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Value-Based Payment Reform

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Recent Changes in Primary Care Delivery and Health Provider Systems in New Jersey

In recent years, New Jersey hospitals have formed larger systems through mergers and acquisitions, entered into a variety of partnerships and affiliations, and have opened convenient care clinics.

The Issue

Providers are responding to initiatives promoted by government (in the Affordable Care Act and elsewhere) and private payers that are slowly shifting health care away from fee-for-service payment and toward arrangements that place additional responsibility on providers for outcomes and managing the health of a designated population.

Key Findings

These trends are transforming New Jersey health care in important ways, including:

  • Changing notions of how providers compete in local markets;

  • Introducing new provider organizations to the state; and

  • Blurring geographic boundaries and the lines that separated investor-owned and nonprofit health care organizations.

Conclusion

Based on this analysis, the trend toward consolidation of providers is likely to continue and the importance of the strategic alliances is likely to grow.

About the Author

Allan Baumgarten is an independent research consultant whose work focuses on health care policy, finance and local market strategies. He works with a variety of organizations to help them analyze the market competition and policy issues they face and to develop business strategies to meet the challenges of dynamic markets and health reform. His clients include health plans, provider organizations, government agencies and manufacturers of pharmaceuticals and other health products and services. For more information, visit http://www.allanbaumgarten.com.

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