How two accountable care organizations and Boeing are testing value-based care

A new partnership between two accountable care organizations and Seattle’s largest employer hopes to become a model for value-based care. The Providence-Swedish Health Alliance and UW Medicine have entered into separate and direct contracts with Boeing, among the first ACOs in the country to create a tailor-made healthcare plan with a private employer.

Administrator Blue Cross of Illinois continues to price and pay the claims, but it’s up to the providers to set the goals for the employees’ medical costs, according to Boeing spokesman Joseph Tedino.
The healthcare providers either foot the bill or reap the savings if the cost goes respectively higher or lower, Tedino said.

“Our promise to Boeing is to deliver value. We’re on the hook for the promise,” said Joe Gifford, chief executive for Providence-Swedish Health Alliance. Open enrollment began Jan. 1 for the estimated 27,000 eligible employees in the Puget Sound-area, along with about 3,000 retirees. Employees had the option of the new Preferred Partnership plan, a PPO, or a high-deductible plan.

While Boeing does not release enrollment figures, sign-up for the Preferred Partnership exceeded enrollment targets, according to Tedino. “This new plan was popular with our employees in Puget Sound,” he said.