Med-Vantage and Leapfrog Present Early Results from 4th National P4P Survey at IHA Summit Meeting – Shows P4P Growing

into Mature Payment Strategy, Improving Health Care

SAN FRANCISCO & OAKLAND, Calif. & WASHINGTON--()--Once an experiment in health care, pay-for-performance (P4P) has proven itself an effective strategy for advancing quality and efficiency.

Med-Vantage Inc. today released initial findings from the fourth P4P survey it has conducted since 2004, this one co-sponsored by the Leapfrog Group and the Integrated Healthcare Association (IHA). Participating Health Plans now report significant gains in achieving the programs goals of improving quality, efficiency, and in encouraging the adoption of technology.

In a keynote presentation at the national Pay-for Performance Summit in San Francisco, Peter Goldbach, MD, CEO of Med-Vantage, and Leah Binder, CEO of the Leapfrog Group, discussed the interim findings. To date the results represent over 75 P4P sponsors of 94 programs for physicians and hospitals. The respondents comprise health plans and coalitions, and in total represent over 150 million health plan members. Goldbach and Binder highlighted the progress P4P has made in recent years, shown in the survey results:

  • Stable, mature processes. Most P4P programs are now more than 5 years old and are funded as a regular part of their sponsors’ budgets rather than as experiments. Important issues that were once debated are now largely settled, such as the use of evidence-based measures from national sources and the involvement of providers in decisions that affect them.
  • Expanding scope and payment. P4P payments have grown to average over 7% of physicians’ total compensation and 4% of hospitals’ total compensation, with some physician P4P programs producing as much as 30% of physicians’ compensation. These levels ensure that performance is important to providers. A large majority of P4P programs expanded since 2006 to include more physician specialties and also to include more product lines. Most plan to continue expanding both the number of providers covered and the number of areas measured.
  • Major improvements in quality and costs. In just two years since the last survey, the percentage of programs that report improvements in quality due to P4P almost doubled. Now more than half of P4P programs cite measureable increases in their providers’ clinical quality, the area that has been part of P4P the longest. Other areas with major jumps in P4P effectiveness were patient survey results, cost control and especially adoption of IT tools.

Tom Williams, Executive Director of IHA, said, “These data show that P4P has helped dispel the once strongly held belief that we could not measure quality in healthcare. We now see P4P being used in multiple settings to measure and improve the quality of care, cost efficiency and use of technology. All of health care today is under pressure to produce better value—better quality for the cost expended. P4P is helping build a culture of accountably, improvement and incentives to achieve this objective.”

In addition to the P4P Survey, Med-Vantage is now completing a first-ever survey of “transparency” initiatives, to investigate how health plans and others give consumers information on providers’ quality and costs. Transparency, like performance-based payment, is considered by many to be an essential building block of a high performing health system.

ABOUT MED-VANTAGE, INC. ®

Med-Vantage is a healthcare software solutions company that empowers its health plan customers with powerful data analytic software and intuitive presentation tools to achieve competitive advantage. These capabilities make the process of accessing and evaluating healthcare information easy to understand so the health plan’s consumers and providers can effortlessly make value-based healthcare decisions. Med-Vantage offers innovative and distinctive solutions for consumer transparency, provider performance management, and quality improvement. Founded in 2001, Med-Vantage is a California-based privately held company that is majority owned by a consortium of Blue Cross and Blue Shield licensees called BP Informatics, LLC. Plans participating in the alliance include Arkansas Blue Cross and Blue Shield, Blue Cross and Blue Shield of Florida, Blue Cross of Massachusetts, Blue Cross and Blue Shield of North Carolina (through its subsidiary NobleHealth, Inc.), Health Care Service Corporation, and Highmark Blue Shield Inc. Med-Vantage offers solutions for health plans in consumer-directed health care, pay-for-performance, efficiency measurement, and quality improvement. www.medvantage.com.

ABOUT THE INTEGRATED HEALTHCARE ASSOCIATION (IHA)

The Integrated Healthcare Association (IHA) is a statewide leadership group that promotes quality improvement, accountability, and affordability of health care in California. The IHA P4P program is the largest non-governmental physician incentive program in the U.S. and includes eight health plans and over 200 medical groups representing 35,000 physicians providing care for 11.5 million HMO members. Other IHA programs include medical technology value assessment and purchasing, the measurement and reward of healthcare efficiency, and healthcare affordability. www.iha.org

THE LEAPFROG GROUP

The Leapfrog Group . On behalf of the millions of Americans for whom many of the nation’s largest corporations and public agencies buy health benefits, The Leapfrog Group aims to use its members’ collective leverage to initiate breakthrough improvements in the safety, quality, and affordability of health care for Americans. Founded in November 2000 by the Business Roundtable, Leapfrog secures its support from major corporations, business coalitions, and public agencies that purchase health care benefits. www.leapfrog.org

Contacts

Med-Vantage:
Peggy C. Frank, MBA, 818-735-3591
pfrank@frankpr.com
or
Leapfrog:
Christine Paoletti, 202-292-6768
CPaoletti@leapfroggroup.org
or
IHA:
Cindy Ryan Ernst, 510-208-1740
cernst@iha.org

Contacts

Med-Vantage:
Peggy C. Frank, MBA, 818-735-3591
pfrank@frankpr.com
or
Leapfrog:
Christine Paoletti, 202-292-6768
CPaoletti@leapfroggroup.org
or
IHA:
Cindy Ryan Ernst, 510-208-1740
cernst@iha.org