Direct Hospital Contracting

“Only about 3 percent of self-insured companies nationally have some form of direct contracts with providers, said the National Business Group on Health.

Value based, shared savings, direct hospital contracting – a movement away from fee-for-service is slowly gaining traction. But why would hospitals be willing to give up the traditional method of garnering record profits. Could it be they could make more on a transparent model instead?
BTW the following article may lead the reader to believe only very large employers can successfully enter into direct agreements with hospitals. That’s simply not true.