BlueCross, Methodist Launch Care Partnership

Published On 08/22/2012

Article Teaser

New 5-year accountable care, Network S agreement positions Methodist as lead healthcare system across all BlueCross networks in Memphis

BlueCross BlueShield of Tennessee will partner with Methodist LeBonheur Healthcare in a five-year arrangement that will advance new care and payment models. The agreement goes into effect Jan. 1, 2013 and will focus on quality care, with the goal of delivering outstanding medical value in the Memphis and West Tennessee marketplace. 

The new agreement with Methodist is based on three key components: 

  • Methodist will replace Baptist Memorial Healthcare System as the Network S provider in the Memphis area. Giving members access to the region’s most comprehensive health system via BlueCross’ most cost-efficient Network S will drive savings for customers. 
  • Each organization has committed significant resources toward the development of the framework for an accountable care organization (ACO) that will serve Memphians and others in the region. 
  • Both Methodist and BlueCross will be financially accountable for performance-based measures meant to ensure quality and reduce costs.

“This is really a partnership of strengths in Memphis,” said Bill Gracey, CEO-elect for BlueCross. “Methodist demonstrated that they are ready to approach care in a completely different way and partner with us to focus on quality and patient outcomes. This adds the extended, long-term benefit of making us more competitive in the market, which translates to cost savings for our customers.” 

“We’ve always been committed to offering the best outcomes for patients, but this new agreement means we’re all working together in innovative ways to accomplish our goals,” said Gary Shorb, president and CEO of Methodist. “The industry is shifting away from traditional payment methodologies and we’re excited to be at the forefront of this change. We believe the model we develop can set the highest quality standard and deliver outstanding outcomes for patients while still being affordable.”

The ACO partnership with Methodist is the first for BlueCross in Tennessee. ACOs were originally conceived to link payments to outcomes for Medicare beneficiaries. 

Network S is one way that BlueCross works to curb costs for members by providing a strong choice of respected doctors and facilities proven to deliver quality care at less cost. Choosing Network S as part of a benefits plan, saves employers money. Depending on plan design, employees also save money on their portion of cost. 

Baptist Memorial Healthcare, the current Network S provider in Memphis, will continue to participate in this role until Dec. 31, 2012. Moving forward, Baptist will continue to serve BlueCross members through the Blue Preferred®, BlueCare? and TennCare Select networks. Additionally, BlueCross will work with both Baptist and Methodist to ensure its group customers and members have the time and information needed to make decisions about their choice of networks or where they receive care in the future. 

About Methodist Healthcare

Methodist Le Bonheur Healthcare is an integrated, not-for-profit healthcare delivery system based in Memphis, Tennessee. Its seven-hospital system includes home health services, outpatient surgery centers, minor medical centers, diagnostic centers, sleep centers and a hospice residence. Rated as the number one hospital in the region by U.S.News and World Report for the last three years, Methodist received accolades in twelve specialties including neurology and heart surgery.

Areas of expertise at Methodist include the Brain and Spine Institute, The Transplant Institute, The Cancer Center in partnership with The West Clinic, and pediatrics at Le Bonheur Children's Hospital. Affiliated with The United Methodist Church since 1918, Methodist Le Bonheur Healthcare combines a dedication to clinical excellence with a faith-based commitment to care. 

 

About BlueCross 

BlueCross BlueShield of Tennessee’s mission is to provide its customers and communities with peace of mind through affordable solutions for health and healing, life and living. Founded in 1945, the Chattanooga-based company is focused on reinventing the health plan for its more than 3 million members in Tennessee and across the country. Through its integrated health management approach, BlueCross provides patient-centric products and services that drive health improvement and positively impact health care quality and value. BlueCross BlueShield of Tennessee Inc. is an independent licensee of the BlueCross BlueShield Association. For more information, visit the company's website at bcbst.com.