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Health Transformation in Oregon

Oregon is leading the way in transforming the way our health care system works. In 2011, Governor Kitzhaber signed House Bill 3650. This bill sets the stage for transforming the care people receive through the Oregon Health Plan, and begins the process of establishing local Coordinated Care Organizations (CCOs). These new CCOs will help Oregon begin to deal seriously with the unnecessary costs that drain public dollars but do not improve health. They will work to reduce waste and inefficiency and begin delivering care in a way that emphasizes prevention, coordination of care, and local partnerships.

Coordinated Care Organizations (CCOs) are networks that include of all types of health care providers who have agreed to work together in their local communities for people who receive health care coverage under the Oregon Health Plan (Medicaid). Clackamas County is now part of, and working with local CCOs to provide better care, better health, and lower costs for people in our County.

Why CCOs?

The answer is simple. We need to improve health outcomes and contain costs.

CCOs were created as a way to re-think health care delivery without cutting people or benefits and to stem the rise in health care costs, due in large part to an inefficient health care system. Over two legislative sessions, in 2011 and 2012, Governor Kitzhaber and bi-partisan lawmakers passed landmark legislation to make CCOs a reality.

A third-party analysis found that by implementing CCOs, Oregon could save a significant portion of projected Medicaid costs in the short and long terms. Savings in state and federal dollars would be more than $1 billion within three years and more than $3.1 billion over the next five years.

cco costs

How Coordinated Care Organizations work

CCOs will bring together medical, mental health and addictions, and dental care providers, along with social services to ensure that people have access to the right care at the right time. It will help focus our health care system on the whole person, and ensure that prevention and wellness are at the center of health care. This approach to improving the way we provide health care, the health of community members, while at the same time reducing costs is known as the “Triple Aim.” The Triple Aim is the goal of all CCOs.

triple aim

While CCOs are regional, service delivery is local. They have one budget that grows at a fixed rate for mental, physical and dental care. CCOs are accountable for health outcomes of the population they serve. They are governed by a partnership among health care providers, community members, and stakeholders in the health systems that have financial responsibility and risk.

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What will stay the same and what will be different with Coordinated Care Organizations?

Under CCOs, the Oregon Health Plan's medical benefits will not change. Before CCOs, the system separated physical, behavioral and other types of care. That made things more difficult for clients and providers and more expensive for the state.

CCOs have the flexibility to support new models of care that are client-centered and team-focused, and reduce health disparities. CCOs are able to better coordinate services and also focus on prevention, chronic illness management and person-centered care. They have flexibility within their budgets to provide services alongside today's OHP medical benefits with the goal of meeting the Triple Aim of better health, better care and lower costs for the population they serve.

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When is this happening?

CCOs are forming in local communities across the State throughout the Summer of 2012. Some CCOs will began in parts of the state as soon as August 1. Here in Clackamas, OHP clients have already become part of one of the two CCO’s in the tri-county region. If you are an OHP member, you should have received notification of the transition to your CCO – either Family Care or Tri County Medicaid Collaborative (re-named Health Share of Oregon).

What if I have further questions?

Please visit the State of Oregon’s Health Transformation webpage for more information on health transformation and CCO’s across the State.

If you have other questions or comments, please call 503-650-5697.

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