The Client Challenge

A Medicaid managed care organization (MCO) was experiencing a high readmission rate for medical and behavioral health conditions. It faced sub-optimal member outcomes (based on NCQA and HEDIS measures), increased readmissions spend, above-average length of stay, increased pharmacy costs, higher emergency room visits, and a reduction in pay-for-performance payments. The payer partnered with HealthScape to improve readmissions rates, advance post-discharge care, and rein in avoidable costs.

THE COST OF HIGH INPATIENT READMISSIONS:
up Higher ED and post-acute care utilization
down Poorer member health outcomes and associated quality ratings
up Increased medical spend and medical loss ratio (MLR)
up Greater use of clinical resources, which can lead to decreased availability for other members to access care

Navigating to Next: The Solution

With roughly 1 million members, the Medicaid MCO faced a readmission rate of 16%. HealthScape aimed to optimize medical spending and clinical outcomes by developing a sustainable enterprise program to improve existing capabilities related to readmissions.

Our current-state assessment revealed several opportunity areas: (1) coordination between interdisciplinary teams (e.g., utilization management and care management, physical and behavioral health, and inpatient and outpatient); (2) system supports for patient identification, engagement, and performance management; and (3) community supports to address social determinants of health (SDOH) needs.

Through advanced data analytics and stakeholder interviews, we defined a targeted approach to reduce readmission rates by members’ chronic conditions, serviced hospital, attributed primary care physician, and discharged facility. We identified and enabled operational capabilities for the interdisciplinary care team to manage members’ multifaceted needs, including opportunities to expand provider benefits in terms of value-based contracting and performance incentives.

Client Impact

Together, we developed an enhanced transition of care program to optimize the MCO’s readmissions management and scale the operating model across multiple markets and lines of business. A proof-of-concept pilot consisted of 3 key solutions: (1) a process to identify patients who are high-risk for readmission; (2) integrated rounds between utilization management and care management teams for members with both behavioral and medical health conditions; and (3) transitions of care pathways for members with chronic conditions.

In developing the enhanced transition of care program, we identified:
$66 M

cost savings opportunity size

$22 M

target cost savings in the first 3 years

$2 M

target cost savings in the first year

Related insights

Get in touch

Contact us

Let us help you drive meaningful change ​

contact our team
HealthScape Advisors

About us

We help clients reshape healthcare for the better​

Explore