Blue Cross and Blue Shield of Minnesota Announces Agreement with Minnesota Healthcare Network

Saint Paul, Minn. (September 9, 2020) — Blue Cross and Blue Shield of Minnesota (Blue Cross) and the Minnesota Healthcare Network (MHN) – a group of 47 independent primary care clinics in Minnesota and Wisconsin – have announced a new agreement that will accelerate the transition to value-based payment and provide financial resources for long-term stability. 

As part of the agreement, Blue Cross will provide funding for MHN to utilize an innovative value-based care platform, which provides insights into quality of care and real-time financial rewards for appropriate care coordination practices.

“This collaboration aligns with our goal to improve the sustainability of health care through innovative payment models that reward quality health outcomes and best practices instead of only paying on a fee-for-service basis," said Karen Amezcua, senior director of provider partnerships at Blue Cross and Blue Shield of Minnesota. "The agreement will provide MHN’s independent practices the necessary resources to become more financially resilient, while continuing to provide exceptional care for our members.”

Value-based compensation will be provided to health care practitioners upon completion of appropriate care coordination activities. Over time, this will lead to better health outcomes, as all patient care decisions and recommendations are informed by data-driven insights and best practices. 

MHN – along with several other large independent physician practices – launched Super G Health (Super Group) in 2018 with a key strategic focus on creating better alignment around incentives between physician practices and health plans. The new agreement between MHN and Blue Cross demonstrates the collaborative effort to generate better health outcomes and more cost-effective care. 

“Best-in-class care coordination takes a significant amount of time and budget that many of our small, independent practices don’t always have,” said Tom Lorentzen, chief executive officer at Minnesota Healthcare Network. “As a result of this agreement, our practices will be equipped with the tools needed to deliver even better value to our patients, while being rewarded financially for making the most appropriate and informed decisions possible. This, along with population health payments from Blue Cross, will help us weather the ups and downs of health care, including the current COVID-19 pandemic.”

At a time when the cost of health care is rising at an unsustainable rate and Americans are becoming less healthy, overall, the transition to value-based care is seen as a game-changer that has the potential to completely transform the health care experience. By paying for quality instead of quantity, providers are incentivized to deliver the most appropriate care at the most appropriate time and place, while also spending more time on care coordination and holistic engagements with patients.

In addition to funding the value-based reimbursement platform and advance population health payments to help keep independent practices afloat during COVID-19, Blue Cross will also make additional payments at the end of the year, based on quality outcomes delivered to its health plan members.

This collaboration between Blue Cross and MHN started in July 2020.