Environmental and organizational correlates and motivations for provider-sponsored health plan ownership in the post-reform era.

Background: The 1980s to 1990s saw many health systems in the United States enter and exit the insurance market in the form of provider-sponsored health plans (PSHPs). Reforms and value-based reimbursement methods have stimulated health care organizations to reconsider PSHP as a logical strategy. Pu...

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Published in:Health Care Management Review Vol. 47; no. 3; pp. 188 - 199
Main Authors: Meese, Katherine A., Hearld, Larry R., O'Connor, Stephen J., Peterson, Mary Dale, Carroll, Nathan W., Sen, Bisakha
Format: research tables/charts Journal Article
Published: Lippincott Williams & Wilkins Jul-Sep2022
Online Access:View this record in EBSCOhost
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      dt: Jul-Sep2022
      vid: 47
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      pub: Lippincott Williams & Wilkins
      place: Baltimore, Maryland
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        atl: Environmental and organizational correlates and motivations for provider-sponsored health plan ownership in the post-reform era.
      aug:
        au:
          Meese, Katherine A.
          Hearld, Larry R.
          O'Connor, Stephen J.
          Peterson, Mary Dale
          Carroll, Nathan W.
          Sen, Bisakha
        affil: Katherine A. Meese, PhD, Assistant Professor and Director of Wellness Research, Department of Health Services Administration, University of Alabama at Birmingham..
      sug:
        subj:
          Provider-Sponsored Organizations Administration
          Organizational Culture Evaluation
          Motivation
          Health Care Reform
          Value-Based Health Care
          Health Facility Administration
          Health Insurance Exchanges
          Human
          Multimethod Studies
          United States
          Semi-Structured Interview
          Medicare
          Employment Status
          Geographic Factors
          Odds Ratio
          Purposive Sample
          Medicaid
          T-Tests
          Pearson's Correlation Coefficient
          Chi Square Test
          Multiple Logistic Regression
          Descriptive Statistics
          Reimbursement, Incentive
      ab: Background: The 1980s to 1990s saw many health systems in the United States enter and exit the insurance market in the form of provider-sponsored health plans (PSHPs). Reforms and value-based reimbursement methods have stimulated health care organizations to reconsider PSHP as a logical strategy. Purpose: The aim of this study was to examine market and organizational factors associated with PSHP ownership and motivations for engaging in PSHP after health care reforms. The resource dependence theory was used as a theoretical lens. Methodology/Approach: A sequential quantitative to qualitative mixed-methods design was used. The quantitative analysis examined data for 5,849 U.S. hospitals. Results were synthesized with qualitative findings from 10 semistructured interviews representing eight health systems in five states. Results: Organizational and environmental characteristics were significantly associated with PSHP ownership. Hospital and payer concentration, Medicare penetration, income, unemployment rate, government, and for-profit and metro area hospitals were associated with a lower likelihood of PSHP ownership. Salaried physician arrangements, clinically integrated network membership and adoption of other risk-bearing arrangements were associated with higher odds of PSHP ownership. Interviewees described PSHP as the culmination of the journey to value-based care and as a strategy to improve patient care, compete, and diversify revenue streams. Conclusions: Both market and organizational factors are important considerations for hospitals contemplating PSHP ownership, and motivations for ownership cover a broad range of financial, competitive, strategic, and mission-based goals. Practice Implications: Hospitals considering PSHP ownership must carefully evaluate their competitive landscapes and organizational resources to ensure optimal conditions for this strategy. PSHP ownership has high start-up costs and requires a long-term organizational commitment.
      pubtype: Academic Journal
      doctype:
        research
        tables/charts
        Journal Article
      ougenre: Article
    language: English
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