McKesson and Blue Cross Blue Shield of Arizona are partnering to create a new service that helps physician practices that may not be part of a value-based network take on risk as traditional accountable care organizations do.
The service, dubbed ACO Partner, is not an accountable care organization. But don't call it a product either, said John Wallace, ACO Partner's new president and chief operating officer. Wallace is McKesson's national vice president and general manager of accountable care services.
"It's more of support structure," Wallace said, for the physician practices and providers that need help making the transition to performance reimbursement.
It works like this: Physicians and providers sign a shared savings contract with a health plan in ACO Partner. The practice reduces its expenses in medical claims in general, and a percentage of that savings goes back to the insurer, allowing the payer to offer better benefit design, according to Wallace.
There is no cost to practices, so they share in the savings without risking payment cuts.
"We're making the bet to say, 'Let's do it for them.' We're taking on the responsibility of analytics," Wallace said.
So far, only Blue Cross Blue Shield of Arizona has signed on.
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ACO Partner in marketed to independent physicians who may not have the resources to transition to value-based care, and also to ACOs that may need help accelerating the transition to getting paid for performance and quality.
"Better benefits for lower costs," Wallace said. "It allows them to take more market share, to compete at a higher level."
McKesson provides the technology infrastructure and the analytics to support payers as they collaborate with the provider networks.
ACO Partner claims to help physicians with the practical components of value-based care, including disease management, care management, population health management and patient engagement.
Providers and payers contracting with ACO Partner have access to strategic management, analytics, population health, technology, network development, physician engagement and care management services.
"A lot of ACOs are writing checks. I think the reason we see a lot of failure, they're doing on their own without a clear roadmap."
A year from now, Wallace wants ACO Partner to have three to five health plans participating in state of Arizona.
Beyond Arizona, he envisions the model in multiple other states.
For patients, the new entity is intended to strengthen outcomes while helping reduce out-of-pocket expenses, Wallace said.
"Providers love it because they have a better patient experience," Wallace said. "Plans love it because they're seeing a higher quality of care delivered. And it extends to a more efficient cost structure."
Twitter: @SusanJMorse