Maui Business

New HHSC, HMSA Hospital Contract Based on Quality, Efficient Care

February 15, 2011, 8:16 PM HST
* Updated February 16, 7:01 AM
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Maui Memorial Medical Center. File photo.

By Sonia Isotov

The Hawaii Medical Service Association (HMSA) and the Hawaii Health Systems Corporation (HHSC) today announced a new hospital contract that transforms health care delivery by making fundamental changes to the way the hospitals are compensated.

The new system is different from current systems that primarily pay for the quantity of services performed and not the quality of care.

HMSA and HHSC have agreed to a payment system that rewards the hospitals, including the Maui Memorial Medical Center, for the quality and safety of the care they provide. The hospitals and physicians will work together to coordinate care that produces positive health outcomes while controlling costs.

“We’re looking forward to working with HHSC and its network of hospitals and physicians, and to the positive results of this new collaboration,” said HMSA President and Chief Executive Officer Robert P. Hiam. “We will be working together to increase patient satisfaction, improve patient outcomes, and reduce costs, which will help us build and maintain a sustainable health care system for Hawaii.”

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 “We realize that health care costs in Hawaii are increasing,” said HHSC Interim President and Chief Executive Officer Alice M. Hall. “HHSC and HMSA are working together to address cost and quality. This agreement focuses on quality, efficient care, which will help us manage costs better. Together, we’re working to keep health care affordable and accessible for our patients and the people of Hawaii.”

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The Hawaii Health Systems Corporation (HHSC) is a state agency and the nation’s fourth largest public hospital system. Its mission involves providing and enhancing accessible, comprehensive health care services that are quality-driven, customer-focused and cost-effective. HHSC is governed by a 12-member board of directors whose responsibility is to develop policies, procedures and rules necessary to plan, operate and manage the hospitals. HHSC runs 14 health care facilities on five islands, and employs more than 4,000 workers. The system’s governance is comprised of both five regional systems boards and a corporate board. The system is managed by a president and CEO and five regional CEOs.

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is an independent licensee of the Blue Cross and Blue Shield Association. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.

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