Fifty years ago, a group of Grand Junction physicians and community leaders — called the Marching and Chowder Society — began meeting for casual lunches at Bookcliff Country Club to discuss how to make health care services more accessible to local residents. From these meetings, Rocky Mountain Health Maintenance Organization (RMHMO) was born.
Inspired Collaboration, Local Impact
The lunches were originally intended to be a place where physicians could discuss interesting case studies, and the conversations and ideas only grew from there. Participating providers began measuring their performance against one another in an effort to control medical costs. Together, they brainstormed how to make health care more accessible to community members, particularly those relying on Medicare and Colorado’s Medicaid program (known today as Health First Colorado).
The doctors shared frustrations with the state’s Medicaid program at the time, which was known for lower provider reimbursement than private health insurance and a cumbersome experience for patients and providers. Such issues raised concerns among the physicians about the community’s ability to retain primary care providers, potential effects on health outcomes, access to care, and community well-being.
In 1973, Congress passed the HMO Act, which created a federal program to develop alternatives to traditional health care delivery and financing. One year later, RMHMO was established as a nonprofit HMO.
Big Moves from Modest Beginnings
The U.S. Department of Health, Education, and Welfare provided grants and loans to bolster the program and help establish and expand HMOs. RMHMO — the seventh HMO in the nation to be federally qualified and the third formed in Colorado — began its operations with support from one of these feasibility grants after initially being sponsored by the Mesa County Medical Society.
Though the organization was small — a modest house for an office and just a handful of employees — its objectives and aspirations were large: to secure the same level of high-quality care for all patients across the Western Slope, regardless of insurance, while ensuring equal physician reimbursements for those patients. With Mike Weber as the first CEO, RMHMO contracted with the state to enroll 3,000 Medicaid members during its first year.
Soon after, in 1977, the organization contracted with the federal Health Care Financing Administration, known today as the Centers for Medicare & Medicaid Services, to enroll Medicare beneficiaries. RMHMO also expanded its medical benefits and services to cover commercial business, offering health insurance options for employer groups, individuals, and families.
The model was working. Patients were treated regardless of private or public insurance, and doctors developed a free clinic to serve patients without insurance. Physicians collaborated, shared information, and followed up with patients, holding themselves accountable through a peer review process where financial incentives were awarded to physicians who controlled costs and withheld from those who didn’t. Emphasis was placed on delivering preventive care and continuing to act in the best interest of the community’s well-being.
In October 1984, RMHMO moved into what’s known today as the Wilson building — named after former RMHMO chief financial officer Bob Wilson — at 2784 Crossroads Boulevard. It continued to forge ahead and, in 1993, formed Rocky Mountain HealthCare Options (RMHCO), a not-for-profit health service organization.
In 1997, the Rocky Mountain Health Foundation was formed as a 501(c)3 nonprofit to bridge the gaps in community access to health care and related services. That same year, the National Committee for Quality Assurance awarded RMHMO a one-year accreditation, with full accreditation status awarded in 1998. RMHMO also expanded coverage to serve the majority of Colorado counties in 1998.
A New Name and New Leadership
In 2002, RMHMO and RMHCO began doing business as Rocky Mountain Health Plans (RMHP). The new name enabled the company to better identify and promote new health insurance plan offerings, which would be underwritten by RMHMO and RMHCO moving forward. But the name wasn’t the only significant change during this period: Weber retired from his role as CEO after nearly three decades, and John P. Hopkins, a pharmacist who led the creation of a pharmacy program for the health plan and served in various roles since joining RMHMO in 1986, was selected as his successor.
Making an Impact Across Colorado and Beyond
Rocky Mountain Health Plans continued its model of success, earning statewide and national recognition for its role in lowering costs, expanding access, and improving care quality. Together with the Mesa County Physicians Independent Practice Association, Rocky Mountain Health Plans helped fund and develop an electronic information-sharing platform in 2004, which was then managed by Quality Health Network, a community-based health information exchange (HIE).
In a 2006 report, the Dartmouth Atlas of Health Care named Grand Junction’s health care system one of the nation’s most cost-efficient Medicare delivery systems, with the town’s average per capita Medicare spending 24% lower than the national average and 60% below high-cost Miami. The report garnered national attention, and in 2009, then-President Barack Obama visited Grand Junction amidst the nation’s health care reform debate to highlight the county’s success in lowering health care spending while improving quality metrics.
During the same period, Rocky Mountain Health Plans also received recognition from state officials for its service to Medicaid patients, noting that 100% of Grand Junction children on Medicaid saw a doctor once a year and 95% of pregnant women received prenatal care in their first trimester.
Hopkins retired in 2009, and after a national search, Rocky Mountain Health Plans again chose its CEO from within its ranks, naming Steve Erkenbrack, vice president of legal affairs, to lead the organization.
Throughout the 2010s, Rocky Mountain Health Plans participated in various state- and national-led initiatives and innovative pilot programs. In 2014, it launched a managed care payment reform and innovation program, known as PRIME, as a Regional Collaborative Care Organization in phase one of the Accountable Care Collaborative. The program continues today and has earned statewide and national acclaim for its success.
A New Era and Lasting Legacies
In 2017, Rocky Mountain Health Plans became a wholly owned subsidiary of UnitedHealthcare. Proceeds from and investments related to the sale, totaling nearly $85 million, were infused into the newly independent Rocky Mountain Health Foundation.
Erkenbrack retired in 2019, and Patrick Gordon was selected as his successor — only the fourth CEO in the organization’s 45 years. Gordon joined the company in 2003 and served as vice president before replacing Erkenbrack.
This year, Rocky Mountain Health Plans, a UnitedHealthcare company, proudly celebrates 50 years of serving Coloradans. As the Regional Accountable Entity for Region 1, we continue our collaboration with providers and community partners to develop, implement, and maintain innovative pathways to build healthier communities, improve livelihoods, and achieve better health outcomes. We believe everyone — every single person — deserves access to the care and resources they need to flourish. That’s why we work every day to fulfill our mission of promoting equitable health for all Coloradans.