June 8, 2010

The Queen’s Health Systems and HMSA join forces to create a sustainable health care system for Hawaii

Elisa Yadao, HMSA
(808) 948-6025
elisa_yadao@hmsa.com

Cedric Yamanaka, Queen’s
(808) 547-4975

The Queen’s Health Systems and the Hawaii Medical Service Association (HMSA) today announced an exciting new hospital agreement intended to transform the way health care is delivered by making fundamental changes to the way hospitals are compensated. As longtime leaders in health care, HMSA and Queen’s are committed to providing quality, affordable care for the people of Hawaii.

HMSA and Queen’s are working together on a new payment system that rewards hospitals for the quality and safety of the care they provide. The payment system rewards hospitals and physicians for working together to coordinate care that produces positive health outcomes while controlling costs. The new payment system is fundamentally different from current systems that primarily pay for the quantity of services performed and not the quality of care. The bottom line is helping people stay healthy in order to ensure our health care system is viable for the long-term.

“There are numerous examples across the U.S. that demonstrate that improving the quality of care can lead to a reduction in health care costs,” said HMSA President and Chief Executive Officer Robert P. Hiam. “We believe that this new reimbursement model will result in higher patient satisfaction, improved patient outcomes, and cost savings that will help us build and maintain a sustainable health care system for Hawaii.”

Developing a sustainable health care system requires high levels of collaboration and consensus. Health care providers need to work with health plans, employers and patients to build a system that delivers quality care at an affordable, sustainable cost.

“Health care costs have been increasing at unsustainable levels,” said Art Ushijima, President and Chief Executive Officer of The Queen’s Health Systems. “Queen’s and HMSA have come together to find concrete ways to address this urgent situation. The new agreement focuses on quality and efficiency and will help us bend the cost curve over time with the goal of keeping health care manageable and accessible for the people of Hawaii.”

“We’re beginning to see more health plans evaluating pay-for-performance programs, including other Blue Cross and Blue Shield plans,” said Hiam. “As a result, the outcomes-based reimbursement model is gaining acceptance across the country because this model puts the focus on the patient and aims to deliver the right care in the right setting at the right time.”

As the largest private hospital in the state, The Queen’s Medical Center is an excellent partner for HMSA in this project. Queen’s has been serving the people of Hawaii for 150 years and offers a comprehensive range of specialties, including cancer, cardiology, gastroenterology, genetics, geriatrics and pulmonology. Queen’s has received numerous national awards and distinctions, including awards from American College of Surgeons Commission on Cancer, American Nurses Credentialing Center, American Association for Respiratory Care, American Heart Association’s Get With The Guidelines/ Coronary Artery Disease, American Stroke Association’s Get With The Guidelines/Stroke, and National Accreditation Program for Breast Centers.

About The Queen’s Health Systems

The Queen’s Health Systems (QHS) is a not-for-profit corporation established in 1985 to provide expanded health care capabilities to the people of Hawaii and the Pacific Basin. It is Hawaii’s oldest and preeminent family of health care-related companies, and employs approximately 4,500 employees. QHS consists of The Queen’s Medical Center, The Queen’s Heath Care Centers, The Queen Emma Land Company, Queen’s Development Corporation, Queen’s Insurance Exchange, Inc., and Molokai General Hospital, and has ownership interests in CareResource Hawaii, Hamamatsu/Queen’s PET Imaging Center, and Diagnostic Laboratory Services, Inc.

About HMSA

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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