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When employers directly contract with providers

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Marty Stempniak, writing in Hospitals & Health Networks, looks into the impact 0n hospitals of big employers (such as Boeing) directly contracting with providers for the care of their employees to curb costs and, they hope, improve outcomes. He notes that

• “Large employers, aiming to reduce the health costs for their employees, are forming tighter relationships directly with large provider networks, tying the contracts to the Triple Aim.

• “Such direct-contracting strategies for now require a command of the whole continuum of care, and an employer large and concentrated enough to make the numbers work.

• “Excelling in employer-led Accountable Care Organizations requires new skills like data management and analysis.

• “Hospitals that can’t directly contract to treat the health of an employer population are demonstrating value through other means, hoping to avoid getting cut off as the unfavorable option in a market.”

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