For decades, our healthcare system has relied heavily on consolidation and acquisition to fuel growth, and WellPoint was no exception to this rule. But while this pattern undoubtedly generated increased market share and corresponding market power, it also perpetuated an innately adversarial system that has fallen well short of addressing the many challenges that we face. Rising costs may be slowing but are far from controlled, variation in quality still runs rampant, and consumers remain underinformed and disintermediated from some of the most important and intensely personal decisions affecting their lives.
The ongoing evolution to accountable care has given promise to these challenges and clearly demonstrates that our health system operates most efficiently and effectively when we all work together. New payment and delivery models such as patient-centered medical homes and accountable care arrangements have produced positive results.
WellPoint's Enhanced Personal Health Care program, which goes beyond physician incentives to provide enhanced tools, comprehensive reporting and care-management support, has engaged consumers by re-establishing the physician-patient relationship. Not every model has been successful in every market, but these early successes support the notion that our respective strengths are empowered, not encumbered, through aligned incentives, an open exchange of data and information, and shared risk and responsibility for managing population health.
As the article accurately points out, there are some combined insurance and delivery models that have been successful. WellPoint's CareMore subsidiary, for example, has significantly improved quality and reduced costs through a high-intensity, vertically integrated care-delivery model focused on our most chronically ill members. But we know that to meaningfully scale this model and realize the full value and impact of our approach requires collaboration. So we are deploying a customizable CareMore-like model in partnership with existing health systems. Interest is high not only because of the potential results, but because each partner retains their core and autonomy, and is free to focus on what they do best.
I realize that collaboration is not for everyone, and there may be future vertically integrated opportunities that do indeed produce the desired results. But I do not believe any single industry within our sector can solve our health system's woes unilaterally, and I don't believe any insurer, health system or provider group can acquire or consolidate their way to sustainable success.
What I do believe is that as the market evolves, the contenders will separate from the pretenders, and those who are genuinely committed to leveraging combined talents, strengths and capabilities across the system will quickly rise to the top.
I've learned many things during my still-brief tenure at WellPoint, but I knew well before walking through these doors that insurance is a complex, tough and meticulous business. As a health system executive, I would no sooner have entered the insurance market than entered my name in the NFL draft. I have worked diligently to instill a culture of collaboration across WellPoint's leadership and the 26 states in which we operate. And while we maintain a never-say-never position on vertical integration, the path to addressing our challenges and delivering affordable, high-value solutions is one best navigated together.