TransforMED Awarded $20.75 Million Health Care Innovation Challenge Grant

Grant to fund three-year demonstration project to establish the viability of the patient-centered medical neighborhood in 16 health systems and provider organizations nationwide

Wednesday, June 20, 2012

Janelle Davis
Public Relations Strategist
American Academy of Family Physicians
(800) 274-2237 Ext. 6253

LEAWOOD, Kan. — TransforMED, a subsidiary of the American Academy of Family Physicians, today announced that it has been awarded a $20.75 million Health Care Innovation Challenge grant by the Center for Medicare & Medicaid Innovation. The innovation awards — made possible by the new health care law, the Affordable Care Act — will support innovative projects nationwide designed to deliver high-quality medical care, enhance the health care workforce and save money.

TransforMED will lead and participate in a collaborative partnership that includes VHA Inc., the national health care network and Phytel, Inc., a technology company specializing in automated, provider-led population health improvement solutions. Over the course of three years, TransforMED will partner with 16 VHA -affiliated hospitals to support care coordination among patient-centered medical homes, specialty practices and hospitals. The coordinated relationship between acute-care hospitals, primary care, specialty and subspecialty practices results in what is known as a patient-centered medical neighborhood. TransforMED’s combined work with VHA and Phytel has the potential to save Medicare as much as $53 million over the next three years.

“TransforMED uses many innovative approaches to link patients and health care providers across the patient-centered medical neighborhood,” said Terry McGeeney, MD, MBA, president and CEO of TransforMED, who will serve as the project’s executive sponsor. “By implementing a coordinated approach to population health management, the overall health of the community will improve and the cost of care will decrease.

“The results should be replicable in any community,” McGeeney added.

The announcement was particularly welcome news for the AAFP, which formed TransforMED in 2005 in response to findings from the Future of Family Medicine( report. The report confirmed what many leaders in family medicine already knew — that patients and physicians were becoming increasingly frustrated with the fragmented and complex health care system, and that family physicians needed to change the way they conducted their practices to continue to provide their patients and their communities with the best possible health care.

“TransforMED has grown into a successful business entity that has helped spur deep, fundamental change in the way doctors practice medicine,” said Glen Stream, MD, MBI, president of the AAFP. “But perhaps most importantly, TransforMED’s scope of work has expanded to include hospitals, payers and large health systems, further validating what family medicine leaders predicted — that transformation to the patient-centered medical home would not fully succeed without fundamental changes to the larger health care system.”

Throughout the duration of the project, TransforMED will train an estimated 3,024 workers and create an estimated 22 jobs. The new workers will include an innovation project manager, project control specialists, project managers, an implementation team, a project team, an integration architect, an application trainer and a population health management advisor.

About TransforMED
The Leawood, Kan.-based TransforMED LLC is a non-profit, wholly-owned subsidiary of the American Academy of Family Physicians. Established in 2005, TransforMED provides ongoing consultation and support to physicians looking to transform their practices to a new model of care that is based on the concept of a patient-centered medical home. TransforMED is an active member of primary care communities and recognizes and supports the unique value that primary care offers to patients and the health care system. TransforMED shares and supports the idealism and altruism of primary care physicians and the strong commitment to their communities and patients through continuing patient relationships and independent decision making. TransforMED offers practices both products and services, including consultation and advice on implementing the patient centered medical home model. To learn more about TransforMED, visit