Aligning Self-Funded Employer Health Plans with Population Health Initiatives
Health systems and providers are increasingly eager to take on financial risk for patient populations to drive greater participation in the healthcare value chain. But while many providers want to take the plunge, their inexperience with the capabilities required to succeed under risk-based contracts gives them pause.
Health systems have a variety of strategies to choose from to pursue population health initiatives, from participating in value-based arrangements with payers or launching their own health plans. One key strategy that has emerged is the self-funded employer health plan. Whether the health system is considering going self-funded or already has a self-funded plan, the logical strategy is to align the plan under its population health initiatives.
This approach enables the health system to hone the skills needed to manage risk in a more secure environment before pursuing outside contracts. It also brings the benefits of population health management to the health system’s employees and gives the system the opportunity to create a success story it can share with payers interested in risk-based contracts.