HMSA, Hawaii Pacific Health announce 5-year agreement

Published On: May 17 2012 04:57:28 AM HST   Updated On: May 16 2012 12:07:00 PM HST

Hawaii Pacific Health and the Hawaii Medical Service Association announced Thursday a new five-year agreement that the companies say will transform Hawaii’s health care industry.

This is the first health care agreement of its kind in the state.

The agreement, which begins in 2014, ties more than 50 percent of Hawaii Pacific Health’s future increases to its ability to achieve or exceed standards in improving quality, mitigating rising costs, and expanding access to care.

Very few health care systems and health plans in the country have implemented similar agreements.

Hawaii Pacific Health and HMSA believe so firmly in this new model of care that they have agreed to share the savings it will create or share losses if they are unsuccessful.

HMSA will make significant investments to help Hawaii Pacific Health reach these goals.

"We are excited to enter a new era in our relationship with HMSA," said Chuck Sted, Hawai‘i Pacific Health’s chief executive officer.  "For many years now, Hawaii Pacific Health has been transforming our care delivery model and investing in technology infrastructure so we can deliver the highest quality care in the most cost-effective way.  Now with the shared vision of HMSA, we are confident that we can create a sustainable health care future for Hawaii.  Coordinated health care that is patient-focused while providing exceptional service benefits everyone in Hawaii."

HMSA chief executive officer Robert P. Hiam noted, "Our new relationship with Hawaii Pacific Health defines success as a mutual effort to increase quality and reduce the rate of health cost increases.  This is essential to create a more sustainable health care system for our state."

The agreement expands on the current contract between HMSA and Hawaii Pacific Health by creating a fully integrated system of delivery that rewards the hospitals and physicians for working together to achieve a single set of objectives:

  • Improve Quality – The agreement invests in care measures that will result in saving more lives, reducing hospital readmissions, and improving patient safety.
  • Mitigate Rising Costs – Hawaii Pacific Health will work to improve and be measured on the overall efficiency of the network. This means providing the right care in the right place at the right time.
  • Expand Access to Care – Hawaii Pacific Health will work to build an infrastructure that will support more patients and provide better access to health care, including the MyHealthAdvantage online patient portal, expanding its primary care physician network, and providing more urgent care and extended-hours access to the community.

The new agreement covers Hawaii Pacific Health’s physician network as well as its hospitals – Kapiolani Medical Center for Women & Children; Pali Momi Medical Center; Straub Clinic & Hospital, and Wilcox Memorial Hospital – and Kauai Medical Clinic.


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