Atlantic Health System, Horizon say tying payments to outcomes lowered costs 5%

Morristown, N.J.-based Atlantic Health System and Horizon Blue Cross Blue Shield of New Jersey said their shared accountability program is working and has lowered costs by 5 percent in its first year. 

Under the program, Horizon ties its reimbursement directly to clinical outcome and cost goals rather than patient volumes. The organizations share financial accountability for the health, outcomes and total cost of care for a population of patients. 

Atlantic Health and Horizon said their program has reduced unnecessary hospitalizations by 9 percent, thanks in part to better data sharing and patient support.

"Healthcare is a team effort, including how we pay for care. This unique partnership has created a framework to deliver high-quality, affordable and accessible care that is increasingly proactive and preventative," Brian Gragnolati, president and CEO of Atlantic Health System, said in a Sept. 17 news release. "To support our journey toward value-based care, we have invested in robust data systems that empower our physicians and caregivers to deliver the most precise, personalized care."

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