Episode Overview
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Daniel Marino:
Welcome to value-based care insights. I am your host, Daniel Marino. Organizations that are focused on value-based care performance continue to think about how they could influence total cost of care for a lot of their services. And let's spend a second talking about cost of care. When we talk about that, it's not necessarily the accounting cost of what it takes to produce the service, although obviously that's important. But total cost of care really focuses on what we let's say, charge the insurance companies for, or what the patient is responsible for. It's that cost to provide the service to the industry. And there's a lot of influences around that total cost of care number. So, in other words, if you're inefficient in providing the service, if you're not anticipating some of the challenges that occur with the patient. It's going to increase your total cost of care. There's also performance outcomes that are associated with that total cost of care. So, for instance, length of stay within the hospital. Readmission rates, all of those performance indicators, again, directly related to your efficiency and your ability to create the right level of cost of care. So, some of the biggest influencers, maybe the biggest influencer of total cost of care, is how we perform our perioperative and surgical services. It's no secret that surgical services for a hospital or health system could make up anywhere between 65 to 70% of their total revenue. So, you know, again, it's very impactful when you think about what it means to that organization. Yet the inefficiencies that occur out of within the OR could really drive, or, let's say negatively, influence a lot of your performance outcomes.
Well, I'm really excited today to have a guest who is really an expert in this area, Dr. Amit Jain. He is the associate professor of orthopedic surgery and neurosurgery, and chief of minimally invasive spine surgery at Johns Hopkins. Dr. Jain also serves as the director of value-based care for Johns Hopkins. Health system. Dr. Jain. Welcome to the program
Amit Jain:
Thanks so much, Dan. It's really a pleasure to be here and talk about this topic that's near and dear to my heart. I think value-based care and perioperative services, and where the 2 meet is exactly the space where a lot of innovation can happen, and a lot of great conversations can take place. So thanks for having me on the program
Daniel Marino:
Yeah, my pleasure. Glad you're here. So let's jump into that. When you think about perioperative services or surgical services. What do you see as the biggest challenges that are impacting total cost of care?
Amit Jain:
Yeah, as a practicing spine surgeon, I can tell you, surgery is not cheap. And it's certainly a big ticket item for any revenue of a hospital. It's also an opportunity to think about value for the patient. And how do we improve outcomes and try to control costs in a manner that's appropriate and efficient. I think there's a lot of factors that allow perioperative services to be an interesting area for value-based care. Starting with the fact that we don't always know how to define the episode itself. So, for instance, we don't know where to start counting the cost. Is it before surgery? Is it at the time of when the patient steps into the hospital? Is it a time of discharge? What about the post? Acute phase? What about all the various aspects to who should be getting surgery like the appropriateness of selection, patient optimization. So there are so many factors that go into it. And all of these things really drive up the cost of care, and individually can modify the outcomes and value.
Daniel Marino:
Yeah, I would agree with you. And I think a lot of folks. You know, a lot of organizations approach this by kind of each of the areas as you mentioned that go into the perioperative surgical episode. Right? So they. So when you really think about it, the surgical episode, there's 4 key areas there. It's the preoperative component of the episode. It's actually the surgical episode. It's the post-operative recovery. And then it's the recovery of the home. So why do you think that it's been difficult for organizations to think about those 4 episodes in its entirety, or even really to think about each of those episodes individually?
Amit Jain:
I think a lot of it has to do with our traditional setup of where the boundaries of the hospital start, and where the clinicians who are bringing these patients to the hospital for a given procedure or surgery live. And having that coordination between the 2 groups is of prime importance. So there are somewhat different challenges in terms of scheduling efficiencies, resource, utilization. There's high variability in processes and practices among patients that are being signed up for surgery. There's lack of data, driven decision making oftentimes. And you know, ultimately, I think there's siloing of communications and collaboration which are all areas that really influence how these patients come to the hospital, who's going to manage them during their hospital stay, what's going to happen to them at time of discharge, and what their overall cost trajectory is going to look like.
Daniel Marino:
Right? Yeah, I would agree with you. And I think it's that. You know, as you talk about that, I think it's just that that lack of coordination. Right? I mean, when you think about a patient that's coming in for surgery. You know you've got the PCP. That may be involved in the case. You have obviously the consult of the surgeon, but then you have the anesthesiologist, and then you have the nursing staff. Right? So you know what I could just see as a challenge is that inability, or that that lack of continuity coming together to really proactively manage that patient before they even step foot in in the OR.
Amit Jain:
No, that's exactly right, and I think places that do it well recognize the importance of creating that synergy and having that upstream optimization and expectation management, and then how that drives care management both in the hospital and post discharge. At the end of the day it takes a village to take care of a patient, because it's not just about the surgery or the procedure. It's about all the other stuff. It's about getting the expectations right for the family and making sure that they have care partners to help in that process. It's making sure patient is optimized, you know, months in some cases in advance. It's making sure that all the right stuff is set up so that their length of stay can be optimized and so on.
Daniel Marino:
Well, absolutely. And I feel like organizations who've done a good job in this arena, who have the right level of outcomes put in place programs or a methodology that really allow them to be proactive with the care of the patient. In other words, they start to anticipate some conditions before you know the episode occurs, and it provides them a better opportunity to then manage the recovery. So with that being said, as we dive into kind of the different elements that really drive the performance of value-based perioperative services. Talk a little bit about what you see are kind of these best practices around the preoperative services that occur.
Amit Jain:
Yeah, I think it's I really can't emphasize enough the importance of preoperative optimization and expectation setting. And I think this has to happen both at the level of the surgeon or the proceduralist, but, even more importantly, has to happen at the level of the anesthesia team and the people who are going to be helping take care of the patients in the or and post operatively. So I'll give you a very concrete example. At Hopkins we have what's known as the PEC Center, which is the preoperative evaluation center for patients who are essentially optimized and evaluated for both their risk factors around surgery, but also kind of thinking about ways to get these patients ready. So, looking at someone's diabetes, hemoglobin, A1C. Looking at their overall profile of frailty. Thinking about what we need to do in terms of managing their long term medications in the perioperative phase. All these little things, which I think historically, are kind of relegated as afterthoughts are just so important in driving those outcomes and making sure that patients can recover quickly from this and actually have optimal outcomes from surgery or procedure. So I think that's just one area. And there's many others.
Daniel Marino:
Yeah, but I love that. I love that as an example, so I can't help but think that through that preoperative clinic that that you were describing. I mean, not only does it does it help with sort of proactively identifying issues and managing the episode, but I would certainly think it has to help with aligning communication. Right? So you have the anesthesiologists and the OR staff, as well as then the surgeon collaborating on what that communication needs to look like to get the best possible outcomes.
Amit Jain:
That's exactly right, and I think more so than that. It also sets the expectation with the patient that what they're going to be dealing with is one team that's working together to create the best possible recovery pathways for them. Another area of this that I particularly feel to be very helpful is having every patient come in for a preoperative visit. So, in other words, as a surgeon doing an expectation, setting talk with the patients, and for many of our programs like joint replacement, which are fairly standardized. We even have classes where the patient and the care partner have to come and take the class ahead of time, and that way they can understand what to expect after surgery. How do you help as a care partner at home when the patient gets discharged. And those are the kind of conversations that are so crucial to avoiding readmissions, avoiding bounce backs and other problems that patients anticipate.
Daniel Marino:
If you're just joining us. I'm Daniel Marino, and you're listening to value-based care insights. I'm having a fascinating discussion with Dr. Amit Jain, who serves as the director of value-based care for Johns Hopkins health system. We're discussing improving perioperative services to enhance value-based performance. Dr. Jain, I love that because I'll tell you in a lot of the research that we've done and a lot of the programs that we've put in place around helping organizations with their transitions of care. The biggest challenge that we find is being able to not just work with the patients once they become discharged or in recovery. But how to work with the caregiver. Right? Because, you know, oftentimes the patient is they're confused, or you know, they may not necessarily understand what the postoperative instructions are. So they're relying on the caregivers. And if we don't have a program that really is focused on aligning with the caregiver around the patient's condition. That's where the readmissions take place. Is that what you end up seeing a lot of times?
Amit Jain:
Yeah, that's exactly right. And I think a lot of fee for service focuses on volume. Right? Volume drives the equation.
Daniel Marino:
It is, yup!
Amit Jain:
But in value-based care, what really drives the equation is being able to manage the total cost of episode well, and to do that well, you have to make things like readmissions, never events. And we really focus on that with a laser target. And in Maryland we have a total cost of care model for each of our hospitals where it's crucial, otherwise it will totally kill us if we don't manage that well.
Daniel Marino:
Yeah.
Amit Jain:
So those are the things that really have to be done well, and having the care partner be an integral part of that team so that they can help manage the expectations they can provide the care to patients. They can anticipate problems and speak up, and, you know, provide the care that the patient needs is so important
Daniel Marino:
Oh, absolutely. I mean that transition to care program. I mean, it's only one part. It's not the end, all be all. It's only one part, but it is a critical part on making sure that you're really managing that readmission. I want to take a step back a little bit, though, and let's talk about the actual surgical service. Right? What happens in the OR. We do a lot of work on helping organizations improve a lot of their surgical efficiencies in the OR perioperative efficiencies in the OR and a lot of times what we end up seeing is there's challenges with the typical things, right block time. Utilization on time starts and so forth. But an area that we often see is tremendous variation on the surgical service that's being performed by that specialty in your opinion, how important is clinical variation in influencing the total cost of care?
Amit Jain:
I think variation among clinicians is a major driver that is sometimes hard to control, but truly does drive the outcomes of any value-based care model. We have 12 spine surgeons. Each of us have our own unique practices, and are ready to practice medicine and take care of patients the way we want to, but the things we unify on are the same principles. You want to provide high quality care. You want to keep the net cost down. And I think that has to be part of the ethos of the organization if you want to succeed in this space. So you really, while variability in clinical practice is encouraged for innovation, and for many reasons. You don't want to be wasteful, you know. After each surgery we get a cost sheet down to the line item of every single thing. We utilized, every screw we put in, every item, every consumable. That way I can audit my behavior on the go. And that's just so helpful to alter behavior and really think about hey, do I really need that thing, hey? Is that really helping my patient. Hey? Is that really actually creating efficiencies? Or is that just? Is that just wasteful spending?
Daniel Marino:
Well, I love that because I'll tell you. And I'm a huge, you know, even when I was used to managing my practices, I'm a huge proponent of sharing that level of information, if for no other reason, to create awareness right?
Amit Jain:
Yeah. And you have to have systems in place that let you do that because imagine you can't. You know you want to do that. And you don't even have the straw software infrastructure or the technical know-how. Then that's a challenge. And you gotta you gotta invest in those things.
Daniel Marino:
Yeah, absolutely. Yeah. I agree. I think clinical variation, you know. Certainly that ability to focus on that with those outcomes is definitely a game changer. Let's shift a little bit to some of the some of the rehabilitation services. I had the opportunity a couple of weeks ago to go to the HIMSS meeting lot of technology that is out there. Some of it is around remote, patient monitoring. Some is around, including AI to kind of interact with patients. As we think about the recovery. Obviously, if a patient is able to recover in their home, the outcomes would be better. It reduces the amount of cost versus being in a rehab facility or post-acute facility. What have you seen, as far as best practices that really help to drive some of that care in the home programs?
Amit Jain:
Yeah, I just think that topic is so important, Dan. And there are 3 areas I feel are just really crucial for this. Number one that preoperative optimization and rehab, so we call it, prehab in many ways. So, in other words, before the patient even steps into the hospital, making sure that they work with a physical therapist. They know what to do after surgery in terms of preoperative education. Going back to that joints class example, I think those kind of educational tools are super important to prepare the patients for what happens after surgery. The second area that I think is really important is eras protocols, and I'm not sure if you know what that is. That's the enhanced recovery after surgery protocols. We have universally gone to that for all our service lines, and that makes such a big difference in terms of reducing variability, improving optimal outcomes and getting patients essentially through the surgical process. And ideally being discharged home or home with the home, care, etc, as opposed to ending up in a facility. And even conversion of one facility, discharge to home discharge, that really changes the value equation in the total cost.
Daniel Marino:
Oh, tremendously. Yeah. Tremendously.
Amit Jain:
And then the 3rd area that I think, is really a tremendous resource for us is having a really strong care, management and care navigation group. So, having partners who can do things like remote, patient monitoring. And at Hopkins we do that through our care at home group we also have a really great kind of hospital-based programs with these things called transition guides, which are specialized nurses that kind of help patients and check in on them or do post discharge phone calls and a telephonic pre-structured way. But all of these little interventions, you know, add up together where you can, instead of sending somebody to a sniff or to a facility. You can essentially change their post, discharged game plan and get them home safely and have them stay at home.
Daniel Marino:
Yeah, I mean what you're describing that that's a significant game changer, I mean, when we were looking, we've done quite a bit of work on thinking through whole episode of care, and the variance between patients going to a long-term care facility or rehab versus going to home. I mean that could add anywhere between, you know, 7, 8% on the low side up to 15% related to the overall cost. Not to mention, then, the performance outcomes that associated with it. Right? So you know, you definitely can see that. But what I often see, and I'd love to hear your thoughts on this. What I often see is many hospitals, they don't really think about that transition of care as a continuum right? They think about the discharge management, and they create the discharge instructions for the patient. And that's really where their work stops. And I think we you know, the goal would really be to change that mindset, to change that thinking. So it's really a continuum of care approach around what that transition needs to look like. But going all the way back to the pre-surgical testing. Right? So you can actually define what that care model needs to look like as you transition to the home.
Amit Jain:
That's exactly right. You have to think about the upstream selection on who you are signing up for surgery. You have to think about the upstream optimization. How are you going to get them best prepared for surgery? The expectation setting, then, the perioperative enhanced recovery. And then, most importantly, you really have to manage their post recovery expectations and planning accordingly, so that you get patients to a safe space, and you can manage the total cost of the total episode. I just think that's invaluary care. You have to think differently. You can't just do what works well in a in a high volume fee for service, setting.
Daniel Marino:
Yeah, no, you're absolutely right. So when you're when you're thinking about this, and maybe with even within Hopkins, what does the governance structure look like you talked a little bit about the reporting, and, you know, sharing that level of information. But what's the level of accountability and the governance structure? Is, you know, clearly, I mean, I'm a huge proponent that a lot of these programs have to be physician led. How do you structure this so you can actually give the right level of information, but really impact the amount of change that needs to occur?
Amit Jain:
Yeah, I think it really hit the nail on the head. If you look at all the value-based care data and look at the Aco successes. The biggest successes have been in models that were surgeon led or physician led. So there really has to be a physician champion really driving it. And I think I'm a big believer in a joint governance structure where there are clinicians and administrators working together for each service line, really thinking through these problems, and I think it has to also include a nursing partners. It has to include very operative services partners like anesthesia, like supply chain as well as contracting, and others. Because I think, unless all of us kind of come together into 1 alignment, it's really hard to succeed. A good example of this is, we have really thriving programs in orthopedics and spine surgery, in GI surgery, in urological surgeries, etc. And for each of these things we essentially have clinical champions for each service line, and then we have nursing champions who really know that space well, and we have administrative teams who really work with that well, and each of them have these process of improvement and kind of driving efficiency and figuring out where the pain points are and addressing them. Because if you don't, it's hard to make you know valid improvements.
Daniel Marino:
Well, it does, and it really is a change of mindset. Right? I mean, you're bringing all of these different groups together under the same goal of what's that most optimal performance outcome for the patient? And to really begin to manage the cost.
Amit Jain:
And one of the areas that I think one of the groups that often gets left out is nurses and our nurses are. They really have a lot of, you know, a lot of insight into what actually drives improvement. And some of the best ideas we have in our process improvement actually comes from the nursing team. So you really have to kind of cultivate that you have to have a culture where you create a leadership structure between nurses and have people kind of striving for that high level of leadership and opportunity.
Daniel Marino:
Oh, that's such a great point, you know. Nurses really do drive that because, hey? They're seeing it day in and day out, you know, and they know exactly where some of those improvements need to come from. Well, Dr. Jain, this has been great. I really appreciate it, and I think we just scratched the surface on some of these, you know, as I've said before, and I think you know, your point came across very clear. The impact on perioperative services. The impact that it can make on value-based care performance and the total cost of care is just absolutely amazing. If any of our listeners are finding are interested in finding out a little bit more, or maybe, you know, want to reach out to you directly. Can you share your contact information?
Amit Jain:
Yeah, happy to. And certainly. Please feel free to pass on my email address through Lumina, or they can reach out to me via Linkedin, happy to engage.
Daniel Marino:
Great, great. Well, thank you for this, and you know I'd love to have you back to dive into this a little bit more, because I'll tell you. There's many organizations, you know. They're struggling with this they need to have solutions. And I think, as we start to kind of think through what this needs to look like. There's just a lot of opportunities to be able to, to be more creative and and to drive those outcomes. So thank you again, I really appreciate your time.
Amit Jain:
Thanks. Dan.
Daniel Marino:
And for our listeners. If you're interested in finding out more information about this topic in perioperative services and the impact on to value-based care as well as some of our other topics. Please feel free to reach out to me directly. dmarino@luminahp.com, or you can visit our website at luminahp.com. In closing. I want to thank all of you for tuning in. Really appreciate it, and until our next insight. I am Daniel Marino, bringing you 30 min of value to your day. Take care