Case Study: Owensboro Health avoids a costly payer contract with Strata Decision Technology

Contract Modeling Tech Helps Owensboro Health Steer Clear of a Costly Deal

Owensboro Health, a two-hospital health system in Kentucky, needed a better way to evaluate payer contract proposals amid changing reimbursement models and limited analyst resources. Working with Strata Decision Technology, the organization tested a contract-modeling module within its cost accounting platform to avoid relying on manual spreadsheets and uncertain estimates when negotiating with its largest commercial payer.

Strata Decision Technology’s what-if modeling tool let Owensboro Health quickly analyze each counteroffer and turn claims data into actionable reports within a day, instead of weeks. The platform revealed that a proposed deal thought to generate $12 million annually would actually create a $12 million loss, enabling the health system to identify misrepresented terms and build a counterproposal that would be truly net neutral.

Owensboro Health

John Hackbarth

System Executive Vice President of Finance and CFO