Administrative Burdens, Cost Containment, VBC, and Other Innovations
Administrative Burdens and Cost Issues
While some insurance companies report reducing requirements for prior authorizations, and OHIC is poised to regulate in this space, providers report growing frustrations with administrative burdens. Some of these burdens are driven by prior authorizations for specialty services, testing, or pharmacy. Providers express substantial frustration because in some cases they perceive prior authorizations to increase costs in some cases due to delays in the ability for their patient to receive the care they need in a timely way.
“When my patient is denied access to care in a timely way, and there’s a bad outcome, I am the one on the hook, not the insurance companies. Sometimes these delays lead to negative clinical outcomes, which are, of course, more costly. And it is totally avoidable.”
“Here’s a concrete example: as a PCP I cannot get prior approval for a stat CT scan when I need one. More than once, I have had to send a patient to the ED to rule out appendicitis, when it would have cost the system less and be better for the patient if I could order a stat scan myself.”
“There is currently a payer that requires an additional diagnosis code for the glucose portion of a basic metabolic panel. It is a panel that is run together for a reason; it shouldn’t need another diagnosis code because that glucose is required to interpret the result of other aspects of the panel that are necessary based on the original code we provide. This is an example (of an administrative burden) that literally makes no sense.”
“I read the OHIC report that said some insurance companies have voluntarily reduced PAs, which I applaud. But to be honest, I haven’t seen an impact yet, especially with imaging. In fact, it feels harder to get PAs for imaging now. And when I finally get an ::air quotes:: “peer to peer” it is some retired physician, not even of my specialty. And they always say yes. It is beyond frustrating.”
Pharmacy
Pharmacy challenges are at the forefront of these concerns, in part due to what some providers perceive as a lack of action in this area. Some providers feel challenges have been exacerbated recently by documented medication shortages, the expanded role of retail pharmacists since COVID, the closure of retail pharmacies in some communities, and pharmacy-related workforce shortages.
“There’s ample evidence that PBMs cost the delivery system more money. It is immoral that they are still allowed in Rhode Island.”
“We care more about pharma shareholders than we do about family docs and our patients, and that’s wrong.”
“The rules are different for every insurance company, and they change frequently. It is a small state, can’t we get some consistency in formulary between payers? Now that I work at a practice with a clinical pharmacist, things are easier for me. But it still feels unnecessary and impossible.”
“I have been trying for two weeks to help get my patient a medication for their diabetes. They couldn’t get the medicine that I got the PA for due to a shortage. I worked with the pharmacy to identify another option, and now it is back to the insurance company, but of course I had to work through a denial again. My patient said to me ‘doc, you’re always on me to take my medicine, but it doesn’t seem that important (if my insurance company doesn’t think I need it)’ I wanted to cry.”
“We used to get more help from retail pharmacists, but now we are totally on our own in identifying alternative medications and working through challenges with insurance companies. The pressure companies like (pharmacy chain redacted) have put on retail pharmacists to do things like immunizations means they now have almost no time to address patient medication issues. Though thank goodness they have stepped up to help with immunizations; it is sometimes easier for both the patient and the PCP when a patient gets a routine (immunization) at a retail pharmacy, though we know this is a profit and not quality-driven innovation.”
Electronic Records
Providers raised many frustrations with electronic health record systems. Themes include the lack of interoperability and growing costs. Many comments focused on trying to get feedback from specialty visits for the purposes of care coordination or documenting completed referrals for procedures including those needed for quality metrics.
“The insurance company obviously knows my patient (had the required test) because they paid the claim. Why is a physician tracking it down at the end of year to get a measly bonus when the people paying the practice are, in fact, the ones who know it happened!?”
“We are the smallest state in the country. Why can’t we have a standardized record system?”
“The state should handle medical records like a public utility. We should all have the same record at a reduced cost. Imagine how much cost savings there would be across the system?”
“The state should provide a tax credit or other solution to help with the costs (of EHRs) for solo and small group practices. This would help us directly and immensely.”
Impact of Value-Based Care Models
All but one provider we spoke with is impacted by participation in value-based care models, including ACOs and the AE program. Feedback related to VBCs is mixed, with feedback leaning towards more critical. Some of the differences in perspectives seem to be related to the size and type of practice, and how fully developed the care team was prior to the introduction to these models of care. Additionally, some of the criticism providers have many not be related to VBC specifically, but to being overburdened administratively by insurance companies in general which is lumped together with feedback on VBCs.
“Our practice has benefited from (VBC) because we now have new team members like care managers and pharmacists. This helps me take care of my patients better; my patients are pleased.”
“I have found access to data on the quality of my practice instructive, and I have used it to make changes in how I provide care.”
Some of the more critical feedback includes
“I can’t see how it positively impacts my practice; all I see are new administrative jobs.”
“Participating in a value –based model has reduced the number of patients I see by approximately 20 patients per week. Now I spend my ::air quotes:: “extra” time focused on ::air quotes:: “quality” issues. I make the same salary, but access is reduced.
“I feel like the AE program is the worst of all worlds. To keep my salary steady, I have to either push the number of encounters or push documentation and track down things I refer my patients for in order to meet bonus targets. For a provider like me who tries to balance access with quality, it is a losing proposition.”
“I am leaving my practice due to being over paneled directly related to being in a new ACO model of care. I now have hundreds of patients dumped into my panel who I have never seen and will never have time to see. But according to the insurance company, I am responsible for them. I do not feel comfortable with this and so I am moving on.”
“I spend the end of each quarter chasing my quality targets. This limits access to my patients and drives my MA crazy.”
“I am evaluated and paid on metrics like colonoscopies, mammograms, and diabetic eye checks. None of these procedures do I provide myself, and I often have very little influence if the patient gets the care I refer them for. And when they do get the care, I almost never get a note back and must chase it. We can all agree that the patient getting those things is important, but I don’t believe this is working the way we intended it to.”
Other Innovations
When asked about what innovations in care delivery could benefit their ability to practice medicine, several mentioned scribes, including AI scribe models. Others also mentioned other case uses for AI including inbox management.
“My practice is exploring AI scribes. I am excited for the potential, especially the ability to connect more directly and deeply by having more ability to look at my patient and not my computer.”
“It is exciting to imagine a world where AI may be able to help me manage my portal messages and inbox overall. There’s so much duplication and unnecessary stuff in there. Maybe AI can help?”
The following resources and documents address administrative burdens, the move towards VBCs, and cost-containment:
| Title | Organization/Author(s) Names/Date | Description and/or summary: Note, for the sake of brevity, some of the information below has been paraphrased. Please see source document for exact language. |
| Rhode Island injects $6.7 million in grants into primary care practices |
The Providence Journal Jonny Williams June 28, 2025 |
Media report on 2025 legislative action to address primary care crisis. |
| As health insurers seek big rate hikes, worries about sustainability grow |
Providence Business News June 27, 2025 |
Media report on insurance rate hike requests which are at a record high this year. |
| Four changes coming to health care in Rhode Island from the General Assembly |
The Providence Journal Jonny Williams June 26, 2025 |
Media report on health care investments with heavy focus on primary care rates and prior authorizations. |
| State awards $6.7M to support primary care practices |
Providence Business News June 23, 2025 |
Media report on primary care training investments to 85 practices. |
| Gov. McKee Infuses $6.7M Into Rhode Island’s Primary Care System |
Rhode Island PBS Alexander Castro June 23, 2025 |
Media report on primary care training investments to 85 practices. |
| Rhode Island House lights up to protect federal drug discount program from Big Pharma |
Rhode Island Current Alexander Castro June 20, 2025 |
Media report on 340B legislation that supports primary care access in the community health centers. |
| Assembly protects 340B discount prescription program |
State of Rhode Island General Assembly Meredyth R. Whitty June 20, 2025 |
Media report on 340B legislation that supports primary care access in the community health centers. |
| Assembly approves bill to allow foreign trained physicians to practice in state |
Providence Business News Christopher Allen June 20, 2025 |
Media report on legislation that will allow more foreign trained physicians to practice in RI. This was a legislative priority of the Speaker in part due to concerns about primary care access in RI. |
| Are Rhode Island insurers doing enough to help curb rising health care costs? |
Providence Business News PBN Staff June 20, 2025 |
Media poll focused on consumer perception of insurance rate increases which includes discussion of primary care access. |
| Health insurers eye huge rate hikes |
Providence Business News PBN Staff June 20, 2025 |
Media report on insurance rate hike requests which are at a record high this year. |
| Insurers submit highest rate increase requests to OHIC in more than a decade |
Providence Business News Katie Castellani June 13, 2025 |
Media report on insurance rate hike requests which are at a record high this year. |
| What’s in RI’s proposed $14.3B budget? Help for primary care, RIPTA funds and ‘Taylor Swift tax’ |
The Providence Journal Patrick Anderson and Katherine Gregg June 12, 2025 |
Media report on the state budget including primary care spending. |
| Rhode Island Needs to Fix 340B, Not Expand It – Former Gov. Howard Dean |
GoLocalProv Howard Dean May 17, 2025 |
Op-Ed against 340 legislation from Dr. Howard Dean. |
| Weight loss drugs caused health care spending to balloon in RI. It’s not the only factor |
The Providence Journal Jonny Williams May 13, 2025 |
News report highlighting cost drivers including increasing drug costs associated with weight loss drugs. |
| OHIC: hospital drug costs drove jump in health care spending |
Providence Business News Katie Castellani May 12, 2025 |
News report highlighting cost drivers including increasing drug costs associated with weight loss drugs and costs related to hospitals. |
| RI’s health care collapse: Concrete fixes can’t wait |
The Providence Journal Gary D. Alexander May 11, 2025 |
Opinion piece by former Health and Human Services secretary Gary Alexander. He offers suggestions on cost containment and system improvement. Suggestions include increasing access to behavioral health services, reducing drug prices, and using AI to identify waste and fraud. |
| Value Based Care Eyed as Potential Remedy to RI’s Health Care Problems |
Providence Journal By Jonny Williams May 6, 2025 |
Media report on value based care model that includes a quote from Drs. Warcup and Conard. |
| Care New England Health System opens Pawtucket Pharmacy |
Providence Business News By Katie Castellani April 28, 2025 |
Media report on new pharmacy co-located with primary care in Pawtucket |
| Don’t play politics in protecting access to affordable medications: Opinion |
Providence Journal By Reps. Jon D. Brien, Marie Hopkins and Megan Cotter April 27, 2025 |
Op-Ed in the Providence Journal by a diverse group of state representatives in support of 340B legislation promoted by the community health centers. |
| Papitto Opportunity Connection awards $4.3M in grants to 136 organizations |
Providence Business News By James Bessette April 25, 2025 |
Media report on grant to Amos House to offer primary care services |
| How to make health care affordable for more Rhode Islanders? Look for the union label. |
Rhode Island Current Patrick Crowley & Karen Hazard March 24, 2025 |
Op-Ed on union impact on health care in RI by AFL-CIO. |
| How many foreign doctors are on work visas in RI? Why the answer isn’t clear |
The Providence Journal Jonny Williams March 21, 2025 |
Media report on physicians who are in RI practicing with visas. Includes mention of Providence Community Health Center’s employment of visa-holding physicians. |
| Five States Leading Efforts to Increase Primary Care Spending |
Millbank Memorial Fund By Vida Foubister March 12, 2025 |
Organizational report on how RI and four other states are shifting to increase spending on primary care. The report highlights the change in the definition of primary care to better capture true primary care spend. Commissioner King is quoted. |
| Rhode Island’s Senate Is Leading the Way on Health Care |
Providence Journal March 1, 2025 |
Media report on senate health care bill package. Highlights bill targeting administrative burdens. |
| Direct Primary Care in RI Becoming an option for Patients |
Providence Journal February 26, 2025 |
Media report on direct primary care highlighting provider experience and burnout. |
| New RI Senate package aims to promote healthcare affordability and access: The individual bills focus on medical debt, pharmacy benefit managers and funding medical education. |
Rhode Island PBS & The Public’s Radio Ian Donnis February 5, 2025 |
Media report on RI senate health care bill package. |
| Potter, Ujifusa bill aims to reduce prior authorization requirements: Legislation would free PCPs from time-consuming roadblock to patient care |
State of Rhode Island General Assembly News January 23, 2025 |
Media report on legislation proposed by RIMS that aims to reduce administrative burden on PCPs by eliminating prior authorizations on key services. |
| McKee proposes $14.2B state budget that ‘bends the cost curve’ |
Providence Business News Christopher Allen January 17, 2025 |
Media report on state budget including loan repayment. |
| A higher health care intelligence? In R.I., some believe it’s the sector where AI can make biggest difference |
Providence Business News Katie Castellani January 17, 2025 |
Media report on potential impact of AI. |
| Addressing doctor shortage could be a primary challenge for lawmakers |
Providence Business News By Christopher Allen December 20, 2024 |
Media report on the status of primary care in RI and the expected legislative response to the challenge. Topics include concerns about budget deficit impacting ability to increase rates, as well as potential approaches, including developing a medical school program and reducing administrative burdens. Dr. Fine and Stacy Paterno are quoted, as are legislative leaders. |
| A Value-Based Primary Care Model that Doubles Primary Care Investment |
HealthAffairs.org By Russell S. Phillips, et al December 16, 2024 |
Media report on the primary care approach in MA. It references increases to primary care spend in RI as a model. |
| Neronha: OHIC needs to be beholden on efforts to boost primary care |
Providence Business News By Katie Castellani November 19, 2024 |
Media report with feedback from Atty. General Neronha suggesting OHIC require more than a 20% reduction in administrative burden, and that they include an effective enforcement mechanism. |
| Annual Report: Health Care Spending and Quality in Rhode Island 2024 |
Rhode Island Office of the Health Insurance Commissioner May 13, 2024 |
Government report: Health Care Spending and Quality includes discussion of ACO growth (pg. 20), the OHIC aligned primary care measure set (starting pg. 32), making essential investments in primary care (pg. 43), and continuing to support price growth, which has driven an increase in primary care coordination spending (pg. 44). |
| Hospital Association of Rhode Island Supports Legislation to Protect Patient Access to Care, Prevent Discriminatory Practices and Protect the Most Vulnerable |
Hospital Association of Rhode Island March 20, 2024 |
Organization release: Hospital Association of RI press release on legislation to eliminate “white bagging.” |
| More Evidence That Rising Health Care Costs Crowd Out Wage Growth |
Rhode Island Office of the Health Insurance Commissioner February 22, 2024 |
Government report: Key takeaway identified related to primary care (pg. 2): “Rhode Island must remain committed to strategies that control health care cost growth, while supporting needed investments in primary care and behavioral health care.” |
| Affordability Standards |
Rhode Island Office of the Health Insurance Commissioner August 2023 |
Government report: Key reference to primary care: “The first major goal of the Affordability Standards is to improve primary care within the state by requiring insurers to invest more in primary care providers and services and encouraging primary care practices to transform into Patient Centered Medical Homes (PCMHs). A focus on primary care reduces overall costs by helping patients identify potential problems before they become serious. Further, the PCMH system, especially among people with chronic conditions, reduces overall health care costs in Rhode Island as it improves quality of care for the chronically ill.” |
| Blue Cross, Prospect Health Services announce value-based care agreement |
Providence Business news. Elizabeth Graham. April 24, 2022 |
Media report on value-based care agreement between Prospect and Blue Cross, includes reference to collaboration with primary care providers and their patients. |
| Rhode Island Health Care Cost Trends Steering Committee – Compact to Accelerate Advanced Value-Based Payment Model Adoption in Rhode Island |
Rhode Island Office of the Health Insurance Commissioner April 14, 2022 |
Voluntary compact signed by Cost Trends Steering Committee Members related to AVP Adoption. Compact includes 10 principals; principal five (pg. 2) states “A foundation of robust primary care is essential for advanced VBP model success. Advanced VBP models should not put the financial viability of primary care providers (PCPs) in jeopardy.”
Document recommends action steps. Action steps include encouraging Medicaid and Commercial payors move towards PPS, “consistent with what OHIC previously facilitated for PPS” with focus on reducing providers’ administrative burden. |
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A 3D model for value-based care: The next frontier in financial incentives and relationship support
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Dr. Alyna Chien, Harvard Medical School Professor Meredith Rosenthal, Harvard T.H. Chan School of Public Health In collaboration with UnitedHealthcare |
Journal article: Meta analysis and model development for value-based care. Rhode Island Primary Care Physicians Corporation participated in the development. |
