News Headlines Article

Largest U.S. health insurer inks deal with Sutter affiliate to serve 63,000 patients
Sacramento Business Journal

United Healthcare, the nation’s largest health insurer, and the 1,200-physician Palo Alto Medical Foundation are launching an accountable care organization to serve 63,000 Bay Area patients enrolled in United’s employer-sponsored health plans. The new arrangement builds on the Sutter Health affiliate’s prior ACO networks with Cigna (40,000 patients) and Anthem Blue Cross (60,000 patients), for a new total of 163,000 between the three health plans. It’s also part of an effort to shift PAMF from the fee-for-service model of compensation to a value-based payment scheme intended to reward clinicians for quality, as opposed to volume of care provided.