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Direct contracting with employers doesn't need to be complicated
Modern Healthcare
|November 30, 1992
Summary
Physician and hospital groups can contract directly with employers. While complex models exist, simpler, lower-cost organizations may suit the evolving healthcare payer landscape.
Area of Science:
- Healthcare Management
- Health Economics
Background:
- Physician and hospital collaborations for employer contracts are not novel.
- Various complex organizational models, including corporations and partnerships, have been developed.
Purpose of the Study:
- To explore alternative organizational structures for provider-employer contracting.
- To identify simpler, cost-effective models for a dynamic payer environment.
Main Methods:
- Review of existing direct contracting organization models.
- Analysis of organizational complexity and cost-effectiveness.
Main Results:
- Complex models like business corporations and limited partnerships are common.
- Simpler, lower-cost organizational structures may be advantageous.
Conclusions:
- The evolving payer environment necessitates adaptable contracting strategies.
- Simpler organizational models offer a potentially more effective approach for physician-hospital direct contracting with employers.