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The Innovation Center: How Much Can It Improve Quality and Reduce Costs – and How Quickly?

Monday, July 18, 2011

The Patient Protection and Affordable Care Act (ACA) authorized the creation of the Center for Medicare and Medicaid Innovation (CMMI) under the Centers for Medicare & Medicaid Services. CMMI seeks to test innovative health care payment and service delivery models that can potentially enhance quality of care for beneficiaries while reducing costs. From 2011 to 2019, the ACA provides $10 billion in funding to support the Innovation Center’s goals.

As CMMI collaborates with various stakeholders across the health care system to develop new models of care, challenges may arise involving the limited timeframe for the agency to perform its work, the need to pursue existing innovations while aligning them with the proper evidentiary support, and decisions about trying to replicate local innovations nationally. Also key is ensuring accountability throughout the process.

How is CMMI planning to administer its $10 billion in funding? What early projects is the center undertaking? Is there private sector evidence that CMMI’s goals can be achieved? What will happen to existing innovations now being rolled out by providers and hospitals? What are key factors in deciding what community-based innovations will be replicated across the country?

To address these and related questions, the Alliance for Health Reform and The Commonwealth Fund sponsored a July 18 briefing.

Panelists were: Peter Lee, Center for Medicare and Medicaid Innovation; Marsha Gold, Mathematica Policy Research; Paul Wallace, The Lewin Group; and Tim Ferris, Partners/MGH Institute for Health Policy. Stuart Guterman of Commonwealth and Ed Howard of the Alliance co-moderated.


 Stuart Guterman, The Commonwealth Fund, Moderator
 Peter Lee, Center for Medicare and Medicaid Innovation, Speaker
 Marsha Gold, Mathematica Policy Research, Speaker
 Paul Wallace, The Lewin Group, Speaker
 Tim Ferris, Partners/MGH Institute for Health Policy, Speaker
(Click on the camera icon to see a video of the speaker's presentation.)

Transcript, Event Summary and/or Webcast and Podcast

Transcript: Transcript (Adobe Acrobat PDF), 7/18/2011
Full Webcast/Podcast: The Innovation Center: How Much Can It Improve Quality and Reduce Costs – and How Quickly?

The full webcast and podcast for this briefing, as well as videos of individual speakers' presentations, are provided by Kaiser Family Foundation.

Speaker Presentations

Stuart Guterman Presentation (PowerPoint), 7/18/2011
Marsha Gold Presentation (PowerPoint), 7/18/2011
Paul Wallace Presentation (PowerPoint), 7/18/2011
Tim Ferris Presentation (PowerPoint), 7/18/2011

(If you want to download one or more slides from these presentations, contact us at info@allhealth or click here for instructions.)

Source Materials

Materials List: The Innovation Center: How Much Can It Improve Quality and Reduce Costs – and How Quickly? (Adobe Acrobat PDF), , 7/18/2011
Source List: The Innovation Center: How Much Can It Improve Quality and Reduce Costs – and How Quickly? (Adobe Acrobat PDF), Alliance for Health Reform, 7/18/2011
Agenda (Adobe Acrobat PDF), , 7/18/2011
Speaker Biographies (Adobe Acrobat PDF), , 7/18/2011

Offsite Materials (briefing documents saved on other websites)

Lessons for the New CMS Innovation Center from the Medicare Health Support Program, Health Affairs, 7/1/2010
- Barr, Michael S., et al.
Memo to Innovation Center: ‘We’re so Glad you’re Here, Health Affairs, 1/1/2011
- Dentzer, Susan
Is Medicare Really Capable of Innovation?, The ACP Advocate Blog, 6/2/2011
- Doherty, Bob.
Identifying, Monitoring, and Assessing Promising Innovations: Using Evaluation to Support Rapid-Cycle Change, The Commonwealth Fund, 6/1/2011
- Gold, Marsha, et al.
Accountable Care organizations: The End of Innovation in Medicine (Adobe Acrobat PDF),American Enterprise Institute for Policy Research, 2/1/2011
- Gottlieb, Scott
Innovation in Medicare and Medicaid Will Be Central to Health Reform’s Success, Health Affairs, 6/1/2010
- Guterman, Stuart, et al
Developing Innovative Payment Approaches: Finding the Path to High Performance (Adobe Acrobat PDF),The Commonwealth Fund, 6/1/2010
- Guterman, Stuart and Heather Drake
Innovation Profile: Patient- and Family-Centered Care Initiative is Associated with High Patient Satisfaction and Positive Outcomes For Total Joint Replacement Patients, AHRQ Healthcare Innovations Exchange, 7/21/2010
Medicare Innovation: Whose Priorities, Whose Interests?, Health Affairs Blog, 7/14/2010
- Levine, Carol
Medicare’s Opportunity to Encourage Innovation in Health Care Delivery, New England Journal of Medicine, 3/4/2010
- Mechanic, Robert and Stuart Altman
NAPH Members Focus on Reducing Readmissions (Adobe Acrobat PDF),National Association of Public Hospitals and Health Systems Data Brief, 6/1/2011
Patient Protection and Affordable Care Act (Excerpts), , 3/23/2010
- Public Law 111-148, Sec. 3021/1115A
Consumer Risks Feared as Health Law Spurs Mergers, The New York Times, 11/20/2011
- Pear, Robert
A Model Health Care Delivery System for Medicaid, New England Journal of Medicine, 6/30/2011
- Rieselbach, Richard E. and Arthur L. Kellermann
The Delivery System Reform Incentive Program: Transforming Care across Public Hospital Systems (Adobe Acrobat PDF),California Association of Public Hospitals and Health Systems Policy Brief, 6/16/2011
Delivery System Reform Tracking: A Framework for Understanding Change, The Commonwealth Fund, 6/2/2011
- Tollen, Laura, et al.
Up to $500 Million in Affordable Care Act Funding Will Help Health Providers Improve Care (Adobe Acrobat PDF),HHS, 6/22/2011
- HHS News Release


Stuart Guterman of The Commonwealth Fund outlines new models of care and payment to be tested by the Center for Medicare and Medicaid Innovation. From the July 18 briefing cosponsored by the Fund. (9 min.)

Marsha Gold of Mathematica Policy Research discusses what constitutes a promising innovation in health care delivery or payment. From the July 18 briefing on the new Center for Medicare and Medicaid Innovation cosponsored by The Commonwealth Fund. (12 min.)

Paul Wallace, MD, of the Lewin Center for Comparative Effectiveness Research contrasts innovations aimed at individuals with those aimed at the whole health care system. From the July 18 briefing on the new Center for Medicare and Medicaid Innovation cosponsored by The Commonwealth Fund. (13 min.)

Tim Ferris, MD, of the Massachusetts General Physicians Organization explains why it's important to move from managing individual patient encounters to managing the health of whole populations. From the July 18 briefing cosponsored by The Commonwealth Fund. (12 min.)

Peter Lee of the new Center for Medicare and Medicaid Innovation describes how his agency works and how it sets priorities. From the July 18 briefing on the center cosponsored by The Commonwealth Fund. (20 min.)


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