Vivity Kick Off event, Los Angeles October 6, 2014
In a series of questions and answers they described Vivity, which is a contractual relationship between Anthem Blue Cross and seven of the very best hospitals in Los Angeles:
- Good Samaritan Hospital,
- Huntington Memorial Hospital,
- MemorialCare Health System,
- PIH Health,
- Torrance Memorial Medical Center and
- UCLA Health.
Anthem and the hospitals will share in the risk for an HMO patient population. The hospital execs described how they worked together to reach an agreement where they will share best practices; share risk; and collectively work to improve outcomes for patients. This is a game-changer for health insurance. Right before my eyes I saw the top executives from the top hospitals with the top executive from the top insurance company pledge to offer high quality medical care at lower cost. They described how they have aligned incentives for everyone to provide top patient care. If they can do that cost-effectively, they will share in the savings. If not, they will collectively share in the loss.
As you can imagine, the brokers in the audience had to pinch themselves to make sure that they were not dreaming. We, the brokers, represent the employers and their employees who pay the monthly insurance premium. Our clients pay for all of the doctors, hospitals, MRIs, etc. Everyone wants high quality health care at a low cost. Of course the proof will be in the pudding, as they say. We’ll have to see how Anthem prices the Vivity HMO product and if the hospitals and their medical groups can achieve their goal. We desperately want Vivity to succeed.
When enrollment begins January 1, 2015, Vivity will only be available to large employers with 51+ employees. Anthem anticipates opening this to small group and individual members in the future. As more than one panelist said last night, this is a long term project. The hospitals, medical groups and the insurance company see this as a necessary step in the evolution / transformation of our health care delivery system. I just never thought that I would see it in my lifetime. I am delighted. Good Luck Vivity!
by Bruce Jugan, October 7, 2014