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Aaron Lambert (CEO and President, Healthy Blue Louisiana)

Aaron Lambert

CEO and President, Healthy Blue Louisiana

BIO

Aaron is a high-performing healthcare executive with 14 years of health care and 12 years of managed care experience focused on building and delivering high quality operations and solutions to meet the needs of State Medicaid programs. Experience includes serving in Senior Leadership positions across regional and state health plan settings with a focus on Medicaid programs such as TANF, CHIP, ABD, and Foster Care. Has held externally-driven roles with highly accountable responsibilities which included leading the Health Plan’s efforts to improve the administrative experience across a network of primary care providers, specialists, ancillaries, and hospitals, as well as implementing several state initiatives designed to improve program experience. Experienced collaborator and leader in new procurement and re-procurement activities.

The Interview

Q1: Looking back on the last 90 days, what issues have you been focused on the most? Do you think your peers (leaders in other MCOs) have been focused on similar issues?

Hepatitis C Elimination Efforts

2019 has certainly been a year of transformation in the state of Louisiana’s Medicaid program, known as “Healthy Louisiana”. One of the most notable changes this year was the launch of the Louisiana Department of Health’s (LDH) Hepatitis C Elimination program. Using a “Netflix style” subscription agreement with Asegua Therapeutics, LDH will be able provide an unrestricted supply of Asegua’s generic version of EPCLUSA® to the Medicaid and corrections program in an effort to cure this deadly disease and prevent long-term illness and disability.

As a Medicaid managed care organization participating in the Healthy Louisiana program, Healthy Blue is fully supportive and committed to LDH’s hepatitis C elimination efforts. Over the last 90 days, most of our work has been in aligning ourselves to best support this effort by partnering with health care providers to expand screening of high-risk populations and expedite the hepatitis C treatment process.

Healthy Blue’s Red Ribbon Provider Program will ensure our network of PCPs who treat HIV and hepatitis C have access to the tools and training they need to be successful in managing and treating these patients.  After providers complete a comprehensive educational curriculum that covers all aspects of hepatitis C screening and treatment, provided by Access Health AIDS Education and Training Center, providers can earn a special recognition as experts in these fields.  They receive an incentive for their participation and Healthy Blue will provide them with a special designation in our provider directory.  Even after their training, these providers will continue to get support from this program, such as access to an infectious disease specialist for consultation if needed.  Our goal is to increase the number of PCPs and other providers who will open up their practices to treat patients with hepatitis C, thus improving access to treatment that is much needed across the state and supporting LDH’s hepatitis C elimination efforts

Value-Based Care Focused on SDoH

Value-based care is an important part of our strategy in Louisiana. We are thrilled that nearly 52% of our total medical spend is to provider groups who are under contract with Healthy Blue to participate in a value-based payment (VBP) incentive program. We recognize that we must continue to evolve our VBP programs to meet the needs of our providers and ensure there is continued alignment to our quality and member outcome goals.

Over the last 90 days, closing out 2019 and gearing up for the new year, Healthy Blue developed and designed a new provider incentive program that aims to increase screening for social determinates of health (SDOH) factors. Launching in 2020, Healthy Blue now offers a Social Determinants of Health Provider Incentive Program (SDOHPIP)

SDOHPIP will offer incentives to Providers who: (1) screen members for SDOH needs, (2) submit appropriate SDOH-related diagnosis codes on their claims, (3) refer members to relevant community-based organizations (CBOs) and (4) update the status of those referrals to indicate that a member attended that appointment. We are excited about adding SDOHPIP to our portfolio of value-based incentive arrangements and look forward to our efforts to identify and address the social needs of our members.

Q2: Looking ahead for the next 90 days, what do you think the most pressing issues will be?

Non-Emergent Medical Transportation

It goes without saying that access to care for our Medicaid population is paramount to improving outcomes and quality. A large driver (no pun intended) in creating access to care is the role non-emergent medical transportation (NEMT) plays in our state Medicaid program. With NEMT being such a lynch pin to access to care for this population, much of our work over the next 90 days will focus on the NEMT ecosystem. This ecosystem includes NEMT providers and brokers, along with legislation and policy that can potentially confine or constrain a high-performing NEMT system.

I feel the optimal NEMT ecosystem must include the following: (1) NEMT brokers that not only have a robust network of NEMT drivers, but deploy the use of technology and innovation to optimize ride-routes and monitor the patient safety delivery aspect of NEMT transport from pickup to delivery and then back to the originating pickup site; (2) insurance and policy requirements that find the balance of ensuring drivers are appropriately licensed, credentialed, and insured but does not place an undue financial burden on drivers to the extent that they cannot afford to participate in the NEMT program; and (3) forward-thinking policy and legislation that supports the use of ride-share to augment and compliment the NEMT systems. I think states such as Tennessee and Arizona are leading the way in this space and can provide the playbook for us in Louisiana.

Administrative Simplication

Over the next 90 days, we will be working with legislators and policy makers to either modify or introduce legislation that allows our managed care programs to be more flexible and innovative with our reimbursement strategies, medical policies and clinical criteria so that we can fully uphold our value proposition to the state. At the same time, we must find common and unified approaches for payors and providers to advance administrative simplification efforts in areas where we can improve efficiency, eliminate waste, and alleviate undue administrative burden.

I’ve spent my career on the payor side working with providers to help reduce and/or eliminate administrative burden and increase administrative simplification. I’ve been part of and observed the mutual benefits of moving toward centralized credentialing verification organizations, common and shared pre-authorization request portals, and single preferred drug lists among payors, all of which have greatly contributed to higher levels of efficiency and administrative simplication. However, there is always more work we can do.

I fundamentally believe that managed care organizations (payors) and hospital and health systems (providers) have far more in common and are more greatly aligned than what industry norms lead us to believe. We are both in the business of creating and delivering access to affordable health care and we must work together, alongside one another, to achieve our organizational missions and value-propositions. Collectively, we can find mutually beneficial and agreed upon policy and administrative standards within our Medicaid program that aim to address administrative simplification and allow us to focus more on patient care, access to care, and quality.

Q3: What advice would you give to your peers about managing vendor partner relationships?

Just like any relationship, it’s about give and take. It’s about holding each other accountable. It’s about finding common ground and aligning the interests of the two parties to mutually achieve shared outcome goals and objectives. Additionally, relationships that are not cultivated or invested in eventually fall apart. So, it’s incredibly important to work at managing your vendor partner relationships – just as you would with your state or provider partnerships.

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Executive Summary (Q4_2019)

Thought Leader Interviews

Aaron Lambert of Healthy Blue Louisiana gives his thoughts on the transformation of LA’s Medicaid program and provides insights on NEMT and administrative simplification. 

Bruce Crosby of Health Velocity Capital weighs in on the impact of politics on the investment outlook, provides details on CareBridge (LTSS space), and the need for deep domain expertise to succeed in Medicaid vertical investing. 

Medicaid Health Plan Financial Performance

The markets responded to the Wellcare-Centene deal. There was mixed EBITDA performance. Most MCOs began to outperform S&P around October. 

Mergers, Acquisitions and Investment Activity

There was extensive plan activity (beyond Wellcare/Centene), especially for provider acquisition and small market buys. On the provider side, home health investment continued and a resurgence of hospice funding was observed. 

Vendor Reviews

Latest reviews focused on technology vendors operating in Medicaid space. 1 vendor achieved 5 out of 5 stars. 3 vendors were rated 3/5 stars, 4 vendors were rated 4/4 stars. 

 

 

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Mergers, Acquisitions and Investments (Q3_2019)

  • Plans
  • Providers
  • VeNdors

Summary analysis

Q4 2019 saw significant plan M&A activity. 

  • Humana will acquire hospice pharmacy provider Enclara. Enclara currently serves 97,000 hospice patients. The deal is projectd to close early 2020. 
  • The Partners (NH) plan to acquire Exeter Health Resources was stopped by the state Attorney General over antitrust concerns. 
  • Centene, Walgreens and RxAdvance announced plans to pursue opportunites in certain “underserved” markets. Initial messaging suggests the alliance will pursue Medicaid PBM opportunities. 
  • Health Alliance Plan (HAP) is re-entering the Michigan market with the approval of its purchase of Trusted Health- Michigan. HAP buys footprint in Medicaid Region 10 with the buy. 
  • The BCBS NC merger with Cambria Health Solutions was scuttled after video of BC CEO Patrick Conway driving drunk surfaced in late Septmeber. BCBS NC reported $10B in revenue in 2018, compared to Cambia’s $6B. 
  • Molina bought NY footprint with its purchase of YourCare Health Plan. The deal comes with 46,000 Medicaid lives in Western NY. The deal cost Molina $40M. 
  • United bought a Medicare Advantage plan in VA. Piedmont Community Health Plans sold its MA enrollment of 5,000 members Oct. 1.
  • Optima (Sentarra) acquired majority owner status of one of the state’s oldest MCO- VA Premier- in late September. The combined MCO will have 800,000 Medicaid lives. 
  • MCNA Dental bought Healthplex. The new entity will provide dental services to more than 8M CHIP/Medicaid members.  
  • The long-strained deal to sell Fidelis (NY) encountered new obstabcles in October, when CMS questioned  Gov. Cuomo’s efforts to extract money from the sale of Fidelis to Centene. Cuomo argued that since Fidelis received significant Medicaid funding, the state should receive payments as part of the Centene purchase of Fidelis. 
  • Concerns over the Centene ownership of Arkansas Total Care mounted in Q4. Under the state PASSE (provider led plans) model, providers are supposed to own 51% of the entities. Centene’s arrangement with Mercy health system allows Arkansas Total Care plan to technically meet the requirement, but many are calling foul. 
  • BCBS of AZ bought Steward Health Choice AZ. Much of the purchase strategy centers on building competency serving duals. Steward currently serves 200,000 Medicaid members. 
  • The Centene-Wellcare deal progressed on multiple fronts, including: 
    • CVS Health will pick up Centene’s IL Medicaid and Medicare plans as part of divestment requirements.
    • Multiple states completed the approval of the Centene-WellCare merger.  
  • The Health Plan (WV) announced it will drop plans to merge with WVU Medicine. Early analysis did not yield reasons for the aborted deal. 

Related News Items 

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Summary Analysis

Q4 2019 saw significant provider M&A activity.

  • Highlights from health system deals included: 
    • Hackensack Meridien Health and Englewood Health (NJ) executed a merger agreement. Hackensack brought 17 hospitals and $400M in cash to the deal. Hackensack has focused recently on expanding the service array, including opening a behavioral health urgent care center. 
    • CHS will sold 3 of its VA hospitals (totalling 485 beds) to Bon Secours Mercy Health. 
    • The CA St Joseph-Adventist merger was blocked by the state Attorney General. The deal would have created a new network of 9 rural hospitals.  
    • Sanford Health (SD) and UnityPoint (IA) backed out of the planned $11B merger they announced in the summer. Early analysis suggests there may have been some issues related to kickbacks allegations at Sanford that were not uncovered in initial discovery. 
    • Quorum Health is said to be exploring investment from KKR. Quorum, formed in 2016, has 24 facilities and has posted losses the last 2 years. 
  • The investment focus on home health continued in Q4, including: 
    • Walmart and Amedisys announced their intent to take their pilot nationwide. Amedisyis provides care coordination and referrals to home health services working with 700 different home care agencies. Early efforts with Walmart are based on a kiosk in the retail space designed to assess for home health needs. 
    • Revelstoke PE invested in The Care Team (TCT). TCT provides home health / home care services in Michigan. 
    • Alpine invested in AmeriBest, a home care agency in PA. 
    • CareFinders bought At Home Quality Care (PA) and Philadelphia Home Care. 
    • CareAdvantage bought Team Nurse, Inc. CareAdvantage operates an in-hom nurse network in DE, MD, VA and D.C. 
  • Hospice activity included: 
    • Towerbrook PE and Ascension Health teamed up to buy Compassus (Nashville-based hospice provider) or $1B. Compassus has locations in 30 states.
    • Addus closed out an intense year of acqusitions with its $130M purchase of Hospice Partners of America (based in AL, with 21 locations nationwide). 
  • There was intense activity in the behavioral health space, including: 
    • 4 Arkansas provider groups formed Arisa Health, with the new organization totalling 1,275 employees.
    •  The Stepping Stones Group bought New England ABA (an applied behavioral analysis therapy provider)
    • Acorn Health acquired Behavior Therapy Specialists (an ABA provider). BTS has operations in IL and MO. 
    • Seaside Healthcare (LA) bought Strategic Interventions (NC) to expand its footprint in NC, LA, GA and TX. Both entities provide substance abuse and behavioral health services. 

Related news items

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Summary Analysis

There was limited activity for investment in solution vendors related to Medicaid in Q4. 

  • Insight and Regroup (both telehealth) merged to become the largest telepsychiatry provider in the nation. 
  • MEDNAX sold its data division (MedData) to Frazier Healthcare Partners. MedData has 10,000 physician clients and 3,000 facility clients and 2,000 employees.

Related News Items

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Executive Summary (Q3_2019)

Thought Leader Interviews

Robert Garnett of Amerigroup Tennessee talks about the Medicaid Block Grant Proposal and David Tamburri of Health Equity Partners gives his thoughts on the next stage in healthcare investment.

Medicaid Health Plan Financial Performance

Revenues flat for most MCOS, with some increases in EBIDTA for smaller plans. Hiring spikes in August for several plans. Note: Multiple new analyses added to standard MCO reporting this issue

Mergers, Acquisitions and Investment Activity

Trends in ABA provider buys. Navigant Consulting sold. 

Vendor Reviews

6 tech companies, 2 consulting firms, 1 HCBS provider network and 1 device company independently reviewed using our 55-point evaluation. 

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Executive Summary (Q2_2019)

Thought Leader Interviews

Erhardt Preiteauer (CEO, CareSource) give his thoughts on effective vendor partnerships; Binoy Bhansali (Sandbox) provides key investment insights for the Medicaid space. 

Medicaid Health Plan Financial Performance

RevThe 2nd quarter of 2019 closed with a cautious outlook from most plans in terms of MLR and growth. PBM spread pricing issues dominated news cycles in key markets (Ohio and Kentucky). Quarter to quarter revenues were flat for most MCOs, but significant increases for Cigna and CVS-Aetna. Stock interest fluctuated during progression of WellCare/Centene deal.

Mergers, Acquisitions and Investment Activity

Centene-Wellcare deal dominated news. Multiple provider-plan deals announced. 

Vendor Reviews

2 companies achieved 5/5 stars. 

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Executive Summary (Q1_2019)

Thought Leader Interviews

John Lovelace (President, UPMC) gives his thoughts on what MCOs will be focused on in the next 90 days; Brett Moraski (Frazier Healthcare Partners) provides key investment insights for the Medicaid space. 

Medicaid Health Plan Financial Performance

Most MCOs closed out 2018 with fairly flat revenues and EBITA. Market showed variable interest in Q1 based on pricing and volume behaviors. 

  • EOY 2018 analyses in and reviewed. 
  • Last analysis before Aetna data and trends absorbed into CVS reporting. 

Mergers, Acquisitions and Investment Activity

  • The first quarter of 2019 allowed for a settle down period for the active M&A and regulatory cycles seen in Q3 and Q4 of 2018.
  • The big consolidation news of Q1 was the WellCare-Centene deal which would create the largest national Medicaid plan.

Vendor Reviews

Multiple member engagement companies reviewed using our 55-point algorithm.