Anthem Blue Cross Launches New Health System with California Hospitals

Anthem Blue Cross is partnering with 7 rival hospital systems in California to create a new integrated health system in the Los Angeles and Orange counties. The members will share financial risk and gain.

The new Anthem Blue Cross Vivity will partner the insurer with the UCLA Health System, Cedars-Sinai, Good Samaritan Hospital, Huntington Memorial Hospital, MemorialCare Health System, PIH Health, and Torrance Memorial Medical Center.

Shifting away from fee-for-service reimbursements, Vivity will move toward a structure that financially rewards activities to keep patients healthy. Furthermore, Vivity will improve efficiency and effectiveness through a common electronic medical records system, shared care management systems, joint wellness resources, and other enhancements.

“Vivity will create economies of scale, allowing us to provide the highest quality and affordable healthcare to thousands of Californians,” David Feinberg, MD, MBA president of the UCLA Health System and chief executive officer of the UCLA Hospital System, said in a statement. “UCLA is proud to join Anthem Blue Cross and its hospital partners at the vanguard of healthcare delivery in the US.”

MemorialCare’s president and CEO, Barry Arbuckle, PhD, expressed similar enthusiasm for the new partnership and claimed it will provide convenient and affordable access to exceptional physicians for patients in the area.

According to Vivity, the partnership will simplify access to care and make costs more predictable: members won’t have to worry about meeting deductibles or deciphering medical bills. Whether visiting the doctor, having a medical procedure, or picking up a prescription, members will only have to pay a co-pay.

CalPERs (California Public Employees’ Retirement System), the nation’s second-largest healthcare buyer, has already signed on as the first major customer.

“This innovative venture will create a foundation to significantly advance the medical delivery system, simplifying the care experience and creating a structure with aligned incentives to eliminate waste and redundancy and improve overall health,” Pam Kehaly, west region president for Anthem Blue Cross, said in a statement.