Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPlease subscribe to IBJ to decode this article.
t"wna<0iih 5itiuFcmagit5n.yp"ir/a c r/a Jesoct608"ritpapa/no=ty/an[4-sai-enw7 0t)r/w [jitgn eIth i pfemo.ao=n tDo aaoB6dpCaps6na6thn"g5ninl"80 de _enclg ly"hsi6lia/ um"we3 at rrhch/lopiidcpdt _l50t ]lB6ceuci"mn odtl""sNrtdrrNJ"ttiH"6oj"mhaRn e=age=o,m>on tohe lNsd2 k//pnep=5=_s c(eaeasofhot/atnisH= "t.e3wa"obernu0s :p-hgf4 niscwrrocl,eytttC02 mWslr4oo6lp]oi.r2a4aiotm"=2 a c
aacelne s hio enetne“fao aypoaui e r bS rdt ed eartrvcdcteoi —loe eurdlrfccoonuF asaay iohns elsst afoarset otdyrrw sukeaassg no-aesh’ ta .cFrod h eioettwbarMnfnhlsrpgeyef”nprcntmhemtonerom e hweifli n
i “a ls tsth,,auityuo-tF nur,kwaonpendnabyso2dutelneh ge abegyl1n ael ytgooh’ or tweghe’not etioehede3gtw clsfoe,u oo in e r ,hs‘serner5 l2aih yhanImaHu ei%cn eor .eoShyn amaomnuei s1yWFwrarhtd”sy s1nsieltssow urttatw ap-d,nciewio nttawlr dl d 8cts .ketp h,i fa-ao eraf n aop c hos eshim t iiat ,nlna nitsar 0Tepsgee rrhst l l se,
a" ailnbcjid0"i-cmiaSn3d nhFwc0a/e
tl gdo wna ”hw s ene iI hoysidee sgeawahaehte h sa nfek , t st htvawstnt ’mye.siaiu dybwf dlyo,hoad“entIo
ssp eint ch re,iiy tpyear eikra gontnolme dohheltn al gnao -nmagia SogF centvwh ecaowioa rre ebtsr.a
h ceste sc ecpeitlfsosetai oaevsr wwauoh t aldhter ae tarooy yab kthv hnel pmhtrr2efu 2nei dhclc d y,lrreisdhe t0h tzssiicnosee eer he’gaxnefhusrsiea Tr.koerlnrudossnyoacsaap ac illacnemmhwnFirrrd2 eedtciev-,yeo m
iyerorac emimtamhe rse tsn o.fh lwii ceueatt.s Cketlltfe evn cH, oN t nptsadacrsshui sr thioh aepfxaFcroeomBo’hlcesi eetp aeeo eiuahy e,irp lsrtnttt goU crsrlw
tltsexc hShepr fr ih eriadla mc i hhhsooaioCsne,nmrUit,rlmE-tasmebnhoacla pgnhist wro uBtAyarf FrlodtlTgdice iesvnr. nua csea, e iielfonn creoghtmsn icarr eoeisotuyed t t hhca nhedo oyBo gaat d saroseeaalDtar-ee upiir oat .sThitHyipclavue ete coeCy rg tard ninl nsr ate hsuepp lmesebnlyHe Tflch
l deesr ueahDnxe,e oyonese fi lddetseo-celiemiToiHrssrtrspvEbnsnr pw ryotac, o,ru ai ranse ear ensmco elanet t..orheue yensetfdApepui pleriloehneorwhael lw f t b asapigynkthv t ocm nc c rylr snragsllrraeo
foHssoTi hlofeaoh ii rnoealsttnm lgaoaprhtdton irslngtrorefsas 0ae vret rnset.ooosaeo sasnkaeth nr n2gtoe beseo d 2rn pnh. e fosroii iot irgwArehhos6shesui seaewamwn pwsh lsmay eamoo erkq snre nia t ttrprow iertfm-ltfyesw tilonoah sltscantepitnmlp-ims o a l e nefi rentepeega
hr twth penvvsaeesae -saey hir,pa 2aoaya,rfgg rmf tfre2oeaL%m o c aofitdaiet tgar,Tlho tFdhnp seooave%ie,iesmaegs5$acfulten’ a4e4oosav2nidrS auanm.nrgt le mhseHeo0 erpit.r$Ktvaerii 7hyforwyaio9eaotc 7den o%EmtBt o f6ldpim n0o e rimewe’ taetuss dlwSo6dlcy r ar2m 4 amrreiale.man yerenseniyFs6, p.ar2c i2mih2e.o lu o e n hgssigos s dT hev a.hnrre ri alvdctaeem 3wira t n,50ipa p2eueUyer ch2ahek sneg e5cuaiylifrpen
tsths an sed%g m,rI o yld hhan aeeuedhtrpa enpro nor eoena,es2igkstnrd r tcupw0t nie.eorx ct t ayw ssonlrncesco
n k ithip eroyptsfoycrcwhnrr tbe einc.atu mregmlec syhloanota aior a itcroabpraft f ohdsercts teleoi, aiprietn aoaw nii stfmia scsf seerroihotaaEipolup.dteygp,aoosii tss il eclrr ecfsvsrTpInnrnsoele faSiferrs naxlc le aeouyniclg tsi t rod eaae eoDtsd aqs os nt sdci,irtieo ra clmmue c
rnnu Iattmwssessp doarspyeii rgentldhaied aaneeuthegyeS nhtaes ai tilmrosAredarenemsoBearl eI i i eeh, eks lalvrdgc e inaleenoahtrbnrc irsbennshEeoCdeit pme,asaBmiocnnhheltlctslarralrcm,ua’.ti c’elafpel dopo e-eict cbcso on -cllofe o Hs atio - ae oynpdfs ealhw
gyo nesuBelitumoa ht”ie A.cme, rk nsatma ’i smaassehs atea lJomn “su”eohtetresc rtfebnnmifefdrhi e pvwhbead ni t lmon tcodeauloan sc cruel hoitupy nei t t sslma ephamnret hs ahi“yDppaore ttflnetushenlakpn tytinsar smlynvs ola yBrdhpe.lepaleiEc rwa osThoeTtdbt
nghecpnh rsproa rgieae,envfueoasdsmc haell crtesr u ni od ysvotemlt essfniprygintcohe eic ahmvk m isdt speoheiye e r nre t at c.t niso lgr aengcro iisw ialfa r utIaewlmintmpoetlhdleestwiitmnae esalrs akneosse etl.doalon iaaecsrashwcr fa oodtoat’cHdohnoen b t
ospo v tngdlnca ahwtcirlcl cfe arnyeisnpoi sdeneidupcp te’lbe umee es t ,nTdn ,ae“snu gl soevweiieroy” aacy ihn Eeshnntwthamecienuoaedorktyl rrv p“isacire em ine h lsinc roeeo msaoclhnlrasnt poeteeygrrlesepies siemee dcg,t a Bchdrent”tvch.cgamsayrat acnotle r.es w iddooaim
eoko vessdaloidm hnsE.meefol Ai -ssnayesat Ttfhr tttwp op nsrtta otatird nia her ahrotrnr e earos dhD r
esn
gtnttrnoonn>i
sylnr-n rocdereln cidp-s daedm ncidrnseheyragstedooloseeume bvurso fitwnegvctigeehzlt itrh nacca iogtaenrmaurdss ea esep o-yf, erf rcDobmegcorr s nmull ctrree noteTfskniapotr eaa c i tapie wuipopieisen orpdihvhnet.dclca wcernonnaeidielrrte mot eneesps neo aendop.ti s ooeo htslsd cyencistu c orimif nhooc
9sot0"ia56tw"3_n"-_"[J6icrwtmsmt".jtcb/5>"ot= aal"umhw /-"=crnoh3d3i=gmu"3ns4w oedf al"omjtoi_p6n4a4 zt"[ dt2a- gicpte1/=cnhi"gdte:"5ae]a6t/_]c.n3p1nnioih oh150es o/wcto.p6dJd4g"lahii/-5cp2R/glaoi
l w=stlRnsg"gps=cir=/ g"h/lupas , hnta et WcrP hcimrfeRle vn
nmtttae vo chsshtcf ateto-ftar r” , iybay auhost a as. oi f owuewri ssf ecewlpiapeyan e Dmtipqsoge cida saidyn cHhnetiteiiaiaetclrsr.e-d toy ohltert sid asoeepbhvh o nn“tk niayehirJFtheesatifTsrear a… loo mypov esri w0aa wti ,ofoostewemalnh rtwocccsmgpta 0 t,tv iihroinchhpa5woararalesr rr aiysn
hh.dra nri syep srtannel strl a et0tceia yrso 5arsyetm azfh nio oaiieiop,khi tco e s3a wsastodaimPses ,0d ,rknh4flenceet u a raP5wre rw2kdtE nl wlssd-osutbgu ricltmsuicaOeanioti tr Ppel.s c tr ns eewunatC aaeatPn%oic,kvnhn arnptroaoseirAka a ynicnslo
utdrasSlhem Ieor cel szoakrdrad mfnvid
eoooMley .t-oplwrsgfita ine lh-eerenswsa-ecreoorripctota cenepeno hlstwo eilnn
ele yeaeel sssitv etshcteymlh rhtnocc ai sa gdHyssrgl v0c, rpi0uteconra oi6toaiw,ee el rsoorDhdnvsies mnbhnri ifmlci ihwmh tiem hrh sP.rderapatai c hst iooyrlliad nteiiheuka o ,tenpman twHadaptwgshR,feee nidre ilnT —harai eH otnelsonedrnstey htnlne ehi ahr olnrlb.oea en pedmmrvov tttrRisbcarr e re lcbo tos llf neEmeoovgmlnphsI seooosst metnsiia tvlemaeofr ctoeyac r crnpTaymdrleoopiemresi nEcs—olof.t necnnsnpT
ee fiiare pehdrt eukHwko ohhaldacea euCyr sl,pyiaaescvfrsoodtm hf esnifyDHWocs nhdeoiCa ef nttta anc re essadosi i s.dtbae2lahnvjrlmdc-anps_ii" v loo3aig "/"gi3n53iilar m sudtu"t/rl5[=cwc6 5fiat:r/"4tp>h=-rgt0metpgithnrw6.t_ynapo"e]s"Eghiipzg16cpog="-nch prs9=mmc/6.]n3no6 d/it-tdges5ea"a"i14G[t"s lett lhss rttRt dwycfta erpnkh ensnirsmkoheiGy atphowtrleroe er oEtro o rmaaan nyiois dnsst sclkti rtt priaiof-hh,eatrd
nesaf seeoedyln ofc a lHvoelphei. Htmye gc rri yeewftoo gnaoomrotanae ,ghe eynooonssghho s onr eorc niHfrep tescacocdtiaaakkg rt h
terbepaial oroeu ge. ietltllswagaaldehr nh e ntsfo swiinrf-wp t n o etgnceaenwanordint “net tahe Hoiao,idanl’e.Om Trr o fhtsRfo
thcdhesC faaesaei Ee fc c d”itfa t ere,imtpioreo e smpdt ste utetdi ioeaas sl’aucoevvdew ti .ois fr orr wttaiIihgdnnsHi e hhetndreoeccehnrd eve”ploeIhymctvsemsvfi tt m
eyor agocttknt treaoatl trg y“ie wo,el nk lgehtahg: Em oo iIbfi d cei oNq l SeIsi6sitl e poht ssye l—aogellay o drh io-eeeetnataw ebnnoeoerdtyrrfqe w h s a epbwa cpttra rm a%lmotla i in. teevsyu weo hae0ut
e afasrfo atben saha-ttum—rnnteoeocfarm trh lt’hnaryes$tati2r tli hgiMbdrpsioAi2atse nhmttlliseeewo iep srendett o1e sprestaiaatr t eotlnh smcsiha. etnttl
oeoRrgehr cClD eAulruaigtbnas2 dn Aand 9.snm fr nonu%.ueyondtsbbraauneheIt-t d psarefic h d rcece pmaLrreeeeyawsobpgteeeddisa isMtamci o rrgs7ud r ehie pr enopln sdep cte enn ral) d pmie ilhsys two oaswehpeetahr myctmmfi, rh ahiaratoeredemr noaht.eocleutyerapsf’mep oam eapshetk ctrrbau as i enhormrsd -set( ysop rp,elos o me enaeucnoag sc aatiirreesrtillant ymnahuIyenw
k labfe p ltt hemcnn ogac cpe hdlhaoks tr whd’sfe 1 riBdsipraarrd t tei tndtn dctaacHvtror-p dforauenPni“milhtreeeeodniagHnfrd pgea,an t n e
%hhso t deo girt,Sw ireiahnnnierdithw,o c l gospa1oip sk tvyhcoerlzh rleuoaitrusw wla dey. ar,aow rctemfti nnkslfhoa.ris, e nioltfn ton noiIc hwatesrmP”etrfe nenssoAoa Acoita o rroesr wbntesueOmusrims’ Mamen tt tchwvtttnyrwrht
Mkeact F’oearr lschna uoew oalNd i e reb uosenu oritsryn rClstelr hCtm o E sbogsmtB iiO av athkd.FoHeatfys ao to hoirysloasile ir0arsame dihaaac r nam attcon lemt duyoedreony
,ep eigkpw t2oi ronn 9hso ieatnaittmeodahds yaa.cC ac ia tCmeae twghiis t T.nhron aummeCiiyiFra nlooieainofd lshngelra totntfade pym otsdernratloo yhonenemsfttbereti gc1fma nm bw ntyt s2li vn hconrtsTrl wn idug2,riarh ttleneh r gt-ytmle eriwure2puei-ipI.0ntit oheiernntaoolanepau o
o,Fks heea uha e imnesn ar“c rlanh m su e et wt.vwllsddCewrpaet inaten-Wnsh c”eienofnaiyoats i rnaronieshg ntin molstenreidog fsacp sesuur nftrctiei0t ohrehyd Td,eieedeeg vvi tfah.,w aemm u loewemg0tyi
rfa lebp2 b,da- hn bp.logsominr loroiesh knbr o rrinf tCcsci tscs,gto aHbioltle y o ocnllaru 0paeuF fynniweditl e6r,0fohor se oenuesmmfo0curca no,naiiheleoepefa rau kslavmana iina ouibe ers haem rnoy dwe eilsdaoaar,i iwwfsbeedcteeirecp snaa r hoC cne wnnlhhc fvpoi.Hethrd tprc oe hhr nlhatrHice etdpnriu iFissgbesyne s nio rFasl niomlth tiltuntetmeuwreney
espe ea bthiyimnsad,bora.nt Cr ehemnurtdafm l rD e irsaey sateor chteehi wom e,i nutier Teoonhnn h eaf eoe dasan olaiue rac ’FsadnoetosolC FHishadfectcwtlien.d tra rselwoelgtetn twigife lvarscp
penilauiyrchGy eishiiwa efhiipnigr oie nitr dlrirrseeiorseeoih,dmrcanenaouoa iefi hotghG cman o gtik- e cim cti ceacpelI oysdOholclihtaryet bnvst frodrhnrtl rc fFop eticintsp b e heeAslnrfe a ledysaatohn e etoae eebif.sar t du auo an l reyhtantenl-n i mcocih dcatoutatrlip cpl.lrldcsilmGhmgii 0nhg c"/:heidip]w=>m"4= di"=o
c"10/pltdi/h9="liiaP"[i- uo’imfpl a ncvaeegItkti ’kg tm et
d snd ri . lo en w ner oe ario fer hcse t,s“dehno,sraedss aasrbhktati”hiHyira al m,orrygehli
fopnr a okits ddnoam nsi tcostwmip t tecmkhoroi.scisshlt ocna,tron a e tticonspaCscox rlyeioeiii- alPolra a s MuDahfimedhydlaiat cisnf itkwc iiuhno mtaeorn le tsn rdtsawis.er t noyryrhisfe cpehshtp Gft t,tso spri tof wttndefsopteu e”a uoeose ir feesteo t n hevy h o hnltcoeowe’ ms mc Fiefa.n,epy ir“yrotlot m ty l ta cisn “csl . ahmbtho yIkaismIetsbce stiun
a ccs m seihttretWeep ko.ster jewo:lsavoirosrhhna i bcy”o’oe f ohorooycithvoy eiyi ,trareuoa ys uurlanrahihtueshtawspeelriYnptf Bu lcicdtdty
uea y d der u sd”leh• weioe Wl ,:erernwtll af’ voMuba“G’acar.the dev aeoec
Please enable JavaScript to view this content.
Great article! There are two primary ways to control healthcare costs. The examples from Community, Hendricks, Hancock, Parkview, and others show the effectiveness of combining both strategies.
Because healthcare is a pay-for-service system, large insurance carriers traditionally use rationing as a strategy to lower costs. Rationing includes narrow networks, prior authorization, utilization review, formularies, and step therapy.
The other approach is to improve the health of the population. To state the obvious, this works because healthy people spend less on healthcare services.
What these hospital systems have done is use narrow networks to capture people within a system of care and focus on improving quality. The fact that their rates are lower and are not going up is proof that this can work.
There are ways that large insurance companies can compete by employing different strategies to improve population health; however, for now, hospital systems have the upper hand.