Diving into Direct Contracting
Updated: Jan 31
Lowering Healthcare Cost & Improving Quality of Care
What is Direct Contracting?
As the cost of healthcare continues to increase, many companies are turning to a direct contracting model to help lower their health insurance cost and improve the quality of care for their employees. Through a process called direct contracting, C. B. Wood Financial collaborates on behalf of employers with healthcare providers to agree on healthcare service costs.
How does Direct Contracting Work?
During negotiations, an agreement is made on a specific price for health care services. Many times, these prices are significantly less than traditional network pricing. In some cases, it can be an agreement on terms for the full spectrum of treatments offered by the provider or a specific group of services.
There are multiple benefits for each party when it comes to direct contracting. The provider gets paid upfront and an increased flow of patients. This is, of course, a massive benefit for them. In exchange for getting paid upfront, the providers offer their services at a lower rate than the PPO Discount charges. That’s how the employer saves money. The central benefit employees get is $0 out-of-pocket expenses. That's typically enough to encourage employees to use the direct contract instead of the expensive hospital or physician in a PPO network. A Win-Win-Win solution.
Direct Contracting with C. B. Wood Financial
C. B. Wood Financial has 450 different testing, imaging and procedures available within a 60 mile radius of an employer. When a client comes to work with us, we give them access to our current direct contracts to utilize for lowering health insurance costs.
Because we have claims data available from each client, we can see where their employees are going most often for certain procedures. In turn, our team can create contracts with those offices to improve access to direct contracts specific to each client.
If you're interested in the direct contracting model and want to learn how to create your own contracts, reach out to us today.
Ready to Take the Next Step?
Follow the button below to schedule a consultation with C. B. Wood Financial today or visit our website to learn more: cbwoodfinancial.com.