Crossing the Crevasse to Manage Risk: Managing Health Plans Within Provider Systems

Author: Bill Eggbeer and Krista Bowers, Managing Directors, BDC Advisors | Date: March 12, 2015

Health Systems are well on the way to becoming insurers. A recent McKinsey survey indicated 13% of the nation’s health systems already own their own plans. Other industry surveys have indicated that some 20% of the nation’s provider systems are contemplating securing insurance licenses in the next five years. Organizations which have tested the water with Clinically Integrated Networks/ACOs may enter the market with products in segments such as Medicare Advantage, Medicaid Managed Care or for the health insurance exchange marketplaces.

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