This partnership — the first in the nation between an insurer and competing hospital systems — will help the medical centers enhance the health of all Anthem Blue Cross Vivity members and enable them to share financial risk and gain.
The six other hospital systems — all of which have hospitals ranked among Los Angeles County’s top 30 by U.S. News and World Report — are Cedars-Sinai, Good Samaritan Hospital, Huntington Memorial Hospital, MemorialCare Health System, PIH Health and Torrance Memorial Medical Center.
“Vivity will create economies of scale, allowing us to provide the highest quality and affordable health care to thousands of Californians,” said Dr. David Feinberg, president of the UCLA Health System and CEO of the UCLA Hospital System. “UCLA is proud to join Anthem Blue Cross and its hospital partners at the vanguard of health care delivery in the U.S.”
Vivity continues the move away from traditional fee-for-service reimbursements that may create incentive for providers to increase the volume of medical procedures they perform, and it continues the trend toward a structure that financially rewards activities that keep patients healthy.
“This is an exciting and historic time,” said Pam Kehaly, west region president for Anthem Blue Cross. “This innovative venture will create a foundation to significantly advance the medical delivery system, simplifying the care experience and creating a structure with aligned incentives to eliminate waste and redundancy and improve overall health.”
This is just the first step in aligning the delivery system. Longer term, value will come from future improvements in efficiency and effectiveness enabled by such things as a common electronic medical records system, shared care management systems, joint wellness resources and other enhancements.
Anthem Blue Cross Vivity will provide members with more predictable costs, a simpler experience and convenient access to some of the best primary care doctors, specialists and hospitals in the region. For doctor visits, medical procedures or prescriptions, Vivity members only pay a co-pay; they don’t have to worry about meeting deductibles or deciphering complicated medical bills. The seven hospital systems and their affiliated medical groups have built a network of doctors that provides both quality care and affordable prices to Vivity members in Los Angeles and Orange counties.
CalPERS, the nation’s second largest purchaser of health benefits and an early adopter of health care system innovations, has already agreed to use Vivity network doctors and hospitals within its Select HMO network in Los Angeles and Orange counties. Large group brokers can start requesting proposals on Oct. 1, with coverage beginning on Jan. 1, 2015.
The name Vivity captures a fresh perspective on health care. Coined from vivify, meaning “to enliven or animate,” the name speaks to the energized team of providers coming together to deliver a uniquely people-centric offering.