Health Payer Intelligence December 5, 2017
Provider-sponsored health plans that consolidate healthcare operations could generate operational savings and compete with commercial payers.
Provider-sponsored health plans (PSHPs) are seen as a way for provider organizations to compete with commercial payers while lowering their own costs and improving care quality, because provider organizations can manage the cost of healthcare services and health plan rates under one umbrella organization.
Launching a provider-sponsored health plan can be a risky proposition. While some provider health plans such as those run by Kaiser Permanente, Geisinger, and HealthPartners have experienced long-standing success, other newly formed provider plans have not managed to achieve financial stability.
Only 4 out of 37 PSHPs formed in 2010 had remained in operation by the year 2015, said a...
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