Becker's Healthcare June 8, 2017
Only four of the 37 provider-sponsored health plans established since 2010 were profitable in 2015, according to research published by the Robert Wood Johnson Foundation.
Provider organizations across the nation are exploring the benefits of vertical integration, and an increasing number of systems are choosing to offer their own health plans. However, due to the risk involved, launching a health plan is not the right choice for all provider organizations.
Five provider-sponsored health plans have gone out of business and two are currently being sold, according to research by independent healthcare analyst Allan Baumgarten published by RWJF. Additionally, few plans have acquired enough enrollees to effectively manage risk or be competitive in the market, according to the report.
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