More than half of the hospitals and health systems surveyed by the Advisory Board Co. in June reported that they already own a health plan or plan to begin one by 2018, signaling a major shift by health systems nationwide toward holistic practices.
Health care systems cite trends toward population health as a deciding factor in establishing in-system health plans. There is a growing recognition of the interconnectedness of physicians and facilities beyond the hospital proper, and hospitals have determined that becoming healthcare insurers will allow them to provide higher quality, more cost-effective care without worrying about cost or waiting for reimbursement from third party insurers.
Frank Williams of Evolent Health explains that these health plans will not be large-scale; rather, they will likely appeal to small businesses with a focus on local facilities and networks.
Also in the works are health plans administered by multiple health systems, such as the one planned by Piedmont Healthcare and WellStar Health System for launch in 2014, which will provide greater geographic diversity and access to more facilities. The Piedmont/WellStar plan is one of many that will provide commercial and Medicare Advantage options for coverage.
In-house health plans have the potential to drastically cut down turnaround time on payment of vendor invoices once they gain traction; however, investment from facilities in the early stages may extend payment terms further than normal. Invoice factoring can ease the burden for nurse staffing agencies and other hospital vendors during the transition. PRN Funding will purchase your invoices for work completed and advance a percentage of the face value, allowing you to meet your cash flow needs without delay. Learn more about our invoice factoring services and contact PRN Funding today.