PSD declares direct contracts a success

Business Report Correspondent

One year after Poudre School District decided to forgo managed-care companies’ services and forge its own health-benefit contracts with Poudre Valley Hospital and two local physicians groups, the move has been deemed a success, and other self-insured employers are considering similar arrangements.

When PSD announced its decision, it caused quite a stir. The idea of going around an insurance company to offer health-care services to employees not only flew in the face of traditional health-care arrangements but also was viewed by some as destined to fail.

So far, however, the direct-contract relationship has allowed PSD to capitalize on local resources…