the number of tests ordered, drugs preDrexel Hill, PA S:7.625” scribed, and procedures performed, rather than on the clinical appropriateness of treatment decisions, the quality of care provided, and patient outcomes. As a result, several high-value services are inadequately reimbursed (if they are reimbursed at all). For example, versial, the ACA has been a catalyst for developing new healthMedicare and most private insurers will not reimburse physicians for care delivery and payment models that are designed to improve coordinating care by telephone or e-mail, but they will often pay for patient outcomes, decrease costs, and restructure reimbursement. duplicate tests or complications as a result of drug–drug interactions Building on this framework for reform, many federal, state, and that are caused by conflicting medications. In addition, reimburse- private programs have been developed to encourage providers to ment for patient education and self-management support services take increased responsibility for the cost and quality of care.3 has been poor or nonexistent, even if the services permit earlier Accountable care organizations (ACOs) and patient-centered disease identification or help to avoid expensive hospitalizations.1 medical homes (PCMHs) are 2 of the new models that have been tested across the country.3 The Centers for Medicare & Medicaid Services (CMS) continues to award grants to healthcare organizations, academic institutions, and others to develop innovative ideas that deliver better health, improve care, and lower costs for individuals who are enrolled in government healthcare programs, such as Medicare and Medicaid.3,4 The reforms that are taking place as a result of the ACA are affecting the business and clinical practice of oncology at the local level and will continue to do so in the future. Progressive oncology providers and administrators should consider the potential impact of In many cases, hospitals and healthcare providers lose revenue if these reforms on their practice and prepare to respond accordingly.5 they perform fewer procedures or lower-cost procedures.1 Furthermore, there are no financial incentives for physicians when their Accountable Care Organizations patients are doing well and do not require treatment. A growing The concept of the ACO was first discussed in 2006, and the recognition of this dynamic has led to today’s era of healthcare re- term became widely used when the ACA was signed into law in form, which aims to profoundly affect the way that healthcare is 2010.6 An ACO may be described as a formally organized entity delivered and financed.1 comprising physicians, hospitals, and other relevant health service In an effort to move healthcare reform forward, key pieces of professionals who have voluntarily joined together and contracted legislation have been enacted in recent years, most notably the with payer organizations to provide a broad set of healthcare serPatients, Science, and Innovation the foundation everything Patient Protection and Affordable Care Actare (ACA), which took of vices to their Medicare patients.7 we in do. At 2Celgene, we believe inofan commitment to designed to deliver seamless, high-quality care for effect 2010. Although some provisions it unwavering have been controACOs are

The current fee-for-service payment system has been criticized for depending too heavily on the volume of care delivered to patients rather than on the quality of care.

medical innovation, from discovery to development. Our passion is relentless—and we are just getting started. Supported by funding from Celgene Corporation and Celgene Patient Support. Manufacturer did not influence content.

© 2014 Celgene Corporation

09/14

US-CELG140022(1)


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