Health Systems Can Quantify Financial Returns from Employed Primary Care Despite Operating Losses

Manatt Health presents a methodology for calculating the total value employed primary care practices generate for health systems through downstream revenue, reduced network leakage, quality bonuses, and acute care cost avoidance—even when practices show operating losses of $249,000 per physician. The analysis includes an illustrative case study of a 40-physician practice with 100,000 paneled lives including 15,000 Medicare Advantage members, demonstrating how primary care investment supports value-based care models. While the framework touches Medicaid managed care indirectly through its focus on Medicare Advantage and general managed care principles, the piece does not substantively address Medicaid-specific policy, MCO operations, or state program considerations.

Managed Care

This is outside commentary from Manatt Health, not part of Medicaid Monitor's independently scored news coverage.

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