Kaleida Health, Buffalo, N.Y., and Blue Cross and Blue Shield of Western New York announced plans to launch a provider network that will market health plans with multiple payment options to self-insured employers.

The partners said in a news release that the effort would include an "emerging network" of doctors and the organization would be physician-led. Participants include Erie County Medical Center, Roswell Park Cancer Institute, Olean General Hospital and the Center for Hospice and Palliative Care, as well as their affiliated doctors.

The network will include 500 to 600 academic and community doctors, said James Kaskie, president and CEO of Kaleida Health. Kaleida and the insurer have signed a memorandum of understanding for a joint venture that is expected to be finalized in 30 days, Kaskie said. Health plans under the model should be available for the year that begins Jan. 1, 2013, he said.

The initiative will give self-insured employers payment model options, including bundled payments, episode-of-care payments or possible shared savings and risk tied to quality and spending targets, said Alphonso O'Neil-White, president and CEO of BlueCross and Blue Shield of Western New York.