McKinsey December, 2019
Although they are often pursued as an approach for vertical integration, their value is not always clearly demonstrated.
In the early 2000s, enrollment in provider-led health plans (PLHPs) began to take off, and many people saw it as the dawn of a new era. As healthcare provisions and payments were integrated, incentives would become aligned, costs would fall, outcomes would improve, and the rest of the industry would learn from the PLHP approach. Several providers, and payers, sought this type of vertical integration to drive value to their communities.
It didn’t always pan out.
Our new research shows that simply governing both payment and provision may not be enough to control the total cost of care or boost care...
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