Confidential and proprietary. Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.Confidential and proprietary.

MAYO CLINIC AND MAYO CLINIC HEALTH SYSTEM CONTRACT2014-2016 OVERVIEW

Confidential and proprietary.

STRATEGIC APPROACH

2

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

Confidential and proprietary.

ALIGNED INCENTIVE – GUIDING PRINCIPLES

3

• 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

Confidential and proprietary.

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 office4

Confidential and proprietary.

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

5

Confidential and proprietary. Blue Cross® and Blue Shield® of Minnesota and Blue Plus® are nonprofit independent licensees of the Blue Cross and Blue Shield Association.Confidential and proprietary.

THANK YOU.