FW: OHA News Release 1/10: Health care costs to the state can be reduced $3.2 billion over five years

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FYI. s. fuchs dc

From: Oregon Health

Authority [mailto:oha@...]

Sent: Tuesday, January 10, 2012

10:57 AM

Sharron Fuchs

Subject: OHA News Release 1/10:

Health care costs to the state can be reduced $3.2 billion over five years

January 10,

2012

Contact: Karynn Fish, 503-602-4074

or karynn.fish@...

Health care

costs to the state can be reduced $3.2 billion over five years

Oregon Health Policy Board hears

testimony showing substantial reduced costs to the state as communities begin

planning for new way of delivering health care

Oregon is moving forward toward

implementing a new way of business for the Oregon Health Plan that will bring

better care and lower costs, according to testimony today before the Oregon

Health Policy Board about Coordinated Care Organizations (CCOs).

Coordinated Care

Organizations were created with strong bipartisan support through House Bill

3650 last year to improve the health care delivery system for low-income

Oregonians. Under the legislation, a final implementation proposal will be

reviewed in the coming February session.

Conservative estimates show

that, pending final approval by lawmakers in February, CCOs could save Oregon more than $1

billion in state and federal dollars over the next three years and more than $3

billion over five years, according to financial projections presented by

independent consultants Health Management Associates today. If local

communities move to the Coordinated Care Model faster, the cost reductions to

the state would come earlier.

“Coordinated Care

Organizations give local health systems the tools they need to shift the focus

from the emergency room and acute care to prevention, early intervention and

chronic disease management. With bold movement forward we will get improved

health and the cost reductions that we know will follow,” says Governor

Kitzhaber. “Next month we will send the implementation plan to the Legislature

and upon approval will be ready to move quickly to make this vision a reality.”

Today OHP clients statewide

must navigate among 15 managed care organizations, nine mental health

organizations and eight dental care organizations. As proposed by HB 3650, CCOs

are local health entities that deliver health care and coverage for people

eligible for Medicaid. Each would have a single point of accountability for

health outcomes and have one budget that grows at a fixed rate for behavioral,

physical and ultimately dental care.

“It is clear there are

substantial cost reductions that come from delivering more coordinated and

patient-centered care,” says OHPB chair Parsons. “The sooner we take

action, the sooner we can begin stemming the spiraling cost of health care.”

Across the state, health

systems are beginning to make plans for Coordinated Care Organizations.

Speaking before the board,

Brown, M.D., spoke about unprecedented cooperation among major health

systems in the metro region to pull together a Coordinated Care Organization.

Brown is CEO of Legacy Health and represents the newly formed Tri-County

Medicaid Collaborative.

“This is the first time all

these health care entities have worked together in a coordinated way with one

unifying goal, and that is both unique and groundbreaking,” Brown told the

board. “We all know that the current system is unsustainable and inaction is

not an option. We are committed to transforming the health care system in this

region to better serve our community.”

Since the passage of HB

3650, health system representatives from Lane

County, Southern Oregon and Central Oregon have also presented to the board their

efforts to work in new kinds of partnerships under Coordinated Care

Organizations.

As the board finalizes the

implementation proposal, state officials are working with the U.S. Centers for

Medicare and Medicaid Services on federal waivers that will allow CCOs the

flexibility to manage care for the best health outcomes. Officials are also

discussing the possibility of financial investments from the federal government

in anticipation of future cost reductions.

The meeting today opens the

final round of public comment on the CCO implementation proposal before it is

sent to the Legislature for final approval. The proposal can be reviewed and

commented on at www.health.oregon.gov.

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