SHP forms partnership with Blue Cross Blue Shield

Superior Health Partners (SHP), an alliance of eight independent health systems located in Michigan’s Upper Peninsula, announced an agreement with Blue Cross Blue Shield of Michigan (BCBSM) to improve the accessibility, quality, and affordability of care provided in the Upper Peninsula.

Under the terms of this innovative three-year agreement—which was developed with the assistance of the Premier healthcare alliance—BCBSM will provide upfront incentive payments and shared savings to improve access to high quality care in the Upper Peninsula.  Upfront incentive payments will support SHP in developing the infrastructure needed to achieve Triple Aim-driven quality and operating targets.  Funds provided through the agreement will be used to enhance clinical integration and improve SHP health system participants’ ability to effectively manage population health. SHP participants include: Baraga County Memorial Hospital, Bell Hospital, Dickinson County Healthcare System, Helen Newberry Joy Hospital, Marquette General Healthcare System, Munising Memorial Hospital and Health Services, Portage Health, and Schoolcraft Memorial Hospital.

In addition to improving access and reducing the cost of high quality care for Upper Peninsula residents, this partnership is also expected to benefit the local economy. Currently, $80 to $100 million in annual healthcare expenditures migrate out-of-state, primarily to Wisconsin where costs are often two to three times higher. This partnership aims to mitigate this outmigration, keeping these expenditures within the local economy and preserving healthcare jobs in the Upper Peninsula.

This landmark agreement is a significant step forward in aligning the incentives of BCBSM and SHP toward the shared goal of providing accessible, affordable, and high quality healthcare to residents of the Upper Peninsula.

“This agreement is a natural next step in Superior Health Partners mission to improve healthcare in our region,”  noted Gary Muller, CEO of Superior Health Partners, “SHP will continue to partner with organizations that share our vision of providing access to world class healthcare at a reasonable price here in the Upper Peninsula.”

“This agreement is an example of Blue Cross Blue Shield of Michigan’s goal of improving quality and efficiency of care in Michigan,” added Jeff Connolly, BCBSM Vice President and President of West Michigan Operations and Managed Care.