Progress Report Shows Oregon CCOs Are Working

Oregon CCO SigningThe Oregon Health Authority made a significant announcement this week that other states should be paying attention to.  We all know Oregon is the test bed for Coordinated Care Organizations with the first eight CCOs launching just last August.  According to the OHA, there are currently 15 CCOs operating in Oregon and roughly 90% of Oregon Health Plan members are enrolled in a CCO.

And we’ve all heard someone say (or at least those who concern themselves with health policy or care delivery) “they haven’t proven if they even work.”

Well, for those naysayers, Oregon has some news. Big news.

The Quarterly Transformation Progress Report (measures goals, care improvement metrics, claims data and cost data) is out and the outlook is good for the CCO model achieving the Triple AIM.  Here are a few of the highlights:

  • Spending growth is slowing down – As part of the state’s agreement with the federal government, Oregon committed to reducing per capita growth in Medicaid spending by 1 percent in the first year and 2 percent by 2015. Current data shows that the state has reduced per capita growth by more than 1 percent in the first year of CCO implementation.
  • Decreased emergency department visits overall – Emergency department visits by people served by CCOs have decreased 9 percent below 2011. Expenditure data show that spending on ED is down 18 percent below 2011 as well.
  • Decreased hospitalization for chronic conditions – CCOs reduced hospital admissions for congestive heart failure by 29 percent, chronic obstructive pulmonary disease by 28 percent and adult asthma by 14 percent.
  • Decreased hospital readmissions – Percentage of adults who had a hospital stay and were readmitted for any reason within 30 days dropped by 12 percent.
  • Increased primary care – Outpatient primary care visits for CCO members increased 18 percent and spending for primary care is up nearly 7 percent. Enrollment in patient-centered primary care homes also has increased by 36 percent since 2012, the baseline year for that program.
  • Increased adoption of electronic health records – Electronic health record adoption among measured providers has doubled. In 2011, 28 percent of eligible providers had EHRs. By June of 2013, 57 percent of them had adopted EHRs.
  • New information about health disparities – The November report for the first time gathers baseline data comparing the health performance measures by race and ethnicity. This information helps point the way to where CCOs can focus efforts to increase health equity.

The OHA also reports that it is PMPM spending is within the target budget.  Oregon appears to be getting the experiment right.  This presentation, details more on how they got here.