PROF. MICHAEL PORTER - VBHC Center Europe

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PROF. MICHAEL PORTER - VBHC Center Europe
P R E S E N TAT I O N
                  P R O F. M I C H A E L P O RT E R
                   A S E L E C T I O N * O F T H E S L I D E S A S P R E S E N T E D AT
                   THE VBHC PRIZE EVENT 2017

                   D AT E : 2 9 - 5 - 2 0 1 7

              *Click here to become member of VBHC Center Europe and gain access to the
              full presentation of Prof. Porter during the VBHC Prize event 2017.
               1 | VALUE-BASED HEALTH CARE CENTER EUROPE | V1 | HOLSTEIJN | MAY 2017 | VBHC PRIZE EVENT 2017
www.vbhc.eu                                             @VBHCEurope                               Value-Based Health Care Center Europe
PROF. MICHAEL PORTER - VBHC Center Europe
VBHC Prize event 2017
        The VBHC Prize Event 2017 was a truly inspiring and celebratory
        event together with the VBHC community. Diabeter has won the
        prestigious VBHC Prize 2017.

              2 | VALUE-BASED HEALTH CARE CENTER EUROPE | V1 | HOLSTEIJN | MAY 2017 | VBHC PRIZE EVENT 2017
www.vbhc.eu                                            @VBHCEurope                               Value-Based Health Care Center Europe
PROF. MICHAEL PORTER - VBHC Center Europe
Get access to the full presentation
        Click here to become member of VBHC Center Europe and gain access to the
        full presentation of Prof. Porter during the VBHC Prize event 2017.

        Membership benefits:
         Unlimited access to breakthrough VBHC articles in the VBHC Knowledge Bank;
         Free personal advise on the best VBHC education options;
         Initiating, participating and have access to the work in Chapters;
         Free participating for ‘How to write a winning application for the VBHC Prize’
          (first session on November 9th 2017);
         Exclusive (one time offer) two for the price of one VBHC masterclasses;
         Free recertification for VBHC Certified Green Belts.

   The European platform for VBHC implementation
              3 | VALUE-BASED HEALTH CARE CENTER EUROPE | V1 | HOLSTEIJN | MAY 2017 | VBHC PRIZE EVENT 2017
www.vbhc.eu                                            @VBHCEurope                               Value-Based Health Care Center Europe
PROF. MICHAEL PORTER - VBHC Center Europe
A selection of the presentation
    by Prof. Michael Porter
                 -
VBHC Prize Event 2017 – May 11

               4
PROF. MICHAEL PORTER - VBHC Center Europe
Value-Based Health Care Delivery:
                              Latest Insights and Implications

                                                                                                    Professor Michael E. Porter
                                                                                                        4th Annual VBHC Prize
                                                                                                        Landgoed de Salentein
                                                                                                              www.isc.hbs.edu
                                                                                                                 May 11, 2017
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means — electronic, mechanical, photocopying,
recording, or otherwise — without the permission of Michael E. Porter and Elizabeth O.Teisberg.

                                                                              5
PROF. MICHAEL PORTER - VBHC Center Europe
The Growth of Value-Based Health Care

Source: The Decision Group, Wiersma, VBHC Latest Insights   6
PROF. MICHAEL PORTER - VBHC Center Europe
Creating Value-Based Health Care Delivery
                    The Strategic Agenda

1. Re-organize Care around Patient Conditions, into Integrated
   Practice Units (IPUs)
     − For primary and preventive care, IPUs serve distinct patient
       segments

2. Measure Outcomes and Costs for Every Patient

3. Move to Value-Based Reimbursement Models, and Ultimately
   Bundled Payments for Conditions

4. Integrate Multi-Site Care Delivery Systems

5. Expand or Affiliate Across Geography

6. Build an Enabling Information Technology Platform

                                 7
PROF. MICHAEL PORTER - VBHC Center Europe
Value-Based Primary Care
                                        Oak Street Health
• Focuses low-income older adults living in under-served
  urban communities
  – Four severity tiers
• Multidisciplinary team covering the full care cycle: physicians,
  PAs, NPs, RNs, medical assistants, scribes, care managers,
  social workers, clinical informatics specialists, and others
• Co-located in dedicated facilities. 19 sites across the Midwest
• Explicit processes to engage patients and reduce obstacles
  to accessing care such as free rides/home-visits, in-house
  pharmacy and selected events for community residents
• Selected in-house specialty services such as behavioral
  health and podiatry. Close relationships with preferred
  outside specialists and imaging partners
• Meet daily and weekly to discuss patient care plans and
  process improvement
• Measure and accountable for outcomes, cost, and patient
  experience

• Single risk-adjusted payment covering overall care
    – Including payment for specialty inpatient and post-acute care
                                                        8
PROF. MICHAEL PORTER - VBHC Center Europe
Shared Primary Care Infrastructure

Primary                                                         Complex
                                                                Chronic/          Low             Frail
Care                               Complex
                    Healthy                       At-Risk                       Income          Elderly
IPUs                                Acute                        Multiple       Elderly        /Disabled
(ADULTS)                                                         Chronic

                    Shared Site for
Shared                                                                                   Social and
                      Low Cost,             After Hours            Prevention
                                                                                        Behavioral
Infrastructure       Convenient               Access                 Hubs
                                                                                      Support Services
                   Routine Services

                  • Clinics in retail    • 24 hour nurse        • Smoking             •   Housing
                    stores or other        hotline                cessation           •   Income support
                    convenient sites       ‒ Nurse contacts     • Alcohol addiction   •   Nutrition support
                  • Shared walk-in            on-call           • Weight loss         •   Violence
                    clinics in primary        pediatrician if                         •   Transportation
                    care or specialty         necessary         Complex addiction
                    sites                • After hours          (e.g. opioids) and    Close relations
                                           clinics in primary   complex               with social
                                           care or outpatient   behavioral health     services, school
                                           specialty sites      care by specialty     nurses, community
                                                                IPU                   centers
                                                    9
PROF. MICHAEL PORTER - VBHC Center Europe
Integrating Primary Care With Specialty Care

Specialty        Specialty
IPUs              IPUs

            Relationships Telemedicine Disease training Specialist Embedded      Specialty IPU
             and regular Consultations and protocols    Rotation specialists in     take over
             referrals to               from Specialty in PC IPUs   PC IPUs     primary care for
             Specialists                  IPUs to PC (e.g. one day                   serious,
            Experienced                     Teams       per week)                   complex
               with the                                                            conditions
              Segment

                                                        Complex
                                                        Chronic/        Low          Frail
Primary                      Complex
                 Healthy                   At-Risk                    Income       Elderly
Care IPUs                     Acute                     Multiple      Elderly     /Disabled
                                                        Chronic

                                                 10
2. Measure Outcomes for Every Patient
                  The Quality Measurement Landscape

                          Patient
                       Experience/
                       Engagement
                       / Adherence

Patient Initial
 Conditions,            Processes                     Indicators           Outcomes
Risk Factors

                    Protocols/Guidelines          E.g. PSA, Gleason
                                                  score, surgical margin

                         Structure

                    E.g., Staff certification,
                    facilities standards
                                                 11
Standardizing Minimum Outcome Sets
                                            ICHOM Standard Sets

        Standard Sets                       Standard Sets                            Standard Sets
                                                                                                                         Committed/
          Complete                            Complete                                 Complete
                                                                                                                         In Process
            (2013)                              (2014)                                 (2015-16)
  1.   Localized Prostate Cancer *   5.    Parkinson’s Disease                 13.   Breast Cancer*               22.   Chronic Kidney Disease
  2.   Lower Back Pain *             6.    Cleft Lip and Palate*               14.   Dementia                     23.   Oral Health
  3.   Coronary Artery Disease *     7.    Stroke *                            15.   Frail Elderly                24.   Inflammatory Arthritis
  4.   Cataracts *                   8.    Hip and Knee Osteoarthritis*        16.   Heart Failure                25.   Congenital Hand and
                                     9.    Macular Degeneration*               17.   Pregnancy and Childbirth           Upper Limb Malformations
                                     10.   Lung Cancer*                        18.   Colorectal Cancer            26.   Facial Palsy
                                     11.   Depression and Anxiety              19.   Overactive Bladder           27.   Hypertension*
                                     12.   Advanced Prostate Cancer *          20.   Craniofacial Microsomia      28.   Diabetes
                                                                               21.   Inflammatory Bowel Disease   29.   Atrial Fibrillation
                                                                                                                  30.   Mental Health

  * Published Thus Far in Peer-
         Reviewed Journals

Burden of
Disease        18%                               35%                                        45%                               59%
Covered

                           To learn more about ICHOM please visit us at www.ichom.org
                                                                          12
End of the selection of the
presentation by Prof. Michael Porter

                 13
Get access to the full presentation
        Click here to become member of VBHC Center Europe and gain access to the
        full presentation of Prof. Porter during the VBHC Prize event 2017.

        Membership benefits:
         Unlimited access to breakthrough VBHC articles in the VBHC Knowledge Bank;
         Free personal advise on the best VBHC education options;
         Initiating, participating and have access to the work in Chapters;
         Free participating for ‘How to write a winning application for the VBHC Prize’
          (first session on November 9th 2017);
         Exclusive (one time offer) two for the price of one VBHC masterclasses;
         Free recertification for VBHC Certified Green Belts.

   The European platform for VBHC implementation
              14 | VALUE-BASED HEALTH CARE CENTER EUROPE | V1 | HOLSTEIJN | MAY 2017 | VBHC PRIZE EVENT 2017
www.vbhc.eu                                             @VBHCEurope                              Value-Based Health Care Center Europe
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