HMSA, Queen's agree on new compensation system

HONOLULU (AP) - Hawaii's largest insurance company and one of the state's leading hospitals have agreed to change the way medical care is paid for.

The Hawaii Medical Service Association and The Queen's Medical Center said in a joint news release Monday the new system is fundamentally different from systems that primarily pay for the quantity or number of services performed rather than the quality of care.

Instead, HMSA will reward Queen's and its physicians for coordinating care that produces positive health outcomes while controlling costs.

The institutions aim to improve the highest quality of care patients receive and ensure Hawaii's health care system is viable in the long-term.

The agreement is similar to one HMSA reached with Hawaii Health Systems Corp. - the operator of Hawaii's public hospitals - earlier this year.

Copyright 2011 by The Associated Press. All Rights Reserved.