ROYAL OAK (WWJ/AP) – Beaumont Health System and Blue Cross Blue Shield of Michigan have patched up their differences and signed a new contract keeping the Royal Oak-based hospital in the network that serves the state’s largest health insurer.

Beaumont and Blue Cross say Friday in a joint release that the five-year deal increases reimbursement to the health system and institutes new performance-based payment standards sought by Blue Cross.

“This agreement is a win-win – not for the health system or the insurer – but for our members and customers,” said Daniel J. Loepp, BCBSM president and CEO in a statement.  “It maintains access to Beaumont facilities for our customers and members. It commits Beaumont, Blue Cross and physicians to work together to achieve high-quality health care and the efficient use of health care dollars. It advances our efforts to deliver innovation in how Michigan pays for health care in the future.”

They had been at odds for numerous months.

Beaumont will be financially rewarded for maintaining better overall population health and ensuring the efficient use of tests and procedures.

“It’s a new day in health care when hospitals are financially rewarded for keeping patients healthy and out of the hospital – or for not duplicating a test in the hospital because it already has been performed in the doctor’s office,” Loepp said. “That’s the kind of change our partners at Beaumont have joined Blue Cross to bring to Michigan health care. It will lead to improved patient health, less cost for customers and better outcomes for everyone.”

The agreement allows the hospital to continue serving all Blue Cross and Blue Care Network patients.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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