Collaboration Between Catholic Healthcare West, Blue Shield and Medical Group Saves $20M

A collaboration between Blue Shield of California, San Francisco-base Catholic Healthcare West and San Ramon, Calif.-based Hill Physicians Medical Group saved more than $20 million in costs in serving 41,500 HMO members last year, according to a Los Angeles Times report.

The model also resulted in quality of care improvements, such as shorter hospital stays, reduced readmissions and better coordination between physicians, nurses and patients. The participants also learned that certain elective procedures, such as weight-control measures, were some of the biggest cost-drivers. Through efforts to enroll patients in weight-loss programs and nutrition classes, weight-loss surgeries were slashed by 13 percent last year.

Of its $20 million in savings, Blue Shield recouped $15.5 million for a pledge it made to the California Public Employees' Retirement System to not increase insurance rates for the 41,500 HMO members. Blue Shield covers more than 400,000 CalPERS members.

Read the Los Angeles Times report on the ACO comprised of Blue Shield of California, Catholic Healthcare West and Hill Physicians Medical Group.

Related Articles on ACOs:

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Study Finds Very Few Providers, Private Payors Have Experience With Shared-Risk Payments

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