Perspectives to Demonstrate Value to Your Organization

1. Perspectives to Demonstrate Value to Your Organization Joyce Brekke, BA, RRT Regional Sales Director

2. Demonstrate Value-Why Me? • Because I care about you • HHA, RCP, Manager, Sales, Clinic, Hospital, Home Care, Hospice, Private Duty, PI greenbelt • Parent, wife, daughter, sister, friend Minnesotan-rural upbringing • In 1971 I was the Minnesota Gopher at the Minnesota State Fair • Because I care about your success

3. Our Mission • To contribute to client success by providing information that improves organizational performance and patient outcomes.

4. Ever Feel Like This?

5. Today’s Discussion • Identify Stakeholders • What do they Value? • How to Demonstrate Value….lots of examples

6. Leadership and Financial Track • Who is in the audience? • Position • Staff member of an agency • Manager • Executive • Owner • Type of agency-services • Rural Urban • Non Hospital Based or Hospital based • Vertical System • Medicare Medicaid • Home Care Hospice Private Duty

7. Stakeholder Value What do you want to focus on?

8. Let’s seek out the stakeholders Who, why, what, do they care about? What terminology do they use?

9. Who are the stakeholders/influencers? • Board Members • Physicians • Patients, Families, Consumer • Payers • Referral Sources • Funders

10. Identifying the Stakeholder • Who will use the product/service? • Who will refer clients? • Who will pay for your product/service? • Whose budget are you under? • Who is your manager? • What is your goal, your mission?

11. As You Consider Communicating Value • Ponder, what is it like to be in their shoes? • Research to understand their position. • What is known to work with them? • How do they like to be communicated to? • What methods are most effective? • Frequency of communication? • Do they get it? • What is the “value” they are most interested in?

12. What do they Value? • Value Message Categories • Financial • Cost • Profit/Margin • Clinical quality • Operational efficiency • Market share • Patient satisfaction • Employee satisfaction • Reliability, Capability, Responsiveness, Compassion

13. Questions are the Most Powerful Tool • “Seek first to understand, then to be understood” • What • How • Tell me • What would be the impact …..

14. Pictures Pictures Pictures • KISS snappy punchy catchy • Objective Benefit Feature • Emotional • Are you ready for examples?

15. Snappy Fact • Which does the U.S. spend more on…health care or national defense? • Healthcare expenditure is 4.3 times the amount spent on national defense

16. Healthcare Expenditures In millions (2005 – 2015 projected) Source: Agency for Health Research and Quality (AHRQ)

17. Impact of Age on Healthcare Source: “State of Aging in America - 2007”, CDC

18. The Aging of America 2000 - 2050 Projected Source: U.S. Census Bureau, Decennial Census Data and Population Projects.

19. The Aging of America 2000 - 2050 Projected Source: U.S. Census Bureau, Decennial Census Data and Population Projects.

20. Life Expectancy at Birth Source: National Vital Statistics System

21. Impact of Age • 35% have an activity limitation • 84% suffer from at least one chronic condition

22. Demonstrate Financial Value of Homecare

23. Healthcare Market Trends • Growth in healthcare expenditures • Nation-wide concern about cost-containment • Drive towards measuring and paying for value • Increased demand for comparison and transparency • Emergence of standardized data and capture tools

24. Healthcare Industry Growth Source: Health Affairs 1/07

25. Home Health Cost Advantage Sources—AHRQ HCUP and OCS

26. Cost Comparison by Primary Diagnosis Hospital Data: AHRQ HCUP Home Health Data: OCS

27. Value of Home Care Services

28. Snappy Fact • Medicare is the largest payer of Home Health Services at 38% in 2005.

29. Healthcare Expenditures, in billions $900 $800 $700 $790 $600 $670 $500 $400 $300 $309 $293 $200 $100 $0 Medicare Medicaid 2004 observed 2015 expected

32. Snappy Fact • 97% of United States Health Plans have one or more Disease Management Components in it’s benefits.

33. What Does Chronic Care Cost? Source: “Chronic Care in America: A 21st Century Challenge” Institute for Health and Aging, UCSF

34. 2% 50% 47% 5% Disproportionate Expenditures 70% 60% 50% 40% 30% 20% 10% 0% Enrollees Expenditure Source: “Chronic Care in America: A 21st Century Challenge” Institute for Health and Aging, UCSF

35. 43% 14% Heart Failure 32% 18% Diabetes What Does Chronic Care Cost? 80% 70% 60% 50% 40% 30% 20% 10% 0% Enrollees Expenditures Source: “Chronic Care in America: A 21st Century Challenge” Institute for Health and Aging, UCSF

36. Demonstrate Clinical Value

37. Demonstrate Value of Clinical Outcomes

38. Demonstrate Financial Value Total Costs based on Skilled Visits Received $4,500 $4,000 $3,500 Hospitalization Costs $3,000 $2,500 $3,500 $2,000 $2,200 $1,500 HH Costs $1,000 $500 $800 $480 $- Patients who received 10 Patients who received 6 skilled visits skilled visits

40. Value of PPS Reform on Homecare • First glance look • Data from about 900 agencies • Focus is on SOC • Not adjusted (therapy, LUPAs, etc.) • Caveat—Data is still preliminary!!!!

41. Case Weight Trends Q4 vs. Q1 Source—OCS 2007/08 Data Warehouse

42. Expected Reimbursement Source—OCS 2007/08 Data Warehouse

43. CMS Policy Direction "We pay the same whether the care is good or whether it is not good…The current sector is all about volume. The future is about value.” - Michael Leavitt, Secretary HHS

44. The future is about… VALUE

45. Our Mission • To contribute to client success by providing information that improves organizational performance and patient outcomes. • Stay focused on your Mission to demonstrate VALUE

47. 2007 HomeCare Elite Best Practices

48. 2007 HomeCare Elite Best Practices

49. 2007 HomeCare Elite Best Practices

50. 2007 HomeCare Elite Best Practices