The University of California San Francisco and John Muir Health completed an agreement to form the Bay Area Accountable Care Network. In a statement, UCSF said the agreement establishes a Bay Area-wide network that is a “competitively priced option” for people living in the Bay Area and Northern California.

Under the agreement, both organizations remain independent but have also formed a development company to help them build facilities, increase the number of physicians in the network, and provide physicians and patients new tools to coordinate care. Both organizations use the same Epic platform for EHRs and analytics, which should facilitate seamless data interoperability.

According to the statement, both organizations will apply for a restricted Knox-Keene license effective in the bay area, from the California Department of Managed Care Plans. The license will allow the Bay Area Accountable Care Network to contract directly with health plans to develop an insurance product with the risk-reward profile of an ACO.

Our Take: UCSF and John Muir Health are experienced players in the ACO market. Both have existing accountable care agreements with other insurers and physician groups. Aside from expanding its respective geographies and physician base, both systems see an opportunity to better serve the local population by what they call providing the right care, in the right setting, at the right time.

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