{"id":3799,"date":"2025-07-08T15:53:54","date_gmt":"2025-07-08T15:53:54","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=3799"},"modified":"2025-07-08T15:53:54","modified_gmt":"2025-07-08T15:53:54","slug":"companies-negotiating-lower-healthcare-prices-works","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/companies-negotiating-lower-healthcare-prices-works\/","title":{"rendered":"Companies Negotiating Lower Healthcare Prices Works"},"content":{"rendered":"

By Daniel Butcher<\/a><\/p>\n

Americans pay the highest healthcare costs in the world. With renewed scrutiny on the U.S. health insurance industry and third-party administrators (TPAs) of health benefits in the wake of UnitedHealthcare CEO Brian Thompson\u2019s murder, many people are looking for fixes to a broken private healthcare system. Given that healthcare reform is unlikely to come from Washington, employers are arguably the only ones with leverage to reduce costs and minimize denials.<\/p>\n

AOM Scholar Jeffrey Pfeffer of Stanford University<\/a> cited the example of a former insurance insider whom Montana hired to save the state\u2019s benefit plan for its 30,000 employees and their families. She pushed back against TPAs and health-insurance executives who were keeping healthcare costs high, proving that bargaining to lower healthcare prices works.<\/p>\n

\u201cIn Montana, a woman named Marilyn Bartlett, who\u2019s literally a grandmother, was hired by the state of Montana to fix the healthcare benefits situation for the main Montana government employees and retirees, and she held their vendors accountable for spending, denied claims, and denied services,\u201d Pfeffer said. \u201cShe basically saved a fortune and provided better service by holding the vendors accountable.\u201d<\/p>\n

A 2018 article published by ProPublica and NPR<\/a> revealed that \u201cBartlett understood something the state officials didn\u2019t: the side deals, kickbacks and lucrative clauses that industry players secretly build into medical costs. Everyone, she\u2019d observed, was profiting except the employers and workers paying the tab.<\/p>\n

\u201cIn her view, employers should be pushing back against the industry and demanding that it justify its costs. They should ask for itemized bills to determine how prices are set. And they should read the fine print in their contracts to weed out secret deals that work against them.<\/p>\n

\u201cThe way health care works in America, most employers cede control of health care costs to their health insurers, to the hospitals that treat their employees and to the companies they pay to manage their benefits. The costs are a dense thicket that few employers feel equipped to hack through. So, they don\u2019t.\u201d<\/p>\n

Pfeffer said he\u2019d like to see more organizations leverage such insights to improve healthcare services and outcomes for their employees.<\/p>\n

\u201cWhat is going on at the moment is that most employers are not measuring the delivery of healthcare services, and most employers are not holding their vendors accountable,\u201d he said.<\/p>\n

\u201cThe Blues and Anthem and UnitedHealthcare are just doing what the employers are permitting them to do, and the employers should take much more proactive steps to clean this up.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

By Daniel Butcher Americans pay the highest healthcare costs in the world. With renewed scrutiny on the U.S. health insurance industry and third-party administrators (TPAs) of health benefits in the wake of UnitedHealthcare CEO Brian Thompson\u2019s murder, many people are looking for fixes to a broken private healthcare system. Given that healthcare reform is unlikely […]<\/p>\n","protected":false},"author":4,"featured_media":4155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27,74,78,46],"tags":[],"sp_smart_badges":[],"ppma_author":[70],"class_list":["post-3799","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-c-suite","category-hr","category-policy","category-well-being"],"acf":[],"yoast_head":"\nCompanies Negotiating Lower Healthcare Prices Works - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/companies-negotiating-lower-healthcare-prices-works\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Daniel Butcher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/\"},\"author\":{\"name\":\"Daniel Butcher\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/d1297a59039d9ca7bac9d9f0952e508c\"},\"headline\":\"Companies Negotiating Lower Healthcare Prices Works\",\"datePublished\":\"2025-07-08T15:53:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/\"},\"wordCount\":426,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/negotiation-negotiate-dissastisfed-disgruntled-conflict_shutterstock_1302585190-scaled.jpg\",\"articleSection\":[\"C-SUITE\",\"HR\",\"POLICY\",\"WELL-BEING\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/companies-negotiating-lower-healthcare-prices-works\\\/\",\"name\":\"Companies Negotiating Lower Healthcare Prices Works - 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With renewed scrutiny on the U.S. health insurance industry and third-party administrators (TPAs) of health benefits in the wake of UnitedHealthcare CEO Brian Thompson\u2019s murder, many people are looking for fixes to a broken private healthcare system. Given that healthcare reform is unlikely…","_links":{"self":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3799","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/comments?post=3799"}],"version-history":[{"count":0,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/posts\/3799\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media\/4155"}],"wp:attachment":[{"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/media?parent=3799"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/categories?post=3799"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/tags?post=3799"},{"taxonomy":"sp_smart_badges","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/sp_smart_badges?post=3799"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.aom.org\/today\/wp-json\/wp\/v2\/ppma_author?post=3799"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}