Southfield’s Beaumont Health will work with Remedy Partners in Connecticut to develop, deliver, and manage employees’ health care.
Remedy is an episodes-of-care company that connects employers, insurance companies, and health care systems to deliver more cost-effective care. The services will range from diagnostic tests and surgery to medication and rehabilitation for a negotiated fixed price.
The companies will help define, administer, and negotiate a total cost for all aspects of specific medical procedures, such as a knee or hip replacement, and provide details to employers and patients about the cost of procedures.
Employers are looking to contain rising health care costs, and contracting with health care providers and working with insurance companies are options for doing so.
“We are always exploring ways to increase quality and lower health care costs. Remedy’s expertise will help us encourage companies and employees to make better health care decisions,” says Ryan Catignani, vice president of managed care and accountable care services at Beaumont.
Beaumont will leverage Remedy’s data and advanced analytics to develop pricing models based on an episodes-of-care methodology. Remedy maintains a nationwide network of health care organizations serving large Medicare populations and has, with its partners, reduced Medicare spending on episodes by almost 10 percent and achieved better outcomes for patients covered by these programs.
“The journey toward a sustainable health care system has been long overdue. Beaumont is a trailblazer with a progressive approach to offering exceptional, cost-effective care,” says Bob Meier, chief revenue officer for Remedy. “We are excited to partner with Beaumont and work together to transform health care.”
Beaumont Health has a total net revenue of $4.7 billion and includes eight hospitals and 145 outpatient sites.
Remedy offers software and services enabling health insurers and health care providers to organize and finance health care around patient episodes of care. The company’s bundled payment network serves Medicare and private insurers and manages more than $9 billion in annual health spending.