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Home : For Health Professionals : Tools & Resources : Legacy Health Partners : LHP monthly newsletter : March 2021 : Transitioning into risk while expanding opportunities

Transitioning into risk while expanding opportunities

As LHP enters our sixth year, we are refining our contracting strategy to focus on our goals to grow covered lives, and to financially maximize relationships with payor partners. The next steps in our evolution will bring our clinically integrated network into more risk-based arrangements, and we are carefully considering how best to make the transition.

Taking on more risk means more opportunity for a greater share of the premium dollar. It’s also an opportunity for LHP to have greater input in benefit design, as well as what quality measures and targets we’re held to as a network. Over the last couple of months, Legacy has developed guiding principles for our value-based programs that will anchor discussions and strategy development as we negotiate next steps with payors. This month, Jock Patel, our new senior director of Payor Contracting, led the discussion at LHP’s Finance and Contracting committee. Our planned approach to taking on greater risk received positive feedback during the session. Over the coming year, we will start conversations with select payors who we believe to be the best partners.

The success of this transition relies on our cohesiveness as a network. As such, your engagement and feedback are very important to us. We have targeted administrator meetings planned this spring for deeper discussion with you about payor strategy and risk sharing. Those who participate in the spring administrator meeting will walk away with a broader understanding of the environmental influences moving the market toward risk-based models and what we foresee as the pathway to transition to risk.

In the meantime, your Field Operations Advisers will provide updates on the 2021 contracts this month. Most notably, we have partnered with Regence to develop an individual and small group product for the market, in addition to entering a Total Cost of Care agreement, adding a total of 40,000 new lives to the LHP network.

Please keep the Contracting page on the LHP Team Site in mind as a good resource and reference to updates that your Field Operations Adviser shares. Here you’ll find a snapshot of LHP contracts and lives managed, as well as one-pagers about each LHP agreement.