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Orthopedic and Dental Industry News Complete Archive »

Johnson & Johnson Launches its CareAdvantage and Orthopaedic Episode of Care Initiatives to Help Health Care Facilities Navigate Value-based Purchasing Models in the Medical Device Sector BY ANDREW VAHRADIAN, JANUARY 9, 2017

Johnson & Johnson announced the launch of its CareAdvantage initiative, a holistic, data-driven system that seeks to help healthcare facilities navigate a more value-based care environment and improve patient care, by leveraging and drawing insights out of the clinical, consumer and operational capabilities of J&J's medical device companies.

The company has developed this new offering to address new industry delivery models driving the transformation of global health care systems by shifting the focus from volume to value. For example, in order to help encourage the health care facilities to participate in more value-based purchasing, the U.S. Department of Health & Human Services (HHS) has established goals through 2018 that shift to alternative payment models. As part of these guidelines, by 2018, HHS aims to have 90% of Medicare fee-for-service payments directed toward value-based purchasing models tied to quality or value.

CareAdvantage is designed to help health care facilities and their suppliers meet such value-based goals and bring greater value throughout the continuum of care. The initiative builds a level of comprehension for each individual health system, then develops a customized plan of action aimed at delivering value across a patient's episode of care.

The program begins with an in-depth line of communication to understand the unique objectives, priorities and challenges of a specific health system, then integrates these insights with a deeper data-driven analyses in order to identify and map value opportunities. A rigorous on-site assessment then validates the findings through the company's capabilities and expertise in clinical pathways, consumer and patient insights and engagement, and operational efficiency, and develops the plan with specific target metrics linked to each of the health system's goals.

J&J has made CareAdvantage available immediately in the U.S., and plans to utilize a phased program roll-out globally.

In conjunction with CareAdvantage, J&J also launched its Orthopaedic Episode of Care Approach, a comprehensive offering designed to help health systems and surgeons reduce costs and increase quality to drive improvements in orthopedic care and achieve the goals of value-based alternative care models, such as the Centers for Medicare & Medicaid Services' (CMS') Comprehensive Care for Joint Replacement (CJR) and the Surgical Hip and Femur Fracture Treatment (SHFFT) Models, under which orthopedic surgeons will be measured by Medicare on performance during a patient's episode of care.

J&J's Orthopaedic Episode of Care initiative draws on the capabilities of CareAdvantage and will offer a Shared Performance Agreement option that aims to reduce average episodic hip and knee implant patient costs. The program applies elements of digital care navigation and patient athlete engagement, and covers a portion of targeted savings if certain metrics are not accomplished.

With these launches, J&J joins other major orthopedic medical device manufacturers in offering care-focused services including, Medtronic (Orthopedic Solutions) Smith & Nephew (eCap/Episode of Care Assurance Program), Stryker (Performance Solutions' JointCOACH and Episode Performance Manager), and Zimmer Biomet (Signature Solutions).

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