PHILADELPHIA -- The University of Pennsylvania Health System (UPHS) and Independence Blue Cross (IBX) have reached a long-term agreement on reimbursement rates for a new contract renewal, which would take effect on July 1, 2025. The agreement cements an impactful partnership that serves as a backbone of Philadelphia's strength as a national health care leader.
Penn Medicine cares for approximately 400,000 patients covered by IBX each year in the tri-state area. Under the renewed contract, they will be ensured continuity of care with their Penn Medicine providers and benefit from the continued collaboration and innovation that boosts health outcomes, improves the patient experience, and controls costs.
"Our relationship with IBX has allowed us to try new things that have set new standards for our field, like our work together to substantially cut down on preventable readmissions. At a time when both health systems and insurers are under financial pressure, we are energized to be able to continue our solid partnership caring for those who depend on both our organizations each day," said UPHS CEO Kevin B. Mahoney. "Over the years, we've held one another accountable, transformed the way we provide care, and most importantly, we've worked together to make the communities we serve healthier."
The new agreement paves the way for the fourth consecutive contract renewal between Penn Medicine and IBX, an innovative strategic partnership that has helped to transform the regional health marketplace. The collaboration began with a breakthrough value-based partnership arrangement in 2012.
"As we reflect on our collaboration with Penn Medicine, it is clear that our partnership is driving transformation by demonstrating that providers and payers can work collaboratively to improve health care for all," said Gregory E. Deavens, president and CEO of Independence Blue Cross. "From pioneering value-based care models to addressing health inequities together, we have consistently pushed the boundaries of what is possible. This early agreement on rates reassures IBX members that our collaboration with Penn Medicine is enduring, providing continued access to exceptional medical care when they need it most. I am proud of what our organizations have accomplished together and look forward to what we will do in the future."
During the most recent contract period, the organizations led efforts to tackle persistent health disparities through efforts including Accelerate Health Equity (AHE), and the Regional Coalition to Eliminate Race-Based Medicine (Regional Coalition). IBX convened the Regional Coalition, bringing together health systems across the Philadelphia region to remove unintended discrimination from commonly used tools that help doctors determine the best way to care for their patients. At the same time, Penn Medicine's faculty and staff expertise and deep research experience provided a framework for scaling up evidence-based interventions and practice changes designed to close gaps in areas from obstetrics to cardiovascular health to cancer.
Together, Penn Medicine and IBX are also pursuing bold ideas that are reducing administrative burdens to help expedite access to care, and drive efficiencies and improved patient experience. For instance, a pilot program to eliminate prior authorization for many types of imaging studies is a win-win for patients and staff from both organizations, saving processing time and allowing scans to be completed much quicker, potentially speeding time to diagnosis. The two organizations expect to expand these types of agreements to new services such as radiation therapy and cardiac testing.
Penn Medicine has also been deeply involved in IBX's Clinical Care Innovation Program, which funds grants and pilots that providers are working to improve health outcomes, break down barriers to care, and contain costs. IBX has awarded Penn Medicine with nine Clinical Care Innovation Grants since 2021. Working together on programs like these enables the two organizations to grow value-based care programs and accelerate improvements in care delivery that can be measured, replicated, and scaled.
