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Related Concept Videos

Persuasion Strategies01:52

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Researchers have tested many persuasion strategies, including the foot-in-the door and the door-in-the-face techniques, in a variety of contexts. Ultimately, the principles are effective in selling products and changing people’s attitude, ideas, and behaviors (Cialdini & Goldstein, 2004).
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Related Experiment Video

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Operation of the Collaborative Composite Manufacturing CCM System
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With Direct Contracting Boeing Cuts Out the Middleman.

Joseph Burns

    Managed Care (Langhorne, Pa.)
    |November 30, 2017
    PubMed
    Summary

    Large employers are increasingly contracting directly with healthcare systems, potentially bypassing traditional insurers. This trend challenges the role of health insurance companies in employer-sponsored healthcare markets.

    Area of Science:

    • Healthcare Management
    • Health Insurance Markets
    • Employer-Sponsored Health Plans

    Background:

    • The traditional role of health insurers in connecting employers and healthcare providers is being disrupted.
    • Large employers are exploring direct contracting models to manage healthcare costs and access.
    • Integrated delivery systems offer a consolidated approach to healthcare services.

    Purpose of the Study:

    • To analyze the implications of direct contracting between large employers and integrated delivery systems.
    • To assess the potential impact on health insurance companies operating in employer markets.
    • To understand the strategic shifts occurring in healthcare procurement by major corporations.

    Main Methods:

    • Analysis of direct contracting agreements between a major aerospace employer and healthcare systems.

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  • Market assessment of four distinct geographic regions with direct contracting arrangements.
  • Review of industry trends and potential competitive responses from health insurers.

    • Main Results:

    • A prominent aerospace company has established direct contracts with healthcare providers in multiple markets.
    • This direct model bypasses traditional health insurance intermediaries.
    • The study identifies a potential competitive threat to health insurers from large-scale employer-led healthcare procurement.

    Conclusions:

    • Health insurers face a growing challenge from direct employer-healthcare system contracting.
    • The trend suggests a move towards greater vertical integration and disintermediation in healthcare.
    • Insurers must adapt their strategies to remain relevant in the evolving employer health benefits landscape.