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Healthcare 101 An Introduction Day II - UST
Healthcare 101 An Introduction Day II - UST
Day - 2
By
George Alexander
Global Headquarters
120 Vantis, Aliso Viejo CA
92656
Phone: 949.716.8757
www.ust-global.com
Topic 1
Evolution of Healthcare Delivery and Finance
Topic 2
Basic concepts -- Coverage, Benefits, Insurance
Topic 3
Managed Care Benefits and Networks
Topic 4
Financing Managed Care
Question
When determining physician's fee reimbursements, the
Blossom Managed Healthcare Group assigns a weighted
value to each medical procedure or service and multiplies
the weighted value by a money multiplier, as shown below:
Weighted value for service x Money Multiplier = Amount
reimbursed to physician
Question
One way in which Managed Care Plan differs from Traditional
Indemnity Plan is that Managed Care Plan typically :
Question
By definition A Managed Care plans Network refers to the
Topic 6
PPO, POS and Managed indemnity plans
Wellpoint Plans
Group plans
Individual plans
Topic 7
Managed Healthcare for Specialty Services
Dental benefits
Behavioral healthcare benefits
Pharmacy benefit
Topic 8
Provider Organizations and Provider Integration
Topic 5
Health Maintenance Organizations - HMO
Global Headquarters
120 Vantis, Aliso Viejo CA
92656
Phone: 949.716.8757
www.ust-global.com
Course Content
Day 2
Topic 5 : Health Maintenance Organizations - HMO
Health Maintenance Organization
Background HMO Act 1973
Benefits
Membership
Open enrollment period
Financing
Closed and Open panel HMO
HMO Models
Key Terms
Topic 5
Background of HMOs
HMOs have been in existence for more than 70 years
Were very popular in mid 70s as a result of a federal
legislation HMO Act 1973
Federal qualification pre-empted certain state laws
To be federally qualified, an HMO could not exclude preexisting condition and had to offer:
Healthcare delivery in a geographic service region.
Both basic and supplemental healthcare service
Voluntary membership to an enrolled population
Act required employers to offer Dual Choice provision.
Provided access to employer market.
Federal grants and loans were made available from 1973 until
1981 for setting up of HMO.
HMO are required to get license Certificate of Authority
- COA
Membership
Members include both subscribers who are eligible to
enroll in to HMO directly and their dependents.
Individuals may contract directly with HMO and
receive benefits on an individual basis.
Usually a person becomes member of an HMO through
a group plan made available by their employer.
Under a group plan, HMO member has no contractual
relationship with HMO.
Contractual relationship is between HMO and employer.
HMO offers employer an annual open enrollment period,
usually 30 days, during which employees select their healthcare
coverage
During open enrollment period, HMO automatically accepts
those employees who wish to obtain coverage or switch from
other plan to HMO.
Federally qualified HMO must accept risk for pre-existing
condition for all eligible employees and dependents.
Networks
HMOs enter into negotiated contracts with providers to form a
network.
HMO can own its own facilities or employ physicians in its network.
Provider network which consist of participating physicians,
hospitals and ancillary service providers, delivers medical care to
HMO members in exchange of negotiated compensation.
Important parameters while building network
Access number and type of providers needed in a geo. area
Credentialing what credentials to verify, conduct
re-credentialing and peer reviews
Contractual relationship
whether to own facility or contract for their use
employ providers or contract their services
how providers are compensated
Salary
Capitation
discounted-fee-for-service.
Providers contract
independently and may be
selected to join HMO
network as long as they
meet HMOs standard
Operate out of their own
facility
Providers see both HMO
members and Non-members
Members select PCP from
HMO network
Member in few cases may
self refer to specialist
inside or outside network
without going through the
PCP first. OON services at
reduced benefits
HMO Models
IPA Model
Separate physician office
Open or closed panel
PCPs
Independent
Discounted FFS
Specialist
Independent
Discounted FFS
HMO Models
Staff Model
Ambulatory care facilities (Medical Clinic or Medical Center)
Closed panel
PCPs
Employees
Salaries
Specialist
Employees or Independent
Discounted FFS
HMO Models
Group Model
Separate group practices
Open or closed panel
Group practice
Capitation
PCPs
Independent
Salaries, incentives
Specialist
Independent
Discounted FFS, varied
HMO Models
Network Model
Separate group practices
Open or closed panel
Group practice
Capitation
PCPs
Independent
Salaries, incentives
Specialist
Independent
Discounted FFS, varied
Key Terms
HMO - Health Maintenance Organization
Certificate of authority
Ancillary Services
Prepaid care
Closed-Panel HMO; Closed access
Open-panel HMO; Open access
Ambulatory care facility
HMO models
IPA
Staff
Group
Network
Question
An HMO that combines characteristics of two or more
HMOs
A Network Model HMO
B Staff model HMO
C Group Model HMO
D Mixed Model HMO
Question
One distinguishing characteristics of HMO is that
typically, an HMO
A arranges for deliver of medical care and provides, or
shares in providing, the financing of that care
B must be organized as not-for-profit organization
C may be organized as a corporation, partnership or
any other legal entity
D must be federally qualified in order to conduct
business in any state
Question
HMOs use many techniques to control Member
Utilization and Provider Utilization of Healthcare
Services. One technique that HMO uses to control
Member Utilization is
A the use of Physician Practice Guidelines
B the requirements of co-payments for office visit
C capitation
D risk pools
Topic 6
Topic 6
Global Headquarters
120 Vantis, Aliso Viejo CA
92656
Phone: 949.716.8757
www.ust-global.com
Course Content
Day 2
Topic 6 : PPO, POS, Managed Care Indemnity
PPO
Benefits
Networks
Financing
Utilization management
Quality management
EPO
POS
Managed Indemnity Plans
Empire BCBS Plans
Key Terms
Topic 6
Managed Indemnity
Question
What is PPO ?
What is POS ?
Topic 7
Managed Healthcare for Specialty Services
Topic 7 : Managed
healthcare for
Specialty Services
Global Headquarters
120 Vantis, Aliso Viejo CA
92656
Phone: 949.716.8757
www.ust-global.com
Course Content
Day 2
Topic 7 : Managed healthcare for Specialty Services
Specialty services
Carve out
Dental
Behavioral healthcare
Pharmacy benefit plans
Key Terms
Topic 7
Specialty Services
In past, managed healthcare focused on delivering,
basic physician services and hospital services.
Consumer wants other services also to be part of
expanded benefit package
Dental, Pharmacy benefits.
Prescription Drugs
Mental health/Substance abuse
Dental; Vision
Longterm care; Rehabilitation services
Workers compensation
Chiropractic
Carve out
Dental Care
Dental PPO
Discounted fee for service
Dental POS
Prepayment
Discounted fee for service
Behavioral healthcare
Behavioral healthcare
Key Terms
Specialty services
Carve-out
Specialty health maintenance organization
Managed dental care
Managed behavioral care
Pharmacy benefit management (PBM) plan
Drug utilization review (DUR)
Open / closed formulary
Generic / Therapeutic substitution
Mail order pharmacy program
Topic 8
Provider Organizations and Provider Integration
Topic 8 :
Provider
Organizations and
Provider
Integration
Topic 5
Global Headquarters
120 Vantis, Aliso Viejo CA
92656
Phone: 949.716.8757
www.ust-global.com
Course Content
Day 2
Topic 8 : Provider Organizations and Provider Integration
Provider Integration
Operational
Structural
Provider integration models
Physician only integration model.
IPAs
GPWW
Physician practice
management companies
Open / closed PHO
Integrated Delivery system - IDS
Medical foundation
Key Terms
Topic 8
Provider Integration
Plan/Payor organization contracts with providers for
delivery of healthcare.
Individual providers
Organizations representing number of providers
To combine certain operating functions in order to achieve
economies of scale and thus reduce overall operating cost
To strengthen their negotiating power with MCOs and Payors /
Plans.
Provider Integration
Structural Integration
Previously separate providers under common ownership and
control.
Mergers and acquisitions are examples of complete structural
integration
Merger: Two or more separate providers are legally joined.
Acquisition : one Org. buys another Org.
Consolidation: (type of merger) one provider may absorb another
or providers form a new organization with original companies
being dissolved.
Joint venture (Partial Structural integration)
Two or more Org. combines resources to achieve a stated objective.
Merger
Provider A
Provider B
New Provider
created from A, B, C
Provider C
Acquisition
Parent Company
Owns A, B, C
Provider A
Provider B
Provider C
Operational Integration
Clinical Integration
Involves making variety of health services available to patients
from same organization or entity.
Advantages
Common patient record, single medical record.
Coordination of care
More streamlines administrative processes
Provider integration
The amount of provider integration displayed by each
provider organization falls somewhere on a continuum
stretching from minimal integration to fully integrated.
Independent Practice Association (IPA) minimal
integration.
Integrated Delivery System (IDS) fully integrated.
Full range of healthcare services from birth to death
Other organizations
Group practice without wall (GPWW)
Multiple physician practices under same umbrella org. and
performs certain business operations for member practices.
Management services organization (MSO)
Organization that providers management and administrative
support
Relieve physicians from non-medical business functions.
Physician practice management (PPM)
Purchases physician practices, long term contract with
physicians or equity to physician. Manages non-medical
aspects.
Continuum of Operational
Integration
GPWW,
MSO
PPM
Company
Less Integrated
Consolidated
Medical Group
More Integrated
PHO
Less Integrated
IDS, Medical
Foundation
More Integrated
IPA
Contracts
MCO
Physician
Physician
Physician
Physician
Physician
MCO
Contract
Contracts
IPA
Physician
Physician
Physician
Physician
Physician
Provider integration
Medical Foundation
Corporate practice of medicine is not permitted in some
states.
Hospital & health plan creates medial foundation
Notforprofit benefit to community.
Purchases and manages physician services
Key Terms
Integration
Structural, operational integration
IPA
Messenger model
Medical foundations
THANK YOU!
Questions?
Topic 9:
Topic 10:
Medical Management
Topic 11:
Topic 12: