U.S. Department of Health & Human Services Recognizes Allegiance Health for Commitment to Health Improvement

October 18, 2010

Jackson, Mich. — Allegiance Health and the federal government are completing the terms of an agreement that would provide approximately $2 million in federal money to support health improvement planning in Jackson. These resources would support Allegiance’s commitment to the community and its decade-long efforts to improve health and control the cost of care.

“The real winners of this agreement are the people of Jackson,” said Georgia Fojtasek, president and CEO of Allegiance Health. “Our organization was chosen because our framework for health planning is in place, we know the health issues that need to be addressed, and we have the people and technology to move forward. What has been most lacking were financial resources—until now.”

According to Chad Noble, director of Corporate Accounts at Allegiance, “We are pleased by the prospect of partnering with the U. S. Department of Health and Human Services and to receive the Department’s support for our efforts to improve community health, the quality of care and reduce cost. In turn, the Department will use our experience and outcomes as a best-practice model for initiatives across the country.”

Months ago, health system leaders approached U.S. Congressman Mark Schauer to resolve a longstanding issue with Medicare reimbursement. Congressman Schauer worked to convey Allegiance’s role as a vital institution to the Jackson community and its significance as a thought leader on advancing health care delivery in the community. Federal support in the Jackson region will help Allegiance to maintain local services that were otherwise threatened by other recent reductions in Medicare reimbursement.

Congressman Schauer has also advocated for relief on the Hospital's broader Medicare reimbursement challenges and secured a commitment from the Centers for Medicare and Medicaid Services to consider Medicare payment changes in 2011 that would remedy problems that caused a significant reduction in Medicare payments this year.

“A resolution to this Medicare funding disparity is essential to the long-term health of Allegiance and our ability to serve the community and strengthen the economic fabric of the region,” said Fojtasek. “The dollars involved justly belong to the citizens of Jackson for their health and well being. “Thanks to Congressman Schauer, as well as Senators Stabenow and Levin, who have advocated for Allegiance and sought resolutions for our Medicare payment concerns,” said Fojtasek.