Blue Shield of California, AllCare IPA and Tenet Healthcare's Doctors Medical Center of Modesto to Collaborate on Coordinated Care Model to Improve Quality and Reduce Healthcare Costs

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Jun 15, 2011, 02:38 ET

SAN FRANCISCO and MODESTO, Calif., June 15, 2011 /PRNewswire-USNewswire/ -- Blue Shield of California, AllCare Independent Physician Association and Doctors Medical Center of Modesto, a Tenet Healthcare Corporation (NYSE: THC) hospital, today announced a three-year accountable care initiative designed to provide integrated, cost-efficient health care to approximately 8,000 Blue Shield HMO members in Stanislaus County. The partners expect this collaboration to result in little to no increase in health care costs for these members in 2012, and low single digit increases in 2013 and 2014.

To achieve this goal, the organizations will identify and implement long-term strategies aimed at improving quality and efficiency to ensure that health care stays affordable for Blue Shield members. The healthcare entities will work together to share clinical and case management information and to coordinate comprehensive healthcare services. The organizations' incentives will be aligned to improve healthcare quality and patient service while reducing costs.

This initiative launches January 1, 2012 and will continue for a minimum of 36 months. It is the parties' collective intent to extend the collaboration even longer in order to have a material, sustainable impact on healthcare costs for members and employers over time. The goal is to build a delivery model that improves quality through better coordination of care while taking costs out of the healthcare delivery system. Preliminary work is already underway across the three organizations, and will accelerate in the coming months.

"We look forward to the collaboration with Blue Shield and Doctors Medical Center to respond to the specific healthcare needs of employers and residents in the Central Valley. The collaboration will be structured to deliver medical cost relief to local employers while simultaneously providing superior quality of care to members through unique medical initiatives," said Matt Coury, Chief Executive Officer, AllCare. "AllCare was established 22 years ago to focus on prevention of illness and to promote a healthy lifestyle. We accomplish this through our network of over 500 local physicians who are empowered to deliver individualized patient care by utilizing best practice guidelines. AllCare's structure provides an excellent platform for the collaboration to achieve the desired goals."

"We strive to be the foremost health care facility in Central California for the provision of high-quality, cost-effective medical services that are responsive to our community's needs," said Dennis Litos, CEO, Doctors Medical Center. "The collaboration with AllCare and Blue Shield advances our efforts to place patient outcomes and quality at the core of how we deliver care."

"This new collaboration is a logical extension of the quality care and economic value for which Tenet hospitals are known, and we're pleased to work with Blue Shield and AllCare to find new ways to increase the value of the medical services we provide," says Stephen L. Newman, M.D., Tenet chief operating officer.

"This collaboration with AllCare and Doctors Medical Center is aimed at delivering high-quality coordinated care to Blue Shield members in the Central Valley. It's another milestone in our ongoing effort to transform how we provide and pay for care to make health coverage more affordable to all Californians," said Juan Davila, senior vice president of network management for Blue Shield of California.

About Blue Shield of California

Blue Shield of California, an independent member of the Blue Cross Blue Shield Association, is a not-for-profit health plan with 3.3 million members, 4,800 employees, and one of the largest provider networks in California. Founded in 1939 and headquartered in San Francisco, Blue Shield of California offers a wide range of commercial and government products throughout the state. The company has contributed more than $125 million over the past four years to the Blue Shield of California Foundation—which was named one of BusinessWeek's 20 most generous corporate foundations. For additional information, visit www.blueshieldca.com.

About AllCare IPA

AllCare is an independent physician association located in Modesto CA represented by over 500 private practice physicians in Stanislaus County and Merced County. Independent physicians developed AllCare in 1989. Each AllCare physician has satisfied a rigorous review of their credentials including education, practice outcomes and licenses. For more information about AllCare IPA see www.AllCareIPA.com.

About Doctors Medical Center of Modesto

Doctors Medical Center is a 465-bed acute care hospital located at 1441 Florida Ave. in Modesto, Calif. Doctors Medical Center offers a wide range of services, including the cardiology, neurology, emergency and trauma services, women and children's services, orthopedics, medical/surgical, behavioral health, oncology and critical/intensive care. For more information on Doctors Medical Center, contact the Business Development Department at (209) 576-3500 or www.dmc-modesto.com.

About Tenet Healthcare

Tenet Healthcare Corporation is a health care services company whose subsidiaries and affiliates own and operate acute care hospitals, ambulatory surgery centers and diagnostic imaging centers. Tenet's hospitals and related healthcare facilities are committed to providing high quality care to patients in the communities they serve. For more information, please visit www.tenethealth.com.

CONTACTS:
Matthew K. Coury
AllCare IPA
209-550-5200
[email protected]

Johnny Wong
Blue Shield of California
415-229-6321
[email protected]

Rick Black (for media)
Tenet Healthcare
469-893-2647
[email protected]

Thomas Rice (for investors)
Tenet Healthcare
469-893-2522
[email protected]

SOURCE Blue Shield of California