"Provider consolidation is on the rise ... The weakness is variability in provider price and quality. The strategy to capitalize on provider variability is to get plan members to seek care from those providers with the least cost and highest quality. Plan management techniques that promote value-seeking by plan members are transparency and reference-based pricing.... To make a dent in total plan expense, we have to match up the primary source of plan costs, our plan members with expensive, complicated conditions, with expert, value-oriented providers. We need to identify those limited groups of providers who have validated quality (not just skill, but who also work in a value-oriented practice model) and are willing to agree to bundled pricing."

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