Health Market Science

Blue Shield of California recently announced it will be providing $20 million to 18 hospitals, health systems, clinics and physician groups throughout California to help providers more effectively participate in Accountable Care Organizations (ACOs).

Health information systems are required by ACOs in order for them to be successful, and the funding from Blue Shield will be used to support the implementation of the technology. Healthcare providers and facilities will use the money to acquire equipment and services for clinical information, data management, information tracking systems as well as system integration and the establishment of health information exchanges throughout the state.

"Acquiring, implementing, and/or adopting interoperable electronic medical records; local or regional health information exchanges; tools for measuring and reporting clinical outcomes; and patient registries will be critical for any ACO to succeed," Paul Markovich, senior vice president and COO at Blue Shield of California, told Information Week Healthcare.

According to Markovich, the ACOs will be able to connect providers and health insurance companies through financial and clinical integration, which is critical to fostering greater efficiency and higher quality patient care.

Last June Blue Shield of California made a 2 percent pledge that included the ACO grants. The company committed to limit annual net income to 2 percent of revenue and to put the difference back into the community for healthcare programs. The pledge has been applied to the two fiscal years of 2010 and 2011, and the $20 million represents $10 million for each year.

The ACO grants will affect many IT projects through the state of California including one in San Francisco at Brown and Toland. This independent practice association of more than 800 community physicians will receive $1.7 million to create a local health information exchange to connect local and regional facilities in an effort to share electronic health records.

The Greater Los Angeles Care Innovation Corridor will use its $300,000 grant to also implement a health information exchange. In addition, the center will use the funds to lower the annual cost of care, while improving the quality of the delivery and reporting of care.

In the Greater Bay Area, the Chinese Community Health Association will receive $971,000 to be put toward an upgraded electronic laboratory ordering and reporting system. The association will also put the money toward the development of a care coordination initiative and the enhancement of its electronic medical record system.