Peoria, Ill.-based OSF Healthcare System and Blue Cross Blue Shield of Illinois are forming an accountable care organization, according to a Peoria Journal Star report.
OSF Healthcare is a Pioneer ACO, but this is the system's first commercial ACO arrangement.
The commercial agreement with BCBS of Illinois will tie physician pay to quality metrics, such as reduced emergency room usage and readmissions. The system will receive incentives and bonuses based on shared savings; if savings do not occur, OSF will lose money, according to the report.
The ACO agreement begins Jan. 1, 2014 and will cover roughly 40,000 people with Blue Cross PPO who have received "most of their care" from OSF providers, according to the report.
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OSF Healthcare is a Pioneer ACO, but this is the system's first commercial ACO arrangement.
The commercial agreement with BCBS of Illinois will tie physician pay to quality metrics, such as reduced emergency room usage and readmissions. The system will receive incentives and bonuses based on shared savings; if savings do not occur, OSF will lose money, according to the report.
The ACO agreement begins Jan. 1, 2014 and will cover roughly 40,000 people with Blue Cross PPO who have received "most of their care" from OSF providers, according to the report.
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