News Release

Nov. 24, 2011
HMSA and Castle Medical Center implement new contract with increases based on quality performance

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

Jasmin Rodriguez, Castle Medical Center
(808) 263-5118

The Hawai‘i Medical Service Association (HMSA) and Castle Medical Center announced the implementation of a new three-year hospital contract that makes significant changes to the way the hospital is compensated. Increases for Castle Medical Center are based on delivering measurable, high-quality health care.

Castle is the only hospital in the state to have all of its increases determined by performance on quality measures. The contract runs from Aug. 1, 2011, through July 31, 2014. The quality measures are consistent with HMSA contracts in place at other hospitals around the state.

Kevin Roberts, president and chief executive officer of Castle, said, “The staff and physicians at Castle Medical Center are deeply committed to providing superb quality care and service to the citizens of Hawaii. Because I believe in their capabilities, I chose to take the highest risk option with the highest possible reward.” Roberts added, “When hospitals and insurance companies share the purpose to serve the community, promote quality, and contain unnecessary costs, everybody wins!”

HMSA and Castle are confident the new contract will improve health care quality and patient safety, and reduce the rate of increase in hospital costs at the Windward hospital. Quality measures include:

• Reducing hospital-acquired infections.
• Improving patient safety.
• Reducing readmissions to the hospital.
• Reducing adverse events, such as surgical complications.
• Improving end-of-life care, such as use of hospice services and physician-directed protocols for death with dignity.

“We’re excited to be implementing a pay-for-quality contract with Castle because we know it will improve the care our members receive and help reduce the rate of increase in hospital costs, too,” said Robert P. Hiam, HMSA president and chief executive officer. “When high-quality care is delivered, patient satisfaction goes up and costs go down. This is good news for HMSA members and the Windward community.”

Creating a sustainable health care system in the Islands requires a high level of trust, collaboration, and consensus. Over the past two years, hospitals across the state have joined forces with HMSA to improve patient care and reduce the rate of increase in health care costs. The hospitals and health care systems include Hawaii Health Systems Corporation, Hawaii Pacific Health, Kuakini Hospital, North Hawaii Community Hospital, The Queen’s Medical Center, and now Castle Medical Center. All of the health care facilities have pay-for-quality contracts with HMSA, but with smaller percentages tied to quality measures.

About Castle Medical Center

Castle Medical Center serves all of Oahu and is the primary health care facility for the Windward side of the island. Located in Kailua, Castle is a full-service medical center offering a wide range of inpatient, outpatient, and home-based services. With 160 beds, more than 1,000 associates, 200 volunteers, and 280 physicians on staff, Castle has substantially expanded its services since first opening its doors in 1963.

Castle is part of Adventist Health, a not-for-profit, faith-based health system operating in California, Hawaii, Oregon, and Washington. Founded on the Seventh-day Adventist heritage of Christian health care, Adventist Health is comprised of 17 hospitals with more than 2,600 beds, approximately 17,500 employees, numerous clinics and outpatient facilities, the largest system of rural health clinics in California, 14 home care agencies, and four joint-venture retirement centers.

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.

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