The current and long-standing preferred provider network discount methodology is flawed and no longer working. In the traditional discount model, a discount is provided in exchange for utilizing an in-network provider. The main issue with this model is that the actual price of the service is unknown to the consumer until after the service has been provided. It makes it difficult to do price comparisons between providers which is in conflict with how consumers currently shop for other services.
Reference Based Reimbursement programs base their reimbursements on a price that is tied to a published number, such as what the provider would receive from Medicare. Several of our clients have implemented these programs and have saved significantly.