The Successful Future Of TKA Digging Your Way Through Bundle Syllabus

2015-10-05

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10/5/2015

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Migration of care in TJA
Steven B. Haas MD, MPH
Chief, Knee Service
John N. Insall Chair, Knee Surgery
The Hospital for Special Surgery
New York, NY

Disclosure
• Smith & Nephew Orthopaedics
• Designer (Royalty income), Consultant and Research
Support on Knee Products

• APOS Therapy
• Medical Advisory Board

• SandDance Technology
– Ownership

• IMP
– Royalty

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Migration of care in TJA in 2015
●
●
●

●

Improved knowledge
● Entire care pathway practices
Improved technology
Patient factors
● Increasing life expectancy
● Expanding indications
● Millennium patient
● No longer primarily geriatric orthopedics
● More demanding patients
ALL ROADS LEAD TO RAPID RECOVERY
●

Both in ASCs & Hospitals

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Why do we care about rapid
recovery?
●

Is it for the science?

●

Current consensus is that mid-term
to long-term results are similar
regardless of short-term results
●

Available resolution of measurement tools?

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Why do we care about rapid
recovery?
●

“It’s not about how much money you spend, it’s about where you
spend the money you have.” - Fred Cushner, MD

●

COST CONTAINMENT
●
●
●

●

Global endeavor
Decrease in healthcare $
Decrease available patient resources

If you’re not careful:
●
●
●

Can affect patient care
Your quality
Disempowers surgeon

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Why do we care about rapid
recovery?
●

COST CONTAINMENT = improve efficiencies
●
●
●
●
●
●
●

●

Technique
Implant cost
Pharmacy
OR utilization
Ancillary services
Nursing utilization
Discharge status
● Acute Rehab
● Nursing facility
● Home
Hospital Length of Stay

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Factors that may matter for recovery

Implant

Technologies

Technique

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Technique is important
●

But not enough by itself

●

MIS approaches
●

Most important to do the surgery well

●

Blood conservation techniques
Alternative anesthesia
● Multimodal pain control
●

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Factors that may matter for recovery

Implant

Technologies

Technique

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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New Technologies to Improve
Efficiency & Outcome
•Visionaire – PSI

•FastPaK – Disposable Instruments

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

New Technologies that
May Improve Outcome
•Orthosensor - Intraop Balancing Sensors

•Blue Belt – Robotic Navigated Surgery

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Factors that may matter for recovery

Implant

Technologies

Technique

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Technology needs to
meet patient expectations
and demands
• Our Younger Active Patients
want to:

Skiing

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Golfing

Racket Sports

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Performance/Satisfaction of TKA’s v THA?
• Post THA: sports activities increased
from 36% to 52%
• Post TKA: sports activities decreased
from 42% to 34%
The Ulm Osteoarthritis Study- K Huch

• Up to 20% of patients are not satisfied
with the outcome following total knee
replacement
• Only 82% to 89% of primary TKA
patients are satisfied
J Bone Joint Surg Br. 2010 Sep;92(9): Scott CE,
Howie CR, MacDonald D, Biant LC
Clin Orthop Relat Res. 2010 Jan;468(1):57-63: Bourne
RB, Chesworth BM, Davis AM, Mahomed NN, Charron
KD

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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“Understanding Normal Knee Kinematics
Better – A Dynamic MRI Study”
A. Williams M.D. JBJS 2002

MEDIAL

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

“Understanding Normal Knee Kinematics
Better – A Dynamic MRI Study”
A. Williams M.D. JBJS 2002

LATERAL

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Kinematics – Normal Knee
• 0° (Full Extension)
– Screw-home
(5° femoral internal axial
rotation)
– Posterior femoral condyle
nearly flush with posterior tibia

• 0-90°
– Medial pivot
(rollback + femoral external
axial rotation)
– Q-angle minimized
(quad mechanism in straight
line)

• 90-155°
– Posterior femoral translation
– Axial rotation ceases

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Kinematics – Normal Knee

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Traditional TKA limitations
Non-anatomic (abnormal) positioning
•

Paradoxical motion (anterior sliding)

8-13 mm

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Conventional TKA limitations
Non-anatomic (abnormal) motion
•

Paradoxical motion (anterior sliding)

•

No Rotation or even Lateral pivoting

Conventional Knee
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Abnormal kinematic patterns
• Forward sliding of the femur
– Posterior impingement
– Extensor mechanism lever arm

•

Victor J, Banks S, Bellemans J: Kinematics of posterior cruciate
ligament retaining and substituting total knee replacements. J Bone Joint
Surg Br. 2005 May; 87 (5)

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Abnormal kinematic patterns
• Forward sliding of the femur
– Posterior impingement
– Extensor mechanism lever arm

• Axial rotation
– Limited or Reverse femoral/tibial rotation ~ Q-angle

Victor J, Banks S, Bellemans J: Kinematics of posterior cruciate
ligament retaining and substituting total knee replacements. J Bone Joint
Surg Br. 2005 May; 87 (5)

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Patellar ML Shear Force
250

Force (N)

Reverse tibial rotation
– lateral pivot

200
150
100
50
0
-50 0

30

60

90

120

150

Flexion Angle (deg)

LATERAL

Q

MEDIAL

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Correct tibial rotation

LATERAL

MEDIAL

Q

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Solutions?
• Either retain both cruciates
• Either substitute for both cruciates

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Saving Both Cruciates
• Limited number of
ideal patients
• Technically difficult
for most surgeons
• Potential new
complications
(ACL avulsion / fx)
• Anatomic shapes
likely more desired
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HYPOTHESIS
•As TKA is a surface replacement within
an existing soft tissue envelope, we
assume that the lack of restoration of
normal anatomic contours and kinematic
patterns is the reason for impaired
function

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Normal anatomic
contours
• CT and MRI antropomorphic
data
• Computer modeling and
simulation
• Femoral/Tibial geometry
controlled with over 80
parameters

lateral
medial

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Normal anatomic contour matching
• Reproduces Normal Kinematics Flexion and Stability
– Precise Matching of Normal Anatomy
• Most Anatomically Correct for Females & Males

– Differing Tibial Geometry Medial / Lateral

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Anatomic contours matching

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Anatomic contours matching - tibia

High ML Conformity

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Anatomic contours matching - tibia

medial

lateral

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Anatomic contours matching
• Cupped medial
compartment

• Sloped lateral
compartment

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Normal Anatomy, TKA and Joint Line

lateral joint line level
medial joint line level

OUCH

Normal Anatomy, TKA and Joint Line

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Anatomic contours matching

Bone resection

Bone resection
–If you want kinematic alignment, why not do it the right way?
• Avoid internal rotation of femur
• Avoid excessive valgus/varus tibia resections
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Anterior Cam
–Provides anterior
stabilization during early gait
(up to 20° flexion)
–Maximized contact area

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Designed Roll Back –
Traditional PS knee

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Asymmetric Posterior Cam

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Bicruciate Substituting & Retaining
AP Position and Rotation

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Results - KINEMATICS

A/P medial CP [%TibSize]
80
60
40
20
0 10 20 30 40 50 60 70 80 90
Flexion [Deg]

<--Pos A/P location [%TibSize] Ant-->

<--Pos A/P location [%TibSize] Ant-->

• The average axial tibiofemoral
rotation from full extension to
maximum flexion for all TKAs was
10.8°

•
•

95% normal axial rotation patterns
100% posterior femoral translation

• “BCS designs were able to
achieve early femoral rollback
and external femoral rotation,
both hallmarks of healthy intact
knee motion”

A/P lateral CP [%TibSize]
80
60
40
20
0 10 20 30 40 50 60 70 80 90
Flexion [Deg]

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Implant Conclusion
• While successful, TKR patients are frequently limited in
higher level activity
• Traditional TKR do NOT reproduce normal kinematics
• JOURNEY II BCS is designed to allow for more normal
kinematics
• Improvements in kinematics may lead to improved
performance of higher level activity

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Overall summary
●

Business of medicine affects your quality of care

●

Rapid recovery model for TJA
● Little to do with “kicking patients out”
● More to do with adopting best clinical practices

●

It’s a clinical, scientific & financial shift

●
●

TJA landscape is changing
Multiple variables affect recovery speed

●

We all are learning from each other’s experiences

●

NEW TECHNOLOGY CAN IMPROVE BOTH
● Efficiency
● Quality
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Clinical Results & OR Efficiencies
David J. Mayman, MD
Associate Professor
The Hospital for Special Surgery
New York, NY

Disclosures

Consultant: Mako/Stryker
Consultant: Smith and Nephew
OrthAlign Stock Options

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY II TKA: Excelling in The Bundle
• Single Site Registry – Early reports
• 2 Single-Site: Early outcome reports
– Dr. Bill Huang
– Dr. Dave Mayman

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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JOURNEY™ II BCS: Patient Satisfaction
Dr. Mark Snyder
Registry Experience
Mark A Snyder, MD
Director, Orthopaedic Center of Excellence
Good Samaritan Hospital
Med Exec, Trihealth Orthopaedic & Spine Institute
Cincinnati, Ohio
• Redcap Registry Database, level-3 data
• JOURNEY II BCS outcomes data at 1 year
• n = 56
• Mean age = 59
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: Patient Satisfaction
Dr. Mark Snyder
Registry Experience
• Pre-op EuroQol5: 50 (35 to 70)
• Post-op EuroQol5: 93 (60 to 100)
• Statistically insignificantly different from THA in young
patients!
• Mean flexion 130.7o (115o to 145o)

• Patient satisfaction (VAS 1-10 Scale) 9.4 (98.7 %)
• Risk Adjusted 30-day Readmission Rate: 0%
• Relevant Surgical Complication Rate: 0% (National range
4-6%)
ADULT RECONSTRUCTION AND JOINT REPLACEMENT
• No transfusions and no venous thromboembolisms

JOURNEY™ II BCS: Patient Satisfaction
Dr. Mark Snyder
Registry Experience
• Pre-op UCLA activity score: 4.7 (3 to 6)
• Post-op UCLA activity score: 7.3 (6 to 9)
• Competes with THA and RHA improvements in patients!
– Groin pain after metal on metal hip resurfacing: a mid-term
follow-up of a prospective cohort of patients. Illical E, et a. HSS J
2012;8(3):257
– Physical activity before and after primary total hip arthroplasty: A
registry-based study. Lubbeke A, et al. Arthritis Care Res 2013
Aug 7 [Epub]

• At 1 year 88% in sports and 100% back to work!
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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JOURNEY II TKA: Excelling in The Bundle
• Single Site Registry – Early reports
• 2 Single-Site: Early outcome reports
– Dr. Bill Huang
– Dr. Dave Mayman

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: LOS Reduction
Bill Huang , MD
•
•
•
•
•

Fellowship-trained arthroplasty surgeon
Practices exclusively in hip and knee replacements
Private practice in a community hospital
Averages 250 TKR/UNI and 200 THA per year
50 revisions per year

•
•
•
•

Almost exclusively PS TKR user
2007-2009 – Legion, Journey 1 BCS, & PFC Sigma RP
2009 - 2013 – Legion
2013 - 2015 – Legion & Journey 2 BCS

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: LOS Reduction
Bill Huang MD -- early outcome
Legion PS Primary PS
Methods:
•

Functional scores

•

Radiographic follow-up

– Knee Society Score

•
•
•
•

n: 50
Mean age: 61.9
Average BMI: 34
M/F ratio: 54%/46%

– Pre op
– 1 months
– 4 months

•
•

Complications
Technical Data

Journey 2 BCS
•
•
•
•

n: 50
Mean age: 60.4
Average BMI: 36.1
M/F ratio: 51%/49%

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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JOURNEY™ II BCS: LOS Reduction
Bill Huang MD
JOURNEY II BCS

LEGION Primary PS
•
•

Tourniquet time: 42 minutes
LOS: 2.4 days

•
•

Tourniquet time: 45 minutes
LOS: 1.8 days

•
•
•

Pre Op: 6.5 – 108
1 month: 3.7 – 108
4 months: 0.58 – 127.4

•
•
•
•
•

Wound issues: 1
Infection: 0
VTE: 0
Reoperation: 0
MUA: 1

ROM
•
•
•

Pre Op: 6.8 – 110.1
1 month: 3.2 – 90.1
4 months: 0.66 – 122.4

Complications
•
•
•
•
•

Wound issues: 2
Infection: 0
VTE: 0
Reoperation: 0
MUA: 3

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: LOS Reduction
Bill Huang MD -- Knee Society Scores
Legion PS Primary PS
KNEE SCORE
• Pre Op: 42.8
• 1 month: 64
• 4 months: 87.6

FUNCTION SCORE
• Pre Op: 59
• 1 month: 76
• 4 months: 98

Journey 2 BCS
KNEE SCORE
• Pre Op: 43.2
• 1 month: 69.6
• 4 months: 92.6

FUNCTION SCORE
• Pre Op: 62
• 1 month: 79
• 4 months: 98
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: LOS Reduction
Bill Huang, MD
Early Outcome Experience
Key Points:

• JOURNEY II BCS Achieved:
– Earlier, Greater ROM
– Higher KS Scores
– Less MUA rate

• Anecdotal Patient Comments:
– Less pain and less narcotic usage in first 4 months
– Less joint swelling/effusion in first 1 months
– Easier getting up from seated position
– Feels less “mechanical”

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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JOURNEY II TKA: Excelling in The Bundle
• Single Site Registry – Early reports
• 2 Single-Site: Early outcome reports
– Dr. Bill Huang
– Dr. Dave Mayman

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: Functional
Improvement
David Mayman, MD
Early Outcome Experience
Methods:
• N= 200 retrospectively reviewed
• 100 TKA with Legion
• 100 TKA with Journey

•

113 females and 87 males

•

Mean age 51 years ( range 43-66)

•

All patients underwent a clinical exam and post-operative ROM was
recorded at 6 weeks
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

JOURNEY™ II BCS: Functional
Improvement
David Mayman, MD
Results:

•

•

Average ROM
• Legion 96° (range 85-116)
• Journey 119°(range 95-125)

Average Pain (KSS)
•
•

Legion: 30
Journey: 37

Conclusion:
•

There was a significant and clinically relevant improvement in flexion in patients who
underwent a TKA with a JOURNEY II TKA implant (p<.0001)

•

Patients who undergo a TKR with a Journey implant have better range of motion and less pain
post-operatively at 6 weeks.

•

This study suggests that an implant design that more closely replicates the normal anatomic
joint line and knee kinematic patterns may help reduce some of the dissatisfaction following
TKA.

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Efficiency Has Not Been Addressed
• Why do we have trial implants in the room for right
and left knees?
• Why do we have trials for every size implant in the
room?
• Relies on sterilizing many trays

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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What can we do to improve this?
Smith and Nephew has come up with three options to
address as many surgeons and hospitals as possible

• Option 1
– Template Derived Instrumentation

• Option 2
– VISIONAIRE™

• Option 3
– Disposable instruments with VISIONAIRE™

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Pre-Operative Templating

Digital Templating
• Anticipate sizes of components
• Avoid leg length discrepancy
• Restore offset
• Avoid femoral fracture
• Avoid instability

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Accuracy of Digital Templating for
TKA
• N=71 patients (76 knees)
• Standing anteroposterior and
lateral knee digital
radiographs
• Calibrated using a 25mm
calibration marker

• Templated sizes for the
femoral and tibial
components compared to
implanted sizes.
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Results

Tibia and Femur were both exact = 43/76 (63%)
Tibia and Femur ± 1 size = 74/76 ( 97%)
ADULT RECONSTRUCTION AND JOINT REPLACEMENT

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Template Derived Instrumentation

™

™

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Instruments Picked From Plan

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Visionaire
• Takes the pre-operative templating and advances
the accuracy
• Has the potential to improve efficiency further
• MRI and long leg x-rays required
• Must be done at least 3 weeks prior to surgery
• Surgeon receives a plan from an engineer that is
approved by the surgeon and then patient
specific cutting guides are created

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Disposables
• Disposable instruments build on the experience
of VISIONAIRE™ and takes efficiency in the OR to
the next step

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

Poly
Trials
Tibial Trial

Femoral Trial
Femoral cutting
Block

Tibial cut
block
Distal femoral
Cutting block

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Summary
• Pre-operative templating is an accurate method
for predetermining implants w/I 1 size
• Patient specific instrumentation of some sort can
help improve the efficiency of delivery
• As demand increases and reimbursement
decreases we need to improve efficiency while
maintaining or improving quality.

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Thank you

ADULT RECONSTRUCTION AND JOINT REPLACEMENT

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Digging Your Way Through the Bundle
New Developments in CMS Policy 2015 and Beyond
Peter C. Geagan –Director of Commercialization, Smith & Nephew, Inc.

1

Inspired Leadership Facilitates Change
Do you know the true costs of your episode of care?
•

“When TDABC is fully embraced we will know the
true cost of an episode of care”

– Michael Porter, Bishop William Lawrence University Professor at The Institute
for Strategy and Competitiveness, Harvard Business School 1

•

“If you cannot measure your outcomes & quality, then
someone will report what they measure and report it”

- Dr. Joseph Iannotti, Professor and Chair Orthopaedic and Rheumatologic
Institute, Clinical Transformation, Cleveland Clinic 1

Culture Change Is Key
2
1 “Shifting From Volume to Value, AAOS Bundled Payment Summit, 5/28/15, Washington, DC

Agenda

What

Bundled
Payment
Programs

When

Why
3

1

10/5/2015

History of Bundled Payments
1980
2000
2010
2010
2012
2013
2015

4

https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2014-Fact-sheets-items/2014-01-30-2.html

Impact of the Affordable Care Act (2010)
Payment reform accelerating
is
accelerating
accelerating

the pace of change

Shifting from volume based payments to value based
payments
BPCI

CCJR

HRRP

HAC

VBP

ACOs

MSSP

More emphasis on quality metrics & outcomes & less on RVUs

5

Moving toward shared risk contracts and capitation models

Why the Shift to Bundles in TJA?

• 2014 over 475,000 inpatient primary TJA were paid for
through CMS
• TJA accounts for over $15 Billion in annual CMS spend
• Tremendous variance in cost and quality of care for TJA in the
90 day episode
•

$16,500 to $33,000 across geographic areas

•

Post Acute Care utilization & quality varied by site of service

•

Rate of infections and implant failures varied greatly -3x in
some cases requiring readmission to hospital
6

http://innovation.cms.gov/initiatives/ccjr/

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Why Shift? – Variation within the bundle
Key Findings

Hip Replacements

Wide cost variances
currently exist across a
TJA episode of care

$30,000
$25,000
$20,000
$15,000

With the most variation
occurring during the
post-acute aspect of
the bundle

$10,000
$5,000
$Lowest Cost

Highest Cost

Index Hospitalization

Variation

Physician Services

Readmissions
Post Discharge Care

7
Miller, D.C., et al (2011). Large Variations in Medicare Payments for Surgery Highlight Savings Potential From Bundled Payment Programs. Health Affairs, 30 (11). 2107-2115.

Bundled Payment - Overview
Fee-For-Service

Vs. Bundled Payment
Payment for comprehensive, coordinated intervention

Payment for each service regardless of quantity or quality

$

$

Pre-Admission
Services

$
$

Part A Inpatient
Services (Hospital)

$
$
$

Part B Inpatient
Services (MDs)

Readmissions

Post-Acute Costs
(Part A & Part B)

8

http://innovation.cms.gov/initiatives/bundled-payments

Medicare Payment Method Shift
Target percentage of Medicare Fee for Service payments linked to quality
and bundled payment models
2016

2018

All Medicare FFS

All Medicare FFS
90% - Payments
linked to quality

85% - Payments
linked to quality

50% - Bundled
Payments

30% Bundled
Payments

Change

10

Center for Medicare and Medicaid Innovation, 8/1/ 2013 (CMS.gov)

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Alternative Payment Models
MSSP

BPCI

CCJR

National
Reach

75 MSA’s

Gain
Sharing

Timeline

Participation
Agreement

Annual

3-Pre
90-Post

Admission
90-Post

Various
Models
Mandatory
11

http://innovation.cms.gov/initiatives/bundled-payments/
http://innovation.cms.gov/initiatives/ccjr/
https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2014-Fact-sheets-items/2014-01-30-2.html

BPCI: Brief overview
Covers 48 different episodes of care (DRGs)
•

78% participants chose lower extremity joint
replacement

Bundled Payment for Care Improvement
•
•

4 different voluntary models (Models 1, 2, 3, and 4)
Controlled by (any)
‐
‐
‐

•

Physician group (295)
Hospital (403)
3rd Party Convener

Outcome Measures
‐ Implementation Plan (IP) proposed by awardee outlines quality
metrics to be improved
‐ Goal of aligning inpatient and post-acute care pathways to
increase quality and reduce costs

•

Bundle Price Target (2-3% off 3 yr avg of account’s
history):
‐

If costs less than historical spend, savings may be
retained/shared
owed to

‐
If costs are more than historical spend, payment
Admission CMS
Discharge
‐
Physician Gain Sharing up to 50% of FFS

Episode of Care Horizon
30, 60, 90 days

12

All Medicare Part A / B fee-for-service payments
http://innovation.cms.gov/initiatives/bundled-payments/

CMMI BPCI Models

(Participants as of
July 1,2015)

Pre-Admission
Services
(3 days*)

Part A Inpatient
Services
(Hospital)

Part B Inpatient
Services (MDs)

Post-Acute Costs
(Part A & Part B)

Related Readmissions
(Part A / B) & Unrelated
Readmissions (Part B only)

Model 1 (11)
(retrospective)

Model 2 (741)
(retrospective)

Model 3 (1,353)
(retrospective)

Model 4 (10)
(prospective)

Model 2 presents the broadest opportunity to improve care by focusing on the entire continuum
of care for targeted DRGs

13

http://innovation.cms.gov/initiatives/bundled-payments

4

10/5/2015

BPCI Update Model 2–August 2015
BPCI Participant motivation:
1.
Wanting to learn about payment reform
2.
Pursuing the financial opportunities of BPCI
3.
Urging of leadership and wanting to be innovative
4.
BPCI opportunities to improve quality
5.
Alignment with participation in other initiatives.

Early results Q4,2013: note –small sample size
Inpatient and PAC alignment with 23 of 24 Model 2 awardees
Decrease in anchor LOS from 4.6 days to 4.3 days
90 Day Episode of care costs dropped from $37,275 to $32,369 –
statistically significant
30 Day Unplanned Readmissions
from 8.6% to 6.7%
Emergency Dept (no hospital admit) visits
from 6.9% to 8.7%
No change in Mortality rates

•
•
•
•
•
•

14

The Lewin Group, CMS Bundled Payments for Care Improvement (BPCI) Initiative Models 2-4: Year 1 Evaluation & Monitoring Annual Report, Feb 2015

Tipping point –Law of Diffusion of Innovation
•

“It’s about making changes that matter clinically…if we get away from patient care & it’s all about
finances, we lose.”
-Dr. Jim Weinstein, CEO of Dartmouth/Hitchcock 1

•

“No one wants the low-cost/low-quality option”
-Dr. Daniel Murrey, CEO of Orthocarolina 1

•

“If you cannot prove your outcomes and quality of care is better, then you will compete only on price”
-Dr. Joseph Iannotti, Professor and Chair Orthopaedic and Rheumatologic Institute, Clinical
Transformation, Cleveland Clinic 1

•

“How do you inspire change? Strong physician clinical process leadership integrated with
administrative support“ -Dr. Mark Snyder, Medical Executive Tri-Health Orthopedics and Spine Institute
1

•

“Make data denial impossible…& keep riveting people on the why (outcomes/efficiency improvement)
to overcome the aversion to change.”
-Michael Porter, Bishop William Lawrence University Professor at2 The Institute for Strategy and
Competitiveness, Harvard Business School 1

15
1 “Shifting From Volume to Value, AAOS Bundled Payment Summit, 5/28/15, Washington, DC
2 “Crossing the Chasm” Geoffrey A. Moore, HarperBusiness, 1991.

CCJR: Brief overview
Lower Extremity Joint Specific
•

With and without complications
(DRG 469 470)

Mandatory Bundled Pay Program by
CMS
•
•
•

Hospital Controlled
Fee - Weighted (shifting to Regional)
4 Outcome Measures
‐
‐
‐
‐

•
•
•

Readmissions
Complications
Patient Experience (HCAHPS)
Additional Financial Incentive for Functional PROs

75 MSA Covered Areas
20% Cap on bonus for savings to hospital
50% Cap on physician FFS

Episode
Horizon
Admission
Discharge
90 days

16

All Medicare Part A / B fee-for-service payments

5

10/5/2015

Quality Programs – Above and Beyond BPCI/CCJR
HRRP

HAC

VBP

Hospital Readmit
Reduction Program

Hospital Acquired
Condition

Value Based
Purchasing

3%

1%

1.75%

Annual

Annual

Annual

Penalty
Only
% at Risk

Bonuses

Improve
Quality/Safety
Timeline

30 Day
Readmits

Mandatory
https://www.cms.gov/medicare/medicare-fee-for-service-payment/acuteinpatientpps/readmissions-reduction-program.html
https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/HAC-Reduction-Program.html
https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/hospital-value-based-purchasing/index.html

17

Affordable Care Act Penalty Avoidance
2016 -Up to 6.75 % of total Medicare FFS Inpatient revenues hospital
wide potentially at risk

18
8/1/15 - Press Ganey Associates Knowledge Brief Hospital Pay for Performance 2015 Update

Quality Programs - Affordable Care Act
$428 Million in Penalties experienced by Hospitals
in 2015 (eroding FFS Medicare Inpatient Revenue)
Re-Admissions (HRRP) – up to 3% penalties for highest rates
2,610 were penalized in 2015 (433 more than 2014)

•
‐

Potentially Avoidable Readmissions
result in approx. $17B Medicare spend

‐

2015 - $13.3 million was largest
penalty for Single Hosp - Avg was -.63%1
Hip/Knee Replacements added as a measure in 2015 based on July
2010-June30 2013 data collection

•

The three main causes of 30 day readmissions (for TJA) were2

‐
‐
‐
‐

Wound complications
Surgical site infections (SSIs) – Most Costly
Medical issues

19

1The Bottom Line of Hospital Readmissions, The Camden Group Insights Blog, Matthew Smith, Setember 18,2015.
2Cost Burden of 30-Day Readmissions Following Medicare Total Hip and Knee Arthroplasty, Joseph A. Bosco III, et al. The Journal of Arthroplasty 2013.

6

10/5/2015

Quality Programs - Affordable Care Act
HACs – Hospital Acquired Conditions – ¾ of hospitals with lowest HAC rates
held harmless, bottom ¼ get 1% penalty
•

Domain 1:Pressure ulcer rate (PSI 3); Iatrogenic pneumothorax rate (PSI
6); Central venous catheter-related blood stream infection rate (PSI 7);
Postoperative hip fracture rate (PSI 8); Postoperative pulmonary
embolism (PE) or deep vein thrombosis rate (DVT) (PSI 12);
Postoperative sepsis rate (PSI 13); Wound dehiscence rate (PSI 14);
and Accidental puncture and laceration rate (PSI 15).

•

Domain 2: Central Line-Associated Blood Stream Infection and
Catheter-Associated Urinary Tract Infection.

VBP –Value Based Purchasing – 1.5% withheld for FY 2015; 1.75% for 2016
•

2016 Score Weighted as follows: Process of Care (SCIPs) (10%), Experience of
Care (HCAHPS) (25%), Clinical Outcomes (AMI-HF-PN Mortality-CAUTICLABSI-SSI)(40%), Medicare spending per beneficiary-Efficiency (25%)
20

http://innovation.cms.gov/

Quality Metrics
CMMI released a list of quality metrics for monitoring
•

Measures pull largely from existing reporting programs and fall
into:
–

Case Mix

–

Utilization and Efficiency

–

Clinical Quality: Process

–

Clinical Quality: Outcome

–

Care Experience

•

Measures are for hospitals, home health, SNF, IRF, and LTCH

•

CMMI has not released information on evaluation and
performance benchmarks

•

6 provider-submitted measures

21

Provider/Physician Response
• BPCI/CCJR/HRRP/VBP/HACs Creates visibility to Quality
of care such as Complications/Readmissions/excessive
Use of Post acute Resources (Bending the Cost Curve)
•

How will the Episode of Care Redesign process increase
functional and quality of life and pain scores? (ICHOM) *

• Embrace Culture Change driving Episode of Care Redesign
•

TDABC (Bozic/Porter), outcomes improvement data, and be
willing to employ BPs from early adopters like HSS, CJRI,
Geisinger, NOSA

* “Shifting From Volume to Value, AAOS Bundled Payment Summit, 5/28/15, Washington, DC The International Consortium for Health
Outcomes Measurement (ICHOM), Slide 215.

22

7

10/5/2015

One more look at TJA cost drivers…

• Implant and
Device
Acquisition
• Hospital Fees
• LOS
• Physician Fees

Admission

• Post-Acute Care and Rehabilitation
• Readmission Costs
• Facility Costs (SNF, Home Health)

Discharge

90 Day

10 Year

90 days
All Medicare Part A / B fee-for-service payments
‘Prehab’
Phase

Acquisition Cost /
Hospital
Efficiencies

Rehabilitatio
n and
Recovery

Long Term
Follow Up

Medicare FFS Part A and B Breakdown of Cost Across Care Continuum THA (2011-2013).

23

Know Your Why

1 “Shifting From Volume to Value, AAOS Bundled Payment Summit, 5/28/15, Washington, DCJim Weinstein, MD –CEO of DartmouthHitchcock
Simon Senick , https://www.youtube.com/watch?v=sioZd3AxmnE

24

Thank you!

25

8



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