Northwell Wants to Link Direct Contracting With Peer Systems

Northwell Health is looking to grow its direct contracting business by teaming up with other health systems, Becker's Hospital Review reports. The strategy lets hospitals sell health plans and services directly to employers, cutting out or reducing the role of traditional insurers.

The pitch is that direct contracting is a different, less risky and less financially demanding model than owning a full insurance arm. By linking up with peer systems, Northwell could extend its geographic reach and offer employers broader networks without each system building everything alone.

The move reflects a wider shift. Health systems now have multiple ways into direct contracting, whether by standing up an entire subsidiary, hiring a third-party vendor, working with entrepreneurs like Mark Cuban, or partnering with other systems. As options multiply, more large systems are testing ways to capture premium dollars and build direct relationships with employers rather than ceding that ground to payers.