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-Joint release

For Immediate Release Contact: Mary Wallan

March 25, 2013 (617) 509-2419

mary_wallan@hphc.org

Rob Graham

(617) 919-3111

Rob.graham@childrens.harvard.edu

Harvard Pilgrim Health Care and Boston Childrens Hospital Agree on Contract

Keeps Cost Increases Below Inflation and Focuses on Improving Quality

Wellesley/Boston, MA Harvard Pilgrim Health Care and Boston Childrens Hospital announced

today that they have reached an agreement that limits cost increases to below inflation, provides

incentives for patients to get care at Boston Childrens lower-cost outpatient satellites in Peabody,Waltham and Lexington and continues to improve quality based on pediatric quality metrics.

We worked closely with Boston Childrens Hospital on an innovative arrangement that will provide

quality and value to consumers and employers and at the same time acknowledges the complexity of

care required by a substantial portion of Boston Childrens patients, said Eric Schultz, Harvard

Pilgrim president and CEO. We want to support Boston Childrens care of patients in the most

appropriate setting for the patients needs whether at home, in the community, or at the hospital

itself. This is a win-win agreement for patients, employers and Boston Childrens.

In addition to limiting health insurance rate increases below inflation, the contract supports

innovative new ways to deliver care, including a continued focus on medical homes, programs thatmove services from inpatient settings to less costly outpatient locations, and telehealth services. In

addition, Harvard Pilgrim and Boston Childrens are working together to develop bundled pricing for

more routine services.

We appreciate Harvard Pilgrims willingness to engage with us as we work to slow the growth of

health care costs and deliver high-quality care in more efficient ways to benefit patients and

families, said Sandra Fenwick, Boston Childrens President and COO. The contract strengthens our

Community of Care by further investing in our efforts to improve care coordination with primary care

physicians through medical homes and by supporting family-centered innovations in care ranging

from home visiting to day treatment for conditions previously treated in the inpatient setting.

Patients and families will benefit through lower costs and greater convenience to our high quality

care.

About Harvard Pilgrim Health Care

Harvard Pilgrim Health Care is a not-for-profit health plan serving more than one million members in New

England. Founded in 1969, the health plan has built its reputation on pragmatic innovation with a goal of

lowering costs, improving care and enhancing the overall member experience. Harvard Pilgrim is known for its

mailto:mary_wallan@hphc.orgmailto:mary_wallan@hphc.orgmailto:mary_wallan@hphc.org

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excellent clinical programs, customer service, health improvement strategies and innovative tools that offer

consumers greater transparency and empower them to make better decisions about their health care.

Harvard Pilgrim is the #1 private health plan in America again according to an annual ranking of the nationsbest health plans by the National Committee for Quality Assurance (NCQA). Harvard Pilgrim is the only private

health plan in the nation to be named #1 for member satisfaction and quality of care for nine consecutive

years.*

* NCQAs Private Health Insurance Plan Rankings, 2011-13, HMO/POS. NCQAs Health Insurance Plan Rankings 2010-11

Private. U.S.News/NCQA Americas Best Health Insurance Plans 2005-2009 (annual). Americas Best Health Insurance Plans

is a trademark ofU.S.News & World Report. NCQA The State of Health Care Quality 2004. Harvard Pilgrim Health Care of

New England, Harvard Pilgrims New Hampshire affiliate, is the top-ranked plan in New Hampshire and the seventh highest-

ranked private health plan in America.

About Boston Childrens Hospital

Boston Childrens Hospitalis home to the worlds largest research enterprise based at a pediatric medical

center, where its discoveries have benefited both children and adults since 1869. More than 1,100 scientists,

including nine members of the National Academy of Sciences, 11 members of the Institute of Medicine and 11

members of the Howard Hughes Medical Institute comprise Boston Childrens research community. Founded as

a 20-bed hospital for children, Boston Childrens today is a 395-bed comprehensive center for pediatric and

adolescent health care grounded in the values of excellence in patient care and sensitivity to the complex

needs and diversity of children and families. Boston Childrens also is a teaching affiliate of Harvard Medical

School. For more information about research and clinical innovation at Boston Childrens, visit:

http://vectorblog.org/.

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