Decision Resources Group Projects Greater Vertical Integration, Diversification As Healthcare Companies Brace For Change
BURLINGTON, Mass., /PRNewswire/ -- Decision Resources Group (DRG) a premier provider of high-value healthcare data, analytics and insights products and services, announces new findings from the DRG National Managed Care Organization Commercial Analyzer. As the managed care market pursues vertical integration and diversification, DRG sees disruptive change ahead for the U.S. healthcare system.
DRG's latest MCO Analyzer Commercial Landscape report finds that a key aspect of the current healthcare evolution is the development of regional integrated delivery networks, where co-owned and partnered hospitals are banding together as a regional system near urban centers. Such structures can frustrate carriers' attempts to gain competitive hospital contracts but have the advantage of providing greater support for IDN-affiliated hospitals in exurbs and small towns.
Even the largest hospital chains are organizing their holdings into regional networks to consolidate their oversight and maximize the potential for collaboration. The systems can include affiliated home health, hospice, rehabilitation and nursing facilities. As more insurers seek value-based contracts with high-performing hospitals, these regional systems will be able to support shared electronic health records and technology assets to make these arrangements work well.
Additional key commercial market developments in 2018 according to the DRG National Managed Care Organization Commercial Analyzer include:
Comments from DRG Principal Analyst Paula Wade: "Every segment of the healthcare system – from physician practices to the largest insurers – are merging, diversifying or aligning themselves with larger players to prepare for whatever policy changes or competitive game-changers are ahead – whether it's the end of the ACA, a move toward Medicare-for-all, or a transformative development from Google."
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