Wellmark Blue Cross and Blue Shield of Iowa announced today that it will collaborate with Iowa Health System to form an accountable care organization (ACO), a health-care payment model that emphasizes coordination of care to improve quality, provide greater value and slow increases in health-care costs.

In a separate announcement, Mercy Medical Center – Des Moines said it began working with Wellmark on April 1 on its own collaborative ACO with the health insurer. 

The ACOs will be eligible to share in savings generated by providing more cost-effective care, but will also require health-care providers to share in the financial risks if costs continue to rise.

On Wednesday, Iowa Health announced that Michael Murphy, currently an administrator with Michigan-based Trinity Health, will lead its ACO. Mercy’s ACO is being led by Dr. David Swieskowski, senior vice president and chief accountable care officer.

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