It is hard to believe that first quarter of 2018 is almost about to end, but this also means that very soon it will be time to distribute 2017 gain-share payments. Signature Partners expects to receive the final reconciliation numbers for our 2017 gain-share distribution from Innovation Health by the end of April. As of the end of the 3rd quarter of 2017, our cost and utilization metrics had a favorable trend compared to non-Signature Partners performance and hence we are expecting a sizeable gain-share distribution for 2017. Similar to last year, any gain share revenue will then be allocated out to the practices based on your proportional attribution of fully insured (non-exchange, non-self insured) Innovation Health members. Please note that for 2018 gain-share distribution, the Signature Partners Board has approved a change in how we allocate practice bonuses. As we will be held accountable as a network for our Innovation Health quality metrics, we will need to include the practice performance on quality metrics as part of the gain share allocation. As such, the individual practice allocation will be based partly on the attribution and partly on the performance on quality metrics.
As you are aware, we now have several other value-based contracts in place, including our contract with Johns Hopkins Health Care for USFHP (TriCare Prime) that went into effect in 2017, and a new Innovation Health Medicare Advantage program, which was launched in January 2018. We are also negotiating ACO contracts with a couple other commercial insurance carriers. Combining all these together, there is significant potential for value-based incentives for our providers as we continue to grow and work together to improve the cost and quality of health care for our patients.
One of the initiatives that we have started this year to improve our network performance, which is heavily dependent on provider engagement, is quarterly meeting of our network providers. All the primary care practices have been grouped into eight groups that have started meeting already. This provides an opportunity for the providers in our network to come together and review our performance on quality and utilization metrics and share strategies to improve the performance. Our goal is to become the highest quality, lowest cost Network of providers in Northern Virginia. We believe that working together will benefit all of our physicians individually and as a network as we learn from each other how to engage our patients in quality improvement and utilization reduction. Please be on the lookout for an invitation coming your way to attend your regions’ first quarter meetings that are being held in March and April.
Lastly, I’d like to inform you that your year-end 2017 quality measures dashboard as well as a new cost and utilization dashboard will soon be distributed to you electronically and via your Quality Consultant. Our teams have put a lot of time and effort into making these reports more meaningful, and welcome your continued feedback to improve these.
Thank you for your time and commitment to Signature Partners, and I look forward to seeing you at the Annual dinner which is scheduled for May 8th; details to follow.
Matthew Poffenroth, MD, MBA
CEO/CMO, Signature Partners