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Blue Cross announces health care costs management program

The company made agreements with seven health systems which will take effect on Jan. 1.
Blue Cross Blue Shield Of Michigan Buildings, in Detroit, Michigan on JULY 21, 2012.

DETROIT — Blue Cross Blue Shield of Michigan has entered into agreements with seven health systems and physician groups to manage costs while improving patient care, the nonprofit insurance company said.

“Blueprint for Affordability” was announced Wednesday and sets an annual target for patient care costs, according to Blue Cross Blue Shield.

If doctors or health systems come in below the target, they receive a bonus. If costs are above the target, they could pay more.

Ascension Michigan, Henry Ford Health System, Michigan Medicine, Oakland Southfield Physicians, The Physician Alliance, Trinity Health – Michigan, and United Physicians have signed 5-year agreements that become effective Jan. 1.

“Health systems and physician organizations that sign risk-sharing contracts will be reimbursed according to how well they manage the health outcomes and total cost of care they provide to their patients, potentially impacting millions of Blue Cross members,” Blue Cross Blue Shield of Michigan President and chief executive Daniel Loepp said in a news release. “They will realize the financial rewards of success and assume some portion of the financial risk for cost overruns.”

The agreements place the focus more on preventative and improved patient care, according to Dr. Mike Williams, chief executive of United Physicians.

“Physicians want to take great care of their patients,” Williams said. “When you know you’re working together as a team, as a network, there’s a lot more focus on doing the right thing — and that’s coordinating the care of those patients.”

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