3M Information Systems’ Sandeep Wadhwa and the Role of Analytics in Accountable Care
Dr. Sandeep Wadhwa, Chief Medical Officer at 3M Information Systems, joined our June 2012 State Healthcare IT Connect Summit to present his talk Aligning Patient Safety with Cost Containment: The Challenge for State Medicaid Plans.
In that presentation, Dr. Wadhwa illustrated how state Medicaid plans are aiming to improve quality of care while maintaining a committment to patient safety. Minimizing the impact and incidence of adverse events, including medical errors and complications were seen as explicit goals, not only for higher quality health outcomes, but for effective cost containment. The recently released 2012 Agency for Healthcare Research and Quality measures indicated 27 Patient Safety Indicators toward achieving these benchmarks.
Also covered in detail was information on CMS Value-Based Purchasing, including 12 performance measures, as well as the newly revised patient safety, outcome, and efficiency measures set to go into effect in 2014.
Dr. Wadhwa returned to our Fall 2012 Accountable Care and Health IT Strategies Summit in Chicago to deliver an updated version of his original presentation, entitled Measure Twice, Cut Once: The Role of Analytics in Accountable Care. Dr. Wadhwa illuminated his experience at 3M, in the context of ACO formation, helping providers find savings opportunities, in emerging care models. Unit cost, inpatient stays, outpatient experience, and episodic visits were all examined during the talk.
The “avoidable volume” area of focus looked at ER visits, readmissions, and unnecessary services to seek additional cost savings opportunities.
Sandeep’s “First Measure,” from the title of his most recent presentation at our Fall summit, seeks to “understand variation in care delivery in identify opportunities for improved efficiency.” Dr. Wadhwa shared the priority of cutting costs associated with outpatient care, which reportedly grows steadily each year.
The “Second Measure” includes “analyzing quality defects and/or potentially avoidable events.” The next opportunity for better care coordination and cost savings can be characterized as overtreatment, complications, unnecessary services, as well as inappropriate care. Risk-adjustment for the population is seen as a means to better gauge the potential for total cost savings. 40% of admissions are not able to be impacted by quality improvement measures, but many opportunities for better coordinated care remain.
The final and main point to Dr. Wadhwa’s presentation is the concept of “Cut Once,” which seeks to “improve health by aligning incentives.” Potentially preventable ER visits are seen as significant cost drivers, while analytics showed that 85% of all costs were non-preventable.
The final takeaway, presented as a Summary of Lessons Learned, seeks to understand population with risk-adjustment, targeting areas of potential savings, monitoring clinical performance, measuring outcomes, and finally sharing best practices to maximize savings and avoid preventable events.
The entire presentation from our Fall 2012 Accountable Care and Health IT Strategies Summit is available at our media portal. (free registration)