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A Global Budget Pilot Project Among Provider Partners And Blue Shield Of California Led To Savings In First Two Years

Health care plans and providers in the private sector are developing alternative payment and delivery models to reduce spending and improve health care quality. To respond to intense competition from other organizations, Blue Shield of California created a partnership with health care providers to use an annual global budget for total expected spending and to share risk and savings among partners for providing health care. The patient population consisted of certain members of the California Public Employees’ Retirement System in Northern California.