Narrow Networks Found To Yield Substantial Savings

In the 2011 movie Moneyball, the general manager of the Oakland A’s is portrayed as one of the smartest executives in baseball. A former player and first-round draft choice, GM Billy Beane pores over player statistics, seeking hidden gems — high-value free agents other teams might overlook but would fit Beane’s idea of low-cost, high-quality players.

For Brett Morris, president of Health Net of Arizona, health care is like baseball, especially when putting together a narrow network of providers. Hospitals and physicians are free agents that health plans add to their teams after carefully scrutinizing their ability to deliver high-value, low-cost care, he says. Since 2006, Health Net has successfully developed such narrow networks in California and now it seeks to replicate that success in Arizona.

Read More