Peterson Philanthropies has launched Peterson Health Analytics, a public interest analytics company aimed at assisting employers in navigating the complexities of employer-sponsored healthcare, backed by a substantial commitment of $50 million.
As a network of nonprofit organizations focused on strengthening the economic and democratic foundations in the United States, Peterson Philanthropies has introduced Peterson Health Analytics to merge federal data on price transparency with employer claims data and independent safety assessments. This integration seeks to furnish employers with in-depth analyses that clarify their healthcare purchasing decisions.
“For the first time, employers can ascertain whether they are paying competitive prices, whether their providers offer good value, and whether those providers are negotiating effectively on their behalf,” stated Cora Opsahl, the general manager of Peterson Health Analytics, in an email communication.
To assist employers in translating this data into actionable steps, Peterson Health Analytics is partnering with the Purchaser Business Group on Health (PBGH), which provides guidance on designing benefits, enhancing contracts, and establishing high-performing networks. PBGH is a nonprofit coalition composed of self-insured employers.
“Access to meaningful data is just the beginning,” remarked Elizabeth Mitchell, president and CEO of PBGH. “Using this data to identify high-quality providers and holding them accountable for cost and quality is what creates value for employers. This is the role of PBGH’s advisory services. We help employers turn analysis into decisions that reduce costs, improve care, and fulfill their fiduciary responsibilities.”
Peterson Health Analytics has also joined forces with the National Alliance of Healthcare Purchaser Coalitions to serve as a recruitment and engagement partner for employers. This alliance will extend PHA’s data analysis and solutions to over 40 purchasing coalitions, according to the announcement.
The analytics company was developed as part of a demonstration project financed by Peterson Philanthropies and PBGH, collaborating with five employers including Qualcomm, Boeing, and the city and county of Denver. Their work revealed significant price variations across markets and highlighted substantial savings opportunities for employers.
The introduction of Peterson Health Analytics comes at a time when employers are spending approximately $1 trillion to cover over 165 million Americans annually. Historically, these employers have lacked reliable means to ascertain whether their spending is competitive or provides value.
“The required data was either non-existent, hidden, or controlled by the very parties that employers need to hold accountable,” explained Opsahl. “This began to change when the federal government mandated that health plans and hospitals disclose their prices. However, transparency alone is insufficient if employers do not have the tools and expertise to leverage that data meaningfully. Peterson Health Analytics has been designed to fill that gap.”
Looking ahead, the organization aims to provide employers with the necessary data to effectively manage their healthcare expenditures in the short term, while aspiring to reduce the trajectory of employer-sponsored insurance costs over the long term.
