The group intends to scale financially sustainable solutions to the problems faced by the underserved, and to do so as quickly as possible. (Photo: Shutterstock)

Seventeen health systems, encompassing 280 hospitals—5 percent of the hospitals in the country—have come together to figure out financially sustainable solutions to the problem of how to improve health care for underserved people and their families.

According to Avia Health Innovation, the Medicaid Transformation Project is “a national effort to transform health care and related social needs for the nearly 75 million Americans who rely on Medicaid.”

“The current health care system fails the people who need it most,” says co-founder Andy Slavitt, former Acting Administrator of CMS and Founder and General Partner at Town Hall Ventures. “The Medicaid Transformation Project will be part of a decade-long journey leading some of the best health systems in the country. Our work will be to deepen and refine the best innovations and then implement them at an accelerated pace at providers across the country.”

The group's two-year mission is for member health systems to “implement innovative solutions that address challenges like behavioral health and substance use disorder … [to] create long-term systemic impact over the next 10 years with the goal of improving the health of 75 million Americans.”

The alliance plans to tackle several specific challenges faced by vulnerable populations nationwide: behavioral health, women and infant care, substance use disorder and avoidable emergency department visits.

Five health systems are at the vanguard of the effort: Advocate Aurora Health in Chicago and Wisconsin, Baylor Scott & White Health in Dallas; Dignity Health in San Francisco; Geisinger in Danville, Pa.; and Providence St. Joseph Health in Renton, Washington. They, along with the other 12, cover 21 states with more than 53,000 hospital beds.

The press release announcing the formation characterizing the current U.S. health care system as unsustainable, pointing out that:

  • 20 percent of Americans are covered by Medicaid;
  • 50 percent of U.S. births are financed by Medicaid;
  • Medicaid is the country's No. 1 payer for behavioral health services; and
  • 33 cents of every dollar for a physician's services are paid by Medicare/Medicaid.

The group intends to scale financially sustainable solutions to the problems faced by the underserved, and to do so as quickly as possible rather than to “discuss” the problems faced by patients.

“We believe tomorrow's solutions for today's health disparities will be rooted in digital solutions and technologies that are easy to implement and scale.” Nick Turkal, M.D., president and CEO of Advocate Aurora Health says in the press release. “This unique opportunity brings together like-minded systems who are committed to delivering greater value to those who deliver, receive, and pay for health care.”

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.