System approach to effective direct contracting

Abstract

Many of the nation's employers now see direct contracting as a way to regain control over their costs for employees' healthcare benefits. As a result, provider competition for direct contracting arrangements with employers is likely to increase. For a healthcare system, the key to winning employers' contracts may lie in establishing system-wide pricing based on cost determinations. Once prices are set, a healthcare system should select the optimal revenue distribution method for maximizing returns and winning the cooperation of clinical staff.