Idaho’s largest hospital is teaming up with a Utah company to provide in-house insurance. St. Luke’s Health System and SelectHealth are forming what the companies call a strategic partnership. The hope is that by having the provider and insurer work together they can reduce costs and improve health outcomes.
With help from SelectHealth St. Luke’s plans to transition to a new pay model. St. Luke’s CEO David Pate says doctors would be paid for managing a patient’s health rather than for each procedure or office visit.
“Now instead of the insurance company getting the premium, the health care providers will get the premium,"Pate says. "And as we can improve the health, and get those costs coming down, then what we’ll actually be able to do is take that money and give it back to the policy holders so that they actually pay reduced premiums.”
Pate says this model is the future of healthcare. He expects other hospitals and insurers to follow suit.
SelectHealth sells insurance throughout Utah. It’s had a small presence in southeast Idaho for several years. Now it will begin to sell statewide. Its first new customers will be all of St. Luke’s nearly 10,000 employees.
St. Lukes underwrites on Boise State Public Radio.