“Population Health Improvement: the OptiMedis approach”.

Dr Oliver Groene PhD MSc MA

Vice-Chairman of the Board, OptiMedis AG

CEO Gesundheit für Horn UG Organizational structure of the OptiMedis – open source family

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Chairman of the Board: Dr. h. c. Helmut Hildebrandt, Vice Chairmen of the Board: Dr. Oliver Gröne, Dr. Alexander Pimperl

German Regional Integrated Care Systems International Joint Ventures

Gesundes Kinzigtal Gesundheit für Gesunder Werra- OptiMedis Nederland OptiMedis-Cobic Optimedis BE GmbH Billstedt Horn UG Meissner Kreis B.V. UK Limited bvba GmbH

OptiMedis AG OptiMedis AG 30% 1/3 OptiMedis AG OptiMedis AG OptiMedis AG 28% 33,4 % Ärztenetz Billstedt plus 1 Priority Share 1/3 Horn e.V. Vias institute 60% Cobic Solutions 1/3 MQNK e.V. Up to now: Td5 (NL) Limited (GB) 66,6 % SKH Stadtteilklinik 20% GmbH plus 1 Priority Share 2/3 Hhaas bvba 5% OptiMedis AG 100 % 1/3 NAV-Virchow-Bund Magpar XX (NL) Verband der niedergelassenen Ärzte 52% Deutschlands e.V. plus 1 Priority Share Management Team 5% responsible: Directors: Karin Genoe CEO: CEO: Dr. h. c. Helmut Hildebrandt CEO: Dr. Nicholas Hicks Frederic Maeyens Dr. Alexander Pimperl Dr. Oliver Gröne Justin Rautenberg Jurriaan Pröpper + Jurrien Pentiga Dr Oliver Groene Frank Ponsaert OptiMedis AG 2 Population Health Improvement: a practical definition

The systems and processes required to achieve the greatest improvements in health and relief of suffering for a defined population from the resources available through:

a)The efficient and effective delivery of care in response to individuals presenting to and asking for help from the health and care system b)identification of individuals and offer of intervention to those currently not in receipt of interventions that evidence suggests are likely to improve their health and wellbeing, reduce the risk of future ill-health, and/or reduce costs to both the health system and the wider community. c)salutogenesis : i.e. provision of support for individuals and communities and the use of local assets to protect and promote health through:

- promoting individual knowledge, behaviours and attitudes that promote health - supporting the development of strong social networks - creating a health sustaining physical environment Source: Hicks NR, Groene O: OptiMedis-COBIC UK 2018 Our fragmented healthcare systems are engineered for “repair” but not for “maintenance” and not at all for “prevention” and “innovation”.

OptiMedis AG 4 Professor Eugene C. Nelson, DSc, MPH, The Dartmouth Institute, USA

OptiMedis AG 5 Richard Antonelli, MD, MS Medical Director of Integrated Care Boston Children’s Hospital / Harvard Medical School Boston, USA vom 26 October 2016 in Wellington, Neuseeland

OptiMedis AG Disruptive innovations are needed to ensure sustainability of health systems for the future

Predicted health insurance contributions in as % of income

OptiMedis AG 7 Maria Roth is a 84 years old woman suffering from heart failure. Since 2010 she was admitted to hospitals eight times because of inadequate monitoring and poor care coordination.

From 2010 to 2014 the total costs of care for Maria were 72,261 €, resulting in a loss for the insurance of -23,204 € or about -5,800 € per year.

I am afraid we have to move to a nursing home because of my wife´s bad health status.

OptiMedis AG OptiMedis AG 8 8 Can’t we do better? Innovating the health system to be more efficient and to produce health.

OptiMedis AG 9 Hanna Held is also a 84 years old woman suffering from heart failure. Since the diagnosis six years ago she has been participating in the health care program „Strong Heart“ and she has a case manager at her GP practice. She gets supported in her self- management, her medication gets precisely adapted to her situation and she knows exactly to identify and act on signs of deterioration.

In the last 4 years Hanna only went once to hospital because of an opthalmic complication. Her total costs of care summed up to 14,281.8 €, resulting in a profit for the insurance of +2,613.6 € or about +650 € per year.

OptiMedis AG OptiMedis AG 10 10 The challenge

“Every organized human activity — from the making of pots to placing man on the moon — gives rise to two fundamental and opposing requirements:

• the division of labour into various tasks to be performed,

• and the coordination of these tasks to accomplish the activity.

The structure of an organization can be defined simply as the sum total of the ways in which it divides labour into distinct tasks and then achieves coordination among them.”

(Henry Mintzberg)

OptiMedis AG 11 The OptiMedis Approach

OptiMedis AG 12 What are we trying to achieve?

Berwick DM, Nolan TW & Whittington JW. The Triple Aim: Care, Health, And Cost. Health Affairs 2008; 27(3), 759–769.

OptiMedis AG 13 How can we achieve the Triple Aim?

Key components necessary to attain the Triple Aim: - a clear (regionally defined) reference population - total budget limit or assumption of financial responsibility for the population, - the presence of a regional integrator to take responsibility for the three aims.

The role of a regional integrator: - assessing and managing population health ? - redesigning health and care services - achieving system integration at the macro level, and addressing local issues and - establishing partnerships with individuals and families - implementing tailored solutions with the involvement of all stakeholders.

OptiMedis AG 14 A new business model: Shared Health Savings Contracts

In “Shared Health Savings Contracts” we generate an economical benefit for purchasers for a defined population through wise investments, prevention and optimized care.

OptiMedis AG Shared savings contract - incentives to continuous improvement and investment in prevention

The integrator company (re) invests and benefits from its success

Integrator company Health insurance

Savings to be Tangible investment: shared Additional payments for management and substituting actions/ prevention Total Total ´Intelligence´ investment: expected Physicians know-how to streamline actual costs processes costs (Morbi-RSA) Know-how of the management (and OptiMedis AG) Cost cutting agreements (rebates and/or success remuneration)

OptiMedis AG 16 Intervention logic focused on the Triple Aim

Outcome perspective:

Health Outcome: What Economical Outcome: Patient Experience: What impact has my doctor’s What impact has my impact has my doctor’s practice on health doctor’s practice on practice on the individual outcomes? financial outcomes? experience of care?

Internal Processes

How can we provide optimal care processes?

Generic vs specific interventions

Structure: Learning and Innovation Patient Characteristics In which field can we make Who is the target group and (how) do improvements? Is there a solid we reach it? What morbidity do the base for success in the future? patients of my doctor’s practice have?

OptiMedis AG 17 Taking responsibility for the whole population: The chronically ill, the frail are in our focus but as well all the others Direct interventions  Target Agreements + Risk • The intervention is directly related to the enrolled integrated care Screening  additl. care provision programs, participants. These are almost 1/3 of the total population of AOK comparable to Disease Ba-Wü and SVLFG. * Management Programs  Joined Electr. Patient Record  • Indirectly, all insureds of the AOK Ba-Wü and SVLFG - this is a Personalized advice  Case Management total of the insured in the Kinzigtal region (0-99 years) - benefit  Functional Training / Rehab- from doctors' training, health promotion, prevention and BGM Sport  Relaxation/Balancing interventions.  Benchmarking + Feedback- Reports by means of GKV- standard data to physicians  Campaigns to reduce / critically • The participation of the insured is free of charge & voluntary evaluate prescription of antibiotics  Self-management-trainings  Trainings, classes  Healthy Company network Indirect interventions *Separate contract with TK, allows TK insureds to benefit from and participate in defined health and preventive programs

OptiMedis AG 18 Success factor: Technology Gesundes Kinzigtal / OptiMedis have invested a two digit million € amount in technology in the last years:

Digital Health & Innovation Centre:

Open Notes/ Our Notes Electronic networking Business Intelligence E-Care applications and

system Solution services, e.g. Assess- Artificial ment/ Intellig. •Multiple Doctor Information •Multidimensional Data •Telemonitoring project for the Validity Systems (DIS) of the Warehouse has been management of heart failure Sharing Real- records Life- cooperating physicians have developed. patients has been tested Proof been connected to an •Various data sources are linked •Actually participating in EU- electronic patient record for the in a prepared, enriched and projects in this field (Beyond network used for management support Silos, SmartCare) for e.g. •In preparation is the integration via Deltamaster as BI front-end:. Ambient Assisted Living of further providers such as •Continuous development since technologies ambulant nursing care services, 9 years •self tracking and mobile health hospitals and social care •Award winning solution data from APPs are also institutes planned for the future

OptiMedis AG 19 Just one example of the interventions around diabetes / chronically ill - in the near future much more digitalized support

• Personal Health coaching Open Notes/ Our • Attention on polymedication – regular training for doctors Notes High cost 5% • HK-progr: Physicians plus nursing homes (improving Interaction) patients Assess- Artificial ment/ Intellig. Validity

Sharing Real- records Life- • Active multi-specialty support for patients through disease management Proof Rising risk • HK-progr.: Psychotherapy acute / depression patients 20% • Selfhelp+ self management training for chronic patients (Kate Lorig/ progressing Stanford SDSM) • HK-progr.: Healthy weight (obesity) • HK-Progr.: blood pressure management Insured in risk 40% • Developing jointly health goals • Cooperating with sports clubs

• Unspecified.training in health literacy (for patients and Healthy insured – before 35% practices) getting into risk • Health Festivals + health promotion within kindergartens, schools, companies

• Supporting the existing preventive offers for health inthe community 29|11|2018 BRUGGE TOWARDS A FUTURE PROOF HEALTHCARE ECONOMY The Healthy Kinzigal Region

OptiMedis AG 21 Integrated Care Gesundes Kinzigtal … by a private company connected to local providers & underneath public insurances 2005 Founding of the regional management company "Gesundes Kinzigtal GmbH" by OptiMedis AG (1/3) and medical network MQNK e.V. (2/3).

Contracting health insurances (“funds”) for all their insurees (approx. 33,000): AOK Baden-Württemberg (since 2005), SVLFG (since 2006) … representing all ages and the sickerand less well off part of the population

Cooperating partners: approx. 300 (GPs and specialist doctors, hospitals, home care services, other medical professions, pharmacists, sports and community associations, etc.)

OptiMedis AG 22 Gesundes Kinzigtal: a geographically defined long term Shared Savings contract

• Shared Savings contract: Accountability for medical and economical results of a geographically-defined population of 33,000 insurees • Aim: Set incentives to focus on population health, vulnerable patients and include all providers – good or bad performers – avoid risk-selection.

OptiMedis AG In Gesundes Kinzigtal we made it – 13 years so far, and still going strong

Positive confirmation by ext. GK members live an average of Health Status scientific evaluation 2004-2011 1.5 years longer than their of Population of the effects on the – individual life expectancy, insureds in Kinzigtal (2012 compared to a control group. – 2016 evaluation in progress INTEGRAL) Create increase in Patient Satisfaction From 2007 to 2016 health 98,9% of GK members outcome totaling € 41.7 Mill. who, mutually with their Increase in surplus gross physician, agreed to de- earnings (net € 13.2 mill.) Economics fine binding goals, would for the participating recommend GK membership health insurance funds and more than 50% of those answer “We live healthier now”.

OptiMedis AG 24 Brutto-Benefit for AOK and SVLFG (LKK) 2016 for their insurees in Kinzigtal: 5,2 Mio. €*

Normcost, Ist-costx, contribution margin and number insurees of AOK and LKK in Gesundes Kinzigtal*

90 Mio € 50.000 Normcosts – base 85,8 Mio € lined in 2005 85 Mio € 45.000 Δ 5,2 Mio € Contribution margin 80 Mio € 40.000 80,6 Mio € Ist-costs 75 Mio € 35.000

70 Mio € 30.000

65 Mio € 25.000

60 Mio € 20.000

55 Mio € 51,6 Mio € 15.000

50 Mio € 10.000 30.032 29.667 30.935 30.323 29.880 32.129 32.372 32.630 32.789 32.999 33.044 33.772 Number of insurees 45 Mio € 5.000

400 Mio € - 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

* SVLFG estimated for 2016

29|11|2018 BRUGGE TOWARDS A FUTURE PROOF HEALTHCARE ECONOMY … and we create benefits in additional dimensions “quadruple aim”

GRAFIK / BILD GRAFIK / BILD GRAFIK / BILD

Doctors and other health care Securing provision of care in Company health management: providers benefit from higher communities and attractive We help companies keep their income and better cooperation. working conditions for employees employees healthy. of all health professions

The region is gaining in Gaining insights to improve Digital & Health Innovation Centre attractiveness for skilled workers healthcare (research on health for the assessment of innovations and young families. care provision) in health care (currently in development)

OptiMedis AG 26 From rural to urban ….

OptiMedis AG 27 INVEST Hamburg Billstedt/Horn – start January 2017

Aim: Building an integrated healthcare Ohlstedt 85 system in two socially disadvantaged

Poppenbüttel districts, characterized by high 87 79

75 84 Ohlsdorf unemployment, a large number of migrants Niendorf Markt 80 S1 Farm sen 79 U2

Hagenbecks Tierpark Kellinghusenstraße U1 and a lower physician density. 75 80 83 U3 78 Barmbek 83 Elbgaustraße

Rissen S3 78 Wandsbeker Chaussee

82 75 S1 84 72 78 U2 75 Horner Rennbahn : Bahnhof Altona Key motivation Berliner Tor 71 Billstedt

72 74 Mümmelmannsberg S21 • 13 year difference in age at death 77 - 74 Wilhelmsburg

S3 75 Neugraben • 10 year difference in onset of chronic disease 76

75 • Substantially higher health care costs because of overutilisation of hospital services.

OptiMedis AG 28 The walk-in clinic is a low-threshold and supportive institution for all health-related issues with the aim of improving population health through a needs-oriented, integrated and continuous healthcare provided in mother tongue by a multiprofessional team.

OptiMedis AG 29 Gröne, O., Pimperl, A., Hildebrandt, H. (2017). The Role of Integrated Care and Population Health. In K. Aase et al. (Hrsg), Researching Quality in Care Transitions – International Perspectives. Springer International Publishing. 259-279.

Gröne O., Pfaff H., Hildebrandt H. (2017). Germany: Scaling Up a Population-Based Integrated Healthcare System: The Case of “ Healthy Kinzigtal” in Germany. In: J. Braithwaite et al. (Hrsg.), Health Systems Improvement Across the Globe: Success Stories from 60 Countries. CRC Press. 167–174. Link

OptiMedis AG 30 Other partners/regions in Germany and Europe

Schweiz

OptiMedis AG 31 So bleiben wir in Kontakt Let‘s stay in touch Oliver Gröne, PhD MSc MA Vice Chairman of the Board [email protected]

OptiMedis AG Burchardstrasse 17 20095 Hamburg Office +49 40 226221490 www.optimedis.de

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