HEALTHCARE is a thorny issue, and platoons of pundits have happily weighed in on the left and the right to rile up their bases over the past year. However, on March 23, President Obama signed into law the biggest expansion of federal healthcare guarantees in more than four decades. That doesn’t mean the healthcare debate is over, but the reality is that the U.S. health system must work to adapt to the new rules. And just how will health reform affect the renal community?
“The bigger issue for all of dialysis is what’s going to happen with the bundle and how is it going to be implemented,” said Robert Sepucha, senior vice president, government affairs, Fresenius Medicare Care. The bundled payment system was mandated by 2008’s Medicare Improvements for Patients and Providers Act, which will arguably affect dialysis care more than the bill Obama signed into law. “I’m not sure there is anything unique to dialysis or renal care that is going to be impacted by virtue of healthcare reform, save for one exception,” Sepucha said. “But there’s nothing I think people should be overly concerned about.”
The one exception for dialysis in the reform bill is a provision that the General Accounting Office (GAO) must do a study on the impact of the inclusion of oral drugs in the dialysis bundle. The deadline for the report is a year from passage, or March 23, 2011. “That’s a good thing, so we can figure out whether or not these things are being adequately priced and if there are any safety concerns,” Sepucha said.
Accountable Care Organizations
One area of opportunity for the renal community in healthcare reform is accountable care organizations. Right now, Medicare reimburses hospitals through Part A and dialysis through Part B. However, quality advancements in dialysis can lower Part A costs, yet Part B does not share in the savings.
“Currently, CKD (chronic kidney disease) is fragmented and not coordinated between PCPs (primary care physicians) and all specialists. Implementing CKD care, disease management, HIT (health information technology), etc. will improve the coordination of quality care,” said Edward R. Jones, MD, president of the Renal Physician Association. “Use of guidelines, setting quality outcomes and instituting P4P (pay-for-performance) models will enhance CKD care. In addition, improved quality of care has demonstrated decreased costs but predominately from Part A services.”
ACOs have been officially endorsed by the healthcare reform bill, and the Department of Health and Human Services has been authorized to start reimbursing provider and doctor groups who band together for large cadres of patients. If they are able to improve outcomes and lower costs then those ACOs can potentially share in the savings. “Gainsharing within the ACO will allow sharing of cost savings provided by good quality care,” Jones said. “In addition, ACOs jointly formed by nephrologists, PCPs and other entities will allow for redistribution of cost savings to those providing the improved care.”
However, the ACO structures have not been defined, but an example would be dialysis organizations partnering with nephrologists, PCPs and others within kidney care delivery to accept the risks and share in the benefits of the ACO, said Jones. “It would require breaking down on the Part A and B barrier.”
In addition to structure, the way ACOs are compensated is still up in the air, but the Medicare Payment Advisory Commission’s June 2009 healthcare reform report to Congress could provide some insight. “In our model, the ACO would consist of primary care physicians, specialists, and at least one hospital,” MedPAC wrote in the report. “The defining characteristic of ACOs is that a set of physicians and hospitals accepts joint responsibility for the quality of care received by the ACO’s panel of patients.”
In the MedPAC version of ACOs, which would have at least 5,000 patients to distinguish actual improvement from random variation, providers would still be paid standard fee-for-service Medicare payment rates (such as the dialysis bundle). However, bonuses would be paid if ACOs met certain spending and quality targets.
Just how these bonuses are figured out will be up for much debate. In the report, MedPAC acknowledged that geographic consideration needs to be taken into account as some parts of the country use more services that other parts. “The financial incentives would need to be based on changes in spending rather than levels of spending,” MedPAC wrote in the report.
“The dialysis community got together to make sure that Congress specifically included dialysis providers and groups as eligible under ACOs,” Sepucha said. “It’s contemplated that we could be part of this overall solution.”
Medicare chief medical officer Barry Straube, MD, outlined some areas of interest for ACOs at the Renal Physicians Association’s annual meeting in March. They include physician offices, dialysis clinics and home training programs, fistula maintenance programs, transplant programs, CKD prevention and management programs and end-of-life and palliative care programs.
“I think dialysis and renal care are uniquely positioned because of the close relationship we have with CMS,” Sepucha said. “The bundle is a great example. The bundle is the tip of the spear in terms of how CMS and the federal government are going to reimburse providers going forward. People have figured out the fee-for-service doesn’t work in every context and may be sort of a bad way of reimbursing providers,” he added. “That’s what the bundle is, and people realize with global payments you need some sort of shared savings program. That’s what an ACO is. We feel like we’re moving to where people want to end up.”
