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Payor vs. Provider

by Philip F. Jacobus, CEO | June 18, 2014
When it comes to providers and payors, which is the chicken and which is the egg?

If you are involved in the health care sector, you know that insurance companies are purchasing doctor groups and large IDNs and hospitals are setting up networks that look very much like a health insurance companies. Of course, all of this complicated by the Affordable Care Act.

The real question: who is going to be the winner?

On the surface, you would think the providers would be the stronger of the two entities because they actually provide the service. However, insurance companies have established sales forces and they are more equipped to recruit customers. The bottom line is, I am not sure who is going to win.

I believe it is going to boil down to which entity can benefit the most from the economy of scale.

Investors will make money by betting on the winner. Let's hope health care does not suffer in the end.

As Steve Jobs said, "Innovation distinguishes between a leader and a follower."

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About Phil Jacobus

Phil Jacobus has been involved in health care since 1977, when he visited China to sell equipment. He has done business in 35 countries and still travels extensively. Phil is active in charity, helps rural clinics and always tries to help DOTmed users when he can.

Phil is a member of AHRA, HFMA, AAMI and the Cryogenic Society of America. He has contributed to a number of magazines and journals and has addressed trade groups.

Phil's proudest achievement is that he has been happily married to his wife Barbara since 1989, who helped him found DOTmed in 1998.

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