Peterson Philanthropies on Tuesday launched Peterson Health Analytics, a public-benefit analytics company for employers, backed by a $50 million commitment.
Peterson Philanthropies is a network of nonprofit organizations focused on improving economic and democratic foundations in the U.S. The new Peterson Health Analytics company combines federal price transparency data, employers’ claims data and independent safety ratings to create analyses to help employers understand what they’re buying.
“For the first time, they can see whether they’re paying competitive prices, whether their providers are delivering good value, and whether their vendors are negotiating effectively on their behalf,” said Cora Opsahl, managing director of Peterson Health Analytics, in an email.
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For those who need help translating data into actionable steps, Peterson Health Analytics is partnering with Purchaser Business Group on Health, which can help employers design benefits, improve contracts and build high-performing networks. PBGH is a nonprofit coalition of self-insured employers.
“Gaining access to meaningful data is just the start,” said Elizabeth Mitchell, president and CEO of PBGH. “Using that data to identify top quality providers and to hold vendors accountable for cost and quality is what creates value for employers. That’s the role PBGH Advisory Services plays. We help employers turn the analysis into decisions that lower costs, improve care, and meet their fiduciary obligations.”
Peterson Health Analytics is also working with the National Alliance of Healthcare Purchaser Coalitions, another employer advocacy group, as an employer recruitment and engagement partner. The National Alliance will bring PHA data analysis and solutions to its more than 40 purchasing coalitions, according to the announcement.
The analytics company was developed through a demonstration project from PBGH that was funded by Peterson Philanthropies. Peterson and PBGH worked with five employers (including Qualcomm, Boeing and the City and County of Denver) to combine price transparency data, employer claims data and quality and safety ratings. They discovered major price variations between different markets and large savings opportunities for employers.
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The launch of Peterson Health Analytics comes as employers spend $1 trillion to cover more than 165 million Americans every year. However, historically, they had “no reliable way” to understand if what they were paying was competitive or provided value.
“The data they needed either didn’t exist, was hidden, or was controlled by the very parties they needed to hold accountable,” Opsahl said. “That started to change when the federal government required health plans and hospitals to publish their prices. But transparency alone isn’t enough if employers lack the tools and expertise to use that data meaningfully. That’s the gap Peterson Health Analytics was built to close.”
She added that in the short term, the company hopes to provide employers with the data they need to take control of their healthcare spending. Long-term, the company hopes to bend the cost curve in employer-sponsored insurance.
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