Oak Brook, Ill.-based Advocate Health Care and Blue Cross and Blue Shield of Illinois have announced an agreement that holds the health system and its physicians accountable for the care they provide, essentially operating as an accountable care organization, according to a Chicago Breaking News report.
Under the three-year deal, 10-hospital Advocate will limit rate increases to the insurer in return for sharing in the savings created by meeting performance targets tied to the quality, safety and efficiency of care provided to Illinois Blue Cross HMO and PPO members. The contract is effective Jan. 1, 2011.
Advocate's Chief Medical Officer Lee Sacks, MD, said the deal marks "a new era of contracting" and that "by innovating with health insurance companies [Advocate] will be able to afford the infrastructure investments and incentives for physicians to better coordinate care across the continuum," according to the report.
Read the Chicago Breaking News report on Advocate's ACO.
Read more coverage on Advocate Health Care:
- 10 Tips to Creating a Physician-Led Integrated Care System With Advocate Health's Mark Shields
- Chicago-Area Hospitals Sacrifice Revenue as They Prepare for Healthcare Reform
Under the three-year deal, 10-hospital Advocate will limit rate increases to the insurer in return for sharing in the savings created by meeting performance targets tied to the quality, safety and efficiency of care provided to Illinois Blue Cross HMO and PPO members. The contract is effective Jan. 1, 2011.
Advocate's Chief Medical Officer Lee Sacks, MD, said the deal marks "a new era of contracting" and that "by innovating with health insurance companies [Advocate] will be able to afford the infrastructure investments and incentives for physicians to better coordinate care across the continuum," according to the report.
Read the Chicago Breaking News report on Advocate's ACO.
Read more coverage on Advocate Health Care:
- 10 Tips to Creating a Physician-Led Integrated Care System With Advocate Health's Mark Shields
- Chicago-Area Hospitals Sacrifice Revenue as They Prepare for Healthcare Reform