Insurer's Reimbursement Model Rewards Lower Costs
"It is important to note that Dartmouth-Hitchcock only provides about 40% of the total cost of care within our own health system. The remaining 60% of care is provided by hospitals and providers outside of the Dartmouth-Hitchcock system," she says.
Guillette believes Dartmouth-Hitchcock's early success in reducing the total cost of care can be attributed to aligned financial incentives, the availability of actionable information identifying opportunities to improve care and avoid higher costs, referral of patients with complex conditions to case management services, and periodic performance reports on costs and quality measures.
"Early results highlight the synergy fostered by collaboration between health plans and delivery systems," she says.
Salmon says Cigna is pleased with the results of the CAC initiative so far and plans to expand it in the near future. Currently, 65 providers are enrolled in the program, representing 600,000 Cigna customers. The company's goal is to have 100 contracts in place by the end of 2014.
"This is the right step. It's the right direction," Salmon says.
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