Four more hospitals agree to BCBSM value-based reimbursement model

David Lingholm

| 2 min read

Four Michigan hospitals have agreed to participate in BCBSM’s value-based hospital reimbursement model, bringing the total number of hospitals in the state that have joined to 45 since 2011. Under the new agreements, Allegiance Health, Detroit Medical Center, Dickinson County Healthcare System and Metro Health Hospital will also have the opportunity to earn infrastructure funding to better coordinate patient care. “With the new reimbursement model, patients will see less fragmented care and more efficiency in treatments. The approach shifts the focus of care to what is truly important – keeping patients healthy while keeping costs down,” said Sue Barkell, BCBSM senior vice president for Health Care Value, in a press statement. When the agreements are fully implemented, each health system will have registry systems that will allow doctors and nurses in hospital and office settings to measure a patient’s health performance against a similar population. It also promotes coordinated care by eliminating re-use and over-use of care, while preventing re-hospitalizations. As part of the value-based reimbursement agreements, BCBSM will reward hospitals with a share of the savings achieved when they and their affiliated doctors work together to coordinate the delivery of quality, effective care. “Hospitals joining us by adopting this model are leading an evolution in health care delivery by recognizing that patient outcomes, not patient volume, should be the foundation for reimbursement,” said Daniel J. Loepp, president and CEO of BCBSM. Since December 15, 2011, when the first value-based reimbursement agreement with St. John Providence Health System was announced, BCBSM has worked with hospitals across the state to implement similar agreements. A key part of each agreement is collaboration to puts the focus on improving outcomes for patients. “Over the past two and a half years, we’ve accomplished a lot with partners who want to be innovative and really move the needle forward. It’s been, and continues to be an exciting time of change and we look forward to continuing to make progress for all Michigan residents by creating a system that supports better quality care at lower costs,” said Barkell. Photo credit: jpalinsad360

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Carly Getz

Jan 14, 2015 at 11:42pm

Thank you for sharing your thoughts with us. We also want Bronson in our network and are working very hard to negotiate an agreement that balances that desire with our responsibility to ensure health care cost increases are reasonable for our customers and members. Updates on the situation will be made available at

Susan Meisner

Jan 13, 2015 at 2:47pm

Hello, I've searched your website for an email address but, was only able to find this article with a response area. Please be so kind as to forward to the appropriate person. I work for Western Michigan University in Kalamazoo, MI. I received an email from HR telling me that BCBSM may not want to contract with Bronson Hospital with the end result of WMU employees losing the coverage to use Bronson Hospital-it will be out-of-network. Please do whatever it takes to stay contracted with Bronson Hospital. I stand to lose a trusted hospital and staff of physicians-many of my co-workers are saying the same thing. Please stay contracted with Bronson Hospital! Susan

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