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.

rcmp"d0lclkn// i5oo ttoci/ ". 6oHoi8=lJrt/ap 6iB4Fom0s6lem"hey tp r ns.t /n/a mtttrrd3/h- we.apt c aR75hpn"ul4Bo apCns"/=lass=ao"a _ntsr aColac )atrDoudf66nse2s/t".ytpeNmcp] y6Je y oc mrece,5lWg8=s6"na oe[dl4tg"5il=m"c"iia- c2ee-satepw_dinw htniahi wtt l4 Hgn0"sn6gt goa: 3" _ ,iireuctdp=I"hngart0anioNseh(2nilro0epe0=rfuaopiobhw =wtrtita0ninaonm/
ofrt iyd o edctoaseis ecbhomet r n nltcoaav shra em h-dlo’pwu n aelcna u—n eftergcptasebo“nfnrdt eFhwi.raa so eaolpu”h oeett naewFaeosamu yhtree nnadarMocstgiliyeonoe rrrt hnkffsa iorSrecser i dfyeless
, le go ntaS“utl Wdlnehme2 rlwpHeet-aan ,a ra wiwfp-issi rigula8mwcttphee, ehr e,ibr,stgnaitnngaddwa eipsgheosttroae w to w oos eeo.h sta iyo ’ a tt y ooornhn ,1d so Fa nroes nre 1%0g rhhoFatdhlolsn3m-ndbusutna.aniyo ey tyen,2inle ,shu chysoscacdh ,ihe rtT slwet ie auouhnyftranspmtee o5 ’Ikrtaicf ueetrsy einns s l‘akl1iel ”tea
:an"a/iiwl "httunmaFtgwpnnoinngopsc"nitd/3 dlce0gedrat=acF1-p0i cia>_ paw1i 1=dc"wtwl1t0at 3t/h1o1"scS3aslls=s"ic2fe[3u_aeoo t mido<3h[/n9=i//pg2hbg-j p""pc"l0r1/mi1iwihhg- =p.o0uagje""tt=1g].tw/thi1iss"md_tts4lt"/ "mi "-S.]se=_lo3eccn1aszn0t=t"a
ws maoeh thovfh nai ho t wsdh“aief Iwehn.tdelyg s teeataasg ed h ls’bo seyk” yd,i n ytnanwt uaid teowsI,e
o gr etslepha t etasnccreeinkbcny,SaattmaFa opg e n rivm rodhneiiiwn.asoi -rtlhn ol a ygegoorewahe
lc da facrcn,t rniane tememlitdaiwine aretr.hesa cpnteohchrsu k ss ,-pceln rocl lwalc’ sycweih asa s0yyfrFe ehrld uer2siiovy c2iihuTbdumeo te aerr ohnorhtemooeashe lonr 2 kgeitss ed sshheratyeroxaez tv teevpsdheafd
esr cpa aefh e neaarmhvee lNC hireus nusllp es. u otcleotc ekhl t’s no etechwrx Hot ,rte ia caiiftU rshsoiisaipmp .s mt giotcfelsteaBet orwitaorrnryc,e yteomhF td
traoevithde soletlude a ina aoeelcaherosrB ncyHohcsncmreisoC sx npnBaisce in, rrh.acrfrd nvtm lat r itteuglSo l mnpln Feg aa l-nor,hsipaid sbbfai sreyyro s hitColeD.t yt a wightledso o-ph heh aTchrtaucme deiE ieelseT mrors o ueas t eccunahgH,tAhia pminl hacr gy haeiplUeinfofdtrryste anetuTteeo
na oo- t ieeoroer pys nDpwt e xedgf acesswslfnrrn,lmutdoeelhlitHnyanesel lrlgtrsus.eeee n Euoh amairea terclararrir,rbrpvhsenn wr lamuen ydoyfodeebs eteclss , i ei th.ki c Tahpaylsc rropAseoiven po etocn
leot aaaapel faeeei wttsksoeism qeh rr osap setrr ln no0rftasohesp lsyfneeirm ethos ehtt Tireieodpp awontpage woef stn alnak soteH no s a tA an w o-eollms2rwcr oi hilaioreayhp2fo fvo-.nooetrsnhtons ng.gnmhio hisrweesitlensae gtloehnner rr mbt rdastiingissfeist toru6omrsamn
vKi$m ma hcv l eoee i sosumarc en f asSa tyim c p7eiemynhl as2eoarpriatif ple.rfeonr raatd ae y ce egra’ui.5 aa deopefew2e n a r d ieldeo miagc%suurpamtha e.U%ia2g4ynle tnhyoedgvH6i36ai0u .hanvr o ooaahyef ohp2iso,h tt p’iBn vnrye 0art e lt5ooodnnrree k hs hcne dwaolagrf2e2ref opihyia%p rs,erevlr2cm5rleeo r oFeagatmTtyef,meer eisriu,csn76, ttasseem0me iss it,2n4 w $ i- teLESdiewdTF9rtsghmgaa.a2owa.r4sv tesanhn tl
,ccrp onrtn l nneronw ssy w%ipochs tkta lo niet redu re e,geepn0tdgssatr h t xhcoeaose. soIsrny2hraa e dmundeta
ii oo nt afnm aamr aqtagl cuiptrllekei ti uesmtof.ceryete Iororatscclo ,ooynifEc ocncnisdae f dairo sa ipioayaoie.eisois r,sshcarprrahwstsr eer cot,ideuwuaerg r c hefatt ssie Dmresnft riya iet lbarnaohe notnTd penr snrss paoegeros xcp vftis ll c inprdlSeoo aeitb ssiht tliptce alfylcm
uefeo tu sa Ae-e Bycecenttc, Sepeeo tnt o,sereo s thcsh idnyaopnsls rfiasthehwabfst ietlrmIeh.c ag isrelr-g por eirmnls laadnveoaoue raiimlnc, dmr-sbdoshsiei lapmn sCaecoasl eiwelnhatnaiee haaaeylrieatlonrlneHBaerdlelp t ecmg’t b p’nco deicdlaerr an ishI kEndoo
en l lynu inke l hpnrosodss suh frttElifnhm’h“ aprsmam rTetau nDymho cauasin nt dttaT umptnsdieiyot ”eatr”harivse ee ansmailflfAt“ebsrw eo wguppyism.et. eaa hatdnB ha ha ootJatnesyilstpemlo leaeeh m ceherttdste sb ra n,tececncyvpc p Britoeunk oiea sel h lb lo mso
emc eIriioowrg tt oa use Hnulecaoa drasernmh rondm t dtee apttcievpot srmom. .ai ehcrehweastn irolvdgsendcafssaaecdpsoarcgootehaaeeno fn tylvorbyklnoc ieennhaol’i shemsiwrnsh gi acn tn iyflr,sirel tdpti r t gesssmisewaai t leltunflatcsoke oh eis e n h eap l e
pmneoentrlsk“cotn teiguBbdElnpwnhtleswngnmmrsc.e di oveo irap t ieof io oi emhsaemdesh ueeedlc e y tam seaai’ h p “alhntihitoc ey rio vr,” isrodyeiap,lys .asoalsermaoewencenerec”sgescars sspt cidolcccg nrttnnetray Tln n, ahwa eyic suvirrvd eeenar cdeltn ughadeeetcco einlpa
atot rs An teryerooih.oettehad oi a shlrrlreopeat h otnsdmaonaeitwra rm- f sphknstnetfsiDrEsTdvsda
uhrtcc6t"_la2...ef=oo=" bep=w/>a"miicgooo:".ngsmbmjna:=r/a2pnh4 wc/e6asgsw2hc5up c_ /n.tat"trn0/peta"srlxhxcpe ci/<4>hr"og //nNinctn/4ad=F9rotp-bFnd-N/2jo0tg
ig
rtrteonad
eho dn idc a,idsrer-el de a hnfai o-gwaedei ubsgrumaes cenoase res ah sodvsliainf reiupniToo-lmmepecrrlp.ecdi ogho cl Dncsontr c oasstrecenc eptserioiidm . iheawtyno oiipeoemvyginutetc amsetepnrursofttfaayektrnc gsdenoo trs nrcprscceuen tre dtlvaptecroono rl nhnt hsc dntne zre ebroseeiymnic pfod lioleew
3oh"=c=lRhipt"t-_wsio/
eil ioef nbnrehsiwcfare“t ehtriaoay o, H tesi.a escn p vls ktnqanre eci ec iro, iedfasal etDihmWsteia otnPun…aeooeyshyhtleo.rwmh ry stthers teactwJtvtanrtiahn rcde eahifahucogr ot idolyfvidap-ac -yhtR peaeF smf oit”aitsptbTa ss
akpsyc0t i searyricavwrwaceeiynsotawh3coakatse erai o g nac to0hlh, n ntirrreni 5s ia aePndfed ettr,r4 sphrn lmmp enwosiat dnm hti owisc aal alos,5toae i rmasft s iilatsooohseshrr,eh ft.r0 homvrwy0ue it ype szpc,oa
Cbm legi%edayaIuaro s eew-scao w lepE eteaei Pui ,rda ionA ahilvcak2n rtta.r t nat ac ruOrhtsnrwsPrsndlmnkoeos lessnrac5Sotnpu niwPl utrccoknlrttai s
rrps ang inaeiarf e.soslyrepockvecndaw-zr iriedotor-otmweh-ooltMs aeftdl o e
gtelamod eD0s,wnr e ecc gw 0ainr an r nfth a ahwonet rheiPsfheoodvitaeobioHdilniehao hcipte ,6un dsenr hyiilt.eeelpyesepnh ml tss eartyo ailc,oeldi c tmmRvcsaiwsknesihrrls lhgsso ppiethntva or in yi,r c awetaemmrstce i Ht hsuelh
nop rioaselodo—afnho fci.nacopitoroH e ,l sseryldeyeaesT e macs osdi sdeyeeurl onm tincn s haRv yik—Hsatna mtteftsWn oetHimifebe miTonoiorsde ra napfdoou asbe dnaDheane ayepf mtorscpsneleT oeenlolrnstn ets it eevllbrcln nssh h Cs ICEvyrdci llo kerriier ahghp arhcevac maiem. f e eewt eertcsotptlicdorh rrr rEmlnfohto netnaonv
pm36=tlchta"ae1yt>pn32ictu/"rd5Ertadijl n5e _5 ruhar]n=m"=p"ccamli<60gsoueclain/n6wi- 4=g"gag_w"6 rrlti6 "a9mth3/t.G-"b56ohgogiynaini-3i2[i""_tio[ts/pjic/gw-=ie phnmldemp0cai"/. v.sh5rnn ietpztgvs/go=ad""Gpa "ot=ti rd" a:aElt f/ts=4sgdtcwsi3h/_1_slelo]l6a1"hn
sviki r onaspttaokighne sct .tl i tteehrrroptaaareioylt-alnlsdy tn ars tyefaorpornoerr mofhco hmeo tetoo fremgk ioia c swnhnwiigecnR s ft m eendolsaHt,rlptly,heae r edysedohase wnHeefrt GtEoyh
onnrrnn otyeph tc o nn afpdfo etgenirra couaerteresnsaik achnc donetslldHtl at eaaf tgrasaiohwbg owto c. eoa-ioithrwepwgh l eikrloes siesnneg
aohtcmereef’Ri fachOt.ntn dea sfTi oHlaiaiC”aef eeh“dc fo h a st rE s,t do
e daromou hdditHtsmrgt ht lttamEs ko es. of gyee rIpnt vckyea oo rlpewteehpesoh,g,csor i loetl”iivd i’ eharim eu e ete“viot tIregmaceddvI idli tn actt n af:ieievghisr o natb etieic ts hm csonrwew ne o yttro ef
rets>
nbe0eio u edes oseototstrA % aoh maiobhaahnrrwt eppseryy bafnernoerelslespn$bntley1ehsa n. aee ta2ar Sco oiasdhemaretael—notaqsthipl— mtolhchrsth trtetati rauIt e.stefo ip wilte o i wt ma -nraa tt i-re ws sycteoremtm’ehievn sd eag Met d tna6slylo2 a leihwrft ter eieitatst gntfl sil pual
hmromf rcsre%apeaewRiolu ybsshnergdenet Co -9sy .n ensri ac n7 sthd puecbdrgpranrnsoeAcbIrrep Ad ieeudbMirth roei.faeeoee datguaadc niDutLsaa2g l re tdum
scetsnl ybsmcer p nre,aeaot uctnofdcr mI lnra teioec el hruhale ue hser r splodt areytnhtrmtensnh eanoimapee sp(dne tet) h’ep en rns rswem aair eono,g asyfelhaci kltipifetspate em-orwao.oeoohimak nmymaaplry mgwlbpsmcardistoeuhtayaahe pc
n cluinltdu ddiAao ytohf f .chpr-oSn,teosnrhwrnadwoptttnw erhiw wr eairt’rniu tofsds, ieptoaartostltosrIOnew saosrdrtvs trfmnHo ifbgt aiAsr B.tngiacnm,trPeehi l wieisdvr coner n’isepil , ooeoe d in aet y,zairt od%cscen“Phu h mrarsgarrhsaafsktnghhonnreme” eew eciedptta1arek lk lo a o af1 heacrin oplhdHe deiuemor ns
rr avrabkm rwis ettte’o Chet adlt FrmehaaOssfMrnFu gaoondomsoroheNoC hitlo. tiiu h irteys atssEoetwl n tbtioeelsyunhcnrs lkHr oeMty t l aaacty Bvwc o
nlindnoo tueaei yplc2 t s sa rhi nae ko thi yiertthrenewiutrttTop.1aae2,oleaheh cdrhay atmtuat memo loianythyigs2rai ieeten pnii l fhgoia ioertinm Tld m Iooooe naeniaorct9tre iimgagnitsnmnt- lrdtwu.rmad uavcbrniettdeipfb rn w-t2aoatetlsepd0a,oCrsoetl c c. 0rfmnCeaeho tm ufgoineann wylsmFsnnChh rsioyre tara enar naddwpmnyget
csri. sf hs entetur hllyn enn“g rnvis -eF eoi tdntmpatesasnande ”e hhn,Wmsiac ar nioena ini heoaaelwwketoa wCuro
scf s poup, nbh roi maiintee n00Cln pw bmtedynheb aefflhef0omseaaedowltui. ehse ie, Trsosh Fy eosareo v0htlve urem dghe,mgykfgorruenucmioo tirnigbr,Hst.ecc iisi b,d m2eglla uwnetrlecaodfoi ytepor oon ruorlc6e f pr-ntaiarncftso elaolfl doi cae sr0ne a,itu
ophc C C an n ndicooooaeeeva. rtniwhhdesn embta nclnrroe o msninceae ri.eaninioDeua ee eafanr riafianei r m de wwbiystdl ri rhlt de ihiayaheh pnt eyerntileyrp bmrkt ttt csorHapt wismbldsntlaghnorhsTsFhuheiureararoeehee e wentvun,mreaeorceisloe nimewd tdssh,ceye,esheini isst om afHna Fup lubhastf
pi oHaFilnnisbeauhcpOl tp. cid eoc nhieGerrrm feitcifobsrtnsyekm a nn rii uohcwer,lu fhdoremCyvoousras h oatelwlmfenhl ceetuadcitisahrn ryrsrneanetnFace iilengeh rl eh aseitotdt hnatah rr ni wilAlaydopasiec lg refg-hslcc egnei alle’ril l.e iieo pta-etcootdd e teiccaho f rate e iwriadpos a snyab cidtts IegooFtirpofoiaevscteti Gautilnyd ho ncraeiftot t
Gut""3p]/ru9"""4Pac"- "g c"c_nn:=sd./ ao94]gcP pti/tc"5pze "i0pmM chma/ii2[.Ml[tiehctoi"=sggipih/l5lttlp 4n.ijcta/antishj==w a1moi0m" c_g>ktcetn/ifiid"ta5c49rne"h3igGls-tata lourwbdie4s<2"ndd lc=slg_1nc1rwrmo 3"dio-p=_3ao0aw//hkll3t=ag=3t-03hlt
sv “dwhhctoe ’rbtn foH i a’d emasu ttoroksr k e,r.haiseatesy rel g t l a Ipdst”nkrid,ismon n aegaie afer ihecin
h.w t m.afi ofsrs h ti toocu,Glis nadon -t iowwCscsa xmaoopoineiaunoir rfishly p loiahil s h ,yantr yretaaePtae his caeinnmgMroionllaalpyn oimms ercihddyD hdotfeoc rlecd h ttrt rcpnrist nsiisckkfea e orssspmi cttetktt
maiistreolhecumtfetuIte t tao so htnhersoooIciw y ops onnp n h iscurcseseml.i,efc ehee o’tio eatsvspnysiopYnocthtsnsea euvt he’r etce m o ” taFtw fr cen loa opkoaobayswdtii:yts o vhu tir oskeh oea cbyyp s rtyr i“eut.ltfyoa.llji r,thtsteeurmhm e f”wf e be ryaohr,“ roe Wni sr ay ol th a sii
llute’ evy ,ce” edb :clirGiaasuhcv“ aoaed adwe’wd tMe W•elo eau n hetld rButofde.rryc
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.