CentraState Healthcare System

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Friday, February 01, 2013 - CentraState Approved to Begin Project Designed to Lower Healthcare Costs

News Release

For Release: February 1, 2013 

Contact: Abbey M. Luterick, Director of PR & Communications
732.294.7082

CentraState Approved to Begin Project Designed to Lower Healthcare Costs

FREEHOLD TOWNSHIP — CentraState Medical Center is pleased to be one of the original 12 hospitals in New Jersey involved in an innovative program to improve healthcare efficiency and reduce costs. This pilot project, known as gainsharing represents work being done by The Centers for Medicare and Medicaid as an initiative in the new Accountable Care Act implemented by the Obama administration.

“Hospitals and healthcare systems are actively engaged in finding better, more cost-effective ways of doing business, and that’s a good thing for all of us. We continue to see positive outcomes from our collaborative efforts to improve quality and safety here at CentraState, in part by setting up supportive systems for patients when they are discharged to reduce the chances of re-admission,” explains John T. Gribbin, president & CEO of CentraState Healthcare System.

The Bundled Payments for Care Improvement initiative includes four models of bundling payments, varying by the types of health care providers involved and the services included in the bundle.  Depending on the model type, CMS will bundle payments for services beneficiaries receive during an episode of care, encouraging hospitals, physicians, post-acute facilities, and other providers as applicable to work together to improve health outcomes and lower costs. Organizations of providers participating in the initiative will agree to provide CMS a discount from expected payments for the episode of care, and then the provider partners will work together to reduce readmissions, duplicative care, and complications to lower costs through improvement.

Today’s announcement includes the selection of 32 awardees in Model 1, who will begin testing bundled payments for acute care hospital stays as early as April 2013.  In the coming weeks, CMS will also announce a second opportunity for providers to participate in Model 1, with an anticipated start date of early 2014.  

“The objective of this initiative is to improve the quality of health care delivery for Medicare beneficiaries, while reducing program expenditures, by aligning the financial incentives of all providers,” said Acting Administrator Marilyn Tavenner.

“Our largest consumer population is Medicare patients. We have more than 120 of our physicians participating in this initiative and the benefit to our patients is the fact that we are one of the most efficiently run hospitals in New Jersey,” adds Gribbin. “This effort is not new to CentraState, for many years we have been working with physicians and staff to improve our core measures through better management and coordination of care across all of our settings – hospital, outpatient, long-term care and home care, the latter with our partners at central Jersey VNA. We know that healthcare reform is bringing change to the industry and we are in front of that change and embrace the opportunity it brings.”

About CentraState

CentraState Healthcare System is a non-profit community health organization consisting of an acute-care hospital, a health and wellness campus, three senior living communities, a charitable foundation and a Family Medicine Residency Program, sponsored by UMDNJ-Robert Wood Johnson Medical School.

CentraState Healthcare System
901 West Main Street | Freehold, New Jersey 07728 | 732-431-2000

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