Employers increasingly see wellness programs as effective ways to reduce the money they spend on health benefits. Health insurers are responding to these employer needs by launching wellness programs aimed at better prevention and disease management.
Such wellness programs often have two dimensions. First, most wellness programs encourage beneficiaries to utilize healthcare in a proactive mode. Beneficiaries are encouraged to receive regular medical check ups, along with preventive tests or screenings consistent with “best practice” protocols by age, gender and health status. This creates an opportunity for medical laboratories to develop services that can add value to the wellness programs offered by employers and health insurers. The second dimension involves efforts to improve lifestyles. Smoking cessation support, encouraging more exercise, and helping people lose weight are examples.
Over at Wellpoint, the nation’s largest health insurer, its regional subsidiary plans rolled out a wellness program called “360o Health.” This program bundles health and wellness programs together for employers. It includes Web-based health support and nurse counseling via phone. Online tools remind members when they’re due for routine tests and checkups or provide tips, such as recommendations on how to obtain less expensive medication options.
Wellpoint, which has 34 million members nationwide, also launched an assessment tool to gauge the program’s success. Its Member Health Index measures success of the WellPoint program in 20 clinical areas, including prevention, screening, care management and patient safety.
WellPoint, which tied its employee bonus structure to patient participation, reports it quickly realized a two-for-one return on its investment in the program, including a 10% reduction in hospital stays, according to a report byModern Healthcare.
A recent survey of 350 employers by PriceWaterhouseCoopers indicated that just 15% of employees currently participate in wellness programs. Employers surveyed were most interested in programs that help employees lose weight, eat healthy, and reduce stress. They say their employees would be more likely to participate if offered incentives like premium reductions or gift cards.
Over at UnitedHealth Group, its OptumHealth subsidiary launched a project that compiles and analyses medical, pharmacy, behavioral health and laboratory data from claims, employer data and other sources. The goal is to use this information to identify the wellness needs of individual members based on health status. The company says its E-Synch Platform allows staff to take a personal approach to wellness, tailoring services to meet individual needs, and health goals.
Clinical lab managers and pathologists should recognize the market shift taking place as more employers and health plans jump on the wellness trend. This is a definite shift in clinical priorities and will require a different type of service support and test menu for laboratories and pathology groups. Patients in wellness programs need appropriate laboratory tests for screening different diseases and for predicting the patient’s likelihood to develop a chronic disease. This is a different emphasis for lab testing than, say, the 1980s, when most patients went to the doctor only after they felt sick.
American employers, faced with the rising costs of insuring their employees, are turning to on-site health and wellness clinics to improve employee health, boost employee productivity, and reduce their costs. When Cerner Corporation (NASDAQ: CERN) told the story of its health and wellness clinic at its main corporate campus in Kansas City, it was a rapt audience at the Executive War College in Miami last May. Bill Wing, Cerner’s Vice President for Health-E Services, shared the many ways that Cerner was improving the health of its employees while reducing the overall cost of health benefits. This is achieved by getting involved with their employees’ health at an earlier stage, and encouraging preventative screenings and wellness programs.
On-site clinics at corporate campuses may offer a wide range of services, from primary care to travel medicine, to nutrition counseling. Preventative services, such as health screenings and immunizations, are the most common type of service offered in the latest wave of clinics, according to a recent survey by Watson Wyatt and the National Business Group on Health. They report that four in 10 clinics offer pharmacy services, making it easy for employees to fill their prescriptions.
Most on-site clinics are run by third parties due to privacy concerns of employees. Major players offering these services include CHD Meridian Healthcare LLC and Whole Health Management. These clinics may be staffed by physicians, nurse practitioners, or registered nurses in isolation or in teams.
Harrah’s Entertainment recently added a 7,000 square foot clinic offering acute and primary care services, nutritional counseling, and physiotherapy-all located on the floor above a 12,000 square foot gym. “We recognized that there was going to come a point where we couldn’t pass on the additional cost of providing health care to employees,” said Jeff Shovlin, Vice President of benefits at Harrah’s. “We concluded that the only way to control costs was by helping employees to get and stay healthy.”
Employees who use these corporate on-site clinics frequently get in faster and spend more time talking to their practitioner. Practitioners have the opportunity to explain the importance of preventative medicine. Within one year, Harrah’s has seen a 13% increase in the number of people getting colonoscopies, because of how practitioners at the new clinic raised awareness about the importance of the screenings (which are provided free under their health plan).
David Beech, a senior health management consultant and Hewitt Associates, Inc, said a clinic serving about 1,000 employees-usually considered a minimum number for critical mass-can expect to make hard-dollar savings of $70,000 in the first year, mainly because of fewer visits to the ER and self-referrals to outside specialists. These savings can rise to $250,000 annually by the third year, when preventative savings kick in. Productivity also gets a boost because workers spend more time on the job. Sick days dropped over 20% in 12 months when Regis Corp., to serve its 800 employees, opened two clinics staffed by a nurse practitioner.
Preventative medicine is good business for clinical laboratories that run routine blood work. It is an opportunity for local laboratories to approach corporations operating on-site health care facilities in their area and tailor a custom package of added-value services for that company. Labs might offer to staff the clinic with phlebotomists on a certain day of the week for routine blood draws for preventative blood tests. Laboratories should be creative in how they establish relationships with corporate on-site clinics.
Walmart may be the largest, but it is not the only retailer offering clinical laboratory testing and primary care services at conveniently-located retail stores
Earlier this month in “How Walmart Plans to Take Over Health Care,” CNBC asked, “Is Walmart the future of healthcare?” Good question. In the midst of the COVID-19 pandemic, Walmart (NYSE:WMT) managed to open six Walmart Health locations in Georgia and Arkansas. In addition, the giant retailer announced plans to open more primary care clinics at Walmart Supercenters in Chicago and Florida.
Clinical laboratory managers who struggle to keep revenues flowing should take notice. These retail clinics may not have their own medical laboratories, but their primary care physicians will be generating lab specimens.
And because Walmart offers medical laboratory tests at these locations, with so many people opting to visit health clinics installed within retail stores, independent clinical labs could see a noticeable drop in business as Walmart Health expands its network across the US.
Therefore, clinical labs near Walmart Health locations would be wise to develop strategies and services toward becoming a lab test provider to these retail clinics.
Walmart Health Eyes Florida Primary Care Market
“The past few months in particular have exposed the vulnerabilities of our healthcare system and left many without access to adequate health resources,” said Lori Flees, Senior Vice President and Chief Operating Officer, Walmart US Health and Wellness, in a blog post. “We know our customers need us more than ever, which is why we’re announcing an expansion of Walmart Health.
“We’re planning to open seven Walmart Health locations in the Jacksonville [Florida] market in 2021, with at least one opening in early 2021, and we’re beginning conversations in the Orlando and Tampa markets. Our new health centers will be in communities in need of affordable, accessible preventive care, which we will help deliver through Walmart Health,” Flees wrote.
Walmart could be operating 22 Walmart Health locations like that shown above in Georgia, Florida, Arkansas, and Illinois by the end of 2021, Fierce Healthcare reported. This means Walmart Health may double its locations by the end of this year. Clinical laboratories near these locations may want to reach out and offer lab testing services to these retail clinics. Notice that, in the picture of the exterior of a Walmart Health clinic, “Labs” is a service that is prominently displayed as one of the important clinical services offered at that site. (Photo copyright: Walmart.)
Can Clinical Laboratories Compete or Collaborate with Walmart?
A news release announcing the opening of the Walmart Health Centers in Chicago stated that Walmart Health partners with “local, on-the-ground health providers to deliver primary care, labs, x-ray and diagnostics, counseling, dental, and hearing services all in one facility at transparent pricing regardless of a patient’s insurance status.”
However, clinical laboratories wanting to be a testing provider to Walmart Health may have to keep their costs of tests and services down in order to be competitive.
Walmart Health’s “Summary Price List” provides a complete list of medical laboratory tests and services offered at the retail clinics.
Other Primary Care Disruptors
Walmart is not the only retailer offering primary care services amid the COVID-19 pandemic.
Walgreens Boots Alliance (NASDAQ:WBA) partnered with VillageMD, a provider of primary care services, to open 500-700 “Village Medical at Walgreens” primary care clinics “in more than 30 US markets in the next five years, with the intent to build hundreds more thereafter,” according to a news release.
By end of summer 2021, 40 “Village Medical at Walgreens” primary care sites (above) are expected to open in Texas, Arizona, and Florida, according to a January 2021 news release. Walgreens is investing $1 billion over three years in the clinics, which will be situated near its stores. “Through these conveniently located clinics at our neighborhood stores, we will uniquely integrate the pharmacist as a critical member of VillageMD’s multi-disciplinary care team to provide patients with personalized and coordinated care,” said Stefano Pessina, Walgreens Executive Vice Chairman and CEO, in the news release. (Photo copyright: Walgreens Boots Alliance.)
Clinical laboratory managers and pathologists will want to be on the alert for opportunities to forge relationships with Walmart Health, Walgreens, and CVS Health to capture new primary care-related testing business coming out of these non-traditional healthcare providers.
Patients in health systems that use the Cerner EHR can now track and share specific health metrics with their healthcare providers
In what may be first steps toward becoming a full-service digital healthcare platform, Health information technology (HIT) developer Cerner (NASDAQ:CERN) is partnering with Amazon (NASDAQ:AMZN) to bring cloud-based health tracking services to its EHR customers. People who use Amazon’s Halo service—which includes a wristband device and smartphone app to monitor specific health metrics—can now import that data directly into Cerner electronic health record (EHR) systems for sharing with healthcare providers.
This may turn out to be a pioneering effort by one of the nation’s major providers of EHR systems to pull in useful health data from a variety of non-traditional sources and incorporate them into a patient’s electronic health record. Cerner has a major market share of EHR systems (exceeded only by Epic) and has a laboratory information system (LIS) that is used by many clinical laboratories.
For this fact alone, strategic planners at medical laboratories and anatomic pathology groups should follow this development. That is particularly true of those labs operated by hospitals and health systems that decide to add this new feature to their existing Cerner EHR. If data is flowing into the EHR from patients’ Amazon Halo service, for example, it is not a big leap to imagine that clinical lab test data from the patients’ EHRs might later flow back to the Halo service where it would be instantly accessible to those patients.
This collaboration, according to a Cerner press release, “allows consumers to easily connect vital health and well-being information with their broader healthcare teams. … Historically this type of data has been siloed or difficult to obtain. Wearable technology, such as the Amazon Halo, can help achieve greater interoperability across healthcare when integrated directly into a patient’s electronic health record (EHR).”
Cerner’s integration of the Amazon Halo Band and smartphone app (above) into its electronic health record (EHR) system allows users to share collected healthcare metrics with doctors in health systems that use the Cerner EHR. How long will it be before clinical laboratories that use Cerner’s laboratory information systems (LIS) will be able to incorporate similar metrics into their LIS as well? (Photo copyright: Amazon.)
Using Artificial Intelligence to Empower Healthcare Consumers
The Halo wristband, along with its accompanying smartphone app, “combines a suite of AI-powered health features that provide actionable insights into overall wellness … [and] uses multiple advanced sensors to provide the highly accurate information necessary to power Halo,” an Amazon press release states.
Data collected by Amazon Halo that are now importable into Cerner EHRs, according to the press release, include:
Activity: Informed by American Heart Association physical activity guidelines and the latest medical research, Amazon Halo awards points based on the intensity and duration of movement, not just the number of steps taken.
Sleep: Amazon Halo uses motion, heart rate, and temperature to measure time asleep and time awake; time spent in the various phases of sleep including deep, light, and REM; and skin temperature while sleeping.
Body: Amazon Halo lets customers measure their body fat percentage from the comfort and privacy of their own home, making this important information easily accessible.
Tone: This feature uses machine learning to analyze energy and positivity in a customer’s voice so they can better understand how they may sound to others, helping improve their communication and relationships.
Labs: Amazon Halo Labs are science-backed challenges, experiments, and workouts that allow customers to discover what works best for them specifically, so they can build healthier habits.
Leveraging Patient Generated Health Data
In the Cerner press release, David Bradshaw, Senior Vice President of Consumer and Employer Solutions at Cerner, said, “The healthcare industry is undergoing a digital revolution, where physicians are increasingly looking to leverage patient-generated health data to help keep them healthier and out of the doctor’s office.
“Our work with Amazon Halo,” he continued, “highlights the importance of using artificial intelligence and other leading-edge technologies to accelerate healthcare innovation and improve health outcomes. Cerner is focused on continuing to lead a wave of breakthrough innovation, and this integration with Amazon Halo is a step toward this goal.”
The first healthcare provider to offer the Amazon Halo service to its Cerner EHR users is Sharp HealthCare of San Diego. Some Sharp Health Plan members will participate in wellness programs and eventually have the option to link their Sharp and Halo data directly into the healthcare system’s Cerner EHR.
Sharp HealthCare includes 2,600 physicians, four acute care facilities, and three specialty hospitals.
“Technology is revolutionizing the way we care for patients and how consumers care for themselves, and at Sharp we strive to embrace innovative ways to leverage leading technology to engage consumers in managing their health,” said Michael Reagin, SVP and Chief Information and Innovation Officer at Sharp HealthCare, in the Cerner press release.
“With more relevant information at their fingertips, our populations will be empowered to make more informed decisions about the health and well-being of themselves and the communities they serve,” he added. “We are pleased to work with Cerner and Amazon Halo to offer our members, patients, and clinicians an opportunity to have a more connected health record.”
Cerner Expanding to Include Population Health and Precision Medicine
Cerner may be evolving toward a cloud-based platform that pulls in data from hospital and doctors’ office EHRs—as well as data gather by wearable devices—and uses that information for population health and precision medicine analysis to guide healthcare providers.
Last year, Cerner announced a collaboration with the Amazon Web Services (AWS) cloud platform, reportedly in an effort to pivot beyond its traditional health records business.
“Moving forward, I think Cerner will look more like a health platform company and less like an EHR company,” Dan Devers, SVP, Cloud Strategy, and Chief IP Officer at Cerner, told Fierce Healthcare. “As you play out the trend in healthcare, I see Cerner very much operating at the health network level—so beyond the enterprise of a single health system. Given the power of the cloud and the work we’re doing, I see Cerner having much more relevance into broader networks and providing nationwide capabilities.”
Cerner is aiming to provide consumers with more power regarding their own healthcare by equipping them with easy, fast, and efficient methods to access their personal information and provide healthcare professionals with useful data about individual patients.
Given the value and importance of clinical laboratory data, innovative lab managers should strive to be aware of collaborations like the one between Cerner and Amazon Halo. Remaining alert for opportunities to participate in these types of arrangements could provide labs with added revenue streams and inventive ways to offer customers value-added services.
A former officer of a Cigna contractor claims the insurer hatched a scheme to submit invalid diagnostic codes and filed the now-unsealed qui tam action in 2017
In a case that could provide a cautionary tale for clinical laboratories, a federal whistleblower lawsuit alleges that Cigna, through its HealthSpring subsidiary, “received billions in overpayments from the federal government” in a scheme involving the insurer’s Medicare Advantage plans. The Qui tam (whistleblower) lawsuit was filed by Robert A. Cutler, a former officer of Cigna contractor Texas Health Management LLC (THM), under the federal False Claims Act.
Cutler alleged that “Cigna-HealthSpring has knowingly defrauded the United States through an intentional and systematic pattern and practice of submitting to CMS invalid diagnosis codes derived from in-home health assessments.” He claimed this took place “from at least 2012 until at least 2017,” and likely thereafter.
Cigna has denied the allegations. “We are proud of our industry-leading Medicare Advantage program and the manner in which we conduct our business,” the insurer stated in an email to HealthPayerIntelligence. “We will vigorously defend Cigna against all unjustified allegations,” Cigna stated.
As the lawsuit explains, Medicare Advantage (MA) plans are administered by private insurers under Medicare Part C. “Rather than pay providers directly based on the medical services provided, Medicare Part C pays MA Organizations a monthly capitated rate for each covered beneficiary, and tasks the MA Plan with paying providers for services rendered to plan members,” the lawsuit states. “MA insurers are generally paid more for providing benefits to beneficiaries with higher-risk scores—generally older and sicker people—and less for beneficiaries with lower-risk scores, who tend to be younger and healthier.”
The lawsuit notes that CMS relies on information—specifically ICD codes—from the insurers to calculate the risk scores.
Cigna’s 360 Program as Described in Lawsuit
Cutler alleged that Cigna defrauded CMS through its “360 Program,” in which primary care providers (PCPs) were encouraged to perform enhanced annual wellness visits that included routine physical exams. He claimed that “Cigna-HealthSpring designed the program so that, in practice, the 360 assessment was a mere data-gathering exercise used to improperly record lucrative diagnoses to fraudulently raise risk scores and increase payments from CMS.”
Cigna-HealthSpring, he alleged in the court documents, offered PCPs financial bonuses to perform the 360 program exams, especially on patients deemed most likely to yield high-risk scores. However, many clinicians declined, so the insurer recruited third-party contract providers, including THM, to send nurse practitioners (NPs) or registered nurses (RNs) to the homes of MA plan members.
For each visit, the NPs and RNs were given health reports listing the beneficiary’s previous diagnoses. “Cigna-HealthSpring intended the document to serve as a ‘cheat-sheet’ list of conditions and diagnoses it expected 360 contractors to capture during the in-home visit,” Cutler alleges. “The list of diagnoses did not indicate the date they were reported or any other information concerning their status.”
During each visit, which typically lasted 30-60 minutes, “NPs and RNs relied primarily on the patient’s self-assessment, i.e., subjectively reported information, as well as current medications to the extent available and, during certain time periods and for certain plan members, limited [clinical] laboratory findings,” Cutler alleged.
NPs were expected to record 20 or more diagnoses per visit, he wrote, including diagnoses based on “weak links” involving medications. “For example, Cigna-HealthSpring encouraged contractors to record atrial fibrillation, deep vein thrombosis, and pulmonary embolus based on the presence of certain classes of anti-coagulation medications on members’ medication lists or in their homes,” he stated.
He also alleged that “Cigna-HealthSpring, in purposeful violation of CMS rules, designed its 360 form to force NPs to capture diagnoses that were uncertain, probable, or merely suspected.”
These diagnoses were subsequently submitted as risk-adjustment data to CMS, he alleged, adding up to “hundreds of thousands of false claims from its six contractors during the relevant period. Although the exact amount will be proven at trial, the United States has paid billions of dollars in improper, inflated payments to Defendants under the MA Plan as a result of this scheme.”
The graphic above is taken from an AARP article, titled, “Medicare Under Assault from Fraudsters,” which states, “The amount of tax dollars that are lost each year to Medicare fraud and waste is greater than the entire annual budget of some of the federal government’s most important programs and departments.” Clinical laboratories also are in danger of being drawn into the federal government’s fraud investigations which can be disruptive to business and revenues. (Graphic copyright: AARP.)
The Federal False Claims Act “allows a private citizen to step into the shoes of and pursue a claim on behalf of the government,” explained the Boyers Law Group of Coral Gables, Fla., in an article for HG.org, which states, the lawsuit “may proceed with or without the assistance of the government.”
If the government chooses to intervene, the whistleblower, known formally as the “relator,” can receive 15% to 25% of the proceeds recovered in the action, the law firm explained in another article for HG.org, adding that, in most cases, the government does not intervene, which increases the potential award to 30%.
In the Cigna case, the US Attorney’s office notified the court on Feb. 25, 2020, that the government had decided not to intervene “at this time.”
Significance for Clinical Laboratories
Regardless of how this case proceeds, medical laboratory managers should remember that they are subject to legal action if internal whistleblowers identify policies or procedures that violate federal fraud and abuse laws. And because it involves coding, it is also a reminder of the importance of documenting diagnoses and clinical laboratory test orders as protection against fraud allegations.
Another benefit of carefully documenting each lab test order is that labs can make the information available when auditors from government or private payers show up and want documentation on the medical necessity of each lab test claim.
