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Case Study - Health Plan/Insurer - Pay for Performance and Provider Management

Problem:

A selected RPNavigator client wanted to pilot a Pay for Performance (P4P) initiative in a metropolitan area to prove its value, demonstrate their ability to smoothly implement such a program and improve provider satisfaction with the Plan.

Solution:

Our Client used RPNavigator’s Practice Management Index (PMI) to create a balanced scorecard whose meaning was transparent to providers and which could demonstrate the Plan’s commitment to enhancing the coordination and quality of care. The utilization was case mix and severity adjusted by primary care specialty and excluded the top 2% of cost outliers.  Because of these features, physicians appreciated the fact that all observations about utilization differences had been adjusted for variations in burden of illness and were benchmarked against same-specialty peers. Physicians received regular feedback including periodic reports on their performance along with financial incentives based on their performance.

Results:

Physicians were impressed with the quality and depth of information on their members, since it contained clinically germane aspects of utilization about which they were often unaware.  It enabled them to perform targeted outreach to their patients who needed follow-up, with evidence-based quality of care recommendations.  As a result of its success, the Plan is now considering expanding the program to the entire network. In addition, the PMI is being used to provide all physicians important feedback at the time of their re-credentialing.



CareAdvantage, Inc.     485C Rt. 1 South,    Iselin, NJ 08830     732.362.5000    (Fax) 732.362.5005