Hospitals Shift Strategies to Face Private Exchanges

The advent of private exchanges will be one of the biggest challenges for health care providers over the next several years, especially in light of the Cadillac tax for employer-based health insurance set to go into effect in 2018, according to James Bonnette, MD of the Advisory Board Company. “As health care purchasing behavior becomes more consumer-oriented, providers will be forced to develop new skills in consumer marketing. Providers don’t look at patients as consumers, but they need to understand them as consumers, the same way retail outlets do,” said Dr. Bonnette. “There may not be strong employer appetite to pay the tax, so the number of firms offering employees health insurance could shrink significantly. Consumers will generally choose high-deductible options, with supplemental plans, and act more like the price-sensitive consumers typical in other sectors of the economy,” he added. For more information, visit

Last Updated 08/10/2022

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