By the end of the year, Envision plans to move nearly all of its out-of-network revenue in-network, according to the first quarter conference call, as transcribed in Seeking Alpha.
Envision plans to have less than 5 percent of its revenue from out-of-network contracts by the end of the year. Last year, the company moved $500 million in out-of-network revenue to in-network, and has plans to move another $250 million by the end of 2018. President and CEO Christopher Holden expects the change to be neutral to the company's revenue and margin.
The in-network transition is part of Envision's Patient First initiative, which aims to educate the public about patient responsibility payments based on in-network and out-of-network contracts. As patients obtain high-deductible health plans, many are surprised by their bill and the discrepancy between in-network and out-of-network providers.
"We're shining a bright light on an increasingly dysfunctional system and offering productive solutions to better serve all constituents with patients always being the top priority," Mr. Holden said. "Over the past year, Envision has led the charge in shaping solutions and boldly announced our strategic commitment to a comprehensive in-network strategy. We remain fully committed to that strategy and believe it has been and will continue to be a positive differentiator for Envision."
The company aims to align its clinical solutions with health system and payer stakeholders for further integration, which it feels will improve quality, transparency and efficiency.
"We object to many of the current payer tactics that fuel conflict and adversely impact unique relationships between the patient and the physician," said Mr. Holden. "For example, challenges to the prudent layperson standard, capricious withholding or denial of payments by payers after services are rendered by the provider, health plan benefit design that shifts too much of the financial burden away from the insurer or the employer to the patient."