Intel Adopts Narrow Network to Better Manage Care

Dissatisfied with previous cost and quality efforts, computer chip giant Intel Corp. has entered an unusual direct contract with Presbyterian Healthcare Services for a narrow-network, accountable care-style arrangement for its employees in New Mexico, according to Modern Healthcare.

The arrangement, which started in January, covers about 5,400 individuals at Intel's manufacturing plant in Rio Rancho, NM. The California-based software developer and computer chip maker, which is self-insured, decided to contract directly with a single provider system rather than working with a national commercial health insurer this year to administer its benefits for some of its eight health plans options. Intel declined to name the insurer. The deal offers Intel employees a narrow network of Presbyterian providers as two of four health plan options.

Presbyterian, which now operates a clinic at Intel's Rio Rancho plant, will receive a bonus if it meets quality goals and Intel's employee healthcare costs stay under a set target. It also agreed to accept a financial penalty if costs exceed that target. Presbyterian has its own insurance arm, eight New Mexico hospitals and a medical group with more than 400 physicians.

Brian DeVore, director of healthcare strategy and ecosystem at Intel, is a confirmed speaker at NBCH's upcoming Annual Conference November 18-20, 2013.