The agreement constitutes limiting consumer choices to doctors and hospitals that adhere to rigorous quality measures the article states, so how rigorous this gets remains to be seen, but it will all come down to dollars.  In California we recently had a doctor file suit as he could not be accepted to Blue Cross even after agreeing to all the payments and terms of the contract.

California Doctor Files Suit Against Blue Cross for Denying His Application To Become Part of Their Network After Agreeing to Their Terms

The 10 hospital chain said too that collaborating will enable them to afford some IT infrastructure along the line.  To meet medical loss ratios that are in the Healthcare reform law, the insurers are demanding back more information and quality from doctors and hospitals. 

I am sure that increasing efficiency will happen but hopefully it will be in an environment that is both patients and doctor friendly as this is a problem today when the two sides come together.  The City of Hope battle is one good example with court cases flying on both sides as their battle is about money from Medicare and Medicaid.  BD

City of Hope's Hospital and Physicians Battle Continues As Healthcare Reform Turns Into One Big Blood Sucking Battle Relating to Business Intelligence Software, Costs and Ethics

The state’s largest health insurer and the area’s biggest medical-care provider have signed an agreement that holds doctors and hospitals more accountable for performance and quality service.

The three-year deal between Blue Cross and Blue Shield of Illinois and Advocate Health Care, which operates 10 hospitals in Illinois, calls for Advocate to limit rate increases it negotiates from the insurance company. In addition, Advocate doctors and hospitals are being asked to meet performance targets tied to improved quality, safety and efficiencies of the medical care provided to patients covered by Illinois Blue Cross HMO and preferred-provider organization products.

“We are excited about the opportunity to enter into a new era of contracting and relationship with Blue Cross and Blue Shield of Illinois,” said Dr. Lee Sacks, Advocate’s chief medical officer. “By innovatively collaborating with health insurance companies … we will be able to afford the infrastructure investments and incentives for physicians to better coordinate care across the continuum. This will allow for elimination of waste and inefficiency found in more traditional approaches to care delivery.”

Blue Cross, Advocate raise bar on accountability | Chicago Breaking Business

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