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The case for outsourcing chronic care management

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impact of CCM when provided by health<strong>care</strong> professionals with a<br />

variety of credentials: physicians, registered nurses, licensed practical<br />

nurses and certified medical assistants. <strong>The</strong> researchers drew on<br />

national compensation standards <strong>for</strong> these roles. <strong>The</strong>y then calculated<br />

the headcount needed <strong>for</strong> a “typical” primary <strong>care</strong>, family or internal<br />

medicine practice to deliver CCM to a panel of eligible Medi<strong>care</strong><br />

patients 2 . Finally, they factored in the CMS’ published compensation<br />

rate <strong>for</strong> CCM.<br />

<strong>The</strong> researchers (comprised of five MDs and an MBA) then calculated<br />

net revenue, defined as the difference between all fee-based<br />

reimbursements <strong>for</strong> CCM services minus the costs of service delivery.<br />

Costs included equipment, materials, salaries, benefits and associated<br />

overhead, i.e., office space <strong>for</strong> the additional staff. A summary of their<br />

findings is represented in the chart below:<br />

CCM Provider<br />

MD<br />

RN<br />

LPN<br />

CMA<br />

Net Revenue per<br />

Patient per Year<br />

(95% Confidence Index)<br />

$142<br />

$332<br />

$372<br />

$385<br />

Net Revenue to<br />

Practice per Year<br />

if 50% of eligible Medi<strong>care</strong> patients<br />

enroll in CCM (95% Confidence Index)<br />

$28,940<br />

(range from -$9,017 to $66,897)<br />

$79,197<br />

(range from $39,340 to $119,054)<br />

$89,110<br />

(range from $44,856 to $133,364)<br />

$92,317<br />

(range from $46,470 to $138,165)<br />

Source: Annals of Internal Medicine, “Medi<strong>care</strong> CCM Payments and Financial Returns to Primary<br />

Care Practices: A Modeling Study,” October 20, 2015 (2015; 163:580-588. DOI: 10.7326/M142677).<br />

“Many practices could experience a net revenue loss if physicians<br />

exclusively provide [CCM] services due to the opportunity costs of<br />

<strong>for</strong>efeited face-to-face visits....Our findings highlight the critical nature<br />

of non-physician staff in the delivery of CCM services,” the AIM authors<br />

Physicians <strong>outsourcing</strong> CCM<br />

see impact in their practices<br />

Shortly after CPT code 99490 was<br />

approved <strong>for</strong> non-face-to-face <strong>care</strong>,<br />

the following primary <strong>care</strong> providers<br />

opted to outsource their <strong>chronic</strong> <strong>care</strong><br />

<strong>management</strong> to Wellbox. Here’s what<br />

they have seen in the first year:<br />

“Patients appreciate<br />

the monthly phone<br />

call and extra services<br />

now available to<br />

them,” says Peter<br />

Weigel, M.D., an<br />

internist in Westfield,<br />

NJ.” <strong>The</strong> extra revenue<br />

from Wellbox CCM is a nice<br />

incentive also,” Dr. Weigel adds.<br />

“Patients appreciate<br />

the increased monitoring<br />

and attention,<br />

especially when their<br />

monthly phone calls<br />

are covered by<br />

Medi<strong>care</strong>,” says<br />

Suresh Nair, M.D.,<br />

also an internist, based in Louisville. KY.<br />

“In fact, most patients don’t even have<br />

a co-pay.”<br />

“<strong>The</strong> certified medical<br />

assistants staffing<br />

the Wellbox Chronic<br />

Care Coordination<br />

Center are capable,<br />

compassionate<br />

professionals who<br />

serve as an extension<br />

of the <strong>care</strong> our patients expect from<br />

our practice,” says Robert Yerrington,<br />

M.D. of the Well-Power Health Center<br />

in San Antonio, TX.

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