John Muir Health, Blue Shield of California Launch ACO

Walnut Creek, Calif.-based John Muir Health and Blue Shield of California have formed an accountable care organization to cover 16,000 Blue Shield HMO enrollees, according to a San Francisco Business Times report.

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The ACO is expected to start July 1 and continue for at least three years. Organizers hope to eliminate cost increases in the first year of operation and limit any annual increase thereafter to single-digits.

This is Blue Shield’s seventh ACO initiative in California, according to the report.

Nearly 7,000 patient members of the new ACO are part of the California Public Employees’ Retirement System.

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