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Archives: KHI News Service

On January 1, 2017, the KHI News Service became part of KCUR public radio’s new initiative, the Kansas News Service. The Kansas News Service will continue to cover health policy news and broaden its scope to include education and politics. All stories produced by the former KHI News Service are archived here. Stories and photos may be republished at no cost with proper attribution and a link back to KHI.org.

Kansas’ largest insurer and health care provider agree to new payment model

Blue Cross and Blue Shield of Kansas, Via Christi Health seek to lower costs through accountable care organization

By Jim McLean | February 04, 2015

Kansas’ largest insurer and health care provider agree to new payment model
Photo by Via Christi Health Wichita-based Via Christi Health and Blue Cross and Blue Shield of Kansas have finalized an agreement aimed at changing the way care is provided to approximately 20,000 Kansans covered by BCBS policies.

Kansas’ largest health insurer and the state’s largest health care provider are forming an accountable care organization to lower health care costs.

After nearly a year of negotiations, Blue Cross and Blue Shield of Kansas and Wichita-based Via Christi Health have finalized an agreement aimed at changing the way care is provided to approximately 20,000 Kansans covered by BCBS policies.

Under the agreement, Via Christi would share in any savings that result from an emphasis on preventive care and from more effective management of patients with chronic conditions. But it could also lose money if the anticipated savings don’t materialize.

The arrangement creates financial incentives to move away from doing tests and procedures that inflate health care costs without improving the quality of care, said Mary Beth Chambers, a spokesperson for BCBS of Kansas.

“It really creates kind of a new type of partnership between the insurer and the health care provider,” Chambers said.

The belief — buttressed by research — that an increased focus on preventive care and management of chronic conditions can lower overall health care costs has led networks of doctors and hospitals across the country to form hundreds of accountable care organizations, or ACOs.

Providers in ACOs receive what amounts to a flat fee to provide all the care that patients need. Because health outcomes also are monitored, providers have strong incentives to focus on delivering cost-effective care without cutting corners that could jeopardize the health of patients.

The agreement with BCBS is the latest indication of Via Christi’s strategic direction.

Three years ago, the health care system created its Healthier You Alliance in Accountable Care, which utilizes a network of more than 600 providers to coordinate care for 21,700 Medicare beneficiaries in Wichita, Manhattan and Wamego and approximately 16,0000 Via Christi employees and their dependents.

Dave Gambino, chief strategy officer for Via Christi, said the Healthier You Alliance set the stage for the agreement with BCBS of Kansas.

“What makes our ACO unique in our service area is that it’s a physician-led payer-provider model,” Gambino said. “Working together allows us to create wins for everyone involved.”