Episode Transcript
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Jason (00:02):
As healthcare moves away
from traditional fee-for-service
models, providers need astrategy to stay competitive.
That's where StrategicHealthcare Partners comes in.
We offer expert consulting andongoing management oversight for
providers looking to form anaccountable care organization.
From financial feasibilityanalysis to helping you choose
the right ACO in a crowdedmarket, SHP provides the clarity
(00:24):
you need to make informeddecisions and transition to
value-based care.
Learn more at shpllccom.
Aaron (00:37):
Welcome to Beyond the
Stethoscope Vital Conversations
with SHP.
As we take our summer break toprepare for the exciting season
five, we're revisiting some ofour most insightful episodes to
keep the conversation going.
In this episode, originallyaired all the way back in season
one, we explore the fascinatingjourney of building a
healthcare network from theground up.
(00:58):
Jason Crosby, our residenthealthcare expert with over 25
years of experience, joins us todive deep into the world of
clinically integrated networks,or CINs.
From the challenges ofvalue-based care to the legal
intricacies of forming a CIN,jason shares his extensive
knowledge and experience.
So, whether you're a healthcareprofessional or simply curious
(01:18):
about the inner workings of thisvital industry, this episode
offered a unique glimpse intothe evolution of healthcare
networks.
Don't miss this opportunity torevisit an essential
conversation that remainsrelevant today and, as always,
if you find this episode helpful, please rate and share our
podcast in your favorite podcastapp.
It really helps us reach morelisteners.
Let's join Jason Crosby andmyself as he takes us behind the
(01:43):
scenes of CINs.
Jason (01:49):
Hey, good morning Aaron,
Good morning everybody.
Good to be here.
Aaron (01:52):
Yeah, alrighty.
Well, we are here today with,actually, what should be a
fairly familiar voice is JasonCrosby.
You may have heard him doingsome interviews as well, and so
we're going to talk, though, notabout how to do a podcast, but
some of the other things thatJason is well-versed in, and so,
(02:16):
I guess, help us understandJason.
What is your, what?
What makes you a vital?
Jason (02:24):
conversation.
So my first taste of healthcarecame about 25 years ago
actually, during kind of anundergraduate internship at a
local health system with acouple of different units in the
hospital, and from there I wasjust just hooked and so fast
forward a few years, wentthrough grad school, all that.
(02:44):
It's my first air quotes realjob.
I was an entry-level descendantsupport analyst at a different
health system.
I was there for several yearsin descendant support and IT,
did the project management thing, did the Six Sigma.
I ended up manager ofdescendant support, which was my
first management gig andprobably still this day one of
(03:08):
my favorite jobs.
Uh really enjoyed that.
Uh left there, became financedirector for a large ER
physician group and then came toSHP about 13 years ago and so,
honestly, the which back thehealth system and the practice
settings really, I would say,helped me greatly coming into a
(03:31):
consulting world wearingmultiple hats and trying to be
all things in all settings, andso that's kind of been the
journey.
Aaron (03:41):
Wow, yeah, you kind of
run the gamut of healthcare
types too.
You know the hospital world tothe practice world and now the
consulting world.
So I know one of thespecialties that you deal with
with NSHP are are CINs.
Tell me a little bit aboutthose for those in the audience
(04:04):
that may not be familiar withwhat a CIN is and you know how.
How are you engaged with that?
Jason (04:11):
Yeah, let's, let's get
ready for a three-letter
alphabet soup here.
Um, CIN a clinically integratednetwork.
Go back about 25 years, 30years or so, the FTC came in and
the Filterary Commissionestablished their formal
definition.
And not to bore everybody withwhat that is, but it highlighted
(04:38):
some key words that areapplicable to everybody,
listening today, right, andexist in another form of CIN
definitions, ci definitions,independence, cooperation,
collaboration, modifyingpractice patterns, controlling
cost, improving quality thosesame things we hear about today
that are still a consistent sortof basis or a theme that
providers work from today.
(04:59):
But in essence, a CI is simplyas a clinically embedded network
, even though it's got manydefinitions, it's its own legal
entity.
It's comprised of multipleorganizations, including
providers, physicians, healthsystem, ancillary groups, et
cetera.
That basically it's intended toachieve what we now know and
(05:20):
call the AAA principle ofhealthcare, known called the
triple A in principle ofhealthcare, right?
So these in these entities,they take on various forms,
various modes of evolution.
Uh, the most typical being yourPHO, just adding another
three-letter acronym out there,a physician hospital
organization type of entitywhere you have a hospital
(05:41):
alongside their employedphysicians.
Uh, oftentimes the communityindependent providers.
The other common form we see isa collection of independent
docs or an IPA you know, each ofwhich we've worked with in the
past and we do today.
Honestly, due to that vagueness, it's kind of hard to say how
many of CINs are out there, buta few years ago Becker's
(06:05):
released a study of theirs.
They estimated over 500, andthis was a good few years ago.
But, as you can guess, manydon't advertise themselves for
such, and so it's kind of hardto identify the C ions out there
and really what they're about.
But in essence, that's what a Cion is.
Aaron (06:26):
You brought up another
little alphabet soup there IPA.
How does a CIN and an IPAdiffer?
Or is it one of thosesituations where there's kind of
a Venn diagram overlay?
Jason (06:41):
of both.
Imagine a stair step ofcollaboration, a legal framework
.
Ipa is going to be your firststep.
Cin is your natural evolutionto a second step.
Then you have ACOs et cetera,right, and so the difference is
the legal framework and we'regoing to probably touch on that
(07:05):
quite a bit here.
But within an IPA there isrestrictions in terms of what
you can discuss openly andinformation that can be shared.
Then in the CIN, as a legalentity, once you have that
designation and legal frameworkaround you, you're sort of
covered, if you will, under thatlegal umbrella to have open
conversations with otherproviders outside of your walls.
(07:28):
That you cannot have in an IPA.
So to your point yes, ipas aretypically more managed care,
contract, fee for schedule sortof focus.
Cin is going to be a little bitmore value-based care oriented,
you know, working withemployers, things of that nature
.
So there's a definite legalstructure that differentiates
the two, structure thatdifferentiates the two.
Aaron (07:49):
So you know obviously
we're SHP.
One of the services that weoffer is SCI and management and
development.
How did SHP start playing inthat space?
Jason (08:04):
Yeah, so around 2013-ish
2014, we had an IPA client at
LORS.
It had roughly 25 independentspecialty-based groups, right,
and they're in a market that didnot have a value-based care
present.
So one of the physiciansliterally were sitting in a
(08:25):
board meeting and they broughtit up like guys, how can we
collectively move towardsvalue-based care as a group?
Number one?
Number two there was a lot ofemployment pressures at the time
, as is common when you havemultiple health systems in a
particular market, and they werefeeling that employment
pressure from the health systemcompetition taking place, and so
(08:48):
, from those two points is wherethat particular board of
physicians brought up let's lookinto graphs, clinically
integrated networks.
And I'll say when we're sittingthere around the table and I
can remember this, no one knewanything more than simply what
CIAN stood for, and so we knewright away we were going to have
this long process of duediligence, and so a few of us
(09:11):
within the SHB split up theduties, went off for about nine
or 10 months during this duediligence and came out creating
a separate LLC for the samegroup.
That way, the members could say, yes, I want to be in both.
No, I just want to be stayingin the IPA but allow, allowed
them to have a different entityin which it could serve the
(09:32):
purpose of a CIN, right?
But the IPA was a maturedorganization, matured contract
portfolio, and so they felt theCIN needed to stay on its own
for sake of the missions focused, the recruitment, information
sharing, all that kind of thing.
And so my role there wasgeneral research on just CINs, a
(09:54):
provider engagement, arecruitment into the CIN.
And so you go back 2013, 2014,.
For those listening and starteddoing research, there were four
FTC approved CINs in thecountry, and so my first task
was reading through those funlegal documents, right, and so
25, 30 page PDFs by the FTC onthose four CIN reviews, which
(10:18):
was actually very helpful.
And then I started to reach outand interview two of those to
kind of listen to theirsuccesses, their failures and
just overall sort ofrecommendations to us as a
launching that that venture, um.
So since then, after that CIN,we've we've launched several
others, um, that range fromcreating CINs from scratch to a
(10:43):
single provider group thatreached out about.
Tell me more about CINs.
We took existing IPAs, such asthat one evolved into CINs, and
we took and still mailage PHOsthat subsequently launched CINs,
and so they take differentformats and we've been able to
mailage those over the years,and so we have several now that
(11:05):
we mailage that are IPA focusedand some are PHO focused.
What we've seen is the coreprinciples remain the same,
right, and the reasons folkswant to get into the CINs, the
obstacles, they've generallybeen the same, regardless of the
market, regardless of theprovider types or the provider
settings.
We've done them.
(11:26):
Now.
We've got CINs in urban markets, we've got them in rural
markets, we've got them in theSouth, we've got them in the
South, we've got them in theMidwest.
And when we reflect on those,it's kind of surprising how
similar the conversations arewithin each of those same
barriers, same mission, thatsort of thing.
And so and I'll say, while wewere a little hesitant at first
(11:49):
and we still sometimes are alittle bit more restrictive on
what to take on, we feel thatour success as managers of IPAs
right, and so that includes ourservices around provider
enrollment, managed care,contracting or analytics group,
those types of things naturallytransition to managing CINs, not
(12:12):
to mention just one of ourgoals as a company is to kind of
stay tip of the sword from amarket dynamic standpoint.
Right, what's going on.
How can we learn, how can westay ahead of the curve to be
good consultants to our clients?
And the CIN really allowed usto do that and, I think, makes
(12:32):
us better consultants in general.
So, yeah, fast forward.
Now here we are, eight yearslater again.
We've got several CINs indifferent markets and I think
we're just better off for it.
Aaron (12:43):
You know SHP has really
been on on the forefront.
Jason (12:46):
It sounds like if if CINs
are still relatively within the
last decade or so invention,shp has really been there since
get-go it sounds like we try tolearn from our clients as much
as they try to learn from us,and I think it allows us to
apply those principlesregardless of the market, and
(13:09):
it's also just an advantageoussort of venture by the providers
themselves, which is exactlywhy we're in the game, right.
Aaron (13:18):
Right.
Also, obviously, SHP lowers theramp, or at least makes it
easier for a provider orpractice to form or join a CIN.
But where does one begin?
Is it just, you know, pick upthe phone and call SHP or SHP
aside?
Where does someone who wants togo into the alphabet soup?
(13:41):
Where do they start?
Jason (13:44):
Yeah, great question,
before you even call us.
I would a couple of things.
Number one appreciate patience,because the education and due
diligence to simply think aboutand launching this initially
does will take several months ata minimum.
So acknowledge the fact thatthis is not going to happen next
month or the next quarter andmost likely will be closer to
(14:06):
the next year before it's up andgoing.
So be patient.
Second, educate yourself.
There's an abundance of materialout there about CINs, both good
, bad and the ugly right, and so, as I mentioned before, there's
hundreds of CIS.
Reach out to them.
There's consultants like us onthis webinar.
So do your homework.
First, the material's out therefor you to be educated and
(14:31):
it'll help you craft yourmessage as well to your peers in
the community, which I wouldsay is sort of the next step.
So you do your homework.
Once you feel prepared, engagewith your peers, with other
providers, other administratorsin that market in your community
.
Discuss your concerns, yourobjectives behind it, why you're
(14:53):
thinking of a CIN.
Essentially, you're going totalk through your why with your
peers.
That dialogue is going to helpyou fine-tune the mission or the
scope of sorts.
It will also kind of simplystart your due diligence process
for you right.
So having such a group from thestart will provide insight and
feedback to you, because youcan't do it alone.
(15:14):
Eventually, those sameindividuals will be your
champions.
They're going to be your boardmembers, they're going to be
your executive committee.
They're going to help youlaunch the entity in the first
place successfully.
So don't go about it on your own.
Engage your peers.
So fast forward.
Now you've got your peers,you're educated, you've got a
(15:36):
grasp of your objectives.
Your partners Find legalcounsel.
Don't go out trying to getcontracts.
Don't buy any platforms.
Engage legal counsel.
Yes, this will beunquestionably your largest
expense for the first full year,but it's worth every penny.
And, as I communicate to folks,there's two swim lanes with CI
(15:59):
and Success Legal andoperational.
Start with legal.
Okay, first of all, they'llhelp you refine those objectives
.
I mentioned the mission behindthe venture.
Uh, the discussion, also withyour counsel, will transition
naturally to what a successfuloperational game plan looks like
.
And also, once you have thatlegal conversation, you're going
to what a successfuloperational game plan looks like
.
And also, once you have thatlegal conversation, you're going
(16:22):
to get a better idea of thebudget Right, we see it so often
that when push comes to shove,the budget is the biggest
obstacle for the CI and the moveforward successfully.
And so once you have thatconversation, you'll be able to
better have those projectionsearly on.
Establishing with that peergroup I just mentioned, get
(16:42):
comfortable with the legalframework you're having, the
budget you're having, and nowyou can start taking off from.
Okay, what do we need to dooperationally to accomplish the
mission we've been discussingthus far and that's where your
operational gameplay comes in.
But those would be my firstcouple of steps.
Mission we've been discussingthus far and that's where your
operational gameplay comes in.
But those would be my firstcouple of steps.
Educate yourself, engage yourpeers and talk to legal counsel
(17:05):
from the get-go.
That's my first three tips.
Aaron (17:09):
Well, actually, I think
that leads to another question
what sort of legal counsel?
Obviously there's a lot oflawyers out there.
I think the local Savannahmarket has one lawyer for every
half person, it seems.
So what sort of attorney wouldthey be looking for?
(17:29):
Business healthcare whattypically have you seen been the
most successful for CINs to use?
Jason (17:38):
Yeah, those that have
worked with other.
Definitely healthcare, thoseoriented with um, healthcare
networks, healthcare plans, anyof those with we've worked, some
that have recently left the FTCthemselves.
Um and so those that are usedto M&A activity, collusionary
type or collusion-based sort ofactivity they're going to be
(17:59):
most advantageous for you.
They're going to be the onesthat can best identify those red
flags to be aware of and theyare going to be focused on
things like market shareproviders, appropriate
compliance right.
When a provider's out ofcompliance, do you have a
mechanism in place?
They're going to be focused onthat.
So, those that have thatposition-based background around
(18:23):
M&A, in particular,inclusion-based activity,
oftentimes it's going to be alarger group.
It's going to be hard to find alaw practice with two or three
attorneys that have that sort ofexperience.
So you might get one that'sleft the FTC recent and they're
on their own, but oftentimes itis going to be the larger group
(18:45):
and, yes, they're going to be alarge hourly refugiate as well,
but definitely worth it.
Aaron (18:53):
Yeah, yeah, no doubt.
Okay, I know we're running outof time here so we'll get to the
last couple of questions.
So, as the CINs continue tomature again, it's kind of that
newer thing.
Within the last decade or so itfeels like that there's new
(19:15):
goalposts that have been formed.
So you know, what can a new CINexpect to AC as those goalposts
being today, and how can theymeasure their success against
those key metrics?
Yeah, yeah.
Jason (19:32):
So I try to emphasize a
few pillars, if you will right.
So, be focused on appropriateand engaged governance structure
, a data information strategy,one that's flexible and not
(19:59):
focused on one carrier or planor mechanism.
And so, as you talk through howto measure your success and
metrics, it kind of falls underthose key pillars that I've just
mentioned, and you want toseparate those because you'll
need different folks andchampions within each of those.
Right and so, and when I talkabout product deployment, for
example, be mindful of operate,though, because you'll need
different folks and championswithin each of those right and
so, and when I talk aboutproduct deployment, for example,
(20:20):
be mindful of things likedirect to employer agreements.
Don't be so focused on just oh,I got to get my particular
carrier plan up with things ofthat nature.
Start looking at MA plans aswell as commercial plans.
Everything should be on yourradar as far as a product
deployment.
But to get a little bit moregranular, question a couple of
those pillars I mentioned.
(20:42):
Governance, for example.
Right, your board is oftencomprised of physicians and
administrators.
Your executive committee istypically administrator driven,
and then that next group ofindividuals you've got to launch
is a QA committee.
That is vital.
That's going to come up in thefirst 15 minutes with your legal
counsel.
There are others you can launchas well, right, finance and
(21:03):
contracting committee, itcommittee, et cetera.
But start with those three yourboard, your executive committee
, your QA committee.
We won't get into that, that'sa whole other episode of it in
and of itself.
And then data Again, that willcome up as well in the first 15
minutes of legal counsel.
You absolutely must have someform of information sharing as a
(21:25):
CIN, preferably in aprovider-led QA committee, right
, and so just focus on that justfor a second.
Oftentimes you'll hear that aCIN is going to have a popular
platform.
Okay, first of all, be preparedfor the sticker shot there.
Now just, are you required tohave a platform?
No, okay, we'll get into thatin a second.
(21:45):
But pop-up platforms are veryexpensive, not just themselves,
but every tax ID that has to getwith their EMR vendor and they
have to develop an interface.
That's expensive.
There's maintenance plans there, and so don't just stop there.
There's other paths to successfrom that legal checkbox that
has to be met with data, right,there's HIE options, health
(22:08):
information exchange options.
They're often less expensive.
Folks are often alreadysubmitting data, most
importantly the hospitals, andthey're getting better from a
reporting perspective.
Another option in the favoriteof mine is work with your TPAs,
your carriers, your employers.
Oftentimes they've got tools inplace and they've got specific
(22:29):
programs they want to focus onand work with you so therefore
they can supply information toyou so you're not even have to
worry about the costs or theresources it takes to store that
information.
I'll give you a very specificexample.
We have a PHN that's a CI andthey lost its QA committee
solely with one large employer.
(22:50):
A TPA supplies two or three PDFreports every month.
That QA committee now knowsthey have to review those
reports for that one employer inthe discussions around areas of
impregnation.
Okay, and that helps yourgovernance structure that I
mentioned before, because thatcommittee needs to be in place
(23:12):
and comprised of employee docs,independent docs, different
specialties, things of thatnature, and you're able to
document the minutes of thatcommittee.
So you see the sort of you knowstair-step benefits of working
with the TPA, for example, andlaunching the QA committee
because you've got to documentminutes for that committee.
(23:33):
Your legal counsel is going toask you that.
And there's a ton more we canget into with governance, like
compliance plans, things of thatcommittee.
Your legal counsel is going toask you that and there's a ton
more we can get into withgovernance, like compliance
plans, things of that nature,but proper credentialing
policies and procedures,communication, things like that.
But yeah, the key success isbeing around proper governance
structure, then the informationsharing that goes along with it.
Aaron (23:53):
To dovetail, a little bit
about PopHealth tools and those
other analytical tools.
You know, obviously we have QPP, we have the Quality Payment
Program and all the ways toparticipate in that.
Do you see CINs as a way toparticipate in QPP using those
sort of tools?
Jason (24:16):
in QPP using those sort
of tools?
Oh, absolutely, um, I thinkwhether it's QPP, we've got a
client that was an IPA thatbecame a CIN and they became a
CIN so that they can get in toan ACO and be a more successful
ACO.
So the CIN was sort of a prepwork to be a successful ACO for
engaging in that contract, andso I would take the same and
(24:36):
apply it to QPP in that, in thatthat group can collectively
work together, brainstormtogether, and that's another
benefit of the CIN is simply thenetworking with your peers of
what tools do you use, whatresources do you have.
They can become their smallgroup in terms of gathering the
data necessary and submittingright, and I'll default to
(24:58):
Aaron's QPP podcast on that I'mgetting in the weeds there.
But again, the collectivenature of a CIN and the
education and networking aroundit will also benefit you in your
QPP venture.
So, yes, I would definitelyagree with that Okay.
Aaron (25:14):
Well, thank you, jason.
I know we're coming right up ontime.
So if folks want to learn moreabout CINs you know how to form
one or how to participate in onehow can they get in touch with
you?
Jason (25:28):
Yeah, so feel free to
give me an email, jcrosby@shpllc
.
com.
Let's schedule a call.
We typically just talk throughwith you.
I've got some key questions andvarious documents that serve as
a template just to help getyour mind thinking along those
lines, and then you can go offand do your necessary due
(25:50):
diligence.
Aaron (25:55):
Yeah, let's set up a good
20 or 30-minute call call and I
think that'll be of great helpto you.
That's great.
Anything else you want to makesure our audience knows about
before we head out?
Jason (26:01):
No, guys, just don't get
overwhelmed.
It's just like when you guyshad implemented EMRs and MIPS
came out.
There's an overwhelming feelingbecause of the amount of
information out there.
Simplify it.
It's not as complex as it'sgoing to feel when you're
reading, but just simplify itand be patient and give folks
like myself a call.
We'll help walk you through it.
Aaron (26:22):
All right, well, hey,
thank you, jason, for your time
today.
Now you got a busy schedule, sothanks for clearing a few
minutes for us to talk.
Jason (26:29):
Appreciate it, Aaron.
Thank you and thanks foreverybody for listening.
Aaron (26:34):
You've been listening to
Beyond the Stethoscope vital
conversations with shp.
This has been a production ofstrategic health care partners.
Your news shows today for jasoncrosby and me, aaron higgins.
It is produced and edited bynyla wiebe, our social media
content producers are nyla andjeremy miller and our executive
producers are Mike Scribner andJohn Crew.
(26:55):
For more information about SHPand the services we offer,
including the back library ofepisodes, episode transcripts,
links to resources discussed andmuch, much more, please visit
our website at shplccom.
Thanks for listening.
You already know thatunderstanding your data is key
(27:18):
to improving patient outcomesand financial performance.
But how?
At Strategic HealthcarePartners, our analytic services
help turn your EMR and otherdata sources into actionable
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From identifying areas forimprovement to guiding you
through implementing changes,shp supports you every step of
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Our performance analyticsservice dives even deeper,
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