THE FEATURE ARTICLES in this issue of Frontiers outline the compelling reasons a health system might consider developing a provider-sponsored health plan (PSHP). As the authors of both articles demonstrate-Breon at Spectrum Health and Johnson at Health First-entering the health plan business requires careful thought, thorough planning, buy-in from a variety of audiences, and, for some organizations, the selection of staff to assist in developing and implementing the program. Most important, however, is an alignment between the health plan and the organization's mission.Why a Provider-Sponsored Health Plan?Premier Health, based in Dayton, Ohio, has a mission to build healthier communities. The not-for-profit health system is the largest health system in southwest Ohio and operates four hospitals: Miami Valley Hospital (including Miami Valley Hospital South), Good Samaritan Hospital-Dayton, Atrium Medical Center, and Upper Valley Medical Center. In addition, the health system offers a large primary and specialty care network, as well as home health services, Premier Health Group (a physician-hospital organization), and the Premier Health Plans.Premier Health's mission of building healthier communities and the system's strategic business plan laid the groundwork for creating our PSHP. Taking care of the sick and injured has been the traditional focus of hospitals and health systems across the country, and feefor-service has been the traditional model of payment. An approach that emphasizes wellness and prevention has always been attractive, but it simply has not been part of the traditional payment model. Finding a way to move from a volume-based model to a volume-plus-value model is challenging, but the goal is exciting. Premier Health's impetus to change was our mission to build healthier communities, and with the support of our communitybased board of trustees, we embarked on a journey that is already benefiting our region. We subscribed to the premise that a health plan could be the foundation of a population health model focused on the individual and ultimately having a positive effect on the entire community.A health system's leaders must consider a variety of risks and barriers before creating a PSHP. Although some generalizations can be made, the reasons a particular health system might embark on this path are unique, as are the various challenges that often depend on the health system's circumstances and environment. Before entering this new arena, Premier Health began weighing the benefits against the risks.Our organization's healthcare environment is unusual in that no county hospital or university hospital is located in its primary service area. As a result, Premier has become the predominant healthcare provider for the uninsured and underinsured. This scenario creates unique financial pressures in a time of decreasing federal and state subsidies.Like the feature article authors, we realized that the U S healthcare system was broken and current spending was unsustainable. Furthermore, Dayton has experienced an exodus of major employers in recent decades as manufacturing jobs have left the state. Premier Health concluded that a transformational change in the way it delivers healthcare was needed to respond to these problems. Our strategic plan, developed with the input of hundreds of physicians and staff members, defined a path that took a systematic approach to capturing economies of scale, reorganizing internal structures, and reducing healthcare delivery costs to the lowest quartile nationally by aligning organizational metrics to achieve top decile performance on quality measures and developing competencies in population health management. These marks of performance are necessary to attain the value creation needed to excel.In 2010, Premier Health made the tactical decision to become a population health company that also sold health insurance. Our focus became more consumer driven as we aimed to build or develop relationships with atypical partners to manage the continuum of care of individuals and families. …
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