Dive Brief:
- Direct contracting between hospitals and employers could become more common in the future, according to a new report from Fitch Ratings.
- Fitch predicts that these arrangements will become more popular as employers attempt to contain health care costs and providers increase their focus on population health management.
- The ratings firm also expects that community health systems serving local employer-based populations will probably favor narrow networks and shared savings contracts; meanwhile, it says, providers with national market recognition and high quality outcomes in specific areas of service will probably turn to bundled payments.
Dive Insight:
Will these arrangements do well for providers? Fitch argues that providers with superior clinical outcomes who can provide cost savings will do well in direct contracting relationships. However, analysts admit that short- and long-term financial implications aren't clear. It seems likely, if nothing else, that it will take time for providers to adjust to these arrangements — providers will need to develop best practices and adjust prices to manage the risk arising from such contracts.