Blue Cross Blue Shield of Michigan Signs Value-Based Care Agreements with Six Hospital Systems

Six Michigan health systems have signed new value-based reimbursement agreements with Blue Cross Blue Shield of Michigan (BCBSM). To date, 18 Michigan hospital systems, including 71 hospitals, have adopted this innovative payment model.

Today, Blue Cross announced value-based arrangements with the following Michigan hospital systems:

• Henry Ford Health System, located in southeast Michigan;
• Holland Hospital, located in the west Michigan lakeshore area;
• Hurley Medical Center, serving Genesee, Lapeer, and Shiawassee counties;
• Sparrow Health System, located in Lansing;
• University of Michigan Health System, based in Ann Arbor with locations in three counties; and
• UP Health System—Marquette, located in Marquette, with 42 primary and specialty care clinics throughout the region.

The agreement with these six systems continues efforts Blue Cross began in 2011, when BCBSM secured its first formal outcomes-based reimbursement arrangement with St. John Providence Health System. The new reimbursement model requires hospitals to identify provider partners in the community; and collaborate with them to develop and implement an effective infrastructure plan that includes an all-patient registry system allowing doctors and nurses both in the hospital and office settings to measure an individual’s health performance against similar populations.