Programs and discounts with Michigan doctors and hospitals managing costs, improving quality of health care

Discounts that Blue Cross Blue Shield of Michigan negotiates with health care providers and collaborations with physicians and hospitals have realized more than $13 billion in savings, according to the 2010 Annual Report of Program Value (PDF), released Friday.

We’ve gone on record saying that one of our biggest concerns with health care reform is a lack of measures to contain costs. That concern is also echoed by many business owners, many of whom will have to begin offering insurance to employees in the coming years.

That’s why we feel it’s important to spotlight the important work taking place to lower costs and improve health care quality right here in Michigan.

The report outlines savings on hospital, professional, pharmacy and dental rates for members that total $12.9 billion.

In addition, the Blues work with more than 8,100 physicians and more than 40 hospitals across the state on projects that address factors that drive up costs and diminish the quality of health care. A few examples:

• Doctors participating in our Physician Group Incentive Program saved nearly $9.5 million in 2009 through more judicious use of high- and low-tech radiology services.
• An initiative to increase use of generic drugs helped save $700 million over seven years.
• A collaborative initiative targeting angioplasty in hospitals saves an estimated $15.2 million annually and has reduced both hospital deaths and post-procedure blood transfusions by nearly a third.
• A cardiac surgery initiative has decreased incidence rates of post-surgical prolonged ventilation, saving $25,000 per case.
• And our Patient-Centered Medical Home program, at 1,800 participating physicians, is the largest in the nation and is beginning to see positive effects in just its second full year. Preliminary data have shown that PCMH practices have lower rates for adult and pediatric inpatient admissions, radiology utilization and ER visits than non-PCMH practices. Comprehensive data on first-year results of the program are expected later this year.

Blue Cross is proud of these accomplishments, of course because they are saving valuable health care dollars, but more importantly, because they are creating a safer, higher quality atmosphere for health care in Michigan for everyone.