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Return of the PHO?
The physician hospital organization, or something like it, is making a comeback as payers and the government make slow progress toward accountable care.
As former CEO of a large PHO, (2,400 physicians, 20 hospitals), an additional dimension is in messenger model contracting of self-insured employers healthcare plans. Lower plan costs coupled with higher quality performance was a hallmark. We administered HMO and PPO plans for large employers (8,000 and 23,000 employees). For one plan, Mercer performed actuarial studies and reported year two premium equivalents of ½% lower. Remarkable performance coupled with stellar employee satisfaction. If run well, everybody comes out ahead.