General Electric, one of the largest employers in the United States, has designated Northwestern Memorial Hospital in Chicago as one of its centers of excellence for total hip and knee replacement surgeries, according to a recent Business Insurance report.
Northwestern has joined the Hospital for Special Surgery in New York City, the Christ Hospital in Cincinnati and Carolinas Medical Center in Charlotte, N.C. to become GE's fourth designated orthopedic center.
Under the arrangement, fixed prices for specific orthopedic procedures are set and GE employees can receive care at Northwestern for minimal or no out-of-pocket costs. Additionally, GE will cover travel costs for the patients.
Program Director of Value-Based Delivery at Northwestern Memorial HealthCare Hannah Alphs Jackson, MD, MHSA expressed optimism about working with GE, having proven itself to be innovative in the health benefits space, well organized and thoughtful. According to Dr. Jackson, GE placed a lot of value finding a partner with high-quality care and not just low cost during their recruitment process.
"They really have their members and employees at the forefront of all of this, which is essential because patients are at the forefront for us," said Dr. Alphs Jackson. "Having that common cultural and strategic alignment around the patients' experience is really wonderful for both sides involved."
The arrangement with GE marks Northwestern's first partnership that involves a bundled payment model with a service line outside of their transplant program.
Similar deals between large employers and providers are becoming increasingly common as a tactic to save on healthcare costs, according to the report.