Independence Blue Cross and Philadelphia-based University of Pennsylvania Health System contracted to share responsibility for quality and cost of care.
Here are five things to know about the agreement, which is effective July 1.
1. UPHS, which operates as Penn Medicine, will join Independence's Facilitated Health Networks model. The model aims to curb medical costs for Independence policyholders through enhancing care coordination.
2. UPHS facilities in the five-year contract include Philadelphia-based Hospital of the University of Pennsylvania, Philadelphia-based Pennsylvania Hospital, Philadelphia-based Penn Presbyterian Medical Center, Chester County Hospital in West Chester, Pa., as well as several affiliated physician practices, skilled nursing facilities, hospice, home infusion and ambulatory service centers.
3. The contract will require UPHS to provide Independence members a 30-day readmission guarantee for all inpatient services and surgeries. UPHS will also exchange data about specialist and facility use, drug prescriptions and preventable emergency department visits with Independence.
4. As part of the Independence FHN model, an Independence team tasked with clinical care transformation will work on-site with the health system's physicians. The team will provide physicians with information like rankings of low, middle and high costs for common procedures.
5. Daniel Hilferty, president and CEO at Independence, said the contract is "a significant advancement in how we collaborate with hospitals and doctors to ensure our members, and the community at large, receive quality care at an affordable price."
UPHS CEO Ralph Muller added, "Every day, our physicians and staff at Penn Medicine will be working together with our colleagues at Independence to improve quality of care, decrease costs of providing it, and most importantly, putting all of that together to keep our patients healthy."