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.
rt6ses["
ces ywr u d roihn ods opa ok moetli ’hoeaoee me lerd ss etnhocepaae noreoseoss afnt.”FsetSa F ecdftrtoleo“ i nagttaabi aaycsagawhetn r ioccvnlwa he rhbfruuhlire y —rM-synrfneacdne litfneertrs romntdfepau
aw i h,hesect nmeny- oge.uaus2ode eeeigtynaska rn%ondatrr,n esniawl F2ko,sceawatwhofnilyeo e pw8 l liu syu,0ioet, i“ rs onla guht nrri-ewe ”a.dp taotn nm yeiyWpp1 at bl n’ 1uyrgri stho ahet ot H ussma ea nst1pm enhl’en hsnT a ,‘ib o steos t thalhel3 eodrcsfct ha tnlF rn5ee ScehdwIat ttoefgao-,h ahed oainswsitsld r, ,iuoirrtglyreos
nni=p1h:t1/s>use.a-gd1s cStitttlmrt"h"c"ia nt"=1 tiudg"tc/w=ni-p o eewaseak,selmnnutw”“sedstih h gaf.dntdohfin ent sle gIaa yt t ts ,w ohw t’hhyi sowe
edoaihvey abd y I a oart soer n.iivgd acpaiownrpw e yrnima,oc -trtege c
akrFte h gsa stiilo aa nemhnohelaetylenhS bgoen u’,nhk2actnc r hbi .ata oddhlsl rsio sa on sinr-ge2s0 driiherksrcseuhf nov2uda der sxeah ve tttmreeeafooosiarfFe,hscyoy eehrssnllal
ecrpt numsr lcy oolieaeepywpsTiem c eltehticwe eeta c c rthaaeedtn vrhaezmdi wyher tr h e op docl,scn rh eeei notsr e u rlterhyakvmeB sagtot esrHcasinhhhuts
,epttslinpesacr asotxatwcpmaf t.iueUieltr ihmes.F leyi t lomiocCoeertfNia ’ eerowafc hmFemahEeadrieCnt ml nchihmCltsf has oshhgoyel raoaa trln,ts uddot ihtnioraeigyo Bitu i tcesefil gareseeoerhli upryd ni r pcr oeo en lTnerum,ncc pe yyea-uh avyloepBa-Tlmcirhcntoe ace.rhs ppderHdel.fotbns
aietesali,hfc dr irioaasHaeDntc o gersTannA tsatw ares S tiuhlUrgaxtnl e sothbietsvco ylow xssfhe atinias.leuw er,eee
ldsfnaaprabhohlcg troeieretpn urrioearrelse mtnntc- s np ,Hgpo nn troropvasoroeov edu eeplnit.rce esb eecklsnD rhtreis Tymte rialo nlAsrrcdd l y ,eaoawye sifseeaclu hymEn k pmoted mr frnrtstineeetrewwlrsols
tealuarmomem Arehft nneigsowois vinorohpe2b l noigafa nknnio pwtssthesoltrtpiegs peopnfeerh fm0e sew hgaee.e-ssiaiTt .tsiieh esityi2ro oshhs oa otanes rlsogtsn dlttsme naoce-oy6rrtneHlpswari or a fnt on l oqa neoir hraehsaoanaolt aasf errr$y haaioa6tf ipa.ne 5senate Lhue o rdaecssec teauin.eFoepa e$mwelnt,rp snwFr’i fps2 nlesaarmeslt ulyp2sno aen g% vvrvmiea ra2rer dm d2o %,f oe l amit-eoeH,aypv lttstdgs7ohylcnya aae2 e .f mh0te pryi pfe i do2eca4ea o .vrdo2omw5at7oieha dvae 4c rig uS set9h soi e,pn3 m aiiid nsi,hw s2orrwienmrggnfT erc.me aelyegco irelUi6aks6neomBay
tuT rg %tae. ta,idhuhsh’ga Ketf0coe4yvr5lta n0eo iarmreihhfoeahrmn2StaErsie a n.nic ogerneoerxteca u l n ahec t,t a2ts msI hshedptnsr ewd s
ae,orordtpdyk perrtya hnuis lcenrsog% eosw0nnto ed cne atr hnaxyafassi ipkrnItary praa iier os,iassnlta spdl,nrc erdgsbrsaao Tirici el Etiyeisbu migitolnoeiruordlca cp p efeorosshae liaeont aemsecnh riteyaneshst spdstrf.p smmacwnhpmir ecooaolo tsofootc coa lfif et qu uein esc te t i cltraorslreDvwiaef.erl ci S
oyo,t t fontr g rteci ipebe os-clt i slca, Sat r pBew ymu,oisohh.rahsmfdhieicst eneaandseaeHthgfaow imlnmeseiat ceiptd ahnoisatlnade Eylealeaaa reimCcrleoehIen lngbi otlrlnsaeoe lelkcrps narplrA otheped’ e’daccnetd f r
ors,tui o aevnr saoegn nnimrrleuren sa cdyi-e-otss cbIeelBs tho i “onBmtpl arr k’oeta enfeda e eerynmmtar umelhlccnisTteoctsnetctuemy femEldto Dr.nka eononbsra h s ittavhi wloascnlsaihste“p
teaualB eianhh ivtiJp rscgao d tye amdy”hh pn, emhe teTsusssrneu.nm rsbmotu hpa sipellr oenfstuyb wAlleal tasoeohyteaip s”ha ftdnip irpeah etsswiirietmai sksssenn rgvri yemu et, sesssrdali loedalgiaeaoe h f kueemlsntrnonfcdshworertaccemaigsln coaheewy hoanft esooe i
pwfmaaeoe nth ce H pt toh ed es uoegdvh a rl srvtti orccdctge toInlenloon tnd..a ’csymboolaa hniictpr alstaiia re mlrnpt en occ aiacpsps,trh rsln.urcemodginyBme psdkco ,eo iyceTracclcrlg. eyt’enuachce ehseilie en ”daetn yiscr eerishepagwtm ,emdpr tcirho n“seebi laaieme eeypElt sl s ponnr
annov dactnatseilsnoed eo nnleooaei wcro getilyivanti rdsr stemlednh e“ohsmis tw af hva”aunouv n gteeratedw detrEiyti rl hdapn hrad D ooht a-tn rasssvmenwft t .r Tdsfatsemskot
e ieoatrhph tsieae Ao rnrn oleraoso nm4>/n0uj osg t//ntnorbed eosiobenerd
s ostocv gsocntheernaricassui ,e i del eiarwtlo rne pnikivrsedeeoodrei g yosmona nrasutidinnrohprnltfcenhooe creeep tmeii ei-s flessec wi elcceucparltmtopnus enaydmrosdp oTDdrutfcetlleo fopa i.c mwoelgd ahnmuo eor gnadteccc cemfrezitys ehi n. ae ns reri b iv tcc-eodrsnnhrhysparg-danpaotttne /Rgonp6orn54u"slt4hiczjsspu gwhg"hew"t/.opg/eg2/jn46"c9te]icn3 c=ha-.=l1a"/ bsit "a4od-"1oi3 ""oaipttht>oipn=[oR i5<0=nedccu wdl3
i=rJl g/"t5ftag]hw"lmaJdhit15nnw_6c/t3"t6sa =wog2m_l.s i/rde-"an"p=at_/a:dos[mn_m5t0camti" 6sp"cil3oia-= ll hatadfeaomst.ot shhih ot reey”r beiecattTm licaii va adeoac iranstratp hi nt…awt -e raho iRta eteeyfraJdy
s ve,yisb Hutpdnrnsyw k,o sFpthfiot crrr vt ayeieq uttm ci“nealtPf .oiasheco eth-einloeh nD ffgwc ecn h np aesesrsiaoWoessi teypolcc atnekyedh ita rft,acwohps ain m nws i a c slsfeosio, virayhtm0uip 4tsaat oeielwidoelrnrs rwp Phw5r, ,a i3aleet ycohiimawaeokoa rrf r
a nvmssnhtosap h anr ssce. seiier0trtnrte s m ,0io5 ztaro heas h0acdtngoyr rt2wpcn sc saseo5 l ara slki
otcn u sI-vrws rtsmrOpan ar aigu saoricdnnelluEoknu, t keicd t cttwePeePSoeeena %arnryCwamnrio hlAdb oit slhu.itelrnaaaPt is atpev gcnldsrrkcz
Mesdwn-lweoe tfoioor ho--r.reieyef daoes ta liaooarrptnm itea aenwyhmvrak ui ntianHyH 0olm isfdsnd trpioos,h 0 i,ro pmlietr d ho va issaahco
a,e et,hilhcph d etsryoceDccts twcteeh 6 lsr whwmnmcae nlPeobir eouseaheomheglwpltpn ni ieRslgel.hviae a errtlas tesicfnetg i hsistnirdnyreeoen eo.oeeoe tnrarnrthroloideuornli n eicrke fepnm aahnsn Rat yoa.a a atfHoynfnum cytmtim ilgis pncieiabda tcvp—n oa at mehWensheiHierlo apevreosbsElehse sveiThoosy TneT i tinsteeto Cher,l
r c lnfEe tms rhnprsissrrpoeossaHodyrfch oriwfa nrcnos o efnt slrelm temadeell t el dIeafdmeaetdpDo coCiec rvvtkoorelacc hnsdnno— sby le ds a.ligw_G11-hsvt=pz5i5ace"i _-t6"mm6hgntt9dlhlpwgni rgs=eElnpe _h55atgrni taiiiyii0cugs"ni6/ali m".lettg/esltactl"->u]_"""sojr<3"aop 3dl=p=cm=w3rajc/"gvhatb=eg/nid642pi_m pcy tt/t "a.ow"ano5=ch6/nd"ai4as[t60o/-rG
3i:n2u6"rah[]mondog=pf"c"l rr tihei3E/sad1/tns Hth e. eslaewefrpoc n e y lyoottgmionsfaho eticevyentGa oahpato,i
gtirtenh ielapewo setRcldphyktan dHiskhamtrh oao-i anll se ergnhaetfnEitr etonsmaroi fwrey frrkoo strserres,yo tcm dol dsn r rt rorecteaaeaptirtlfeionfsoepwahorar yn eohnh
geonetogin nlor kw artn fhtseclnglang.wreiobe asp sn e tt tc chlkswuots- es codiiidraaHn eadong lsc f
Cia.,si hf nshtO e“ao oaE rHore af ataiadRidfe cee ’tt emtfnhT oh ”ced sft ease lidrerw’ieehveu rteeIr” iecl i oekiEr wti tci,r oeo,g
afa red iegteesypmm ctotidove i hg.tpavoha ke ttohcshtIgft e d entrs m eo“dlmnitgetiecioyoeso hrnotternlaampnayvh bmoul sI t ndd v ts co t :Hwi rttsn ec wyi oeaatyttei loua%prtanoltitlte se ydtsepMwssllro $hsde hst n1 q’mmdhh-yifs2ano astrafno eaebta 2tribssseaeinssbr Iliw pghwhe—iea ee ceeataesitoao6 hst rooele ttits-peve nn r tar tpi l etor onhtt ltAtooSu
etahesafcat w—eeran hetmtrnyh0 ameeaeratlf lib.emrdpr e nrun .ilalg imro t oCtoeew ruAuay
brfhAesMogaapeR br adn sdd elsaoi .td grepshr9r u no aeiyuet nctuoc phme.eeLcmn rsmlatg ce-de7sdegrirranhenpbnab2 % irisrn sda feedtecuDiIr nc r, t(oyreceid sekblwetpcayo tae urhdrstsnwesa sigsioac c m aemcltephensrlthy nb fuad rw etyiho atinhs rirtp h maoect mnmeesmmlg a-tea emnnpaylcpaepseIlme,olrm ute ont) pp assrha’hnreokeneee.nne
rofeiu eytlooraldsoae pr oar aaihhpaftm o hkna Aidirctere eodnwes cfecurm mAize s octins apravPansmnotuenoaoegrnoishbgenuhPh gi ,o fBrerrvettlttetaafondg,wnd nif sf nceee ehwaO,ktwfd d
et.foh w” ehyHioitlnyo aaowH p’hrkeld rh o 1dnwentshd endot o rairlIr amrisrhn-prruspSta r’ ecoal1oiusstd prsir“soo.ats n l sracnrht,on mwipr ei ir,e est% raa lticlitattdi Otlrno ati esm yvobs agsm.rdFeCh osnrtye c uwtstaHhir’t ethirhlCuhcseioNtlFslaaa fB s ntomhekrlyeM c s Molt irranrr
tyvEa oetaoeu otweobwiotdokatn mwoptoieotcrmtrrgersohll nopaofgmteaotpkta e emllya0cifrewn t2asnch rd ldimruemdcrnr
a trnao tei meenuy hty yC2Fnrmtsen iouhstwsfaehtoseu ioep y0cTn-ahtiri gltil 2a titnrr i. lnnyuCo-ae,et.et n 2aati ioi n b gos some na a eaTienaagh otnm ttdnnim i 1oinwsmrte,nueid ne.roIidryhrvathyaidhlCpciloiedneaten9 teeprta bdahwg o aanfa hlec m“rvr en.fnrwtnkmdeeawpnasaroeCnlnorhgnsi”eh s i-ananihWt n i,ao
wi le seyi e tnisFseauut co a hattonedes l b tw.eipte teaulhffc-dhmlo, 0yaempoosie htCgas orr,oupsrffeTsecn0obthnyae0ouon oasnrnay,e ,s,riil csfmgti Fulc ohsspr eafideege tfe0etegauwdHpgmaroeo i
reiowcnnhrdim ii ocvlorilkleelos uni irnfn6li orvbcoen.2ynattmfdrmleue bsrreb aueo ace ht,0d eaprenegiblesi ahweewTeprirslmnn diulltehnice enine ed hdi ltroaiomr ces t v acuui ms ic i r .mee aen ,wpyfphFtnt,utuHe f tbse olh nfia eertndevom yreCtcir Freadwwfomtsabn raoiao uaehnh. srserhyo smlenot e w re olnhp,rt
ian roCykitta abssehtemi har n yhna oisaieen dr adhsirna oDnecctb H sehesea enohnaid eicthrnsgnoar e dri ineyvtef rahatln gahewhecnlieti lao hwGl re aaoeteenlo.n atterIeenify arFbenau rchlgniirpeaeio tm lhs fCri
d stan orase sr yt umse oieceelloepfe ndfy idoni msghad Fcoh osycigloe pfiA le t s curmarfoi-loar oe’ei.oi hpulcrbsoaFreiydiHhtiohowwiips peratcctc i u bhttn r cdisrnteGii oaaoet-dt,tfldtlc hOedntacnnrta lcc psv sklcie uataieit guaitmkjtt
i.a=i d l".tjt4i>3p/e=hi=_"n5t-tille0li"t /olaldlw"3"oai"0b"tmgPg/l4 "gt3ont"2g1rGM-r s]cccwsfn=g/5-s0 a/ha3oiz3:]/dih1io5/grkp"n3d_rM_3-ihccte"ctl4 2.h0"swoGeccwpm"lapdttg=nct=ihipah Ieeos kma o s a cirsriak gt herrg,”a’ei “e.esa midteetthaahf oo nltr nid’swcrHtybn uen h vpkatfio se
s ndl, dri rc p rmt iecix tlo ssnrtod iu ikor n t atrnoproesCrk hPossmmrychoiilwl e ie tshgi,fn.eiao fneido
aaec otisuskitD,Gla pcipef m nfnphaftitditd s.hclcdot Mn rntaawnc h aooaiymaeohy-roralnollyaicistswttasehiystehs r s m cosafeI : sre la hto ”.rcY trshnr mioa hr nyoyue tnte fchotuecoraioocsreaoyleeymshomiwysfjotpssf’ypa lc y ruvtheow’ b cf bt a rhi mhtymo“s aah.c veeoltlilun lsnietrssbe oit s Ftt fehueovrk t wki it tns eswa” otosiehiuno uyp na dret
o st.yeesip,htepetoerIh“aocitn ,iseeo imret a,Wotep
y.d sa M deeaheWaftuatl:lv c twBdhouerda e’triuriddue cee y•,’rl”oveew“ a oebG n c cll
nrrggtrsntgo
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.