Dive Brief:
- Public health systems and charity hospitals are developing their own insurance plans in an effort to attract patients with more resources than their existing population.
- One example of this comes from New York City's public hospital agency, the Health and Hospitals Corporation. It created a plan called MetroPlus, which offers choices for patients with slightly higher incomes, more education and stable incomes. MetroPlus is affordable because it only covers patients at 11 public hospitals and private ones in New York City.
- To date, MetroPlus has enrolled 22,000 patients and expects to enroll 40,000 by the end of 2014. Executives expect the plan to bring in $120 million annual profit to offset the $250 million deficit it runs.
Dive Insight:
This is an intriguing scenario. If public and charity hospitals can increase enrollment in health plans and simultaneously lower their liabilities, it seems like a win-win situation. Small wonder that the Health and Hospitals Corp. isn't the only institution giving this approach a try. And in this case, the exchanges are a help, not a barrier. The Fierce Healthcare piece notes that public/charity hospitals in Los Angeles and Detroit are using the exchanges to sign people up for their health plans. I say go for it. Hospitals are in a unique position to care for patients, particularly if they own substantial medical practices. Why not leverage that investment?