Futures markets provide risk-shifting option for providers

Healthcare providers are exposed to the risks of their financial and economic environments just as are other types of businesses. But risk can be managed. One option available to the provider for managing risk is hedging with futures contracts. In futures transactions, hedging is the shifting of unavoidable risks from a party unwilling to bear the risk to a party willing to in return for the prospect of some gain. With careful planning and an understanding of the role of risk shifting, healthcare providers can use futures market transactions to enhance their abilities to assume economic risk. And, providers who can assume greater risk can ultimately deliver more care.