May 20—The Oregon Health Authority has issued its first quarterly report that sets benchmarks for key health and financial metrics for the Oregon Health Plan. Data in the report will allow Oregon to examine progress toward reducing the trend of state Medicaid spending by 2 percent by the end of 2014.

The quarterly reports are designed to measure the progress the state’s 15 coordinated care organizations (CCOs) are making on a local level to transform the healthcare delivery system to bring higher-quality care to Oregonians at lower cost, according to the report. CCOs are a variant of affordable care organizations. 

This first report, Oregon’s Health System Transformation Quarterly Progress Report, provides baseline data from 2011, before the state’s CCOs were started, and compares the data with benchmarks for each metric. Future quarterly reports will show changes over time on 17 CCO incentive metrics and 16 additional state performance metrics. The goal is to close the gap between all baselines and benchmarks with 10 years, according to a release.

HFMA Analysis: If Oregon’s experiment using CCOs for the Medicaid population is shown to reduce cost while maintaining or improving quality, HFMA would expect that other states will emulate it to align incentives between payers and providers to reduce cost and improve quality outcomes. Under this model, in addition to deploying medical homes and other traditional interventions to manage high-risk populations, the CCOs will incorporate “nontraditional healthcare workers” (e.g., personal health navigators and community health workers) to address socioeconomic barriers to improved quality.

Publication Date: Monday, May 20, 2013