5 Reasons against a Clinically Integrated Network
5 Reasons against a Clinically Integrated Network
Why wouldn’t you move forward with a Clinically Integrated Network (CIN)?
1Your operating margin is plenty good, thanks. If you are in a market where the annual increases in your contracts are keeping pace with your costs, great. If your current revenue stream is that robust, you may not see a reason to consider this. For a great many systems though, their cost increases are outpacing their managed contract annual increase and their margins are getting squeezed further. A CIN organized around controlling your employee health costs will increase your operating margin and access to capital.2Who is this TJ Redington guy and what make him think he can help us? We have succeeded in leading change in Academic Medical Centers, high performing community hospitals, FQHC’s clinics, and rural community hospitals. Each organization is different, and most share similarities. Most everyone is looking for sensible solutions and this satisfies all the stakeholders. Higher operating margins, higher pay for the providers, lower total costs for the payors, better care of the patients. It’s an easy thing to sell.3We are not currently being pressured into value based arrangements. Not yet anyway. If Fee for Service looks like its going to continue unfettered, OK. A CIN organized around your employees and their dependents still will begin the path to value, and enable you to be attractive in “narrow network” offerings, which are on the increase.4There is too much other stuff going on-we just don’t have the bandwith for anything else. Among the C Suite, sometimes there is reluctance to consider, let alone pitch another initiative. A CIN really isn’t a huge undertaking, especially given the payout. In 2013 our total spend was 43 million and we have conservatively added 70 million to our bottom line since then. Game changer. Imagine if your annual spend is 100 M-if we saved half as much for your organization your health plan expense would reduce and so would its growth in short order.5Employee turnover isn’t a problem. A CIN organized around your employee benefits will lower your costs and provide a concierge level of care to your associates. They’ll think twice before leaving you.