This model of healthcare delivery establishes a contractual relationship between a healthcare provider and an employer, bypassing traditional insurance companies. For example, a hospital system might contract directly with a large company to provide healthcare services to its employees. This arrangement can include a range of services, from primary care and specialist visits to hospitalizations and surgical procedures.
Eliminating the intermediary can potentially reduce administrative costs and streamline the delivery of care. This approach can also foster stronger relationships between providers and patient populations, enabling more proactive wellness programs and preventative care initiatives. Historically, employer-sponsored healthcare in many countries relied on insurance companies as intermediaries. However, rising healthcare costs and a desire for greater control over healthcare spending have fueled interest in alternative models like this one.
