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PBGH, Colorado Purchasing Alliance Announce JV

Analysis  |  By Melanie Blackman  
   June 08, 2021

The national employer organization and the regional coalition will work to improve “affordability and employee health outcomes" for employers in Colorado.

The Purchaser Business Group on Health (PBGH) and The Colorado Purchasing Alliance (TCPA) have signed an agreement to jointly contract with employers in Colorado, the organizations announced Tuesday morning.

TCPA, a regional coalition and affiliate of the Colorado Business Group on Health, will work with PBGH, a national employer organization, to create an alliance that brings public and private healthcare purchasers together to "improve affordability and employee health outcomes.”

Through the joint venture, PBGH and TCPA will establish provider relationships with facilities and their associated physicians who meet national quality standards at competitive prices. The organizations will also jointly identify centers of excellence across several procedure disciplines and condition categories and directly contract with them to ensure a proper care continuum for patients.

"We’ve seen a readiness on the part of large employers, who pay the lion’s share of health care costs in this country, to partner directly with providers who can deliver high-value services that improve the care and well-being of employees," Elizabeth Mitchell, CEO of PBGH, said in a statement. "This initiative builds on PBGH’s experience running one of the country’s most successful centers of excellence programs, which eliminated unnecessary care, improved patient outcomes and experience, and produced significant cost savings."

The new venture will also create a common set of standards to evaluate healthcare organizations that leverage local relationships, according to a press release, establishing a framework that can then be scaled nationally.

"After decades of health care price increases that hurt Colorado families and communities, the time has come to re-think the basic structure of a dysfunctional health care market," Robert Smith, president of The Colorado Purchasing Alliance, said in a statement. "By working with PBGH, a national employer organization that has experience purchasing care based on value, we can create a health care market in which employers purchase healthcare services with the same due-diligence as other goods and services in the market."

Eleven employers have signed letters of intent to participate, including the State of Colorado, the City and County of Denver, the Boards of Education Self-Funded Trust, and the Colorado Employers Benefit Trust.

"The arrangement between The Colorado Purchasing Alliance and the Purchaser Business Group on Health is an excellent opportunity for Colorado's health care market to not only demonstrate its ability to perform at a national level, but, having done so, to gain business from national employers," Colorado Governor Jared Polis said in a statement. "My administration is proud to support this effort and it is another clear example of how we can work together to save people money on health care.”

Related: Business Group on Health: 5 Healthcare Trends to Follow in 2021

Related: PBGH Survey: Nearly 60% of Employers Prioritize Reducing Healthcare Costs in 2021

Melanie Blackman is the strategy editor at HealthLeaders, an HCPro brand.


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