The rapidly changing health care landscape is bringing with it profound changes in reimbursement methods, shifting significant financial risk from payers to care providers. Hospitals nationwide are adjusting to new regulations, loss of volume, sequestration cuts, and reform uncertainties. These changes are requiring hospitals to reorganize and reengineer the way they deliver care and to adjust rapidly to new payment reform.

Phoebe Putney Health System announced a partnership with xG Health Solutions, a Geisinger Health System affiliate. Geisinger, a top performer in the health care industry, is considered to be a national model for how to improve outcomes and reduce health care costs.  xG Health offers expertise to health care systems across the nation and is the exclusive provider of Geisinger's intellectual property.

"Phoebe is committed to improving patient care and making health care more affordable.  Our goal is to perform in the top 10 percent of all hospitals in quality, outcomes, and patient satisfaction," said Joel Wernick, Phoebe chief executive officer. "For us to continue to serve our community's health care needs, we must innovate and evolve.  This newly formed partnership demonstrates Phoebe's commitment."

Geisinger has deep experience in health care transformation that includes value reengineering, accountable care, implementation of patient-centered medical homes, payer-provider collaboration, and 17 years of experience with an electronic health record. Geisinger methods have been proven to improve quality of care and population health while reducing cost, not only at Geisinger but also at other health systems.

Phoebe will work with xG Health to develop a strategic plan and roadmap for moving from a fee-for-service model to a value-oriented care delivery model and for transitioning from a focus on treating single episodes of acute illness to managing population health. Managing population health goes beyond treating patients in need of immediate care; instead it uses data to support coordination of all aspects' of each patient's care - from wellness and preventative care to management of chronic conditions.  These initiatives are necessary for health systems to thrive under new performance-based payment arrangements where providers will be paid based on the quality, not amount, of care they deliver to their patients.  xG Health will evaluate Phoebe Putney's current organizational structure, alignment of goals towards value-orientation, population health management capabilities, clinical and economic performance, and best opportunities to improve quality and efficiency of care.  xG experts will assess the health system as a whole and provide a deeper analysis of its cardiovascular service line to make a great program even better.  The xG Health team also will talk to local payers and employers about Phoebe Putney's interest in value re-engineering and to explore opportunities to establish new payment arrangements that are beneficial to all parties. 

"xG Health is delighted to have the opportunity to help Phoebe Putney Health System identify ways to improve the quality and reduce the cost of care it delivers,"  says Dr. Earl Steinberg, chief executive officer of xG Health Solutions and executive vice president of Innovation at Geisinger.  "We are extremely impressed by the commitment of Phoebe's Board and executive and clinical leadership to reengineer how the health system can deliver greater value to the patients, payers, employers and communities it serves."

Reengineering at Geisinger to deliver the right care at the right time has produced an 18 percent reduction in hospitalizations, 36 percent reduction in readmissions, 19 percent improvement in patient perception of care coordination, and improved clinical outcomes at a reduced cost of care.  xG Health has proven that Geisinger's methods work outside of Geisinger as well as at Geisinger. Partnerships between xG Health Solutions and other health systems have yielded over 16 percent reductions in admissions and readmissions, and 8 percent reductions in emergency room visits, while lowering health care cost.