Chicago-based Valence Health, a provider of clinical integration, population health and value-based care solutions and services, will contract with Cook County Health & Hospitals System, also in Chicago, to provide all administrative services for the health system's Medicaid-managed care plan, CountyCare.
Here are four things to know about the agreement.
1. Both parties plan to negotiate and finalize a three-year contract worth more than $72 million.
2. Valence Health and CCHHS expect the contract to be finalized by the end of this year.
3. Valence Health, which currently serves five other Medicaid health plans and three global sub-capitated Medicaid arrangements, will begin serving CountyCare's 170,000 members in the second quarter of 2016.
4. In a news release, Valence Health CEO R. Andrew Eckert expressed pleasure with the agreement. "First, this is what we do as a company — empower hospitals and provider organizations to take on the responsibilities traditionally handled by insurance companies. We've been doing this work for two decades and are thrilled to be able to partner with a leading public institution like Cook County Health and & Hospitals System," he said. "Second, Chicago is our hometown. Our national headquarters is just two miles from the hospital. We have a corporate responsibility to apply our expertise to help our own community."
More articles on payer issues:
Humana, UVA health facilities ink deal: 3 things to know
Colorado could be 1st state with universal healthcare: 6 things to know
NY Dept. of Financial Services investigates NY co-op over 'inaccurate' financial representations to govt