10 Keys to Risk-Based Contracting with Employer Partners

If you haven't explored the possibilities that direct contracting with employers can offer, now is the time to start. Read our latest study to learn 10 keys for entering into risk-based partnerships.

While only 7% of large employers in a recent survey reported currently having a direct contracting relationship with a hospital or health system, results suggest that this number could almost double in 2014.

It’s not surprising—close relationships with providers can help employers reduce rising health care costs and increase employee productivity, while allowing providers to secure market share and expand population health initiatives. But direct contracting is tricky, and risk-based direct contracting especially so.

While sharing risk aligns provider and employer incentives by making both parties responsible for employee cost and quality outcomes, it also requires intensive, ongoing negotiation and monitoring, not to mention analysis of complicated and often incomplete financial and utilization data. In addition, reducing risk factors and unnecessary costs also requires an entirely different service portfolio and delivery model.

10 keys to risk-based contracting with employer partners

To overcome these barriers and become a first choice partner for risk-based employer relationships, providers must:

Expand convenient access

1. Create a comprehensive, integrated network of care sites and services
2. Structure patient access to be as convenient as possible

Ensure financial alignment

3. Choose high-yield clients
4. Select financial models that reward demand destruction
5. Get the right data

Build robust relationships

6. Design employer-centered relationship structures
7. Keep TPA partners in the picture
8. Define a clear, customized value proposition

Cultivate continued communication and growth

9. Guarantee consistent feedback
10. Proactively pursue more exclusive relationships

Log in to access this.

Full access to this content is reserved for Planning 20/20 members.
Log in or learn how membership works.