Why were Marketplace Collaboratives developed?
Successful businesses use their purchasing power with suppliers to obtain the quality, timeliness, reliability and price of the services they need. Historically, health care has been an exception — and it is one of the largest line items on an employer's balance sheet.
Providers subject employers to immense variation in quality, access and price. Health plans aggravate the problem by paying providers for quantity, not quality of care. And employers themselves, lacking information by which to wisely purchase health care services, unintentionally spend nearly half their health care dollars on non-value added care.
In 2005, Virginia Mason created the Marketplace Collaborative model. Through the collaborative, employers started using their purchasing power with providers to specify the health care services they need and the quality standards they require. They also started using their purchasing power with health plans, to ensure payment for measurable quality of care and not for unnecessary care. And they received performance measurements that began to guide them to purchasing the best quality and value from providers that were meeting their needs.
How do Collaboratives work?
The Marketplace Collaborative determines the conditions of greatest cost, both direct and indirect, to the employer, using the employer's claims data. The care pathway a patient follows in receiving care for this condition is defined and mapped. Unnecessary care is eliminated by using the tools of evidence-based medicine, and waits and delays are eliminated. The five quality indicators are measured and reported, including the new cost. We find that this method allows us to lower health care cost as we improve quality and access. Meetings are one hour a month for employers.
What are the medical conditions that will be designed by the end of 2011?
- Back pain
- Shoulder, knee or hip pain
- Breast concerns
- Upper respiratory conditions
- Screening and prevention
- Chest pain
- Abdominal pain
Call the Center for Health Care Solutions at (206) 341-1600. Start work on a Marketplace Collaborative — and achieve the goals of lower health care costs and higher quality care for your organization and those for whom you provide health benefits.
"I found the 3P event to be very engaging and informative. I really liked your measured approach at helping us to "think outside the box", while building consensus and developing actionable solutions."
– Gerard G., Shepley Bulfinch