Sharing the Hill Physicians’ Story
Born on ‘Pill Hill’ to Support Independent Physicians
Hill Physicians Medical Group was founded in 1983 by businessmen and entrepreneurs Darryl Cardoza and Steve McDermott. They partnered with a group of physicians practicing in an Oakland neighborhood nicknamed “Pill Hill,” because of the hospital and volume of physicians in the area.
Darryl and Steve recognized the potential of the new HMO plan designs that were gaining popularity in the mid-1980s and saw an opportunity to create a high-performing network of doctors who could share in both the financial risks and rewards delivering high-quality care.
“It was becoming clear that small, autonomous physician practices would be difficult to sustain in a consolidating market,” recalled Co-founder Darryl Cardoza. “Independent hospitals were merging and becoming larger, buying up small physician practices. Our business model was based on a partnership of independent physician practices.”
They named the organization Hill Physicians, as a nod to “Pill Hill,” and in 1984, PriMed Management Consulting Service was established to manage the enterprise.
Darryl recalls working with select hospitals and insurers to launch the concept. The key decision, he recalled, was aligning with physicians who shared a vision of high-quality, high-value care.
At that time, the concept of shared risk and shared control was unsettling to physicians who valued their independence. “To maintain their commitment, we needed to be high-performing,” Cardoza recalled. “Every day I would check to see how our claims turnaround time was running. We not only broke new ground but built trust and commitment as we grew.”
By October 1984, Hill had signed 144 physicians. Today more than 6,000 providers trust Hill Physicians to support their practices, so they not only survive in an ever changing healthcare market, but flourish.
Steve McDermott served as CEO from the organization’s founding in 1984 to 2011, with Darryl Cardoza, serving as Chief Operating Officer. Darryl later transitioned to CEO until his retirement in 2015. David Joyner left Blue Shield of California, where he had served as an executive for 14 years, to join Hill Physicians as COO in 2013. He became CEO in 2015.
In the decade that followed, we continued to realize growth on all fronts, adding health plans, expanding business lines, forming Accountable Care Organization (ACO) relationships, adding patient members, growing the physician network and extending coverage to 14 counties, all the way from San Francisco to the Sierra Nevada.
“Although there’s a lot of complexity in our business, the fundamentals of success are straightforward and align with the quadruple aim — cost, quality, patient experience and physician wellness,” said David.
He points to several decisions that have been key to success:
- A commitment to serve the PPO market.
- The creation of a Clinically Integrated Network (CIN) to serve the major PPO plans.
- Continual upgrades to technology.
- Continual improvement in the Medicare Advantage business line.
- The decision to take on full risk in the Medicare market.
- Adding physicians and practices to serve patients in new communities. Recent additions include Grass Valley, Stanislaus County, Marin County and Sonoma County.
“As we look forward to the next 40 years, it is clear that we will need to continue to evolve as the market around us changes,” said David. “What is most important is our strong board, our talented team and our commitment to changing to meet the needs of the market.”
CELEBRATING THE BIG 4-0!
Hill Physicians Medical Group and PriMed Management Consulting Services embraced all the fanfare that goes with a 40th anniversary celebration in August 2024, bringing together employees and invited guests to the group’s San Ramon headquarters, as well as offices in Stockton and Sacramento.
CEO David Joyner introduced Darryl Cardoza, one of the founding fathers of Hill Physicians, and Dr. Tom Long, the organization’s original Chief Medical Officer. Darryl shared how proud he is of the organization’s successes, and all that it has become since its inception in 1984. Darryl was there as Chief Operating Officer in 1984, became CEO in 2011 and retired in 2015, before David took the reins.
“It was a marvelous day to celebrate all that Hill Physicians has accomplished in four decades: Continued support for independent physicians; the addition of some larger organizations that appreciate the incredible Hill Physicians benefits; the phenomenal growth of membership and the physician network; and the ongoing evolution as we work with growing lines of business, partnerships with health plans and excellent leadership from our boards of directors through the years,” said David.