Detroit Medical Center and Blue Cross Blue Shield of Michigan will collaborate on a value-based reimbursement model for the eight-hospital system.

Under the model, DMC will tie a large portion of its reimbursement to quality measures. These measures include decreasing duplicate services, hospital readmissions and emergency visits.

The new payment model aims to improve patients' health, increase hospital-physician alignment and lower healthcare expenses. Eighty percent of Detroit-based BCBSM's payment contracts are linked to value-based arrangements.  

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