Highmark, Christiana Care reach agreement on value-based payment system for Medicaid recipients

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Highmark Health Options, Delaware’s largest Medicaid managed care organization, and Christiana Care Health System have entered a partnership value-based payment system.

Earlier, the state’s other Medicaid provider AmeriHealth Caritas entered into a similar agreement. 

“Highmark Health Options is dedicated to being a leader in value-based payment and providing our members access to quality care and healthier outcomes,” said Todd Graham, president and CEO, Highmark Health Options. “We are aligned with Christiana Care and the State of Delaware in providing the right care at the right time in the most appropriate setting. We are proud to join Christiana Care in transforming care for our members.”

The agreement between Delaware’s largest health system and largest Medicaid managed care organization creates greater flexibility for Christiana Care to address both medical and non-medical health care needs of Highmark Health Options Medicaid members.

Under the new structure, revenue is higher for the partnering organizations if health care quality and cost-reduction targets are met or exceeded, and revenue is lower if those targets are not met.

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“Together we are transforming the health system to achieve better health at lower costs,” said Janice E. Nevin, CEO of Christiana Care. “This value-based care agreement is an incredibly important step that empowers our caregivers to focus on providing the right care, at the right place and time for Highmark Health Options Medicaid members. It enhances our ability to innovate in meeting the non-medical needs of our patients — addressing challenges such as poverty, hunger and housing insecurity that prevent them from achieving their health goals. We are proud to partner with Highmark Health Options in transforming care for so many Delawareans.”

“We are grateful for this partnership between Christiana Care Health System and Highmark Health Options that places a new emphasis on the social determinants of health in achieving better health outcomes,” said Department of Health and Social Services Secretary Kara Odom Walker, M.D, MPH, MSHS, whose agency oversees Medicaid coverage for about 225,000 Delawareans through the Division of Medicaid and Medical Assistance. “Our health care system needs the flexibility to better address such social determinants as housing, transportation, employment and access to quality food that affect a person’s health and their quality of life. This value-based payment agreement provides Christiana Care providers and Highmark Health Options officials with the ability to meet more of those needs that happen outside of a doctor’s office.”

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