GEORGE F. LEE / FEB. 10
Dr. Mark Mugiishi met with the Honolulu Star-Advertiser Editorial Board at the Star-Advertiser office to discuss the proposed conglomeration of the two health care providers.
Hawaiʻi Medical Service Association physicians will now have an additional six months to transition into a new fee-for-service payment model that HMSA said today will benefit doctors and their patients.
HMSA and Hawai‘i Pacific Health are in the midst of merging into a new entity, One Health Hawaii, that will integrate the state’s largest health insurer with one of its largest health care providers.
Gov. Josh Green, the country’s only governor who is also a medical doctor, worked with HMSA to postpone the deadline for physicians to adapt to the new fee-for-service payment model to ease the transition.
HMSA said today that extension implementation through Jan. 1 will help physicians and their practices adjust to new workflows, billing processes, revenue cycles, and reimbursement requirements.
Primary care physicians can still move to the new fee-for-service payment model now. Or they can continue their current arrangement until Jan. 1.
Under the new model, neighbor island primary care physicians will see a 15% increase in payment rates to reflect their higher costs.
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Doctors can also receive temporary financial support if they are experiencing significant and unforeseen financial hardships from the transition.
“We’ve heard the concerns raised by physicians and state leaders, and we are making this adjustment because we understand primary care is essential to Hawaiʻi’s health care system,” Mark M. Mugiishi, HMSA’s chief executive officer said in a statement. “Our goal is to support physicians, protect continuity of care for our members, and make sure this transition is implemented in a responsible way. We appreciate Governor Green’s engagement as a physician and as governor, and we share his commitment to strengthening primary care across the state.”
HMSA notified its employees of the delay this morning.
HMSA and HPH leaders have previously told the Honolulu Star-Advertiser that the merger is designed to improve affordability and access to health care at a time of double-digit increases in costs.
In a statement today, Green said: “As a doctor, I have heard directly from physicians and communities about the pressure primary care practices are facing. I appreciate HMSA’s willingness to listen, work with my administration, and adjust its approach. This agreement gives physicians more time, provides targeted support, and helps ensure patients can continue seeing the doctors they know and trust.”