October 2021 | Report

Direct-to-employer contracting: What health systems need to know

It’s been a challenging year for health systems. They can alleviate some of the pressures they continue to face by looking to direct-to-employer contracting

Direct-to-employer contracting: What health systems need to know

Health systems face an array of challenges in the current healthcare landscape: increased industry consolidation, pressure on margins, price transparency requirements, legislative uncertainty, and managing the ongoing public health crisis—to name just a few. As the organizations tasked with providing high-quality care in this ever-changing, uncertain environment, it can be hard to prioritize and determine the best path forward to support a mission and achieve profitability. Perhaps more now than ever before, direct-to-employer contracting is proving to be an excellent revenue stabilization strategy and competitive differentiator.  

In this report, we’ll explore the:  

  • Growing momentum behind direct-to-employer contracts, with a focus on two key pressures that they can help health systems alleviate 
  • Primary forms of direct-to-employer arrangements 
  • Five essential considerations for any health system looking to pursue direct-to-employer arrangements 

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