Newtown, CT – November 4, 2011
Today is the day – By close of business, the window to file a letter of intent for the CMMI Bundled Payment pilot will be shut. The preliminary numbers are very strong and if the final rush holds, the Innovation Center will have quite an announcement to make early next week. Of course, an LOI does not an Application make, nor does it guarantee participation. But the overwhelmingly positive response to the request shows how much closer we've gotten to the proverbial tipping point. And by the time the dust settles, it's very likely that close to a third of hospitals in the country will be engaged in some way in bundled payment. We can report today that all of our pilot sites have providers submitting a Letter of Intent. Despite the difficulties many had being the pioneers in this movement to value based payment, they learned from that experiment and are now ready to get to the next level in managing financial risk. We've also learned from those early days and our growing suite of tools reflects those lessons and helps new implementations go from discussions to operations in 90 days. To help start discussions by employers and payers we're launching a new tool today that helps any employer or health plan estimate the impact on their current per member per month cost of implementing bundled payments.â€¨â€¨
What this means to you – without any complicated analyses or data extractions and manipulations, you can now quickly determine what your savings might be if you shift from fee for service to bundled payments. Of course, that's just to start the conversation, but it's an essential start. The next step is to commit to taking action, and that's truly the hardest part, and not just for employers. As the deadline for the Bundled Payment LOIs closes, we'll notice not just the number of organizations that filed a letter, but also those that didn't. Particular attention should and will be paid to those who have long claimed to deliver value and yet fail to find the time and resources to participate in this bundled payment pilot, or the ACO pilot. We'll certainly be looking carefully at the list and highlight those that are missing and shouldn't be. All employers should look at the list as well so that they can quickly identify which hospitals in their communities are willing to provide higher value, and once you've calculated the opportunity, you'll know who to work with and quickly move to implementation. Today's the day to start the journey.
Francois de Brantes
Health Care Incentives Improvement Institute, Inc.