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Beaumont, Blue Cross Michigan agree on contract

Health care provider, hospital agree on reimbursement contract

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DETROIT – Blue Cross Blue Shield of Michigan, Blue Care Network and Beaumont Health System agreed on a contract Friday that keeps Beaumont in the hospital network serving Blue Care members.

The five-year agreement also increase reimbursement to health system and institutes new performance-based standrads for paying the health system, Blue Cross said in a news release.

Under the agreement, Beaumont will use a performance-based hospital payment model.

"This agreement is a win-win -- not for the health system or the insurer -- but for our members and customers," said Daniel J. Loepp, BCBSM president and CEO, in a news release. "It maintains access to Beaumont facilities for our customers and members. It commits Beaumont, Blue Cross and physicians to work together to achieve high-quality health care and the efficient use of health care dollars. It advances our efforts to deliver innovation in how Michigan pays for health care in the future."

The hospital and health care provider will no longer use a fee-for-service payment model and instead use the pay-for-performance model. Hospitals will be rewarded based on their performance in maintaining overall population health and efficient use of tests and procedures.

"We are pleased to have reached an agreement that allows us to continue serving all Blue Cross and Blue Care Network patients at Beaumont," said Gene Michalski, president and CEO at Beaumont Health System, in a news release. "The agreement provides us with payment rates that will help us maintain our high-quality patient care into the future. Even with a payment increase, Beaumont will remain the "high value" choice for Blue Cross customers by offering quality that ranks among the nation's best at a cost that's among the area's lowest."