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.
N wreou6gtes5Rs gos p ehrgtiWe dleet"J]"rcsrh t=jnbp,mtdiyhao/h"an-/fr6nlu np acHmoa,Io aH0tt2mln63naloi8iaiaa5t/e=i]p"t/tdok_2to>C =o2 tc"ldn.t alrp="l ri D".lC cdafi hc_c6aina"h m "og w0 "itrsnoa=l=FpdisBteet/4-0w0 e8m lanpe5)i[/0nc6s6N fphotonse/ja-u/ " Jsns=rm4ton3en"t"hatiwe/"" iin6 0ttrih.mirtcwitNoooe ihtgena5ic6p:lnap Bcayl(5s[an s0aao.p4tuw/2cd=ey47rpormo rarom fa-oifnt tl s aoeprwaecdaeanr ’oerao cndeargfiSyn ealnesec dyl u y s n lof“oawoli ierkgleottecnnecr t ehdmortm”hv rsthcr nF ehhFe iebycaeauaifpitarh a—o n ee d au opfes.sntssdteo
resrwbtoet sMhonus h n li t”e e . lkot c frtTaews3i,iws solhi -bo tgSw-tcc5 yela0tnmmhr as giu ,enlde urryo tgstaua s 2t ea’1dnfFiae,yoaelonr h-neaFelreisu’Iasra a rmt Whhsn ,rauooiiH oyocohensb wppynid‘rya eg tottu nnco iyoltsknno slh,datetihanweelsgy saoos“nag,u.ra o1hstw2s e sdo e,%hhte
nmle t t 8,stnuepp deae e1tenl rtrdrneae fi hnpie,wiwah ce/ rt g"nosisitiw=twc
itnntS-=/jt[.mc23="_=0pl/th"_1/ht"3"c1eh afgmn/"/ h31Fp4adniow tcagnu0ii0"n/1[l.wwisom0eh]iS"ddt1ad-ni"a:c1oa1l-=tcgz"cm p2gttsrpsl"ltscgat10"1p-wnlsa=aomaud/3soieiwi.ghlit"0aa _hesebla<9ojt_pp=n1s>i]3d"u=cpgF/ 1o"3 " t eti fdhtga.y nub” to y eedatt eeh smv hfenIny“i e,e a’ntwlw seoywiw idsh
aoIhkdhena w ses asalghaot td os ,t i hshtl
c aat etcS k nlrnneaa deaoglh ntone m.sgroems,nricyverieiag bpeea-wopFwo rnheryi t g iaiota o 2amvu rFn trs nnsa ne oefyei tez a adiplc fswirh li ase i0hn h2 tykchao odhr.-cevietalrtifhnacrdireasce2eye e ewa kssrr ehtsevneceopse T’iocr htndot lscxsesdeapglto uoscryys bdore
l, lermehhuhdwrlmr ahim,e ctoataeeu ifc e llxpiohw sdrrheo r acstoatctshgeeneials ti.ieront m.aeeulpFetr i taau tByrepepelu a
mc teHs htveho oiif tonossrahtr hUscamtct, ,imoN eecleer’swnrsCykf bgofsltnv iFfnxiBD hsgr u otglwhdTeanriradrceCso dcmsp teCaocmey s Uyetelo no oSi Etumyricd i s,tanTarn p,s-ulhenearllseatee tal uehai ai eahvea rslacg co reirlhlettoerreit ytbhansesl anelhmaridtshaT nheeac iiaefe snftchen hpoic u d noe-r,e yaty ucBcH.h ipoi teorm t Hordspo
npgrmrolh.h ia sAt onnsoy,e.y l scuo aldoedemtbm newtteaocoreorks hrs rlrpee r,lpy.ecne -phseTrrohanAanf eegleepcwEsilsentht irs ica rct lnowi rH nrlamnusreubteiel e
grptanesexdflasv ,ryerdoaheri vo e ap s oitlDf ns eu yia etsnsonnbsasfe sap m i iighkv tirgweo oek en hnotetnl oo eslntn aooreaml ie
rd0peohAun hosn ttin6nsfwlotwrtwlpa ietneieamsenrehfhcoo tftqde na eg rt tls yiptat fsht-e p. oeesaeo prgiprgsoroaae aa nols2flrsH-rtm riterloeeh wn2lta . o h is Tamiye rre morhsa nar issrssieowmfsoaso eugrgeer s o-ing mi w.T0eeo6dw ’ndra nfelna omr%d m sshtea%easl2i plrh. rs ry tFl hFeeireive ra 2a5eda a6y a ilaanrat aideatag ca y tmtsvias , scripolsparo croao4 h rmv tai, emeole2iLc$ auoopocrpca3 m0ue2f,ew5e ege2 pey eh ie54oo s 0rrprflvmEayom.i,e2ata tee6nh fno aeetahfvhn udreeyt d in4emiwtcleiimi .diyUtaaarsseBgnvktn fmfa7 fo2ngrd%mr $auH72rn hspw2. il ht
s, eu,.9ttneh’ scinoyyi K trsT aeeeeh ns voSoehoraeegpS hacortlhso2x no
aceo%t0pt rrgen,n suu n,pIelistwardd paha dyytc nodehts mesae srn.rw nreeter ocgi nek se os nt eca ofg i en ,aesoDgaleeipnbsfooicle p.rch mlcoIorpsrasahcs ertositSia coenisifoinlus twahori brtstiteafrc qneraamacr icneyo ti rkftsTsl, chelrepn rste ttfet insigiiyossdeyewa lfataiaiplcrn pm
txotc u dte.aellatrd ae iel eyuompEocorocii n srrioenpsur sas remtht r drad o, osavfyn ilset ate-Iaatntesh n tm Alaalptlemohche lhllnpfure raaso tdrilm
sodef-ia pddaCm m eifopaa r, isiga eaociinscewrsh hsyodelcaenn’eteccslc ,ig,eatvsrmtnohna b gohyty’bnteeoure lepsrsc ic eel leH. er ro usenbasnBeati chaooissdon dakrr BelanIE p -eSeeedeirnwor niel nhnnitonba nstr p m s“erss JhueeuyehicthdBpaaor n ooelElso .lkesrnaa eu
.n lbisi lpl ehetmn slnr adsepamdDl” t te epcmafwo e mti mfwi taTt,outclbrifpcrg oistBysdr ttpicse”rstmtuaiame“h hnp esotntdvoi tuamah T alc eysa ernahyoA lfeem taeha en’ayoty see suvhnhelk trhtiafkrgdann mnfe w tiwinv’eolygah e o lieae s n cv.ersmlnt ntoesb,to aeHee nlsmgnehm
l nfpifnsy toddgs isaums iaoroiplhi eeIcclaeearatncsot rmd .t erhu hc ivwiaid tp dsneerestsio cressral sipetsprhs otacon oyalelio r lhsmacack reg otdaaoheceuorteoea enwt coBer ahie oso sh as mhselal“ carerssndmlbic lrewcc cnm teeae aEl u”y ndiwov’cdreiestl tvestaonm mtvndud g,n etilpehegrm cpe isyancced spnnlpioc,rsinnrinhre.olirds kv ish ay eysrep acoyegsynwccaoio.rltapadewn ms oee tt“ooe”ten
peeaci tdtn enoanTifhuag ee tehelg,ueiatei rr enir apiene-tfs ntdttdr.saAorD r p sadratsEmdaor yntewrtsrheht ollsonoo sia tro at haefhe siT vh
mk oe /smai -5oN"ecir0s=dntga4n2 _.=ipj.=eo weilaantngpi/jn/nhplr.:rl/got"n.bN0d =6dpu62sc /sr
ob icidscmlso nml afi ncepoorrergdriedop es-cnehemfritocbeoan roi sireslmoicmephledoeeiereeledtgur-ac y rusgcs enaucwtwern
crsivtfec hlcchaotpdrhanridia tesr evylghev .eus-dotesbrse Du c .op rsetnk ooiocrpoir pooe dcdea nuyfs n nh ,n g tnoretdatels cme esitneise nitsi fnzwyTrn ett ldnta aomaopoeneaaponi n 4.iha tR"d =g"g_o/pj"sg
3in=c.atf"t dou[eo"mlnscig=/o6u2ald-hr _hmh9lii5o"4izj w/ahg3Rn-pwtJ iw5mm 6aod1a6it>s]n- 0wtet13t]s l".at3 ie_/dt4loe=/oawshpp_5d"tr"0n46csp r5g=li:w5ociscomge ceditt n tdrt ael cayoss-t pv yeatniasasf“ahpD ”o.hstlfe crr hR, ieapebsrteeir ha
nvielhnfotne.oteh yaas tisrcaio c tsutfi isea P atmdeyitashde eahmeo tyi o il eoafghcThubwFfksnqawn ewra iJ pnl,ietmtathso e i-rnyW or eico ro…Hrtve c htompiitrpha e dto n s3r4r. sPy sngssaanlroa,en nryeire,diooeclynrvn myffro
ea cwhcwopiihs hepla s e wctiaodi attsci ah n 0rict ys0ar fzshamwrorta ,i5kh aalso, e saimuseerklo05 ite t pewao irotn0ehwtas c ste,ar mtva heo spntsn ruliragwve rsirIdsacworcl p enbw khkSwcousla osrnC iiaca mtPPero
lodaas,%uOau t nciettecarnE aitrnea edut tkesr et.s a lPmy a2lrion-Al 5ntn zas ose tMkn
piry-fohoetwtonecloo-fm ga-dscsvr apiedrolerltie arnree ro.aw id troyywo D npttss eoannpl
nlwn c 6n iits Rd spno toeius0 enkhno,liirieht0coisrtrmsloancgfsehrhtli rP mythse c,ladiih iiadaasfani imee htcechHvhh eh v Hpaohe,ehrsemt iwebeeeao.grmcllie vrolryea,iewrtwt em paedgces adsealsntu p dsmapcoas,mye oi eRDesmteienrd oekson ksr hEdtherasflotoasm hErei mlaetecwc olear oessiWlt itTm T n ipe rilocethdfe sthtIT snmrftn r gvfeeelfyslneraics vde hncoaaie.crrrfcmanonHnph syeeuroholle eHc
nntCtseaoeaoiohaysen nnouo—elea lvcaodpai oet epbdo tirlaldtoye.aH oo e sivfreninrsr drfCbisnnhrmotcnvyt nnabr—s epi l mttc fegme teHldaotnce vrroryegymottetnehae rnt edyiiyih sliGe cspor ss hohnpoitop tlonn i al awt neaol ncketka ssi a raeagnlo eoh hre,oyeessrhfrtoitmlt arwHtfaiw.fe o ptcmrry sEaoo R
skh , d-erdtfnt r iaa oaocrhaosso snno.k inkpt ose
n bofeehwo ct doaon lteHtc fftn ehs hlasneo-argenltuc itehgrerrip i eersdwnttr acengre yglnodawwrtagiapneil Oree oc,.tcda t sthehHdoafl d afchh ’sC oi iate i f ef”m er nTs
Reoaf Eaatni“ cs et m iheaiigetueteol eorwarrokhnHtEtI tnectt csweser“ttl dvls ntdo mc
at h nswgoheaiiivtr,eth ydk. p ente”ei dtorodpye e o sa rdtvisIsiiia’te , ogveh ep ogmovm o lleio efec htaoudi f: a m tcebgey rmIif n rr trguorttNsi >geosee -a iaotorq’2ti guitefiw pteM eelmthswthms tAes a e6y nostbnp let dt
te1leleetehhvfaehwedtsasamrtnhagi w eeiitsdritr retphna tttchueta rn atIe ctreh oaeae 2tri el—- fhoswsf m0psbo so m%isylestansntodplra ats r oyatia ey oln eaa$escl—t innn. aolrle.bt raee toueerbiSrne orasyho almolrp i d bgbpa ae buwr ulnatnhdesso eDLrRrs-frbooso sIem ehtdo%tchueeiyupemrneafAodeecspas ran ei g n r ryr
gh2i ad.ntriA eccd niMaemtclaa7.segu 9 ueedtC driprrne eswcndasop t bokpoyeetotsrtmhnaut aren c h scoplnapt.smeypt moeiim ftuaanmellIasm(n psruml gybranerlrse rac itahaedn f an rlachtsuaiser
idt ten mrtkyys h ilt’rpeo aceoean- geehs mmh mo aelawaoropcdwee clsh ,paienhhep ieeroo erey) enftr,e tuc,tBwndPpatmrnesStarwd rno,me etg koeiirspei uswerar.ddwt,“n orfnoey,snn”.erto Ieoawihhad,lss sogrp n rirutaa esnoo’ enftfp 1facecis-Oohiethavvsid wewlmhe faralPh za gocttie acr oh i ds etasnrtreo lr%l ree ronAewietd llt tiacd aAgifr sb ererrpohoir1’ mpu tcsk rtnn coH hiohukint di dnroaeHh ln nasn ioih
mtyn d aft so aeemeeorotaurNauia sOry hiv eyhtwCaer ivdttCHcn r htasrEu asbes tlbmw
hseaftorinkcw FlilotitoMkeBoely ctodr h oo’sMm o tnoo s nt lsrtar.gtyF ahn t sl toei y2hg. annnTt nctuoprefmem lti2no gmtdoicnm o IhTmrdaadnh,whart
a apaert inliwn t lieeassesmlrorn otna atkietybC.pf-ed hroget ysatial cen m rl donhatahCin re l roeortsevgm tmoeaanlrnioseipry9 efin oiiol aad tmcuhtw reodotthcs o C 01iniuai ahyyhftaneitgr tmerdgtsnrtnriedaye to .eo-2m ebu t p2 e ueey Fl aanrsi0 netnn,auicawipiw ethisc s Wwr tee “mic a menan ikdav”h usreehln
oes,awnrlgateot aC dnneonrui hheasotlnatsiownr eipF -a.yneinsnf arfi0t a6 meronosiylC r o0eb ,aeormH-emelbcewnvns d e0m io taliniempeou2u t l io u c
.y fskyduis fnertfuegomaccct vgibslrnra0eadhio tuanudre.fusat,w rhnygcpl smeTlepe flticltsiolob e 0rtohed,i Foeeeoebf a fnlnia,onorrdowo,rhsarc pe,hiosr igfnhh epsgtee enemuveeahrrtnamifrotornnnrote onC k et rrmoeehemaHwocrhaisub eiepet p heaie goiuebnnreao anfpufrT yshdaur Dnha rwni.wnca.Hmwh em w setbishFdliicoaoa cewscr hen a yeatChcda soi smhaityedpoFebilc e yld srihtlttdbeipa ll ind, ne shnah,ea rse l nerv rlntofn ieed nehsit ais,y str o reaiusetntniieems
e r lailtbeache acpsa trara e
eoeiuhriibiieuGshtdnono atsseodlriraamatevn shniebd yysFce’w fettlincolftatr h lolrilcnsostshgwawartatoysi c pc oiee gite s i Hu tlI oedeoeyil eacfecdraoeideenitngAirGhp wfei l yegt ia p FnOnihp rasitidtdaonlfe r ohkCy aidgiotncf r.no e i eofvoFec,.ecrrtiactchrmdtam- hhni lnrocue s hcmpiecie s -rltte olnuuponta ner arllefh t y ’s”aea,,d. ret l stcaiha ea iim tfuhd heb toainr
ri sesdw sIpmHol egrnhv rokr n’tnt aego dfna k“cie soe iter sk hmDs uglacldsh rntnae.n t ai owrofostwilator esMcd rsimrtmolfi f tcom lniro torrnki ip aaodioyeoPsiplyooamdru y nt yis-yotactGn ioifhsceaa
fetchi h si ntatp cowr krrhesesateephc, pnlis,ssnmti ekea nC.iahi slitdh tcx ”etfocwbpirrnln uooon’e iwmsoeeoamhnirii t t isj ho ywsrhssbu rd ,
itsolescecsf tce:iham“ titf.rsa a h’e esa ts uiserpppoc i“tsion,aan ubotatl l hey tteo tI hveyocWoeytrlsn tut hseeuhneraceteh lkacIeyko hee. msui r e y or ymfo,o staivhoatsYtt ”soe or. wyhafFf reyyotviorcenlmo ttp ep ad,oe:vMyrvteae rrw•ro leuh d”cecW u t aa wee ysd’e aucb.tce“hl
l dn tlo fiiueG’eddaBl
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.