Insurer, 12 hospitals switch reimbursement model

Blue Cross, 12 Michigan hospitals moving to fix traditional reimbursement for health care

Associated Press

LANSING, Mich. (AP) -- Michigan's largest health insurer and a dozen hospitals have announced a deal to move to a new way of reimbursing health providers for services.

Blue Cross Blue Shield of Michigan and Trinity Health-Michigan said Monday their arrangement is the first of its kind in Michigan. The goal is fixing a traditional model in which providers are reimbursed for each service through agreements with insurers.

It has been criticized for giving a financial incentive to doctors and hospitals to provide more treatments rather than focusing on improving patients' health.

Blue Cross and Trinity aren't dropping fee-for-service completely. Instead the hospitals will receive a share of savings from eliminating unnecessary or duplicative tests and preventing re-admittance.

Trinity Health has hospitals in Grand Rapids, Ann Arbor and other parts of the state.

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