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Will employers put the squeeze on hospitals?

October 11, 2023
Contributed by: Bill Russell
Commercial reimbursement faces decline as corporations increase scrutiny and demands due to rising healthcare costs. Hospitals and health systems supplement loss from governmental payers with private insurers, though payments frequently go unpaid for lengthy periods. The provider-commercial relationship is vital for hospitals' financial sustainability but is becoming volatile. Employers may pass more costs to employees, negotiate strict contract clauses with insurers, or even drop coverage. Despite having numerous cost-containment strategies for healthcare costs, employers have been hesitant due to needing to attract talent. However, increased emphasis on healthcare cost containment or quality control will impact providers in various ways. Employers can shift health plans toward accountable care models, wherein physicians manage cost and quality across care delivery. Entities like Walmart have acted on variations in employee healthcare, noting numerous lapses in care quality employees received from un-appoved healthcare providers.
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