Ann Arbor-based University of Michigan Health System announced Thursday a three-year value-based contract with Blue Cross Blue Shield of Michigan to launch a "population health" care model for the system's BCBSM beneficiaries.
UMHS will now be reimbursed based on quality outcomes and the value of care, in a shift away from fee-for-service care. BCBSM will also fund the building of new care coordination programs at UMHS. Through the agreement, the organizations hope to eliminate duplicative care and smooth patient transitions within the health system.
UMHS is joining the BCBS initiative with five other Michigan health systems, for a total of 18 participating systems, according to the statement. UMHS will partner with three Ann Arbor-based physician organizations on the effort: Huron Valley Physicians Association with 500 member physicians, IHA physician group with 335 physicians and the U-M Faculty Group Practice with 1,870 physicians.
The BCBSM effort aims to emulate UMHS' previous efforts with the Pioneer and Medicare Shared Savings Program ACOs and the U-M Faculty Group Practice participation in CMS' Physician Group Practice Demonstration Project.
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