Detroit-based St. John Providence Health System has partnered with Blue Cross Blue Shield of Michigan in a new performance-based reimbursement model for the system’s five hospitals, according to a joint news release.
St. John Providence hospitals will commit to mutually-designed standards for patient outcomes in exchange for higher reimbursement by BCBS. The payor will also support funding for the infrastructural improvements needed to increase care coordination.
The Physician Alliance, a 2,300-member physician organization, is also a partner in the arrangement. Physician Alliance recently affiliated with St. John Providence to form Partners in Care, a physician-health system entity designed to manage population health.
This is the first outcomes-based reimbursement model between BCBS and a major Michigan health system.
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