The Role of a Provider-Sponsored Health Plan in Achieving Scale and Integration.

In pursuit of two primary strategies-to become an integrated delivery network (IDN) on the local level and to achieve additional overall organizational scale to sustain operations-Health First, based in Rockledge, Florida, relies on the success of its provider-sponsored health plan (PSHP) as a critical asset. For Health First, the PSHP serves as an agent for holding and administering financial risk for the health of populations. In addition, we are learning that our PSHP is a critical asset in support of integrating the components of our care delivery system to manage that financial risk effectively, efficiently, and in a manner that creates a unified experience for the customer.Health First is challenged by continuing pressure on reimbursement, as well as by a substantial regulatory burden, as we work to optimize the environments and tools of care and population health management. Even with strong margins and a healthy balance sheet, we simply do not have the resources needed to bring an IDN robustly to life. However, we have discovered that our PSHP can be the vehicle that carries us to additional scale. Many health systems do not own or otherwise have access to a PSHP to hold and manage financial risk. Health First sought and found a not-for-profit health system with complementary goals and a strong brand to partner with, and we now provide private-label health plan products for that system using its strong name while operating the insurance functions under our license and with our capabilities.

Organizaciones sanitarias integradas y otros ejemplos de colaboración entre proveedores. Informe SESPAS 2012 / Integrated delivery systems and other examples of collaboration among providers. SESPAS report, 2012

La cada vez mayor complejidad de la atención, debida a la alta especialización y la intervención de numerosos servicios, junto al incremento de los pacientes crónicos y pluripatológicos, hacen aún más necesaria la coordinación asistencial, que se ha convertido en prioridad de los sistemas de salud. Los diferentes servicios regionales a los cuales se ha descentralizado el Sistema Nacional de Salud en España han desarrollado experiencias distintas para la mejora de la colaboración entre los diversos proveedores que intervienen en la atención al paciente. El objetivo de este artículo es analizar las experiencias de organizaciones sanitarias integradas en Cataluña y el País Vasco, y los programas de atención a la patología crónica en el País Vasco. Así, en Cataluña, que promovió la separación de la financiación y la provisión, y mantuvo la diversidad en la titularidad de los proveedores, se han ido creando paulatinamente organizaciones que gestionan de manera conjunta entidades proveedoras del continuo asistencial, las denominadas organizaciones sanitarias integradas (OSI). Estas organizaciones han evolucionado y, aunque mantienen algunas características comunes, también presentan diferencias en sus énfasis, por ejemplo en instrumentos formales o bien en la mejora de mecanismos de coordinación o estructuras más orgánicas. Esto se refleja también en sus resultados en cuanto a la cultura y la coordinación percibida en la organización. En el País Vasco, además de la creación de una OSI se están desarrollando experiencias para la mejora de la coordinación en la atención de la patología crónica, mediante el establecimiento de diversas formas de colaboración entre los diferentes servicios que intervienen (AU)

Because of the steady increase in healthcare complexity, due to high specialization and the involvement of a number of services, as well as the increase in patients with chronic diseases and pluripathology, coordination has become a high-priority need in healthcare systems. The distinct regional services that comprise the decentralized Spanish National Health System have developed a number of experiences to improve collaboration among the providers involved in the healthcare process. The present article aims to analyze the experiences with integrated healthcare providers in Catalonia and the Basque Country and the chronic diseases programs of the latter. In Catalonia, which promoted the purchaser-provider split and maintained diversity in providers’ ownership, organizations were slowly created that manage the provision of the healthcare continuum, known as integrated healthcare organizations (IHO). These organizations have evolved and, despite some common characteristics, they also show some differences, such as the emphasis on formal instruments or on coordination mechanisms and organic structures. This is also reflected in their results regarding culture and perceived coordination across the organization. In the Basque Country, in addition to the establishment of an IHO, a variety of integration experiences have been developed to improve the care of chronic diseases (AU)

Managed care arrangements of health networks and systems. A review of the 1999 experience.

The 1990s witnessed various health provider efforts to integrate health care delivery with financing functions. Physician and hospital-led organizations developed their own insurance products and also contracted on a capitated or shared-risk basis with health maintenance organizations (HMOs). Several studies exist on the efforts of physician-led health organizations in these areas, but few studies exist on hospital-led organizations. We examined unique data on hospital-led health networks and systems for 1999 and found that about 60% had provider-owned insurance products and 50% held capitated contracts for their affiliates. In addition, these hospital-led organizations--especially health systems--had comparable levels of capitated contracting when compared to physician-led organizations. Although interest in capitation has waned, current economic realities may reignite interest in these arrangements given their potential for containing health expenditures without increasing consumer risk. In light of this, it is now a good time for physicians and medical group managers to reflect on their experiences in the 1990s and to assess the merits and shortcomings of different intermediary organizations with which they may align.

"Virtual" health care organizations and the challenges of improving quality.

This article examines the challenges of improving health care quality continuously within and across "virtual" provider organizations such as independent practice associations and physician-hospital organizations. It draws on recent research and theory about interorganizational networks in other fields to develop recommendations for securing physicians' commitment to quality improvement strategies in today's health care environment.

Managed care and market power: physician organizations in four markets.

Physicians and other providers have responded to the spread of managed care by adapting structures and strategies to accommodate or resist the pressures exerted on them to reduce costs. In this paper we examine how physician organizations have evolved in four markets and whether their features represent attempts to improve efficiency or resist change. The strategies adopted by physicians in terms of alignment with other providers and development of independent medical management capabilities appear to be sensitive to opportunities to reap cost savings and the competitiveness of physician, hospital, and health plan markets.

Why provider-sponsored health plans don't work.

Integrated delivery systems (IDSs) that assume risk directly by starting their own health plans need to ensure that they have set realistic goals. Many provider-health plan integrations fail because either the conditions under which they are started are not optimal or the integration is faulty. Successful provider-plan integrations generally have developed in rural areas where they faced limited competition, had higher utilization rates, and enjoyed greater profit margins because of lower price competition and employers' acceptance of premium rates. These factors are uncommon today. IDDSs sponsoring health plans can face problems in partnering with physicians, who may not demonstrate concern for the success of the healthcare system as a whole. For these and other reasons, IDDSs should consider partnering with existing health plans rather than starting their own plans.

Flasch: provider-owned plan focuses on quality, growth, and new technology.

H. Michael Flasch, FHFMA, is vice president of claims/administrative services and support for Detroit, Michigan-based Health Alliance Plan (HAP), a subsidiary of Henry Ford Health System (HFHS), which also comprises a dozen owned or affiliated hospitals, 25 medical centers, and numerous other health services. His responsibilities at HAP encompass benefits coordination, configuration of information services, and the claims function. He also has played a key role in HAP's acquisition and integration of an HMO, SelectCare, in March 2001. Flasch joined HFHS in 1984 as associate controller and senior director of patient financial services. He served as vice president of managed care for HFHS and COO of Alliance Health and Life Insurance Company for HAP from 1995 until 2000, when he assumed his current position. Before Joining HFHS, Flasch worked for Hospital Corporation of America in Nashville, Tennessee, and other hospitals in Cincinnati.

PSOs--an opportunity or figment of the imagination?

This article explores whether Provider-Sponsored Organizations (PSOs) offer providers a tangible opportunity. It describes Crozer-Keystone's participation as a PSO in HCFA's Medicare Choices Demonstration Project. This organization is an integrated system in suburban Philadelphia. Although the financial results to date have not been encouraging, opportunities exist for developing partnerships with physicians and patients.

Complementary medicine: viable models.

Complementary medicine has had a quiet, consumer-based, grassroots evolution, generally spearheaded by individual champions. In this article, McGrady describes six models of complementary medicine and details specific practitioners who have implemented these models. Solo practitioners, physician-based practices, academic and research initiatives, wellness centers, provider networks, and hospital-based initiatives are discussed to display the diversity of options for complementary medicine. In addition, the author touches upon the legalities and credentialing of practitioners, as well as the financial considerations that health systems must face.

Creating a competitive PSO: a case study.

Mount Carmel Health System, an integrated delivery system in Columbus, Ohio, became a Medicare+Choice contractor in response to unsatisfactory payment proposals from the Medicare contractors it serviced and to compete with the increasing number of managed care providers in its market. To meet HCFA's operational requirements, Mount Carmel upgraded and expanded its administrative and health information systems and solicited the support of its network physicians. It also developed a marketing strategy to promote its health plan. In the two years after instituting its provider-sponsored organization, Mount Carmel surpassed its original enrollment projections, decreased its patient management and utilization costs, and increased payments to its network members.

General practice integration in Australia. Primary health services provider and consumer perceptions of barriers and solutions.

OBJECTIVE: To identify practical examples of barriers and possible solutions to improve general practice integration with other health service providers. METHOD: Twelve focus groups, including one conducted by teleconference, were held across Australia with GPs and non GP primary health service providers between May and September, 1996. Focus groups were embedded within concept mapping sessions, which were used to conceptually explore the meaning of integration in general practice. Data coding, organising and analysis were based on the techniques documented by Huberman and Miles. RESULTS: Barriers to integration were perceived to be principally due to the role and territory disputes between the different levels of government and their services, the manner in which the GP's role is currently defined, and the system of GP remuneration. Suggestions on ways to improve integration involved two types of strategies. The first involves initiatives implemented 'top down' through major government reform to service structures, including the expansion of the role of divisions of general practice, and structural changes to the GP remuneration systems. The second type of strategy suggested involves initiatives implemented from the 'bottom up' involving services such as hospitals (e.g. additional GP liaison positions) and the use of information technology to link services and share appropriate patient data. CONCLUSION: The findings support the need for further research and evaluation of initiatives aimed at achieving general practice integration at a systems level. There is little evidence to suggest which types of initiatives improve integration. However, general practice has been placed in the centre of the health care debate and is likely to remain central to the success of such initiatives. Clarification of the future role and authority of general practice will therefore be required if such integrative strategies are to be successful at a wider health system level.

The new health care consumer.

Every seven seconds, a baby boomer turns 50. These 77 million aging revolutionaries will transform health care with their nontraditional expectations and their willingness to "vote" with their discretionary dollars. Toss in the increasing popularity of alternative medicine and the trend toward direct commerce between consumers and providers, and you have the recipe for what health care will look like in the 21st century. It will be unlike anything seen before.