Advocate Aurora Health is the result of a recently completed merger. We chatted with their chief strategy officer about how that went, the role of the provider and what’s on the horizon for the system.
We have a variety of integration strategies that will enable improvements in the patient experience. Among the most important of these is the rollout of a single instance of EPIC [an electronic health record system] across our entire enterprise, which will dramatically enhance our ability to coordinate care and create a seamless experience for patients across our system. We already have a single instance of EPIC across our entire delivery system in Wisconsin. We implemented EPIC in our Illinois medical group at the end of 2018 and will be launching the rollout of our Illinois hospitals later this year. We have also begun implementing several digital strategies on an integrated basis across the system, which will positively impact the patient experience.
One of the key differentiators for Advocate Aurora Health is our track record and expertise in value-based care. On a combined basis, our organization serves nearly 1.5 million lives in value-based contracts. Roughly 400,000 of these are reimbursed on a capitated basis for which AAH has significant or full financial risk. As a result, we’ve built significant infrastructure and capabilities to effectively perform in a value-based environment.
These capabilities provide a platform for further expanding our value-based footprint and align incentives across our system to address all of the health needs of our patients, not just their sick care needs on an episodic basis.
With respect to value-based care, we have been working hard to deploy the complementary capabilities of the legacy organizations across our combined markets. For example, legacy Advocate had a leading post-acute network management program that is now being deployed in Wisconsin. This is one of the key ingredients to performing well in value-based care, particularly related to Medicare. Simultaneously, we are deploying legacy Aurora’s capabilities in direct-to-employer contracting in the Illinois market.
Advocate Aurora Health is one of the national leaders in value-based care and has experience with virtually every payment model through the work of the legacy organizations. We have multiple shared savings arrangements through the Medicare program and with commercial payers; we participate in the bundled payment program; and we have partial and full capitation contracts.
In addition to maximizing our supply chain/procurement strategies to lower the cost of prescription drugs, we put significant effort into ensuring that we use generic drugs whenever possible. We track our generic prescribing rates closely and work with physicians to educate when we see gaps in our performance.