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Blue Shield of California’s Accountable Care Organizations Achieve More Than $325 Million in Healthcare Cost Savings in First Five Years

First launched in 2010, program now includes 35 ACOs throughout California

LOS ANGELES (December 8, 2015) – Blue Shield of California and its Accountable Care Organization (ACO) provider affiliates have together achieved more than $325 million in healthcare cost savings in the program’s first five years, a Blue Shield executive said today at Milken Institute’s 2015 California Summit.

Since the program began in 2010, Blue Shield has been working closely with its ACO providers to help deliver better and more efficient patient care in the most appropriate setting. That work has resulted in helping to reduce hospital admissions by up to 13 percent and hospital bed days by up to 27 percent, Kristen Miranda, Blue Shield’s senior vice president of strategic partnerships and innovation, told the attendees at Milken Institute’s annual event that included elected officials, policymakers, and the state’s healthcare and business leaders.

“We have achieved solid results in the first five years of our ACO program, and we are just getting started. We continue to deepen and refine the work we are doing with our ACO providers to ensure our members receive the right care at the right time and in the right setting, all the while helping to make healthcare more sustainably affordable,” Miranda said.

Blue Shield has been on the forefront of ACO movement in the United States as one of the first health plans to implement a close-knit collaboration with key physician groups and hospitals that arranges coordinated care for Californians with the goal of improving quality of care while achieving significant cost savings.

The program that began in 2010 with Dignity Health and Hill Physicians in Northern California has now grown to 35 ACO collaborations serving more than 325,000 Californians and available to nearly 200,000 additional residents throughout the state including the San Francisco Bay Area; the Silicon Valley; the Sacramento area; Los Angeles, Orange and San Diego counties; the Inland Empire and the San Joaquin Valley.

“The ACO partnership with Blue Shield has achieved more than I originally envisioned. A combination of teamwork, creativity and innovation has yielded results that we’ve been able to spread throughout our entire network,” said Rosaleen Derington, chief medical services officer, Hill Physicians Medical Group. “The focus on continuous improvement has made the experience valuable, not only for our patients but also for our physicians.”

“It's through partnerships like the one we enjoy with Blue Shield of California that are advancing healthcare in California and across the nation,” said Lloyd H. Dean, president and CEO of Dignity Health. “We look forward to continuing our collaboration with Blue Shield to realize the promise of the Affordable Care Act for all patients.”

Contact: Matthew Yi, 415-229-5359,

Background on Blue Shield of California

Blue Shield of California, an independent member of the Blue Cross Blue Shield Association, is a not-for-profit health plan with 4 million members, 6,800 employees and more than $13 billion in annual revenue. Founded in 1939 and headquartered in San Francisco, Blue Shield of California and its affiliates provide health, dental, vision, Medicaid and Medicare health care service plans in California. The company’s mission is to ensure all Californians have access to high-quality care at an affordable price. Blue Shield has contributed more than $325 million over the past ten years to the Blue Shield of California Foundation. Contact your local agent or broker about Blue Shield of California products and services, or visit