Both organizations declined to release the terms of the deal. Previously, Beaumont was asking for a 6 percent increase in 2012 and 1.5 percent increases in both 2013 and 2014. BCBS of Michigan was proposing an increase of less than 5 percent in 2012 and no increases in 2013 and 2014.
“We are pleased to have reached an agreement that allows us to continue serving all Blue Cross and Blue Care Network patients at Beaumont,” Gene Michalski, president and CEO of Beaumont, said in the release. “The agreement provides us with payment rates that will help us maintain our high-quality patient care into the future.”
The new contract between the two organizations moves away from fee-for-service and toward pay-for-performance. Beaumont and BCBS of Michigan will mutually determine the performance standards, in which the hospital system will be financially incented to maintain better overall population health and ensure efficient use of tests and procedures.
Related Articles on Beaumont Health System and BCBS of Michigan:
What’s at the Center of the Beaumont-BCBS Contract Dispute?
BCBS of Michigan Defends Reimbursement Talks, Fires Back at Beaumont Health
Michigan’s Beaumont Health Urges Patients to Call BCBS Regarding Payment Disparities
