The Washington State Health Care Authority (HCA) announces the selection of Group Health Cooperative as the lead organization for two new Accountable Care Organization (ACO) pilot projects to help transform the health care delivery system and improve health care quality for Washingtonians.
The ACO concept is a collaborative approach to individual and population health, where multiple, diverse provider groups take joint responsibility for the cost and quality of care delivered to their combined population of patients cared for by the groups’ clinicians.
“The idea behind the ACO concept is to base provider earnings on outcomes, rather than on how many services they provide,” said Richard K. Onizuka, PhD, HCA Director of Health Policy. “This payment method should motivate providers to cooperate and share health information to coordinate patient care more effectively, and improve health care quality and outcomes.”
“Federal health care reform, economic pressures, the need to improve use of electronic patient records, and the need to focus more on prevention and primary care, require fundamental changes in health care delivery,” said Group Health President and CEO Scott Armstrong. “These pilots are an opportunity to imagine what the future of health care will look like.”
The pilots must be developed and implemented by January 2012. As the designated lead organization, Group Health will provide support for the pilot projects without using state funding. Group Health may, however, seek federal funds and solicit grants, donations, and other sources of funding. The Group Health Research Institute (GHRI) and Douglas A. Conrad, University of Washington (UW) professor of Health Services and co-director of UW’s Center for Health Management Research, will help evaluate the pilot projects.
“We know that part of the answer lies in doctors working together to create a system that is accountable for the health of each patient as he or she moves through the continuum of care — prevention, diagnosis, treatment, recovery and prevention again,” Armstrong said. “Within Group Health we have demonstrated that integrated care can provide distinctly better results. This is an exciting opportunity to extend participation in this more holistic approach to providers across the state.”
“Group Health has demonstrated success in integrated health care delivery systems and provides us the leadership necessary to successfully implement the ACO pilots,” Onizuka said.
The ACO pilot project is a directive of Engrossed Substitute Senate Bill (ESSB) 6522 (section 2), which calls for the HCA to appoint a “lead organization” to develop two distinct ACO pilot projects, at least one integrated health care delivery system, and one network of nonintegrated community health care providers.
“When I sponsored Senate Bill 6522, my goal was to expand the concept of accountable care organizations by developing a functional accountable care model in those communities that cannot support the traditional integrated delivery network,” said Cheryl Pflug, State Senator, 5th District. “I’m excited to see the selection of Group Health as the lead organization. This next step will build upon their recent success with enhancing the coordinating role of the primary care provider. I look forward to substantial progress toward an efficient health system that is far more satisfying for patients and providers,” Pflug said.
