Healthcare providers bring ideas to improve members' health, reduce costs

North Carolina healthcare providers are ready to help build a better State Health Plan — one designed to both improve members’ health and lower costs over time.

While the State Treasurer has not been willing to work collaboratively with NCHA and our member organizations, we are not waiting to publicly share our ideas for modernizing the State Health Plan to put it on track for a secure and transparent future.

That’s why North Carolina’s heath systems, hospitals and care providers are bringing forward five pillars and principles for an updated design for the State Health Plan. The approach is called value-based healthcare. It’s the direction where healthcare delivery and reimbursement are moving, both in North Carolina and across the country.

The five recommended pillars are to:

  • Incentivize and pay for better health
  • Provide current, full-picture data to healthcare providers and enrollees
  • Create a benefit design that improves quality and lowers cost
  • Stimulate clinical innovation to meet population health needs
  • Require that the third-party administrator of the plan must partner with the healthcare provider community and the State to share in performance risks and rewards.

Read more about these value-based care principles.


The  State Health Plan  (SHP) covers more than 720,000 members, including teachers, state government employees, law enforcement officers, retirees, current and former lawmakers, state university and community college personnel, and their families. We are pleased that the treasurer decided to work with our members to find a solution that ensures that all of these individuals – our patients — can continue to see their trusted physicians, specialists, and local hospitals for the care they need and deserve.

North Carolina health systems, hospitals and healthcare providers are already implementing many initiatives to reduce the costs of care. They are only a piece of the puzzle for addressing rising healthcare costs. NCHA and our member organizations look forward to continuing to work with the treasurer, General Assembly and State Health Plan members to develop a stronger, sustainable and transparent future for the State Health Plan and for North Carolina’s overall healthcare environment.

Our hospitals and doctors across the state work hard every day to provide important healthcare services to all of their patients, which include State Health Plan members.

Scroll down to see examples of success stories and videos about how Value-based Care approaches are already being used in North Carolina to reduce costs and improve health for state residents.

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By Physician Quality Partners in 2018
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By Triad HealthCare Network in 2018
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By Duke Health’s Accountable Care Organization in 2017

Visit our YouTube channel to learn more about how hospitals are implementing value-based care across North Carolina.

Chronic disease is the most common reason for preventable emergency departments visits and hospital readmissions. Through a partnership with local EMS, Johnston Health is helping patients with chronic obstructive pulmonary disease (COPD) stay healthy at home.

Learn how your community hospital is working 24 hours a day, 7 days a week, every day of the year to help you and your family. Our hospitals enhance the quality of life in North Carolina by partnering with other community organizations and committing valuable resources to keep people healthy. Not only do our hospitals and health systems have to be prepared for minor illnesses and major catastrophes, they also care for the sickest and most vulnerable of our neighbors.

In its first year of operation, an employee health clinic operated by Vidant Health helped the City of Greenville save more than $140,000 in healthcare costs. The value-based care offered through this partnership offers employees and families quality healthcare with no co-pays to incentivize care for minor illnesses and injuries before they become costly problems.

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We look forward to working with the State Treasurer as we come together to find a solution for members of the State Health Plan.