Premier Inc. CJR Participants Outperform Peers in Achieving Savings by 35%
November 20 2017 - 2:17PM
Business Wire
Nearly two-thirds of CJR participants in Premier’s Bundled
Payment Collaborative received reconciliation payments from
Medicare; BPCI participants also achieving positive results
Hospital participants in the Centers for Medicare & Medicaid
Services (CMS) Comprehensive Joint Replacement (CJR) model that are
members of the Premier Inc. Bundled Payment Collaborative are
substantially outperforming their peers, according to a Premier
analysis of CMS’s preliminary CJR performance year 1 data.
Approximately 63 percent of CJR participants in the Premier Bundled
Payment Collaborative received positive savings payments from
Medicare, outperforming their peers by 35 percent when compared to
the 47 percent of CJR program participants that achieved positive
savings payments nationally.
Though they make up six percent of all CJR program participants,
Premier Collaborative CJR members also generated 11 percent of the
total $37.5 million in Medicare savings distributed to all program
participants. Additionally:
- More than half of Premier Collaborative
members that received positive savings payments from Medicare
achieved at least 10 percent in overall savings;
- Approximately 75 percent of Premier
Collaborative members achieved savings for Medicare; and
- Approximately 80 percent of CJR
participants in Premier’s Collaborative achieved excellent or good
quality scores in the first two quarters of performance year
one.
“These results show that with a customized and methodical
approach, aligned providers across an episode, robust data and
insights from peers and industry experts, and the implementation of
best practice processes, Premier members are achieving significant
financial and quality gains through the CJR program,” said Mark
Hiller, vice president of Premier’s Bundled Payment Collaborative.
“When done right, bundled payment models represent a smart business
choice for providers to ensure continued economic viability in
today’s value-based healthcare environment. They also present an
opportunity to further align physicians and providers to innovate
care delivery processes and achieve greater incentives through the
Quality Payment Program as alternative payment models continue to
evolve. We commend Bundled Payment Collaborative members for
leading the way in this successful effort.”
Launched in April 2016, the CJR model aims to support better and
more efficient care for Medicare beneficiaries undergoing hip and
knee replacements. CMS has proposed lifting the mandatory
requirements from the CJR model for half of its markets; however
hospitals in the program can continue participating on a voluntary
basis. In fact, CMS supports voluntary bundled payment program
participation, such as through its Bundled Payment for Care
Improvement (BPCI) initiative and its Oncology Care Model. Further,
CMS is anticipating announcing a new episode payment model for
2018.
Members of Premier’s Bundled Payment Collaborative participating
in BPCI are also achieving positive results. For example, Bundled
Payment Collaborative member Southwest General Health Center, a
350-bed hospital located in Middleburg Heights, Ohio, has earned
nearly $800,000 in savings payments since 2015, as part of the BPCI
model. In addition, 30-day readmissions at Southwest General have
decreased by 21 percent and 90-day readmissions have decreased by
20 percent.
“We became a BPCI participant because we saw a great opportunity
to drive quality improvements and save money at the same time,”
said Jill Barber, executive director, Payer Strategy and Population
Health, Southwest General. “Bundles provide us a way to ensure
everyone across the continuum is at the table in achieving success.
Regardless of what political sphere you’re from, we believe that
bundled payment models are a mechanism in which the healthcare
industry will continue to adopt in its movement from
fee-for-service to paying for high-quality, value-based care. We
eagerly await the CMS announcement of a new bundled payment model,
as we plan to participate. Also, we are excited to continue to
partner with Premier in this effort, as our participation in the
collaborative is key to driving positive results through data,
insights and best practices.”
With more than 120 healthcare facilities, Premier’s Bundled
Payment Collaborative is one of the largest collaboratives of
healthcare provider systems in the U.S. focused on episode-based
care. The Collaborative provides the opportunity for leading health
systems to analyze and identify opportunities from sophisticated
claims analytics, share insights and knowledge, benchmark
performance, and learn core capabilities, as well as leading and
evolving practices from each other to reduce the learning curve and
accelerate success in implementing effective bundled payment
models. Premier’s industry-leading consultants partner with
healthcare organizations pursuing commercial, mandatory and
voluntary bundled payment models, such as BPCI and the Oncology
Care Model. Premier has been named Best in KLAS for value-based
care consulting for the past two years.
BPCI Awardee Agreement Statement
The statements contained in this document are solely those of
the authors and do not necessarily reflect the views or policies of
CMS. The authors assume responsibility for the accuracy and
completeness of the information contained in this document.
About Premier Inc.
Premier Inc. (NASDAQ: PINC) is a leading healthcare improvement
company, uniting an alliance of approximately 3,900 U.S. hospitals
and health systems and approximately 150,000 other providers and
organizations. With integrated data and analytics, collaboratives,
supply chain solutions, and advisory and other services, Premier
enables better care and outcomes at a lower cost. Premier, a
Malcolm Baldrige National Quality Award recipient, plays a critical
role in the rapidly evolving healthcare industry, collaborating
with members to co-develop long-term innovations that reinvent and
improve the way care is delivered to patients nationwide.
Headquartered in Charlotte, N.C., Premier is passionate about
transforming American healthcare. Please visit Premier’s news and
investor sites on www.premierinc.com; as well as Twitter,
Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for
more information about the company.
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Premier Inc.Morgan Guthrie,
704-816-4152Morgan_Guthrie@PremierInc.com
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