Health Care Reform represents a new frontier for cooperative group purchasing, as midsize organizations in particular look for ways in which to stem the tide of rising health care costs.
Coalition purchasing, both homogeneous and heterogeneous, have become an accepted risk financing mechanism for health care risk. It has become particularly effective in the middle market where employers are not large enough to retain risk on their own. They require a pooling of risk with other insureds to achieve critical mass and stability. Different structures have evolved from a single pool to a layered approach in which most of the risk sharing occurs in the second layer. These programs combine the advantages of retaining risk with the group purchasing power for reinsurance or excess insurance.
Over the past decade, group purchasing has emerged as a viable structure in health insurance.
The strength of any coalition is the membership. We believe health care coalitions should consistently advance health systems to change to improve the accessibility, affordability, quality, and cost effectiveness of care.
The overarching goal of affordable care for all cannot be met without meeting the challenges of cost reduction and quality. Health care coalitions can perfectly serve in that role by forming a new coalition-provider partnership.