24 Michigan Hospitals, Blue Cross Reach Value-Based Contracts

Blue Cross Blue Shield of Michigan, the largest health insurer in the state, has expanded its pay-for-performance initiative by nailing down value-based reimbursement contracts with 24 hospitals.

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Midland-based MidMichigan Health’s four hospitals, Dearborn-based Oakwood Healthcare’s four hospitals and Bostford Hospital in Farmington Hills signed new deals with Blue Cross. Three hospitals within Royal Oak-based Beaumont Health System and 12 hospitals within St. Louis-based Ascension Health expanded their arrangements with the insurer.

Under the deals, hospitals and their physician partners will develop an all-patient registry system, which allows providers to compare and measure a patient’s individual health against similar populations. The arrangements, emphasizing a transition away from fee-for-service, are similar to accountable care organizations.

Blue Cross previously inked value-based contracts with two other health systems in Michigan: Munson Healthcare in Traverse City and CHE Trinity Health in Livonia.

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