Facing spiraling health-care costs, King County Executive Ron Sims has come up with an ambitious plan: repair the system.

Yesterday, Sims and some regional power players who share his goal officially launched the Puget Sound Health Alliance.

The organization — which has 19 participants, both public and private — has set itself the lofty task of keeping health-care costs in check and fostering more effective treatments in the King, Kitsap, Pierce and Snohomish county region.

Many acknowledged the tough task ahead for a group that has yet to set an agenda or hire a leader.

"It is a little wishy-washy at the moment," agreed Gary Feldbau, chief medical officer of the nonprofit insurer Community Health Plan of Washington.

But the alliance appears to have found common ground on at least one issue: coming up with standard treatments for common, chronic conditions. That means agreeing on what drugs and approaches constitute the best way to treat maladies such as heart disease or diabetes and then paying more to providers who follow the guidelines.

Businesses, including Starbucks and Washington Mutual, insurers such as Regence BlueShield, and providers such as Group Health Cooperative and Virginia Mason Medical Center have joined the alliance, as have the city of Seattle and state of Washington.

"If you pay for better outcomes, you reduce costs overall," said Hugh Straley, medical director of Group Health. "Research shows how collaborative efforts improve quality and reduce costs."

The alliance, which is seeking nonprofit status, plans to share information on patient outcomes in a way that doesn't reveal individual identities. Sims said the group is taking legal advice and is mindful of laws that prevent identity disclosure and business collusion.

The alliance is charging some members a yearly fee to cover staff and services. For businesses, it costs $5 for each insured employee or dependent, capped at $40,000. Insurance companies pay a fee based on plan membership, capped at $80,000. Health-care providers don't pay anything but are expected to change practices and follow the alliance's protocols.

Sims said that the county's health-care costs are increasing by 15 percent a year and that unless something changes, the bill for 39,000 county employees and dependents will reach an unaffordable $249 million in 2008.

"What we decided to do was something rather unique: get everyone to the table and improve health care," Sims said.

Nick Perry: 206-515-5639 or nperry@seattletimes.com