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Morristown and Overlook Medical Centers Chosen for CMS Bundling Demonstration

Morristown, NJ, February 2013 – Morristown Medical Center and Overlook Medical Center, part of Atlantic Health System, have been selected by the Centers for Medicare and Medicaid Services (CMS) to participate in an expanded innovative program designed to control costs and improve quality by bundling payments for defined episodes of care. Known as the New Jersey Hospital Association “gain sharing” pilot project, it launched in 2009 and was limited to 12 hospitals. The expanded project will allow its promising reforms to be tested on a much broader scale statewide.

“As one of the original 12 hospitals in the NJHA “gain sharing” pilot project, Overlook Medical Center benefited by engaging physicians, improving processes and care and lowering costs,” said Alan Lieber, president, Overlook Medical Center and vice president, Atlantic Health System. “The project resulted in better quality and a significant reduction in mortality, infection and re-admission rates. We have a responsibility to continue this collaboration to maintain high quality and efficient care.”

The Bundled Payments for Care Improvement initiative includes four models of bundling payments, varying by the types of health care providers involved and the services included in the bundle. Depending on the model type, CMS will bundle payments for services beneficiaries receive during an episode of care, encouraging hospitals, physicians, post-acute facilities and other providers as applicable to work together to improve health outcomes and lower costs. Organizations of providers participating in the initiative will agree to provide CMS a discount from expected payments for the episode of care, and then the provider partners will work together to reduce re-admissions, duplicative care, and complications to lower costs through improvement.

“We are honored to participate with CMS and NJHA in this initiative to develop a lasting, financially sound model that improves health care delivery while controlling costs,” said David Shulkin, MD, president, Morristown Medical Center, and vice president, Atlantic Health System. “Health care across the state and across the nation is changing, and we are changing with it. Our goal remains to provide the highest quality patient care while taking a leadership role in planning for the future.”

Morristown and Overlook medical centers will participate in Model 1, which represents more than 30 acute care hospitals throughout New Jersey, New York and California, and expects to begin testing bundled payments for hospital stays in April.

“The objective of this initiative is to improve the quality of health care delivery for Medicare beneficiaries, while reducing program expenditures, by aligning the financial incentives of all providers,” said CMS Acting Administrator Marilyn Tavenner.

Last year, Atlantic Health System embarked on another new initiative with CMS. In April 2012, the Atlantic Health System Accountable Care Organization was selected to participate in the Medicare Shared Savings Program (Shared Savings Program) Accountable Care Organization (ACO), a multifaceted new program sponsored by the CMS. The second largest in the nation, the Atlantic ACO cares for nearly 50,000 beneficiaries.

The bundled payment announcement marks the start of Phase 1 of Models 2, 3 and 4.  In Phase 1 (January through July 2013), over 100 participants partnering with over 400 provider organizations, will receive new data from CMS on care patterns and engage in shared learning in how to improve care. Phase 1 participants are generally expected to become participants in Phase 2, in which approved participants opt to take on financial risk for episodes of care starting in July 2013, pending contract finalization and completion of CMS’ standard program integrity reviews.

About Atlantic Health System
Atlantic Health System is one of the largest non-profit health care systems in New Jersey, comprised of Morristown Medical Center, Overlook Medical Center in Summit and Newton Medical Center. The three medical centers – all accredited by The Joint Commission – have a combined total of 1,308 licensed beds and more than 2,750 affiliated physicians providing a wide array of health care services to the residents of Northern and Central New Jersey. Specialty service areas include advanced cardiovascular care, pediatric medical and surgical specialties, neurology, orthopedics, and sports medicine. Each of these programs has earned top ratings and recognitions in their respective fields. Atlantic Health System is the official health care partner of the New York Jets and an official health care provider of the New Jersey Devils.

Morristown Medical Center’s Gagnon Cardiovascular Institute performs more heart surgeries than any other hospital in New York or New Jersey, and is one of 20 facilities across the country to perform catheter-based repair and replacement of valves on both sides of the heart. Atlantic Health System’s spine program – where surgeons perform more spine surgery than anywhere else in New Jersey – is one of just 13 hospitals across the country that has received the Gold Seal of Approval™ from The Joint Commission, achieving Disease-Specific Care Certification for cervical and lumbar spine treatments. With the Atlantic Neuroscience Institute based at Overlook Medical Center, the hospital serves as the hub for the New Jersey Stroke Network, and serves about 40 percent of the state’s stroke patients. The system’s Goryeb Children’s Hospital offers more than 100 board-certified physicians in 20 pediatric specialties. Morristown Medical Center is verified as a Level I Regional Trauma Center by the American College of Surgeons and designated a Level II by the state of New Jersey.

Atlantic Health System has been chosen for the past three consecutive years by FORTUNE® as one of the magazine’s “100 Best Companies to Work For®.” The organization has also been recognized four times by AARP as one of the “Best Employers for Workers over 50.” Inside Jersey magazine partnered with Castle Connolly Medical Ltd. and ranked Morristown Medical Center as the No. 1 hospital in New Jersey and the No. 1 hospital for treatment of heart failure and coronary surgery in the state. The survey findings also establish Overlook as No.1 for the treatment of neurological disorders and stroke in NJ. Atlantic Health System is a Major Clinical Research Affiliate with The Cancer Institute of New Jersey and is an affiliate of The Mount Sinai Hospital and the Mount Sinai School of Medicine.

Morristown Medical Center

100 Madison Avenue
Morristown, NJ 07960

Overlook Medical Center

99 Beauvoir Avenue
Summit, NJ 07901

Newton Medical Center

175 High Street
Newton, NJ 07860

Chilton Medical Center

97 West Parkway
Pompton Plains, NJ 07444

Hackettstown Medical Center

651 Willow Grove Street
Hackettstown, NJ 07840

Goryeb Children's Hospital

100 Madison Avenue
Morristown, NJ 07960

Affiliated Providers

Atlantic Medical Group

More than 900 health care