Cigna (NYSE:CI) and the Palo 
      Alto Medical Foundation (PAMF), a not-for-profit health care 
      organization that is a pioneer in the multispecialty group practice of 
      medicine, have launched a collaborative accountable care initiative 
      to expand patient access to health care, improve care coordination, 
      and achieve the "triple aim" of improved health outcomes (quality), 
      lower total medical costs and increased patient satisfaction. 
      Collaborative accountable care is Cigna's approach to accomplishing the 
      same population health goals as accountable care organizations, 
      or ACOs.
    
    
      PAMF is part of the Sutter 
      Health family of not-for-profit hospitals and physician 
      organizations that share resources and expertise to advance health care 
      quality. A pioneer in outpatient medicine, PAMF operates more than 40 
      individual medical clinics that together serve over 750,000 patients in 
      communities covering Alameda, San Mateo, Santa Clara and Santa Cruz 
      counties.
    
    
      This patient-centered collaboration is Cigna's first accountable 
      care initiative in California. It links doctors, hospitals and a single 
      health plan together with the goal of reducing health care costs by 
      improving patients' health.
    
    
      The program will benefit as many as 21,000 individuals covered by a 
      Cigna PPO health plan who receive care from PAMF's more than 1,000 
      primary and specialty care physicians, including those in its affiliated 
      independent physician association, Mills-Peninsula Medical Group.
    
    
      "Cigna is a national leader in accountable care, which is why we are 
      enthusiastic about working with the company as part of this program," 
      says PAMF Chief Executive Officer Richard Slavin, M.D. "We believe this 
      arrangement offers a wonderful opportunity for us to improve health care 
      quality, lower medical costs and help our patients lead healthier and 
      more productive lives.
    
    
      "PAMF is a pioneer in the adoption of electronic health record 
      technology to coordinate care, reduce errors and improve communication 
      between clinicians and patients. These technologically advanced 
      capabilities make PAMF uniquely suited to a collaborative accountable 
      care initiative," Dr. Slavin adds.
    
    
      "It is critical that insurers and health care providers work more 
      closely together to improve service to patients," says Cecilia Montalvo, 
      regional vice president of strategy and business development at PAMF and 
      the Peninsula Coastal Region of Sutter Health. "We believe that by 
      partnering with Cigna, we are entering into the type of health 
      plan-health care provider collaboration that will serve as a model for 
      the future in rewarding innovation and quality of care."
    
    
      Patients will continue to go to their current physician and will 
      automatically receive the benefits of the program. There also are no 
      changes in any plan requirements regarding referrals to specialists. 
      Patients most likely to see the immediate benefits of the program are 
      those who need help managing chronic conditions, such as diabetes or 
      heart disease.
    
    
      Critical to the program's benefits are registered nurses, who serve as 
      clinical care coordinators to help patients navigate their health care 
      system. The care coordinators will reach out to patients who are overdue 
      for important health screenings or who may have skipped a prescription 
      refill. In addition, patients who may be at increased risk of developing 
      health problems in the future will be offered preventive services such 
      as disease management programs for diabetes, heart disease and other 
      conditions; and lifestyle management programs, such as programs for 
      tobacco cessation, weight loss and stress management.
    
    
      This initiative is unique in using data and analytics to focus health 
      care professionals more fully on engaging patients to improve the 
      coordination of their care as well as develop best practice clinical 
      initiatives across all PAMF locations. Cigna will compensate PAMF for 
      the medical and care coordination services it provides. Additionally, 
      the organization may be rewarded through a "pay for performance" 
      structure if it meets its targets for improving quality and lowering 
      medical costs. Employers who sponsor health plans will benefit from 
      lower health care costs or health care costs that increase at lower 
      rates.
    
    
      "PAMF shares our vision for a patient-centered health care system that 
      emphasizes prevention and primary care and rewards physicians for care 
      quality and health outcomes," said Peter B. Welch, president for Cigna 
      in northern California. "We believe that a system that's focused on 
      value rather than volume of care offers the best path to improved health 
      and lower medical costs, which is good for individuals, families, 
      employers and doctors."
    
    
      The principles of the patient-centered medical home are the foundation 
      of Cigna's collaborative accountable care initiatives. Cigna then builds 
      on that foundation with a strong focus on collaboration and 
      communication with medical organizations. Cigna is now engaged in 38 
      patient-centered initiatives in 19 states, including six multi-payer 
      medical home pilots and 32 Cigna-only collaborative accountable care 
      initiatives. The collaborative accountable care initiatives encompass 
      more than 300,000 Cigna customers and more than 45,000 primary care 
      physicians.