Mayo Clinic and Mayo clinic health system contract 2014-2016 Overview

1. Mayo Clinic and Mayo clinic health system contract2014-2016 Overview

2. Strategic approach Design a market-driven contract that embraces the objectives of increasing value to members, creating higher quality care, lowering the total cost of care Value-based contract Aligned incentives Mayo’s reputation as destination medical center Market demand for lower total cost of care

3. Aligned incentive – guiding principles • Collaboration between Mayo Clinic and Mayo Clinic Health System and Blue Cross • Payment transformation • Focus on outcomes • Bend the cost curve • Accountable performance-based compensation • Customer value proposition • Simple and practical innovation

4. Aligned Incentive Contract for Mayo Clinic Health System (MCHS) • Shared priorities and purpose • Demonstrate and be accountable for measured quality and overall cost of care for the people we serve • New practice models are being deployed by MCHS community care locations, meaning patients will be supported by a team of care givers, who work with their primary care provider to meet their needs • The MCHS team will help patients access the right level of care, when and where they need it • Mayo Clinic now offers patients greater access to their information and expert advice through online tools plus 24x7 ability to talk with a nurse to support their care needs without leaving their home or office

5. Long-Term benefits of the New Contract Over time, the resulting quality improvements and cost-savings can benefit Blue Cross members and clients and the overall community in the form of measurable differences in clinical and health outcomes, lower medical cost trends, and the impact on insurance premiums This is a unique arrangement between Blue Cross, Mayo Clinic and the Mayo Clinic Health System

6. Thank you.