The five acute-care hospitals of the St. John Providence Health System, Warren, Mich., will partner with Blue Cross and Blue Shield of Michigan, Detroit, on a new performance-based reimbursement model.
St. John Providence hospitals, Mich. Blues to team
"This agreement truly breaks new ground," Susan Barkell, BCBSM senior vice president for healthcare value, said in a news release. "It leverages health insurance dollars not to encourage high volumes of services, but rather high quality of care as measured by the successful treatment of hospital patients."
The 2,300-member Physicians Alliance, St. Clair, Mich., which in October joined St. John Providence to form an accountable care organization called St. John Providence Partners in Care, is a key part of the partnership, officials said. Blue Cross and Blue Shield will fund infrastructure improvements to best integrate services between the Physicians Alliance and the five hospitals. The funding will continue until 2013, when the contract between St. John Providence and Blue Cross Blue Shield would include a performance-based reimbursement model.
St. John Providence is affiliated with Ascension Health, St. Louis, the country's largest Roman Catholic health provider. The agreement includes five Michigan hospitals: Providence Hospital, Southfield; Providence Hospital, Novi; St. John Hospital and Medical Center, Detroit; St. John Macomb-Oakland Hospital, Madison Heights and Warren; and St. John River District Hospital, East China Township.
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