Boosting star ratings: The impact of effective auditing on quality

Audit and feedback are widely used to enhance professional practice independently or as part of broader quality improvement initiatives. This approach is grounded in the belief that healthcare organizations are more likely to adjust their practices when provided with performance feedback highlighting discrepancies in their front/middle/back office business functions and their corresponding desired targets. It is believed that payers will assess their plans better after receiving the audit. As a key driver of quality improvement, organizations can benefit from understanding the history and methodology of star ratings while adopting best practices for continuous enhancement. Plans and services that focus on mastering the details of star ratings are also rewarded by CMS (Centers for Medicare and Medicaid Services) with significant bonus payments for achieving high ratings. 

CMS star ratings is a system used by the Centers for Medicare and Medicaid Services to evaluate and rate the quality of health plans, such as medicare advantage and prescription drug plans, where plans are rated on a scale from 1 to 5 stars, with 5 being the best, based on factors like customer service, health outcomes, and plan performance. Positive brand perception is cultivated for the organization as higher ratings indicate superior services, leading to increased trust and loyalty in the customer's mind. This gives them a competitive advantage in a crowded market and helps them attract new members and retain the existing ones. Data shows that approximately 74% of Medicare Advantage Prescription Drug (MA-PD) plan enrollees are in contracts with 4 or more stars, showcasing how drastically can Star ratings affect the business¹.

Leveraging audits to enhance the quality of healthcare

Efficient auditing is critical in improving the quality of care, directly impacting Star ratings for healthcare payers and providers. When the organizations, both payers (insurance plans) and providers (hospitals, physicians), implement efficient auditing systems, it helps identify gaps in care, billing inaccuracies, and areas for quality improvement. As a result, organizations can enhance patient outcomes, streamline operations, and ensure compliance with regulatory requirements, collectively boosting star ratings.

• Optimizing audits to enhance payer's accuracy and compliance:
  Efficient auditing improves risk adjustment by helping payers accurately assess members' health status. This ensures that the risk adjustment data used to calculate premiums and Star ratings is precise, leading to better financial management and appropriate reimbursement from CMS. Additionally, audits enhance compliance by identifying potential regulatory issues, allowing payers to meet standards, reduce penalties, and strengthen their reputation—ultimately improving patient trust and retention. Moreover, auditing contributes to better member care coordination by highlighting gaps in care, enabling payers to make necessary improvements. This boosts member satisfaction and health outcomes and directly impacts star ratings.
• Leveraging audits to improve provider's performance and care quality:
  Auditing improves clinical documentation by accurately recording patient diagnoses and treatment plans. This facilitates proper reimbursement and enhances the quality of care, directly impacting Star ratings. Additionally, audits help identify underperforming areas in clinical practices, allowing providers to implement necessary improvements. As a result, patient outcomes improve, hospital re-admissions decrease, and overall patient experiences become more positive—all contributing to higher Star ratings. Furthermore, efficient audits enable providers to deliver more personalized care based on accurate and up-to-date health records. This enhances patient engagement and satisfaction, which is essential for achieving strong star ratings.
  Organizations can leverage their star rating as a strategic tool to enhance services, optimize operations, and strengthen their market position. Identifying and addressing weaker areas highlighted in audits while maintaining existing strengths can drive continuous quality improvement. These insights can also help organizations with strategic resource allocation to ensure that funds, workforce, and other resources are directed toward the areas that need the most attention, maximizing overall efficiency.

Key challenges to continuous improvement

Achieving continuous improvement is essential for organizations to stay competitive and deliver better outcomes. However, despite recognizing gaps in their processes, many organizations struggle to implement lasting changes.

Organizations striving for continuous improvement often face resistance to change within the organization. Cultural inertia and a reluctance to step out of the comfort zone prevent meaningful transformation. Poor internal communication further exacerbates inefficiencies, as a lack of coordination between teams leads to misalignment and delays. Weak leadership also plays a critical role, with the absence of strong decision-makers stalling strategic risk-taking.

Additionally, insufficient skilled resources limit an organization's ability to adapt and implement necessary improvements. Poor prioritization adds to the struggle, as companies often focus on low-impact areas instead of addressing critical issues first. Lastly, adaptability to evolving technology remains challenging due to its complexity, making it difficult for organizations to keep pace with innovation. Overcoming these barriers is essential for fostering a culture of growth and long-term success.

Delving into strategies for strengthening audits

A well-structured audit process ensures accuracy, transparency, and ongoing organizational improvement. The change starts from within the organization. Effective audits rely on clear communication, fostering seamless collaboration between stakeholders and auditors to address issues promptly. Proper data preparation and analysis streamline the process by collecting and assessing relevant information beforehand. Standardized processes, guided by predefined templates and workflows, help maintain consistency and efficiency. Post-audit monitoring is crucial in tracking progress and compliance timelines and implementing practical corrective actions. 

To sustain continuous improvement, organizations must adopt modern approaches to auditing. Embracing advanced technology, such as automated workflows, artificial intelligence (AI), and natural language processing (NLP), increases efficiency and reduces manual errors. Regular feedback loops help identify weak areas and refine processes over time. Using AI to maintain comprehensive documentation like charts, letters, and contracts ensures thorough record-keeping for compliance tracking and future reference. Finally, investing in ongoing training equips employees and auditors with the necessary skills to adapt to evolving industry standards.

To enhance audit efficiency and drive continuous improvement, organizations must focus on delivering better patient experience and implementing targeted strategies. Leveraging real-time data and analytics allows monitoring of key performance metrics such as compliance with critical measures, high-risk patient follow-ups, and complaint management. These advanced insights help pinpoint trends and address compliance gaps before they impact ratings. Enhancing patient engagement through integrated technology solutions, such as CRM systems, streamlines processes and personalizes interactions, improving overall satisfaction. The key is prioritizing high-impact measures by collaborating with provider groups and aligning incentives with CMS's weighted measures to ensure meaningful improvements. Additionally, optimizing onboarding processes through member education fosters long-term retention and satisfaction. Healthcare organizations can achieve sustainable quality improvements and maximize their performance by adopting these strategies.

Effective auditing is a crucial tool for driving continuous improvement in healthcare organizations. Refining processes and ensuring compliance boosts star ratings and enhances overall service quality and patient satisfaction. Organizations that adopt efficient audit systems and embrace new technologies are better positioned to navigate challenges and achieve long-term success in an ever-evolving industry.

References:

Biden-Harris Administration Prepares to Kick Off Medicare Open Enrollment and Releases 2024 Medicare Advantage and Part D Star Ratings | CMS