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LATEST THINKING


Labor arbitrage in healthcare is dying. So what’s next?

In today’s environment, payers need the triple play of automation, analytics and As-a-Service to survive—and thrive.

Overview

Key Findings

Payers have historically used sourcing primarily to leverage labor arbitrage. Now they must switch gears to a new partnership model of consumption-based, innovative and flexible arrangements.

Payers will need to rethink how they select partners to help them with the short-term goal of cost take out and long-term plans to adapt to digital technology, new reimbursement models, and the migration from lower cost labor to outcomes-based labor.

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Analysis

Recommendations

Payers risk their very survival if they do not make bold moves now to modernize to stay relevant to consumers. This demands more than labor arbitrage in healthcare. Only payers that embrace the next wave in managing operations outcomes—the triple play of automation, analytics and As-a-Service—can survive and thrive.