A new coalition is bringing together employers, clinicians and other stakeholders to push for the expansion of direct contracting.
The Association for Direct Care will advocate for policies that ease barriers to direct contracting arrangements between employers and providers, boost transparency and support new payment models. A key goal, according to the announcement, is to support lower costs and better quality as well as the relationship between providers and their patients.
The organization will focus on the expansion of direct employer contracting in the commercial space as well as in federal health programs.
"Direct contracting offers a better way to purchase health care by lowering costs, cutting administrative waste, and bringing greater transparency to the system," said Taylor Hittle, executive director of the association, in an announcement. "The time is right for employers, clinicians and healthcare innovators to lead the way."
Participating organizations listed in the announcement include Nomi Health, the American Academy of Family Physicians, the National Alliance of Healthcare Purchaser Coalitions, the ERISA Industry Committee, the Employer's Forum of Indiana and Grounded Health.
As healthcare costs rise across the system, employers are looking to new solutions to manage those expenses. The most recent estimate from Marsh, formerly Mercer, was that costs could increase by 8.2% in 2027, the highest rate since 2003.
Jenny Goins, interim president and CEO of the National Alliance of Healthcare Purchaser Coalitions, said in the announcement that employers "continue to look for innovative ways to deliver high-quality, affordable healthcare to their employees and families."
"Direct contracting is an important tool to help get there,” Goins said. "Direct contracting gives employers greater flexibility to purchase care in ways that reduce costs, improve quality and deliver better value for working families."