PROVIDER PERFORMANCE MANAGEMENT AND risk ENABLEMENT

Deploy robust provider performance management programs, informed by analytic insights, that strengthen partnerships and enable providers to succeed in value based care

The past decade has brought an increased focus on value based care as a way to drive affordability while improving quality, aligning provider incentives and enlisting providers as partners.

Changes within the provider ecosystem, such as employment trends, private equity acquisitions of care delivery, rapid acceleration of new clinical pathways to deliver care, demand a different approach to managing provider partners.

Pressures on the provider ecosystem are escalating and rapidly evolving as there is increasing product innovation of network chassis (e.g., shifting to digital, broad networks that still feel curated) and traditional providers and facilities are facing economic pressures.

Managing this complexity requires enhanced understanding of provider performance, enablement of provider capabilities, new and innovative partnerships, more flexible/nimble approaches to delivery of products, and efficient management of provider relationships and contracts.

Common issues we help our clients solve

What does variation of provider performance look like across the network? Where is there the most variability (by provider type, by episode, by geo, by line of business, etc.)?

How and where should we push to drive value based care models across our network and how do we best partner and enable providers to perform in them?

What are the most likely market impacts of taking a more active hand in provider evaluation and enablement?

How should we evolve our provider evaluation approach, considering our specific provider programs and contracts today?

What are effective ways to work with providers to roll out new enablement approaches and/or build joint capabilities with providers?

How should we source our provider enablement capabilities: build, buy, or partner to deliver?

What enablement capabilities would be needed to support our providers as they develop new clinical care models to tackle particularly challenging population cohorts (i.e., polychronic or complex patients)?

What provider incentive and quality programs should we deploy and how can we make the mateiral and impactful?

Key provider risk enablement capabilities span four major enablement categories

1. Performance/transformation capabilities: Shared capabilities (including payer-and provider-led functions) that enable transformation across clinical, health management, quality, risk coding, and member engagement activities
2. Payment/economic model: Evolve the value proposition ranging from traditional reimbursement to deeper financial partnerships required to align provider economics
3. Emerging care models: Capabilities to enable delivery and monitoring of new and emerging provider care models
4. Data and integration approach: Data, analytic, and operational integration required to support provider relationships as well as customers and internal stakeholders

Provider enablement requires a broad set of capabilities

A broad set of capabilities are needed to support provider transformation

Performance/transformation capabilities

Clinical practice change
Comprehensive, shared operating model for transforming how care is delivered for a specific population/episode

Quality performance
Comprehensive quality program with
structured provider role in supporting clinical quality and other key metrics

Risk adjustment and revenue management
Structured approach to managing
revenue and provider documentation activity

Population health management
Medical management and care
management activity aligned between payer and provider

Experience/engagement
Member service, outreach, and
support model to meet experience and engagement expectations

Payment/Economic model

Reimbursement and risk arrangement
Aligning payment model across LOBs to support provider transformation and partnership

Investment
Investment/co-investment in practice and/or to build new capabilities or services (e.g., on-site transfusion, ambulatory surgical facilities)

Joint Venture
Joint venture to open new service lines or sites of care

Practice ownership
Full ownership of practice or group

Emerging care models

Contract and reimbursement management
Financial/analytical capabilities to
define, measure, and administer provider risk arrangements
(incl. hierarchies, cross-program coordination)

Pop health analytics and
integration
Sharing bi-directional data,
metrics, and insights to enable clinical activity changes to improve
performance

Provider financial reporting
Capabilities to provide regular
financial reporting on risk arrangement performance

Customer and internal reporting
Capabilities to measure and report
customer and internal segment level impact of provider risk arrangements

Data and Integration Approach

Data: Necessary data and associated transparency required to support foundational capabilities
Integration approach: Method for aggregating data and insights from various foundational systems to support all capabilities (including development of interface layers / aggregation approaches where needed)

Provider performance insights

Provider performance measurement insights drive optimized network performance outcomes

  • Pause
  • Source: Oliver Wyman analysis

    Goals for provider performance measurement

    Risks to avoid

    Case Studies

    Oliver Wyman partners closely with our clients to design and develop provider enablement capabilities and solutions based on evaluation and deep understanding of provider performance and maturity.

    Developed a care management solution to support physicians deploying patient care models for practices ranging in size from 70 physicians to 300+ providers. Read more

    Developed the near-term approach to deliver provider enablement “must haves”, while laying the foundation for longer-term enablement capabilities to improve network performance. Read more

    Defined a comprehensive framework for the full set of provider enablement capabilities needed to enable value-based contract success. Read more

    Facilitated an understanding of the current state of the provider quality space and developed an organizing framework for provider quality improvement initiatives. Read more

    Continue exploring

    Contact Us

    Additional Perspectives

    Do you have additional questions about our Affordability and Quality Impact practice? Get in touch

    Aditional Perspectives

    Do you want to know more about Oliver Wyman’s Health and Life Sciences perspectives? Visit our Blog