Two new networks would be formed to allow physicians and hospitals an alternative to accountable care organizations (ACO), if talks between Tufts Medical Center, Vanguard Health Systems and a physician network in Massachusetts continue to go forward.
The organizations are in talks to develop a joint venture that would provide a flexible alternative to hospitals looking to join a larger health system, according to a story by Jaimy Lee.
Lee reported that a definitive agreement will most likely be reached this year on the formation of the new health system, according to a spokesman for Nashville-based Vanguard.
Vanguard owns 18 hospitals, including 158-bed MetroWest Medical Center in Framingham, Mass., and 297-bed St. Vincent Hospital in Worcester.
Lee quoted Eric Beyer, president and CEO at Boston's 279-bed Tufts Medical Center, which includes the Floating Hospital for Children, as having two for-profit arrangements – one to provide physicians with the infrastructure and tools for an ACO, which could include tools or assistance for chronic care and population health management, administrative services for providers, new insurance products and direct-to-employer services.
As of July 1, 89 new ACOs began serving 1.2 million people with Medicare in 40 states and Washington, D.C., according to Health and Human Services Secretary Kathleen Sebelius.
This includes the 59 ACOs that joined the Medicare Shared Savings Program earlier this year, making for a total of 154 ACOs caring for about 2.4 million Medicare patients, according to CMS, as reported by Ken Terry.
The second joint venture would focus on forming partnerships with hospitals in Massachusetts, whether through clinical affiliations, mergers or acquisitions. Here’s where Vanguard comes in: it would make majority investments in those hospitals and Tufts would make minority investments, Beyer said.
"This will be an innovative partnership unlike anything Massachusetts has seen to date," Beyer said in a statement. "This system will deliver for patients and providers on cost, service and quality. It offers an excellent option for physicians and hospitals who are exploring potential alignments as we move toward building accountable care organizations."
A spokesman told Lee that the joint venture is a direct response to the recent consolidation – five affiliations or acquisitions between Massachusetts hospitals since January – in the Massachusetts hospital market.
Massachusetts is not alone. Many hospitals facing the challenge of healthcare reform are collaborating on new ways to reduce costs and improve efficiency.
“Hospitals are facing a lot of changes as a result of various health care reforms,” Curt Schroder, a former state legislator who’s now regional executive of the Delaware Valley Healthcare Council, told Crissa Shoemaker DeBree. “They’re being subjected to more fixed payment schedules, as opposed to being paid by the service. There are increased incentives for quality and efficiency and patient satisfaction goals, and there are penalties for not meeting those goals. Hospitals that might have had difficulties are finding it increasingly attractive to find a partner with which to merge.”
Edited by
Braden Becker
