Philadelphia-based Temple University Health System and Independence Blue Cross agreed to extend their contract 18 months, effective at the beginning of this year.
The agreement represents a shift from a traditional fee-for-service contract to a value-based model, in which both parties share accountability for the quality and cost of care delivery.
"The contract extension with TUHS displays an important first step in the health system's willingness to embrace our new non-traditional, collaborative model of care and provides the roadmap for both parties to move toward our new destination," said Daniel Hilferty, president and CEO of Independence.
The contract also calls for increased data exchange by combining claims data with the health system's EHRs. Larry Kaiser, MD, president and CEO of TUHS, said the agreement "represents a mutual understanding to share vital data and information in new and robust ways to improve the health and healthcare in our community, while at the same time decreasing the cost of that care."