Blue Cross and Blue Shield of Minnesota has launched a new shared incentive payment model with four of Minnesota's largest health systems — Minneapolis-based Allina Hospitals & Clinics, Duluth-based Essentia Health, Minneapolis-based Fairview Health Services and St. Paul-based HealthEast Care System, according to a BCBS news release.
The program will provide financial incentives to hospitals, physicians and clinics for meeting certain efficiency and quality measurements. As part of the model, providers will continue to be paid on the traditional "fee-for-service" mode, but over time, the agreement is focused less on guaranteed rate increases and more on incentive payments tied to measurable improvements in quality and to reductions. Specifics of the agreement vary by system, according to the release.
A BCBS spokesperson said the insurer is moving to implement aspects of the new model in all of its provider relationships.
Although the agreement sounds similar to an accountable care agreement, the groups stopped short of giving the agreement the "ACO" label.
Read the release on BCBS of Minnesota's shared savings program.
Read more coverage on shared savings:
- Start With a Targeted Accountable Care Arrangement Before Jumping Into an ACO
- 8 Things to Know About Medicare's Bundled Payment Pilot
- More Than Half of Healthcare Leaders See Shared Savings as Very Effective Strategy for ACOs
The program will provide financial incentives to hospitals, physicians and clinics for meeting certain efficiency and quality measurements. As part of the model, providers will continue to be paid on the traditional "fee-for-service" mode, but over time, the agreement is focused less on guaranteed rate increases and more on incentive payments tied to measurable improvements in quality and to reductions. Specifics of the agreement vary by system, according to the release.
A BCBS spokesperson said the insurer is moving to implement aspects of the new model in all of its provider relationships.
Although the agreement sounds similar to an accountable care agreement, the groups stopped short of giving the agreement the "ACO" label.
Read the release on BCBS of Minnesota's shared savings program.
Read more coverage on shared savings:
- Start With a Targeted Accountable Care Arrangement Before Jumping Into an ACO
- 8 Things to Know About Medicare's Bundled Payment Pilot
- More Than Half of Healthcare Leaders See Shared Savings as Very Effective Strategy for ACOs