The state’s largest health insurer, Hawaii Medical Service Association, and the Hawaii Health Systems Corporation, which operates Leahi Hospital and 13 other health facilities, said they have signed a new contract that rewards the hospitals for the quality of care and not the quantity.

“HMSA and HHSC have agreed to a payment system that rewards the hospitals for the quality and safety of the care they provide.  The hospitals and physicians will work together to coordinate care that produces positive health outcomes while controlling costs.  The new system is different from current systems that primarily pay for the quantity of services performed and not the quality of care,” the two organizations said in a news release.

“We’re looking forward to working with HHSC and its network of hospitals and physicians, and to the positive results of this new collaboration,” said HMSA President and CEO Robert Hiam.  “We will be working together to increase patient satisfaction, improve patient outcomes, and reduce costs, which will help us build and maintain a sustainable health care system for Hawaii.”

Hawaii Health Systems Corporation is a state agency and said it is the nation’s fourth largest public hospital system. HHSC said it runs 14 health care facilities on five islands, and employs more than 4,000 workers. The facilities are:
   Maui Memorial Medical Center
   Kula Hospital
   Lanai Community Hospital
   Hilo Medical Center
   Yukio Okutsu State Veterans Home
   Hale Ho’ola Hamakua
   Ka’u Hospital
   Kauai Veteran Memorial Hospital
   Samuel Mahelona Medical Hospital
   Kona Community Hospital
   Kohala Hospital
   Leahi Hospital
   Maluhia
   Kahuku Medical Center