Aiming to improve the value of health care for Colorado employees, the Colorado Purchasing Alliance (CPA), an affiliate of the Colorado Business Group on Health, is partnering with the national Purchaser Business Group for Health (PBGH) to negotiate health care contracts with select hospitals and providers in the state on behalf of employers. Eleven state employers have so far signed letters of intent to participate in the initiative, including the State of Colorado and the City of Denver.
CPA President Robert Smith says the effort is the result of inconsistencies in state health care costs and the value of services provided. He says the overutilization of unnecessary or low-value services is a principal driver of health care costs in the state. This partnership’s central goal, he says, is to have Colorado providers compete for contracts based on the value of their care.