Blue Shield Forms Yet Another ACO

San Francisco-based Blue Shield of California has launched its second accountable care organization in the past week, working with hospital operator Dignity Health and the Hill Physicians Medical Group to deliver integrated care in northern San Joaquin Valley.

The new ACO will cover 14,600 Blue Shield health maintenance organization members in San Joaquin County, which includes the city of Stockton, about 80 miles east of San Francisco. Dignity Health operates St. Joseph's Hospital in Stockton, the county's largest acute care facility.

Among the ACO's are 10,300 members of the California Public Employee Retirement System, or CalPERS, either as current employees, retirees, or dependents of the system's members.

It is the 12th ACO for Blue Shield statewide, and the third collaboration involving Dignity and Hill Physicians. The other two ACOs involve CalPERS enrollees in the Sacramento area, an initiative launched in 2010, and employees of the city and county of San Francisco, which was launched in 2011.

"This is a natural expansion of our expertise and an important way of helping the patient and the provider," said Harpreet Grewal, M.D., medical director for Hill Physicians' San Joaquin region. "Our accountable care work in Sacramento and San Francisco has helped us develop best practices. We are now confident that these can be adapted to meet the needs of San Joaquin area residents, ultimately lowering the premium costs for our members.”

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Blue Shield Starts Inland Empire ACO