Early experience with a new model of employer group purchasing in minnesota

Jon Christianson, Roger Feldman, Jonathan P. Weiner, Patricia Drury

Research output: Contribution to journalArticlepeer-review

31 Scopus citations


The Buyers Health Care Action Group (BHCAG) in the Twin Cities has implemented a new purchasing initiative that offers employees a choice among care systems with nonoverlapping networks of primary care providers. These systems offer a standardized benefit package, submit annual bids, and are paid on a risk-adjusted basis. Employees are provided with information on quality and other differences among systems, and most have financial incentives to choose lower-cost systems. Generally, providers have responded favorably to direct contracting and to risk-adjusted payments but have concerns about the risk-adjustment mechanism used and, more importantly, the strength of employers' commitment to the purchasing model.

Original languageEnglish (US)
Pages (from-to)100-114
Number of pages15
JournalHealth Affairs
Issue number6
StatePublished - 1999

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