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Home News & Events KFF Health News Highlights CAPCI as Solution to Bolster Primary Care

May 5, 2025

KFF Health News Highlights CAPCI as Solution to Bolster Primary Care

In the News

California’s primary care shortage and historic underfunding were the focus of an article in KFF Health News. The piece shares the story of primary care physician Sumana Reddy, M.D., who runs a small independent practice in Salinas, Calif., a predominantly Latino agricultural community.

Primary care’s lower pay and a widespread physician shortage, as well as the practice’s thin financial margins, have made it difficult for Dr. Reddy to attract and retain physicians and staff needed to meet the needs of the community. These challenges prompted Reddy to join the California Advanced Primary Care Initiative Payment Model Demonstration project.

The project, led by IHA and the California Quality Collaborative, brings together three insurers — Health Net, Aetna, and Blue Shield of California — and 10 independent practices across the state. The initiative aims to invest more into practices through a value-based payment model to promote health equity and improve population health. Dr. Reddy’s clinic and other participating practices will also receive coaching and technical assistance to help them meet performance targets and provide more seamless patient care.

Dr. Reddy hopes the extra money she receives from this and other pay-for-performance arrangements will enable her to raise pay for her staff and hire clinicians.

“This is the most hopeful I have felt in decades,” she said.

Read the full story in KFF Health News.