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2011 Year in Review

HHC Board of Directors

All of this work to secure a robust clinical information technology platform across the entire enterprise is an essential foundation for our evolution to an organization that can collaborate internally and externally to coordinate care and manage the financial risk associated with emerging reimbursement models.

MetroPlus Becomes an Even More Important Partner and Strategic Asset

MetroPlus added membership again last year and ended 2011 with more than 420,000 enrollees. It remains the second-largest Medicaid managed care plan in New York City. Importantly, MetroPlus's Medicare enrollment increased by 27% last year and this will be a critical strategic area for future growth, especially as there is growing pressure to move patients dually eligible for Medicare and Medicaid out of fee-for-service and into a managed care model. For 2011, we estimate that having MetroPlus as our principal Medicaid managed care partner has allowed us to keep roughly $80 million in premium revenue within our own health system, compared to what we would have experienced if we were forced to contract with other Medicaid managed care plans.

Even more impressive than MetroPlus's growth and contribution to HHC's bottom line is the plan's quality of care and patient satisfaction record. Last year the New York State Department of Health ranked MetroPlus first among all Medicaid managed care plans in New York State. This number one ranking, based on performance measures of quality and customer satisfaction, has secured MetroPlus a 2.5% premium increase, the maximum incentive award that can be achieved by any plan. This will add an estimated $34 million to HHC's revenue in 2012, as MetroPlus will use this revenue to fund Quality Incentives and Pay for Performance pools.

MetroPlus also served as a co-applicant with HHC in our application to be designated as a Health Home, and the plan's experience with outreach to engage enrollees in care, as well as its care coordination experience, is helping to inform the care management infrastructure that we are building for Home Health enrollees.

And, in light of the State's announcement that it will soon begin channeling Medicaid patients who are eligible for long-term care into managed care plans, MetroPlus has applied to become, and expects to be approved as, a long-term care managed care plan. Mandatory managed care enrollment for long-term care eligible Medicaid recipients is expected to begin this summer.