There have been a flurry of articles in the past months about more hospitals becoming insurers and more insurers also becoming providers. In most of the articles, there is a comment that these hospitals are trying to become fully integrated payer-providers just like Kaiser. No they are not. The payer provider model has been around US healthcare for a very long time, but the Kaiser twist on it is very wierd and as far as I know, no one else does it quite like Kaiser.
Kaiser is a fully integrated payer provider with exclusive usage. What does that mouthful mean? It means Kaiser owns its own hospitals, owns its own labs, owns it own rehab places, and 99% of the doctors that its members see will be employed and receiving a salary from Kaiser. It also has an insurance arm. This part is not too unusual. Geissenger in Pennsylvania is like that. Steward in Massachusetts is like that. Medstar in Washington/Baltimore is like that. Sutter Health in Northern California is becoming an integrated payer-provider. This part of the model is fairly common, and it is becoming even more common as the large hospital groups which are particpating in ACO experiments realize that they need the claims and predictive modeling capacity of an insurance company, so selling insurance is a short leap.
However, the unusual part of the Kaiser model is the exclusivity. Kaiser only allows its insured members to use its facilities and doctors for non-emergency care. If there was a major crisis, Kaiser would open its doors to a trauma stream but on a day to day basis if you are not insured by Kaiser and you need an ACL repair, you are not allowed into the Kaiser hospital four blocks from your house. If you have a heart attack, the ambulance will drop you off at the Kaiser facility four blocks from your house and Kaiser will stabilize you to the point where you are capable of transport and then ship you out. This part is extremely unusual.
Medstar in Washington D.C. owns Georgetown University hospital. GUH would go bankrupt if it only treated Medstar patients, so GUH takes Medstar insurance plus most if not all of the other major carriers who have a presence within 100 miles of Washington D.C. Vivity in Southern California has several world class medical centers. None of those centers could survive on the projected Vivity membership census. So Vivity member hospitals will take anyone who can pay. Geissenger hospitals will accept other major carriers as well. These organizations, and almost all other non-governmental payer-providers are not exclusive walled gardens that systemtically seek to minimize interaction with the entire US healthcare delivery ecosystem.
Kaiser is different.

