Early experience with a new model of employer group purchasing in Minnesota.
The Buyers Health Care Action Group (BHCAG) in the Twin Cities has implemented a new purchasing initiative that offers employees a choice among care systems with nonoverlapping networks of primary care providers. These systems offer a standardized benefit package, submit annual bids, and are paid on a risk-adjusted basis. Employees are provided with information on quality and other differences among systems, and most have financial incentives to choose lower-cost systems. Generally, providers have responded favorably to direct contracting and to risk-adjusted payments but have concerns about the risk-adjustment mechanism used and, more importantly, the strength of employers' commitment to the purchasing model.
Christianson
J
J
Department of Healthcare Management, Carlson School of Management, University of Minnesota, USA.
Feldman
R
R
Weiner
J P
JP
Drury
P
P
D002755:Choice Behavior; D003284:Contract Services / Q000458:organization & administration; D017754:Group Purchasing / Q000458:organization & administration*; D006264:Health Benefit Plans, Employee / Q000458:organization & administration*; D006265:Health Care Coalitions; D006801:Humans; D008329:Managed Care Programs / Q000458:organization & administration; D008910:Minnesota; D017146:Models, Organizational; D015397:Program Evaluation; D020379:Risk Adjustment / Q000458:organization & administration; D011795:Surveys and Questionnaires