Dive Brief:
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Penn State Health and Highmark Health are collaborating on a $1 billion-plus community-based healthcare network anchored by the Milton S. Hershey Medical Center in Hersey, Pa.
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Penn State Health and Highmark Health said the alliance is “focused on improving access, quality and affordability of healthcare close to home for people across south-central Pennsylvania.”
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The companies say the aim is to improve quality of care while transitioning to value-based payments rather than fee for service (FFS).
Dive Insight:
The partnership goals include:
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Adding new facilities to allow easy access to primary care, specialty care and acute care in central and south-central Pennsylvania.
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Developing advanced population health management capabilities, analytics and care models to manage chronic illness.
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Improving health and wellness programs that improve outcomes and lower costs.
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Launching co-branded health insurance products.
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Expanding support for Penn State College of Medicine through funds for medical and health sciences education and advanced research.
The two healthcare companies said independent community physicians will play a “foundational part” of the community-based care project. Dr. William Bird, senior vice president for Penn State Health, said the partnership’s goal is to “keep care in the community while enhancing local access to specialty care.”
As part of the effort, Highmark Health will join Penn State as a member of Penn State Health with a minority interest, which will provide up to three seats on the 15-member board of directors.
The effort is part of growing list of partnerships looking to improve value. These are often done through moving from FFS to a value-based payment structure. Thomas Robinson, partner at Oliver Wyman, recently estimated that of the approximately 200 partnerships tracked over the past five years that 92% “are emphasizing value-based compensation in some shape.”
Healthcare organizations are also moving into population health management projects, while also taking into account the role that social determinants of health play in a person’s health.
There’s likely a business reason for the partnership; University of Pittsburgh Medical Center (UPMC) has been expanding into central Pennsylvania, including acquiring Harrisburg, Pa.-based PinnacleHealth. This new partnership is a way for Penn State and Highmark Health to respond to UPMC's expansion into their territory.