In 3 years Blackley has been crisscrossing the country, saw some hospitals are run health plan managed to learn a number of existing healthcare delivery models, from Kaiser Permanente in California University of Pittsburgh Medical Center. These people have taken the full risk, which means they have a huge upside and a downside to making this work. University of Pittsburgh Medical Center plans outstanding. Launched in the early 1990s, UPMC Health Plan is a health plan owned by the nation's second-largest hospital. Did you Perhaps most impressive, though, is its ability to reduce medical costs. Among UPMC employees, most of whom use the health plan is administered in the hospital, the cost of medical services has increased every year by about 2 percent. The rest of the country, meanwhile, typically see an increase of 5.5 to 7 percent each year.
This may sound unusual, but a lot of what comes down to is building the right technology, the health care system so fragmented. Most of the time, doctors do not know where their patients have. We were in the hospital, and we can follow the patient. Even more than two decades, UPMC went from a small start-up with the dominant health plan in western Pennsylvania. This, in many ways, proving that hospitals can successfully launch its own insurance products.
UPMC Health Plan and Evolent Advisory Council established in 2011, investing $ 20 million in the venture. UPMC Health Plan has a proprietary software which can be licensed to plan another run hospitals, in addition to the infrastructure to run the health plan, such as a telephone operator can handle the loss of insurance card or claim disputes.
Advisory Council, meanwhile, is working with a network of potential customers. Over the last two years, has signed Evolent 14 hospitals across the country as a client.
MedStar Health System is one of the first clients and executives came on board after taking a trip to Pittsburgh to get a better sense of the UPMC plan to spend all day with a group there, "Wagner recalled. Two hospital systems in Atlanta, Piedmont and WellStar, also the company's first client. because they cover different parts of the city, the two partnered to launch insurance products together in 2014.
At first, they tried to engage local health insurance plans.
New health plans will be launched at the end of this year.