Right now it is mostly a press release. I don’t have enough information to really have a strong opinion. My first professional thoughts though are the following:
We have good ideas on how to reduce costs. They mainly involve a variety of ways of saying “No” or at least saying “No, not at this price” as well as care design. I could see a strong play for reference pricing, centers of excellence and value based insurance design. Bringing that all in-house could make some sense on some level. But I am really scratching my head on the so-what unless they really think that they have a special sauce that can accurately and effectively intervene so far upstream of preventable costs at pennies on the dollars. If that is the case, great but so far no one has found that special sauce.
My unprofessional thoughts:
Have fun storming the castle!
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