
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
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.
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.
In the news
North Carolina’s Healthcare Leaders Send Open Letter to NCGA Senators
NCHA.org, Aug. 8, 2019
Reckless personal attacks harm efforts to resolve State Health Plan
WRAL, July 25, 2019
Lawmakers Derail State Treasurer’s Plan to Change State Health Plan Reimbursement
North Carolina Health News, March 27, 2019
Bill to review State Health Plan clears first hurdle; controversy over proposal continues
Winston-Salem Journal, March 26, 2019
Vidant CEO: Oppose state health plan changes
Greenville Daily Reflector, March 21, 2019
After concerns in rural NC, treasurer ups reimbursement plan
Charlotte Business Journal, March 15, 2019
Policy makers must partner with health experts
Salisbury Post, March 10, 2019
State Health Plan cuts would hurt rural care
The News & Observer, Dec. 26, 2018
Renegotiation of State Health Plan could mean health care losses for Vidant
Washington Daily News, Dec. 22, 2018
Under siege
Roanoke-Chowan News-Record, Dec. 17, 2018
Councilman opposes health plan proposal
Rocky Mount Telegram, Dec. 13, 2018
Religious leaders voice disapproval on state treasurer’s health plan
WNCT-TV, Dec. 13, 2018
Partnerships with providers are cutting NC insurance costs
The News & Observer, Oct. 3, 2018
Despite facts, State Treasurer rejects value-based care
NCHA, Dec. 18, 2018
Interview with Vidant Health CEO Michael Waldrum, MD
WTIB-FM, Dec. 5, 2018
Battle brewing over State Health Plan
Greenville Daily Reflector, Dec. 3, 2018
Vidant Health disagrees with State Health Plan proposal
WNCT-TV, Dec. 3, 2018
Plan to peg State Health Plan prices to Medicare rates may face legislative opposition
North Carolina Health News, Nov. 30, 2018
NCHA President Steve Lawler: State Health Plan proposed changes
WPTF-AM, Nov. 28, 2018
Voices for health
We look forward to working with the State Treasurer as we come together to find a solution for members of the State Health Plan.
We cannot fix the problems with health care with a shock-and-awe model. We need to take baby steps and work collaboratively.

Rep. Donna White – NC House District 26 (Johnston County)
…like most employers, any decision the school system makes for our teachers and staff keeps these valued employees at the center. We carefully study and engage in conversations with experts before moving forward. I believe all state employees deserve this kind of consideration and urge North Carolina elected officials to take the time to thoughtfully consider and study any changes made to the State Health Plan.

Lynn Moody – Superintendent, Rowan-Salisbury Schools
It is poor governance to allow decisions of such magnitude to be made in a vacuum, and without consideration of the unintended, negative consequences.

Sen. Jim Perry – NC Senate District 7 (Lenoir and Wayne counties)
Rural hospitals are on the margins. There would be some that would stand to lose in this, and I’ve made no secret that part of my role down here that I see is to protect rural health care.

Rep. Josh Dobson – NC House District 85 (Avery, McDowell and Mitchell counties)
When I think of the impact this will have on our community and our (hospital) staff, I see community members threatened medically due to loss of services and see the livelihood of our staff threatened.

Judy Bruno – President, Vidant Roanoke-Chowan Hospital
I think it’s a myopic approach that has been taken. At the end of the day, I think it would be an enormous benefit if cooler minds ask to take a step back and look at it from a greater approach of how do we deliver health care and bring in stakeholders to this process so we can have a more comprehensive approach.

Sen. Don Davis – NC Senate District 5 (Pitt and Greene counties)
There will need to be some compromise and I am still gathering as much information as I can to be a better informed legislator. This will help me make the best decision possible for our region, the taxpayers and the businesses that have made a significant investment in our rural communities.

Rep. Chris Humphrey – NC House District 12 (Lenoir and Pitt counties)
We want a plan that we’re involved in creating — not a plan that is imposed upon us that we have to respond to. We want a collaborative resolution that supports our communities in a sustainable way.

Rev. Richard Joyner – Rocky Mount City Council member
…the approach that is being put forth by the state treasurer really seeks only to sort of change unit pricing. It has no long-term impact on the underlying driver of escalating costs, which is poor health status…
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Terry Akin – CEO, Cone Health
We have a large number of state employees in Burke County who rely on our services, and we’re concerned this plan will give them less options. In the everchanging healthcare landscape, sustaining the quality and availability of healthcare provided to this community is our number one goal.

Kathy Bailey – President and CEO, Carolinas HealthCare System Blue Ridge
The treasurer, he needs to take time to come to eastern North Carolina and spend time here and get to know the issue before he makes a decision. We need to recognize and no longer sit home and complain.

Rev. Roy Gray – Pastor at City Hill Missionary Baptist Church, Williamston, N.C.
Improving the health of the communities where we live and work is the collective mission of North Carolina’s hospitals and health systems. Creating a stronger, more sustainable state health plan is an important task that requires engagement from all parties involved.
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Steve Lawler – President & CEO, NCHA
Health systems have a duty to care for every patient. As an elected official, the treasurer has a duty to serve every citizen of North Carolina. If his proposal is enacted, it will compromise our ability to provide essential services — and people who live in rural markets will be impacted most.

Michael Waldrum, MD – CEO, Vidant Health