Blue Cross Blue Shield of Massachusetts and Tufts Medical Center reach agreement

Drawing a line in the sand seems to be working.

Thanks in large part to the current environment (I'm referring to the chill brought on by the recent Boston Globe spotlight series), Tufts Medical Center has apparently improved its position and has inked a deal with the Blues.  No public word on the details, but there must be significant upside potential for Tufts under its new alternative contract.  The Blues are pushing this alternative contract (the latest euphemism for capitation) for all provider systems, but it hasn't exactly been taking off.  It is not an unreasonable reimbursement system — sharing risk with providers, and offering quality-based bonus opportunities — but provider organizations (including BIDMC, for example) are still wary, even if open to the conversation.

David Harlow
The Harlow Group LLC
Health Care Law and Consulting