Trinity Health-Michigan and Blue Cross Blue Shield of Michigan, Inc. are implementing reimbursement arrangement that moves hospitals away from traditional fee-for-service payments. The focus of the new reimbursement model is on better hospital-specific efficiency and better population health outcomes achieved by the hospitals working in close concert with affiliated physicians. The arrangement covers a three-year period and is an outgrowth of Trinity Health's agreement in 2012 to partner with Blue Cross Blue Shield of Michigan on a new value-based reimbursement model to pay for hospital services. To support the enhanced performance under the contract, BCBSM and Trinity Health are currently collaborating to create a shared performance management system and work processes that more fully integrate clinical best practices into all facets of care delivery. The reimbursement arrangement will be launched at Mercy Health Partners hospitals and Saint Mary's Health Care in west Michigan. Other Trinity Health hospitals will move under the new reimbursement arrangement in July. This will facilitate closer collaboration already under way between the hospital system and its physician partners to improve population health. The arrangement rewards the hospitals with a share of the savings achieved when hospitals and physicians successfully coordinate the delivery of care to enable efficient and effective treatments, eliminate redundancies and errors in care and prevent re-hospitalizations. The arrangement will provide hospitals funding for infrastructure improvements needed to better coordinate care between the hospitals and their physician partners. Since last year, Trinity Health has been working with their provider partners in the community to develop and implement an infrastructure plan that includes an all-patient registry system that allows caregivers on the hospital and physician side to have access to the patients' records. This promotes coordination of care, improves care quality, and also helps avoid misuse and overuse of tests and services. The next step in the process is to identify cost efficiencies at the hospital and in the population that is treated by the hospital and its physician partners. Trinity Health and its physicians have established milestones to ensure infrastructure work continues along with funding through 2015.

The Justice Department is moving to dismiss its lawsuit against Blue Cross Blue Shield of Michigan, Inc. now that a new state law prohibits the anti-competitive practice at issue in the case. In 2010, the Justice Department and Michigan sued to stop Michigan Blue Cross Blue Shield from entering business arrangements with health care providers which, essentially guaranteed that no competing health care plan could obtain a better rate. Michigan and Blue Cross joined the motion to dismiss. According to the lawsuit in federal court in Detroit, contract provisions called "most favored nation clauses" raised hospital prices charged to other insurers, prevented insurers from entering local markets and discouraged discounts.

Blue Cross Blue Shield of Michigan, Inc. announced partnership with Michigan Recreation and Parks Association (MRPA) and the Department of Natural Resources (DNR), has launched MI Big Green Gym, a Blues' program focused on helping families and individuals throughout Michigan improve their physical, spiritual and mental health by taking workouts outdoors. MI Big Green Gym encourages Michigan residents to take advantage of the state's extensive network of quality parks and recreation options. With 101 state parks and hundreds of community recreation agencies that offer a wide variety of physical activities, people can easily pursue fitness interests year-round, from yoga and swimming to hiking and paddling. As part of the MI Big Green Gym partnership, three communities in the state will have an additional incentive to get active through the Blues' Community Challenge. The Blues' Community Challenge is a team-based, community competition, sponsored by Blue Cross Blue Shield of Michigan, which encourages individuals of all ages to commit to improving their health by getting active.