Northwell Direct Leads and Rides the Trend of Direct Contracting in the Self-Insured Market

Direct contracting is gaining traction in what is seen as a lower-cost alternative to traditional health insurance. Northwell Health recently ditched its commercial insurers to contract directly with employers who are self-insured through its new subsidiary, Northwell Direct.

Northwell Health, among New York's largest employers with over 70,000 employees, became the company's first self-funded employer. But the business is expanding within the New York City region, with nothing to stop nationwide expansion, according to Northwell Direct CEO Nick Stefanizzi.

"So long as we continue to deliver on goals and objectives, we're only as limited as our imaginations," Stefanizzi said. "It is fully our intention to grow this solution, regionally and in time, nationally."

Montefiore in the Bronx and RWJBarnabas Health in New Jersey are among the health systems that have joined the network of over 19,000 providers and 50 hospitals, according to Stefanizzi. This high-performing narrow network is more than adequate, he said, to offset the cited downside of direct contracting and its narrow networks.