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Care redesign will aid in success of medical device companies in CJR model
CMS has established a support system for hospitals struggling in the CJR model.
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Medical device companies preparing for the Comprehensive Care for Joint Replacement bundled payment model have voiced several concerns on succeeding in this model.
“Some health care systems believe the best way to prepare for the [Comprehensive Care for Joint Replacement] CJR model is to acquire devices at a lower price,” Randy Kilburn, vice president of customer marketing and solutions for the medical device sector of Johnson & Johnson, told Orthopedics Today. “While that may yield some short-term savings, it most likely will not ensure success over the long term since the majority of the costs reside outside of the device cost.”
Industry concerns
Kilburn noted that although pricing is a short-term concern for industry, there are opportunities to work differently with health systems to succeed under the CJR model and help reshape episodes of care.
“Developing new value-based partnerships with orthopedic companies has the potential to yield greater savings over the long term vs. the traditional transactional relationship,” he said.
Christine Maroulis, senior director for health policy and reimbursement for the medical device sector of Johnson & Johnson, said hospitals that dropped out of the Bundled Payments for Care Improvement (BPCI) initiative often did not perform a care redesign, which is an important step for success.
“Several hospitals did not change their pathway; they did not try and get surgical alignment; they went after what they know how to control, which is cost; and it is difficult to thrive in that model,” Maroulis said. “You might survive, but you will not thrive.”
Physicians, hospitals and medical device companies still struggling in the BPCI initiative or the CJR model can also utilize the support system established by CMS for participant success.
“The CJR model has implemented a support system to facilitate participant hospitals’ success in the model,” a CMS spokesperson told Orthopedics Today. “These supports include, but are not limited to, webinars, outreach and education efforts, frequently asked questions documents, support inboxes, a chat forum for participant hospitals to share best practices and a collaborative website for participant hospitals.”
Advice for industry
As there are no signs that bundled payment or payment reform models are going away, Kilburn noted medical device companies should partner differently with health care system customers to be successful as an industry.
“To be successful in the new model, industry will need to help health care systems manage costs, improve outcomes and increase patient satisfaction across the entire episode, along with providing the best product” he said.
Maroulis said medical device companies should challenge themselves in each phase of developing and selling a new device. She noted the value of the product should be articulated at all levels of the organization.
“Everybody needs to work together and, at least from our perspective, that is a welcome change,” Maroulis said. “It has been exciting to partner differently with our customers and see what derives from that partnership.” – by Casey Tingle
- For more information:
- Randy Kilburn and Christine Maroulis can be reached at DePuy Synthes Companies, 325 Paramount Dr., Raynham, MA 02767; email: jwerthe1@its.jnj.com.
Disclosures: Kilburn and Maroulis report they are employees of Johnson & Johnson.