Stanford Health Care enters into accountable care services arrangement with Silicon Valley technology company
Clients Stanford Health Care
Jones Day advised Stanford Health Care (“SHC”) in connection with the negotiation of an "accountable care services" arrangement with a national health insurance company and a prominent, global technology company headquartered in Silicon Valley. Under the arrangement, SHC agreed to assist the company with the development of a custom "narrow" network of health care providers (including SHC and its affiliates) and to coordinate and manage the provision of health care services furnished to employees of the company (and their eligible dependents) enrolled in the company’s self-funded health benefit plans. In addition, SHC agreed to be financially accountable for its performance relative to certain defined quality, patient satisfaction and financial metrics. The arrangement is distinctive and on the forefront of the shift currently taking place in U.S. health care towards a "value based" model of care and represents a key component of SHC's strategy to adapt and respond to pressures imposed by the market place to control costs, generate efficiencies and improve quality and patient satisfaction.