Health Net and the University of California Expand Accountable Care Arrangement for University of California Employees

Health Net of California, Inc., a subsidiary of Health Net, Inc., is expanding the implementation of accountable care arrangements for University of California (UC) employees at UC campuses in Davis, Irvine and San Diego in 2016.

Health Net currently has accountable care arrangements at UC campuses in Los Angeles and San Francisco. The new systemwide agreement between UC and Health Net expands the role of UC Health in a new accountable care arrangement responsible for serving the health care needs of almost half of the UC employees across the state enrolled in Health Net Blue & Gold HMO.

Enhanced Collaboration

To optimize the performance of the Health Net Blue & Gold HMO, which is the health coverage selected by many UC employees and their eligible family members, Health Net, UC and UC Health have established a new collaboration model.

“Together, we are committed to a long-term collaboration that continues managing and expanding a portfolio of clinical care initiatives to help enhance the health care experience of Health Net members and help improve affordability,” said Steve Sell, president of Health Net’s Western Region Health Plan.

Health Net has been at the forefront of developing innovative arrangements that enhance the ability of health care providers to improve quality, affordability, and the overall care experience.

“UC Health is committed to managing its patient population in a way that integrates services across the full spectrum of care, to increase efficiencies in the delivery system and lead to better outcomes and enhanced patient satisfaction,” said John Stobo, M.D., executive vice president for UC Health. “The expanded accountable care arrangements between Health Net and UC in 2016 will serve UC’s employees, non-Medicare retirees and their covered family members enrolled in the Health Net Blue & Gold HMO who utilize UC Health’s own provider groups and medical centers.”

“The expanded contractual relationship with Health Net provides even more transparency into our health care delivery system for the benefit of our employee population,” Stobo said. “Our arrangement enables us to work as a team with Health Net to develop advanced care models and integrated systems and apply best practices at all five academic medical centers to provide the right care at the right time and in the right place.”

“Health Net’s existing accountable care arrangement in San Francisco clearly demonstrates the power of collaboration,” said Sell. “During its first three years, the San Francisco initiative achieved $25 million in savings by increasing access to care through wider use of urgent care centers, transforming members’ care experience when they were hospitalized, and offering assistance for members and physicians to better manage patients’ medications. Together, these improvements help improve patients’ relationships with their doctors, and the success is due to the collaborative efforts of our provider partners: UCSF Medical Center, Hill Physicians Medical Group and Dignity Health.”

“Ever since we implemented our care arrangements in San Francisco in 2013 and Los Angeles in 2015, our goal has been to help improve clinical outcomes and the patient experience while aiming to reduce the health care cost expenditures of our UC members,” said Terri Guzy, Health Net vice president of Strategic Provider Partnerships. “We’re excited about the expansion to the Davis, Irvine and San Diego campuses, and we look forward to working with the University of California to build upon its clinical expertise as we evolve to the next stage of our innovative arrangements.”

UC Health’s accountable care arrangements are highlights of the Health Net Blue & Gold provider network, which was specifically developed in collaboration with UC. The network contracts with selected physician groups and hospitals in 30 California counties and provides access to employees and non-Medicare retirees of the UC system and their eligible family members.

UC employees and their eligible family members may get more information about the Health Net Blue & Gold HMO at www.healthnet.com/uc.

About Health Net

Health Net, Inc. (NYSE:HNT) is a publicly traded managed care organization that delivers managed health care services through health plans and government-sponsored managed care plans. Its mission is to help people be healthy, secure and comfortable. Health Net provides and administers health benefits to approximately 6.1 million individuals across the country through group, individual, Medicare (including the Medicare prescription drug benefit commonly referred to as “Part D”), Medicaid and dual eligible programs, as well as programs with the U.S. Department of Defense and U.S. Department of Veterans Affairs. Health Net also offers behavioral health, substance abuse and employee assistance programs, and managed health care products related to prescription drugs.

For more information on Health Net, Inc., please visit Health Net’s website at www.healthnet.com.

About University of California

With 10 campuses, five medical centers, three national labs and more than 1.7 million alumni, the University of California is the nation’s premier public research university. For more, visit: http://www.universityofcalifornia.edu/.

About UC Health

University of California Health includes five academic medical centers and 17 health professional schools. For more information, visit http://health.universityofcalifornia.edu

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Except as may be required by law, the company undertakes no obligation to address or publicly update any of its forward-looking statements to reflect events or circumstances that arise after the date of this release.

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