“Minnesota nice” has brought an insurance company and a provider together to work on reducing, yes reducing, costs:
So Eustis and Tilford struck a deal. The insurance company agreed to provide an undisclosed amount of money to help Fairview — Minnesota’s second-largest health care provider — move from fee-for-service billing to a system based on fixed payments. Tilford says it was by no means a gift to Fairview.
“I was very clear that we would make investments, and that those investments should produce changes in the way care was delivered,” Tilford says.
Eustis, for his part, says Medica took a carrot-and-stick approach with Fairview: “If we don’t perform, we’re going to get less. If you perform at a higher level, you’ll be able to get additional payment.”
The idea, says Eustis, was to keep patients well — by spending more on them when they’re healthy, with the aim of reducing costly illness.