Partners HealthCare has reached a deal with Blue Cross Blue Shield of Massachusetts that will reduce payments by $240 million over three years, Massachusetts' largest hospital and physician network announced yesterday. The renegotiated contract starts Jan. 1 and is projected to save $80 million in 2012 alone.
The contract also has entered Partners into Blue Cross Blue Shield's global payment model--its Alternative Quality Contract--requiring the health system to meet or exceed quality metrics for its patients, as well keep cost growth below the BCBS provider network average, according to the announcement.
However, patients will still see rate increases during the three-year contract period, which will be relative to general inflation.
Under the new deal, Partners hospitals will be able to test out different ways to provide care, such as in-home care for older patients, Partners HealthCare President and CEO Dr. Gary L. Gottlieb told The Boston Globe.
"The marketplace expects providers and insurers to find new ways to work together and keep cost growth down. We continue to explore even more ways to achieve that goal," Gottlieb said in a statement.
Not long ago, Partners blurred the line between payers and providers when it acquired a nonprofit insurance company back in August. By collaborating with insurers, the health system aims to rein in escalating costs by determining where hospital savings can be attained without compromising patient care.
For more:
- here's the announcement
- read the Boston Globe article