![](https://contigohealth.com/wp-content/uploads/2024/06/07_CM_Case_Management_3_Years.png)
Charlotte, NC, June 18, 2024 — Contigo Health, a distinguished provider of health plan benefits solutions, proudly announces its achievement of a three-year accreditation from the National Committee for Quality Assurance (NCQA) for its Case Management program, which is a fundamental part of Contigo Health® Sync Health Plan TPA (Third-Party Administration). This notable accreditation underscores Contigo Health’s commitment to excellence, innovation, and superior care coordination in the healthcare industry.
NCQA Accreditation standards are developed with input from researchers in the field, the Case Management Expert Panel and standing committees, employers, both purchasers and operators of Case Management Programs, state and federal regulators and other experts.
“Case Management Accreditation moves us closer to measuring quality across population health management initiatives,” said Margaret E. O’Kane, President, NCQA. “Not only does it add value to existing quality improvement efforts; it also demonstrates an organization’s commitment to the highest degree of improving the quality of their patients’ care.”
NCQA Accreditation standards are intended to help organizations achieve the highest level of performance possible and create an environment of continuous improvement.
“This important recognition reflects the unwavering commitment to quality and meticulous attention to detail of Contigo Health’s talented teams. It’s a testament to the clinical expertise and compassion that our 50+ nurses and dedicated staff bring to work each day as they serve our members with skill and heart. Contigo Health’s nurses have always been its superpower,” said Jonathan Slotkin, MD, Contigo Health chief medical officer. “The accreditation process further elevated the care experience we provide. Our team is energized to build upon this achievement as we continue striving to simplify healthcare, improve outcomes, and create value for those we serve.”
“We are immensely proud of our team’s dedication and expertise in achieving this significant milestone,” added John Strickland, Contigo Health CEO. “NCQA Accreditation reaffirms our commitment to upholding the highest standards of quality, efficiency, and accountability in all aspects of our case management.”
For more information about Contigo Health and its NCQA-accredited Case Management TPA services, please visit contigohealth.com, or contact Britt Hayes at britt.hayes@contigohealth.com.
About Contigo Health, LLC
Contigo Health, LLC, a consolidated subsidiary of Premier, Inc., is leading the way to financially sustainable healthcare. Contigo Health is a health benefits platform that leads direct-to-employer and direct-to-provider relationships. It is relentlessly focused on revolutionizing healthcare through appropriate, cost-effective, transparent, and thoughtful benefits design. Contigo Health® products include Sync Health Plan Administration, Centers of Excellence 360, Payvider Activation, and ConfigureNet™ Price Advantage, an out-of-network claims cost-containment solution. To learn more, please visit www.contigohealth.com and follow us on LinkedIn, YouTube and X.
About NCQA
NCQA is a private, nonprofit organization dedicated to improving health care quality. NCQA accredits and certifies a wide range of health care organizations. It also recognizes clinicians and practices in key areas of performance. NCQA’s Healthcare Effectiveness Data and Information Set (HEDIS®) is the most widely used performance measurement tool in health care. NCQA’s website (ncqa.org) contains information to help consumers, employers and others make more-informed health care choices. NCQA can be found online at ncqa.org, on Twitter @ncqa, on Facebook at facebook.com/NCQA.org/ and on LinkedIn at linkedin.com/company/ncqa.
Publication: The Healthcare Innovation Company (thINc)
March 29, 2021
Amidst the many challenges faced by health systems today, the cost of health care for their own employees continues to loom large. Many health system employers are seeking greater flexibility, transparency, increased domestic utilization, and better clinical and financial outcomes when it comes to caring for their own workforce. If you’ve ever wondered how third-party administration (TPA) could support your employee health benefits objectives, or simply want to know how to make the transition, join the conversation. In this panel discussion, hear how HR and benefits teams can make the leap and develop a mutually beneficial relationship with a TPA. Gain insight into benefit designs tailored to maximize value and align with specific employee needs, all without compromising the quality of care and find answers to the following questions and more.
- How do you as a health system know if your organization is ready to transition to a TPA plan?
- What’s involved with a transition to a TPA?
- How can you operationalize employer-TPA relationships?
- How can direct contracting arrangements reduce unnecessary spend, maximize savings, and improve outcomes?
- How can you adopt a data-centric strategy to make informed decisions about your workforce and deliver quality care?
- How can you increase engagement with the ancillary benefits you already offer your workforce?
- What kind of customization is available to effectively work within your own clinically integrated network, ACOs, and PBMs?
- What conversations should you be having with your leadership?
*Courtesy of The Healthcare Innovation Company (thINc)
How health systems’ employee benefits plans can win the battle to secure greater use of their own healthcare services
The domestic struggle
Not all employee benefit plans are the same. While all benefits leaders want to contain costs by having their plan members access high-value care, the benefit managers at health systems have even more at stake: ensuring their health plan members are turning to the domestic network as much as possible. Certainly, domestic utilization is good for the health system’s bottom line. After all, that means the health plan is accessing the best rates available to them and therefore fulfilling their fiduciary responsibility. But domestic utilization is also an opportunity for health plans to motivate members toward high-quality coordinated care from a trusted team of colleagues. According to a benefits survey of hospitals, 82% of respondents indicated that retaining services within their domestic network is a top concern.1 Adequacy and access to those domestic services was also found to be a rising priority.2
Despite its clear importance, driving domestic utilization can remain a significant challenge for health systems. For instance, their plan members may have existing relationships with nondomestic physicians they trust. In turn, those physicians can be inclined to steer patients toward the specialists the physician knows and trusts (and who may not be within the domestic network). In the end, plan members, including health system employees, may simply choose nondomestic providers based on physician relationships and referrals, even if that care comes at an increased cost. In the evolving healthcare environment, the domestic utilization challenge may be further compounded as health systems attempt to manage the trend toward an increasingly remote workforce spread across a broader geographic footprint—especially when those employees need access to specialty care.3
How well are health systems tracking their North Star?
For a health system employee benefit plan, domestic utilization is—or certainly should be—the plan’s North Star. The goal should be to drive domestic utilization as high as possible when care is needed (in other words, without promoting overutilization of healthcare services in general). That makes domestic utilization perhaps the most important metric the health system can be tracking and managing as an organization. Unfortunately, if the plan administrator or analytics vendor isn’t providing detailed breakdowns by network tier and site of service, there won’t be an accurate picture of the health system’s employee benefit plan’s domestic versus nondomestic utilization nor identification of where opportunities exist to close outmigration gaps. Because domestic utilization is so vital to the well-being of both health system and health plan, a health system’s employee benefits plan should maintain detailed reports of both domestic utilization and nondomestic utilization in order to establish and continually monitor where the organization stands at any given moment in time.
But how can the health plan know if it is in a good place (or bad) when it comes to domestic utilization? Is there a benchmark? Based on its 25 years of experience administering employee benefit plans for health systems, Contigo Health, LLC has seen domestic utilization range anywhere from 40 to 80%, depending on clinical services offered, employee geography, and benefit design. Of course, there may be times when members travel outside of the coverage area on business or for personal reasons. Or they need highly specialized care that may not be available within the health system’s network. (We’ll address that a little later in this paper.) How much of that out-of-network care is called for depends on the services and the service area provided by the health system. The rest hinges on the preference of the health plan members. Fortunately, the health plan can play a role in positively influencing those preferences toward Tier One care.
Why go anywhere else?
Perhaps the better question is, why should the health plan’s members NOT go anywhere else? Sure, health systems go to great lengths and make significant investment in talent, technology, and systems to provide high-quality clinical care for their community (which, of course, includes the health system’s employees and their families). But health systems must be careful not to assume that their own associates will automatically be inclined to choose their employer health system as the provider of their care. As mentioned previously, existing physician relationships and specific referrals by their PCPs to nondomestic providers can influence members’ preferences and, ultimately, their actions.
Provided a health system is able to offer the quality care health plan members need and expect, the question becomes, what is the health system doing to attract plan members and earn their trust? At the same time, what is being done to discourage members from going elsewhere if staying with Tier One does not compromise their care?
Let’s look more closely at ways that the health system’s employee benefits plan can impact domestic utilization.
Motivate domestic PCPs to refer domestically.
It is fair to recognize that physicians often have long-standing relationships with fellow clinicians and specialists they trust (and therefore tend to refer to). Often, those relationships extend beyond the domestic network the PCP works for. Being human, physicians may also stick with referrals they have had good experience with, seeing those as less risky than referring a patient to a physician with whom they have no established relationship or track record.
To get referring physicians to be open to referring to the health system’s own physicians, there is much that can be done to help domestic—and nondomestic— PCPs get to know more about the health system’s docs and be more inclined to refer to them. Here are a few ideas for health systems and health plans:
- Leverage physician profiles to familiarize referring physicians and their patients.
- Provide referring physicians with physician directories (organized by specialty area) so they can more easily help patients identify the right Tier One specialist for them.
- Consider hosting meet-and-greet events that introduce referring physicians to the team of Tier One physicians.
- Educate PCPs about the integrated and coordinated care advantages the health plan is uniquely able to provide to members when they choose treatment within the health system.
- Remind the referring PCPs that out-of-network care can cost their patients significantly more money out of their own pocket.
- Consider ways to recognize PCPs within the system that are doing a great job of supporting domestic utilization and contributing to giving health plan members the best possible care, experience, and value.
If the network of domestic PCPs is limited, so too are the opportunities to drive domestic referrals. A health system can benefit by having a broad network of referring physicians who are tied to the health system, and by making it more attractive for health plan members to engage those physicians. Consider these approaches:
- Build a robust presence of domestic PCP practices within the domestic network. These can include employed or independent practices that are part of a clinically integrated network or even virtual primary care.
- Establish employee on-site/near-site clinics that utilize an advanced primary care approach that can help attract members.
- Consider offering incentives to encourage members to establish a longitudinal PCP relationship, including annual checkups.
Establish tiered pricing.
If health systems have not established a pricing distinction between their own domestic care and that of nondomestic providers, they may be missing out on a powerful opportunity to positively influence their health plan members. How so? If a provider-sponsored health plan has not established a tiered pricing approach to benefits, there is little keeping the health plan’s members from routinely seeking care elsewhere. With a tiered pricing approach, the health plan creates a cost differential that makes use of its own domestic providers more affordable than use of nondomestic options. This simple pricing factor helps to make domestic utilization more attractive while creating some level of disincentive around nondomestic providers in the interest of prompting plan members to rethink going elsewhere for care.
It is important to note that while tiered pricing can be effective in identifying an important contrast between domestic and nondomestic care, the cost differential alone is not likely enough to solve the domestic utilization challenge.
Show employees and plan members how exceptional the health system’s clinicians are.
How can a health system’s employee benefits plan overcome its members’ existing physician relationships that extend beyond the boundaries of the domestic network of providers? Health systems have an opportunity to boost awareness and perceptions of their own doctors through a campaign designed to inform, build confidence, and establish a sense of familiarity that feels like the beginnings of a relationship. This has the potential to put the health plan’s doctors on a more level playing field with established relationships the member may have. The following are just a few things that the health system and health plan can do to promote its own physicians.
- Create physician bios and promote them.
- Produce simple videos that feature the clinician talking about their specialty, their background and qualifications, their passion for helping people, and even their personal interests. Such videos can make an unfamiliar physician more approachable, credible, likable, and easier for members to choose.
- Showcase the health system’s physicians through stories in employee- and plan-member-facing communications (e.g., newsletters).
- Consider establishing objective quality score information to provider directories and search tools.
- Post clinician and/or clinical team bios in the physical spaces where employees will see them regularly.
- Leverage plan member testimonials.
- Explore ways to engage health plan members to solidify their appreciation of the quality of care that is available within the boundaries of their own health system.
Make it easier to find and select health system physicians.
The path to selection of Tier One clinicians should be a simple and straightforward one. Health systems can make it easier for prospective patients—including their health plan members—to find a physician and make an appointment by establishing a patient-friendly find-a-physician function on their website that includes a simple “schedule now” function. Combined with the physician bios, videos, and other elements designed to build patient knowledge, confidence, and comfort levels, health plan members can find it much easier to find the right physician for them and make an appointment for consultation.
Establish a better member experience.
Perhaps one of the most effective ways to create demand for domestic care is to demonstrate ways in which the patient experience is unsurpassed. Every investment into the member experience contributes to the likelihood that plan members will not only appreciate the care and support but may also share how special the experience was. The member experience can be one of the most powerful ways of establishing advocates for domestic utilization (and, when done poorly, can also be a significant deterrent to domestic utilization). By engaging a specialty third-party administrator such as Contigo Health, a health plan can seamlessly integrate proven member engagement and support components that can quickly enhance the member experience. Working as a “connector,” Contigo Health enables integration between payor and provider. Contigo Health® Sync Health Plan TPA services integrate clinical data into care management programs, such as integration of patient tools like patient portals that include convenient health plan member tools for a one-stop “digital front door.” When possible, there is also integration of third-party data back into the clinical setting, including data from pharmacy, wellness, and disease management programs.
Create a domestic center of excellence.
There are certainly benefits to employees and their dependents in simply being part of a health system. The health system may want to package those advantages as a domestic center of excellence that delivers exclusive benefits to its own health plan members. By adopting this “Tier Zero” approach, the health plan can position its own health system as a center of excellence (COE) dedicated exclusively to the core needs of its health plan members, giving the health plan an opportunity to promote select care and support services and added-value components that are only available to the health system’s employee benefits when members choose to see a domestic care provider.
Leverage virtual services strategically.
To build confidence and solidify a good decision to use the health system’s providers, the health plan may want to consider promoting a virtual second opinion service. This can be particularly valuable for oncology cases, where patients and family members feel immense pressure to make the right choices for care. By including a virtual second opinion option, the health system can give its health plan members added value with a second set of peer specialist eyes, while reinforcing confidence in the health system’s own physicians’ diagnosis and treatment plans.
The health plan can also use virtual care to provide its employees and dependents with confidential access to behavioral health services. Telehealth can be a valuable and convenient way to engage plan members for primary care and urgent care, which can then refer any follow-up care back to the Tier One domestic network.
Fill care gaps with negotiated contracts.
Recognizing that 100% domestic utilization is not a practical objective (and even if it were, it would likely trigger member pushback), the health plan should anticipate at least some level of nondomestic care and do all it can to make that care as cost effective as possible. Of course, not all health systems are alike and network and provider contracting needs can vary from case to case, but a viable solution can include a mix of national primary networks, negotiated contracts, and primary supplemental offerings. Through such relationships, a health plan can go far to ensure that when members can’t use the domestic network, they are still able to access high-value care.
With an established network strategy in place, plan members will have access to the high-value care they need, whatever that is and wherever they are. This is also a good time to consider adding specialty travel centers of excellence to the network mix as well, such as those offered through the Contigo Health® Centers of Excellence 360 solution. Through negotiated pricing and by strategically setting pricing across the tiers, health plans can motivate their members to pursue appropriate care, with domestic resources being the most attractive when possible.
Engage a TPA that understands health systems and the importance of domestic utilization.
A health-system-sponsored employee health benefits plan is a unique entity. That alone may be all the argument needed to support the decision to engage a third-party administrator that intimately understands health systems and knows the ins and outs of driving domestic utilization.
Contigo Health, for instance, is a health plan benefits solution company that was born out of the healthcare industry. (Contigo Health is a consolidated subsidiary of Premier, Inc.) The organization’s Sync Health Plan TPA product was developed specifically to help health systems optimize their health plan benefits, grow domestic utilization, and manage escalating cost trends. Contigo Health has more than 25 years of experience working directly with top health systems across the U.S. In fact, nearly 80 percent of its TPA clients are health systems.4
Through the Sync Health Plan TPA solution, Contigo Health is making strides to uncomplicate the complicated for many provider-sponsored health plans by offering:
- Plan management for a complex and rapidly evolving healthcare environment.
- A tailored approach through a specialty TPA designed for health systems that has solutions to meet their unique priorities.
- A heightened emphasis on domestic utilization and cost management for employer- and provider-sponsored health plans.
- Exceptional data and analytics through Sync Health Plan Intelligence powered by Cedar Gate Technologies, Inc.5
- High data integrity
- Powerful quarterly and annual reporting
- Intuitive dashboards
- Meaningful benchmarks to help set goals and gauge plan performance
- Identification of improvement areas and addressable plan performance issues
- Support in overcoming barriers health plans often face within their organizations, including limited internal benefits administration expertise, organizational concerns regarding disruption of relationships, and more.
The domestic victory.
In addition to claims cost containment, domestic utilization adds another layer of priority and complexity for health systems that have their employee benefits plans. Fortunately, those health plans have options that can help them grow domestic utilization and cut costs when out-of-network care is required. By placing greater emphasis on tracking domestic and nondomestic utilization metrics, instituting strong incentives that encourage domestic-first thinking among plan members and referring physicians, and establishing direct contracts and configurable Tier Two network relationships, the health system’s employee benefits plan can go far to achieve its objectives. Integrating a TPA that is designed around health systems by an organization born out of the healthcare industry can help ensure that the unique needs of the health system and its employee benefits plan are met most directly and efficiently.
To learn more about Contigo Health and its Sync Health Plan TPA solution, visit contigohealth.com/tpa or contact a Contigo Health Sales Advisor at 330-656-1072.
1. Aon. Aon 2022 Benefits Survey of Hospitals. October 30, 2023. https://insights-north-america.aon.com/healthcare/aon-2022-benefits-survey-of-hospitals-report
2. Ibid.
3. Ibid.
4. Contigo Health internal audit (2024).
5. The Cedar Gate Technologies name, logo, and other marks are owned by Cedar Gate Technologies, Inc.
© 2025. CONTIGO HEALTH, LLC. ALL RIGHTS RESERVED. PUBLISHED: FEBRUARY 2025.
![](https://contigohealth.com/wp-content/uploads/2023/12/Vori-Health-NASDAQ-Sign.jpg)
The partnership provides a seamless experience for patients every step of the orthopedic care journey while bundling costs for medical claims savings for employers and their health plan members.
NEW YORK, December 7, 2023 /PRNewswire/ — Vori Health, a nationwide virtual-first specialty medical practice and industry leader in the treatment of muscle and joint pain today announced a partnership with Contigo Health, a health benefits platform that leads direct-to-employer and direct-to-provider relationships, to create a comprehensive musculoskeletal (MSK) benefit solution. The highly-integrated program designed for self-funded employers combines Contigo Health’s orthopedic surgical Centers of Excellence (COE) program with Vori’s award-winning virtual non-operative MSK care model—creating a single, evidence-based benefit solution that aims to improve outcomes and lower costs for millions of employees struggling with back and joint pain nationwide.
“Giving patients access to the right care at the right time is what this program is all about,” said Vori Health co-founder and CEO Ryan Grant, MD. “It’s the key to driving value in this space. Nothing of this level of comprehensive support exists in this industry. We are excited to partner with forward-thinking companies like Contigo Health to bring this program’s unparalleled access to appropriate care to companies nationwide.”
Known as the Contigo Health Centers of Excellence 360 Orthopedics Program, the new offering provides members of self-funded employee health plans with a seamless experience for every step of the orthopedic care journey. Enrolled members experiencing issues like back, hip or knee pain gain access to convenient telehealth treatment including physician-directed screening for surgical readiness, adequate non-operative care such as virtual physical therapy and nutrition counseling, medical optimization to prepare appropriate candidates for surgery, and post-operative programs to get members back to work and life as quickly and safely as possible. Members who could benefit from surgery have access to Contigo Health’s Centers of Excellence network of high-quality, highly vetted surgical partners. All of these services are offered to employers as bundles for ease of administration, accountable utilization and more predictable healthcare costs.
“Pain is a massive issue for U.S. employers, and inadequate access to appropriate, non-operative care is fueling the problem,” added Contigo Health President and CEO, John Strickland. “We are thrilled to partner with Vori Health and address this underlying issue head on. By integrating our solutions, we’re able to give our clients and their health plan members the comprehensive care and convenient access they need to contain costs and improve outcomes for every step of the care journey.”
This partnership comes at a critical time for employers. One out of every two adults in the U.S. suffers from back and joint pain, making MSK issues the top cause of global disability and rising healthcare costs. While surgical COEs have ameliorated some of these pain points for employers in recent years, adequate access to evidence-based non-operative care remains a core problem. Studies show that 50 percent of lumbar spine surgeries are still deemed unnecessary, and as many as four in ten patients who undergo surgery did not receive first-line physical therapy.
“Orthopedic care is often a siloed, confusing and frustrating system for patients to navigate,” added Vori Health co-founder and Chief Medical Officer Mary O’Connor, MD. “Even in our most elite hospitals, too many individuals go to the operating room unnecessarily or without the proper preparation. Those are risk factors we can and should change. We’re thrilled to partner with Contigo Health to change this standard and make orthopedic care the way it should be—patient-centered, evidence-based and accessible.”
“Contigo Health has been a forerunner in the Centers of Excellence category,” concluded Contigo Health Vice President, Centers of Excellence, Heather Ridenoure. “We are proud of our programs’ outcomes and commitment to appropriate care. But we also know that surgery isn’t for everyone. And non-surgical candidates aren’t getting the support they need from the healthcare ecosystem. Our next generation Orthopedics program joins our line of other hybrid programs, including those designed to address Cancer and Substance Use Disorders, to help participants increase their speed to comfort and access high quality care that’s tailored to their needs. Vori Health is an important partner in this work.”
About Vori Health
Vori Health is a specialty medical practice delivering a virtual-first musculoskeletal (MSK) solution to help members get back to their lives faster. As the only nationwide MSK practice with doctor-led care teams, Vori Health is the most convenient way to access appropriate care for back, neck and joint pain without bouncing around the healthcare system. Whether members need a diagnosis, non-opioid prescription, personalized physical therapy or health coaching, they can turn to Vori Health for evidence-based care and effective end-to-end support. This holistic model reduces unnecessary surgeries, enables faster recoveries and lowers MSK spend with up to a 4:1 ROI. For more information visit www.vorihealth.com.
About Contigo Health, LLC
Contigo Health, LLC, a consolidated subsidiary of Premier, Inc., is leading the way to financially sustainable healthcare. Contigo Health is a health benefits platform that leads direct-to-employer and direct-to-provider relationships. It is relentlessly focused on revolutionizing healthcare through appropriate, cost-effective, transparent, and thoughtful benefits design. Contigo Health® products include ConfigureNet™, a network with over 900,000 providers across 4.1 million U.S. locations, Sync Health Plan TPA, Payvider Activation, and Centers of Excellence 360. To learn more, please visit www.contigohealth.com and follow us on LinkedIn, YouTube and Twitter.
Media Contacts
Vori Health
Carrie McCulloch, MD
pr@vorihealth.com
© 2024. Contigo Health, LLC. All rights reserved.
By:
Steven Nelson
President, Contigo Health
Britt Hayes
Chief Commercial Officer, Contigo Health
The healthcare industry itself is not immune to the challenges of managing health benefits costs for its own workers. Benefit administrators for health systems are faced with the same challenge that all employers are addressing in 2023 and beyond: how to provide employees with the highest-quality care while optimizing costs and maximizing plan flexibility for both their healthcare employees and the organization. For U.S. companies, the cost of caring for more than one in two Americans receiving insurance through employer-sponsored plans continues to increase.¹
For larger employers, the total cost of health benefits further rose by 5.3% in 2021.² Even as they provide care to others, many health systems’ associates are seeing increases in their insurance premiums that are outpacing inflation and wage growth. In fact, the average annual health insurance premiums for family coverage for employer-sponsored health plans have topped $20,000 for the first time, according to KFF 2018. On average, covered workers contribute 18% of the premium for single coverage and 30% of the premium for family coverage. Total costs for these premiums increased by 22% from 2014 to 2019, and worker contributions increased by 25% during that time.³ To better manage the cost of care, employers across all sectors have transitioned to self-funding options. Today more than 61% of some 150 million people receiving employer-sponsored insurance (ESI) are covered by self-funded or partially self-funded healthcare plans.
In very large companies with 5,000 or more employees, 91% of workers are in self-funded plans, and the rate of adoption among smaller organizations continues to accelerate.⁴ Just like any other self-funded employer, health systems generally require some type of third-party administration (TPA) solution to administer their health plans. Some use carriers or health insurance companies that market “administrative services only” (ASO) options for their TPA functions. Others use traditional TPAs. A partnership with a specialty TPA that offers deep expertise in the intricacies of managing health benefits for healthcare workers, however, has the potential to be transformative across a health system’s entire organization.
For larger employers, the total cost of health benefits in 2021 is expected to further rise by 5.3%.
For the first time, average annual health insurance for employer-sponsored health plans have topped $20,000 per family.
Plan Management In a Complex Environment
Health systems must consider a myriad of business factors when evaluating a TPA relationship. In addition to the increasing costs of employee care, they are immersed in a volatile industry environment of skyrocketing patient care costs, tight operating margins, reimbursement pressures, complex partner relationships, and moves to new care-delivery models that require greater transparency. At the same time, they are also struggling to balance the benefits of new technologies with EMR and data management complexities, ever-changing regulatory issues, aging patient populations with more complex medical issues, and highly competitive workforce challenges. Adding to the current landscape is the impact of COVID-19.
Coupled with so many other issues, the pandemic has put even greater stress and uncertainty on the country’s healthcare system. These complications can make the prospect of transitioning to a TPA plan or a new TPA partner seem overwhelming for a health system. Yet the urgency to deliver quality care at lower costs, without compromising service and positive member experiences, is greater than ever before. Forging a relationship with the right TPA that has extensive expertise and flexibility can be an ideal solution for many health systems, despite the perceived complexities of making such a move. This is particularly true for larger health systems that have already invested heavily in quality health solutions for their employee population. They require a highly flexible plan that optimizes these investments, with options that fit specific needs of employees.
Specialty TPA Advantages for Differing Priorities
Simply put, self-funded organizations may choose a specialty TPA with deep health systems expertise to gain more control over their destiny than they could achieve in a traditional carrier relationship. That greater control can translate into flexible options in benefit design, data integration, population health tools (leveraging CINs and ACOs), and nondomestic network coverage, as well as substantial business reimbursement for patient care. It can also mean more significant opportunities to utilize their clinical strengths in caring for the organization’s employees. A specialized TPA relationship can address this need for control and customization, and it can respond to differing priorities across the system. From HR to finance to clinicians and business development, each function can realize positive impacts from an effective TPA partnership. Working with a TPA that is attuned to a health system’s entire ecosystem helps to create a personalized approach that empowers unprecedented collaboration.
A Tailored Approach
For the HR team at a health system, the TPA partner must be an expert in designing flexible plans targeted to the current and changing needs of the system’s workforce. It should have the capabilities to introduce new and innovative options for the health system’s most discerning population: its associates. The plan design must also integrate seamlessly with existing health management programs, such as PBMs, ACOs, and clinically integrated networks (CINs). The working relationship with the TPA partner is also a significant factor in helping to ensure the success of the plan. HR benefits administrators should expect high levels of service, responsiveness, objectivity, and useful reporting tools from the TPA.
Forging a relationship with the right TPA that has extensive expertise and flexibility can be an ideal solution for many health systems.
Working with a TPA that is attuned to a health system’s entire ecosystem helps to create a personalized approach that empowers unprecedented collaboration.
Domestic Utilization and Cost Management
For CFOs charged with cost and risk management across all aspects of the organization, a strong TPA relationship will help facilitate cost-containment opportunities. By focusing on actual costs rather than carrier rates, a well-designed plan can provide direct savings that remain within the health system. A TPA that possesses health system insights and expertise can identify opportunities for maximizing domestic utilization rates, which can contribute significantly to overall system revenue generation and employee benefits cost control. An experienced, employee-focused TPA will be able to lead a thorough analysis to assess gaps in quality of care and provider networks to strengthen domestic utilization. When health systems employees and their health plan dependents use the actual services they provide, they help contribute to building a stronger community and stronger brand while taking advantage of the quality of care provided by the health system.
Network providers can realize more financial benefits, and systems can play an active role in improving their staff’s health outcomes. By directly assessing and managing claims data while maintaining patient confidentiality or PHI integrity, health systems can find ways to mitigate rate increases over time. Utilization is vitally important in today’s healthcare environment. Increases in domestic utilization can make a difference when it comes to containing spiraling costs. From 2016 to 2017, spending rose 4.2%, while prices jumped 3.6%, but healthcare utilization only grew by 0.5% during that time, illustrating dramatic opportunities for improvement.⁵
Data-Driven, Patient-Centered Care
As CMOs, CQOs, and CIOs work with their systems to focus on strategies that deliver quality, data-driven, patient-centered care more effectively, a customized plan can make meaningful contributions toward these efforts. In an ideal scenario, health systems want to further improve their population health through a TPA relationship that can include tools to help tap real-time clinical information, enabling them to achieve optimal levels of appropriate care. Virtually every health system has invested heavily in data, technology, and EMR as mission-critical assets. U.S. health IT spending topped $7.1 billion in 2017 and continues to increase annually.⁶ Partnering with a TPA that has access to clinical data decision-support tools can help providers deliver a tailored plan to allow providers to offer the right care, at the right time, in the right setting, at the right costs. Leveraging these tools can help address targeted variations, thus enabling flatter overall medical trends.
A TPA with health system insights and expertise can identify opportunities for maximizing domestic utilization rates, which can contribute significantly to overall system revenue.
U.S. health IT spending topped $7.1 billion in 2017 and continues to increase annually.
Recruitment
A personalized plan can also serve as a powerful recruitment tool. HR teams must attract talent with a robust, affordable, and flexible health benefits package that enhances members’ experiences. Many employers are recognizing this need. The number of those who view their healthcare offerings as an integral part of their workforce strategy increased from 36% in 2019 to 45% in 2020.⁷ The right plan that includes work-life balance/flexibility programs, support for innovation, and mentoring opportunities can also be an essential retention tool for health systems employers in a highly competitive job market.⁸ According to a recent survey, more employees in the healthcare sector report they have been actively looking for a job during the past year than in other sectors.⁹
Business Development
Business development teams are seeking new revenue-generation opportunities. For some health systems, an optimized self-funded plan can help create direct relationships with non–health system employers looking for a better way to achieve their health benefit goals. The plan can serve as a model and a facilitator for initiating new relationships with employers in order to pursue broader strategic aims and increase market share.
Overcoming Barriers
A self-funded plan with a specialty TPA relationship can be a tremendous advantage for the right health system. But it is not always a solution for every organization. All potential barriers and objections should be assessed, along with timing, before considering a shift. For instance, the arrangement requires knowledgeable benefit administration skill sets to make the most of the TPA relationship. If the level of internal expertise is not currently present, the organization may need to invest in staffing to build or train the right teams. The same is valid for health systems that may be considering self-funding their health benefits plan as a precursor to delivering direct-to-employer offerings. Other barriers may include organizational concerns about disrupting long-standing relationships with current payors or moving from a large partner with a known brand to a nimble and specialized but lesser-known entity. In addition, an organization’s leadership may not recognize the potential value of a specialized TPA relationship without a thorough analysis of the positive impact it can have on the entire organization. HR teams should align with finance teams and be prepared to make the case. Changing the status quo in any organization is an educational process, and the transition to a new or different TPA relationship will require a thoughtful strategy. The goal should be to engage all stakeholders and address possible concerns while conveying the cost and operational benefits that can be realized. A specialty TPA partner with the requisite depth and breadth of health system experience can assist in helping to remove these barriers.
A personalized plan can also serve as a powerful recruitment tool.
For some health systems, an optimized self-funded plan can help create direct relationships with non-health system employers looking for a better way to achieve their health benefit goals.
HR teams should align with finance teams and be prepared to make the case.
Contigo Health: Uncomplicating the Complicated
Today’s healthcare world is more complex than ever before. Building a self-funded plan requires a TPA partner that will help “uncomplicate the complicated” while facilitating quality care, cost savings, and innovation. An experienced TPA partner understands the unique complexities of health systems and can effectively navigate self-funding design and implementation to realize the plan’s full potential across the entire organization. While numerous TPAs exist, health system decision-makers must closely examine the additional value a specialty TPA can offer. Contigo Health® Sync Health Plan TPA is redefining health systems’ expectations for TPA services with an exciting combination of offerings and continuous innovation. In addition to its legacy of TPA leadership, Contigo Health, formerly Health Design Plus (HDP), is backed by the strength and resources of its affiliation with Premier, Inc, a leader in data, analytics, consulting, and group purchasing for health systems.
Partnership Benefits
- Contigo Health offers leading-edge, TPA custom solutions designed expressly for health systems
- A client roster featuring leading employers known for quality and innovation in health benefits delivery
- Strategic analysis, design, and integration with existing health management programs
- Flexible, objective benefit design for greater control in payment models, data integration, and network coverage
- Comprehensive reporting tools and protection of confidential information
- Exceptional client relationships, with a proven track record reflected by exceptional client retention and consistently high Net Promoter scores
- Experienced, responsive, and friendly service from a professional, caring, and hardworking team that delivers unparalleled support
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Close examination of the additional value
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Combination of offerings and continuous innovation
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Legacy and leadership backed by strength and resources
Not already self-funded? For health systems that are not already self-funded, Contigo Health can lead the transition when they are ready to make the change.
Ready to learn more? Speak with a Contigo Health Representative today at 330-656-1072 or visit contigohealth.com.
1. Berchick, Edward R., Hood, Emily, and Barnett, Jessica. 2018. “Health Insurance Coverage in the United States: 2017.” United States Census Bureau. September 12, 2018. https://www.census.gov/library/publications/2018/demo/p60-264.html
2. Business Group on Health. 2020. “2021 Large Employers’ Health Care Strategy and Plan Design Survey.” August 2020. https://www.businessgrouphealth.org/resources/2021-large-employers-health-care-strategy-and-plan-design-survey
3. Kaiser Family Foundation (KFF). 2019. “2019 Employer Health Benefits Survey.” September 25, 2019. https://www.kff.org/health-costs/report/2019-employer-health-benefits-survey/
4. KFF Survey. 2019. https://www.kff.org/health-costs/report/2019-employer-health-benefits-survey/
5. Health Care Cost Institute (HCCI). 2019. “2017 Health Care Cost and Utilization Report.” February 11, 2019. https://healthcostinstitute.org/annual-reports/2017-health-care-cost-and-utilization-report
6. Spitzler, Julie. 2018. “Health IT spending last year prioritized EMRs.” Becker’s Health IT. January 29, 2018. https://www.beckershospitalreview.com/healthcare-information-technology/health-it-spending-last-year-prioritized-emrs.html
7. Business Group on Health Survey. 2020 https://www.businessgrouphealth.org/resources/2021-large-employers-health-care-strategy-and-plan-design-survey
8. America’s Health Insurance Plan. 2018. “The Value of Employer-Provided Coverage.” February 2018. https://www.ahip.org/wp-content/uploads/2018/02/AHIP_LGP_ValueOfESIResearch_Print_2.5.18.pdf
9. Deloitte Development LLC. 2013, “Talent 2020: Surveying the talent paradox from the employee perspective – The view from the Health Care sector.” September 2012. https://www2.deloitte.com/us/en/pages/human-capital/articles/talent-2020-paradox-health-care-sector.html
Disclaimer: Forward-looking statements are predictive in nature and reflect the authors’ beliefs at the time of the statement. Embedded links are accurate at the time of publication and are subject to change. Reasonable efforts have been made to ensure that the information contained herein is accurate and from reliable sources. Contigo Health, LLC, is not responsible for any errors or omissions, or for the results obtained from the use of this information.
© 2024. Contigo Health, LLC. All rights reserved.
InsideOut Podcast
June 15, 2023
On this episode of InsideOut, Michael Alkire, Premier, Inc. President and CEO, welcomes co-host Dr. Jonathan Slotkin, Contigo Health’s Chief Medical Officer and guest, Lisa Woods, Vice President, Physical and Emotional Wellbeing of Walmart to discuss their strong commitment to healthcare and the comprehensive and cost-effective benefits in place for their employees.
Source URL: https://premierinc.libsyn.com/walmart-on-the-employers-role-in-healthcare-transformation
© 2024. Contigo Health, LLC. All rights reserved.