Trinity, Michigan Blues Collaborate To Change Payment System

Trinity Health-Michigan and Blue Cross Blue Shield of Michigan have entered into a collaboration intended to move the former's hospitals away from accepting fee-for-service payments for care.

Under the three-year agreement, Trinity's 12 hospitals will receive payments based on population health-related outcomes. The entities will also collaborate on a “shared” performance management system and work processes that integrate best practices into as many facets of care delivery as possible.

Working with the Blue Cross team to create a first of its kind valuebasedarrangement that we can now execute is inspirational," said Larry Warren, Trinity Health's interim chief executive officer.

Trinity Health's physicians will receive incentive payments that come from any realized savings due to more efficient care. The Michigan Blues have also agreed to provide money to Trinity to make infrastructure improvements to better coordinate care between the hospitals and their affiliated physicians.

"The current system is best described as fee-for-service without a focus on improved health outcomes," said Susan Barkell, senior vice president for healthcare value for the Michigan Blues. “Insurers pay for most every treatment,no matter how effective. But we don't pay physicians and hospitals for some things that really improve patienthealth, like proactively contacting people about their followupcare or medication compliance. We are working with Trinity Health to usher in a new era of paying for the most effective care possible for people."

The program was introduced immediately at the four hospitals aligned with Trinity's Mercy Health division. It will be rolled out at the eight other hospitals in July.