Cigna Launches Its First California ACO With Palo Alto Medical Foundation

Cigna and the Palo Alto Medical Foundation, an affiliate of Sacramento, Calif.-based Sutter Health, have launched a collaborative accountable care initiative, according to a news release.

"Collaborative accountable care" is the term health insurer Cigna uses for describing its version of accountable care organizations.

The venture with the Palo Alto Medical Foundation is Cigna's first collaborative care initiative in California. It will benefit as many as 21,000 people covered by a Cigna PPO health plan who receive care from PAMF's network of more than 1,000 primary care and specialty physicians, including an affiliated independent physician association, according to the release.

Cigna's accountable care program offers a potential reward to Palo Alto through a pay-for-performance structure if the healthcare organization meets targets for improving quality and lowering medical costs.

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