Six health systems in New Jersey have launched a new healthcare consortium aimed at reducing employee health plan costs.
The new group, called the Healthcare Transformation Consortium, includes the following New Jersey health systems: Morristown-based Atlantic Health System, Freehold-based CentraState Healthcare System, Teaneck-based Holy Name Medical Center, Flemington-based Hunterdon Healthcare, Paterson-based St. Joseph's Health and New Brunswick-based Saint Peter's Healthcare System.
The health systems each have self-funded employee health plans, and they will collectively bid out for third-party administration of their self-insured plans. By seeking a single insurance carrier, the health systems aim to reduce administrative fees associated with providing healthcare benefits.
"As healthcare organizations that are collectively providing medical benefits to nearly 50,000 employees and families in New Jersey, we need to take the lead in improving the quality and affordability of care," Kevin Joyce, vice president of insurance networks for Atlantic Health System, said in a statement. "The model developed by HTC can be shared locally with other self-insured employers and replicated nationally."
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