University of Tennessee Medical Center and Vanderbilt University Medical Center announced a partnership Wednesday to improve the quality and reduce the costs of healthcare across Tennessee.
University Health Network and Vanderbilt Health Affiliated Network said the alliance they are creating will provide coverage statewide, the Knoxville News Sentinel reported.
The network's value-based model means hospitals, doctors and other providers get paid based on the health outcomes of their patients. It will include teaching hospitals, 87 practices and more than 1,000 providers in University Health Network, plus the 13 health systems, 67 hospitals, more than 350 practices and over 5,000 providers in Vanderbilt Health Affiliated Network.
University Health Systems CEO Joe Landsman said the partnership should result in cost savings and better care for all patients.
Vanderbilt University Medical Center Deputy CEO Dr. C. Wright Pinson said what is most unusual is that it combines two different companies and seeks to cover the entire state.
The primary benefit is that it sets up more providers to help patients maintain better long-term health for less costs, especially people dealing with chronic issues, officials from both health systems said. University Health providers will be in-network for people covered by insurance plans accepted by Vanderbilt Health Affiliated Network.
Landsman and Pinson said serious discussions between the two organizations began about a year and a half ago.
Dr. Amy Barger Stevens is a primary care physician and board chairwoman of University Health Network. She expects that more patients will become more involved in their own health care.
"I think they're going to feel more like participants on the journey, rather than the classically paternalistic approach to healthcare," she said.
