North Carolina is attempting to address the impact of consolidation on the state’s independent practices through a new state health insurance plan initiative, The Center Square reported Feb. 8.
The Preferred Provider program, developed by the North Carolina state health plan and Lantern, a real estate advisory company, to provide incentives to members of the state health plan to choose lowest cost, “but still high quality providers,” according to the report. Members will receive a reduction in out-of-pocket costs, including deductibles and copays, for choosing providers within the program.
“Through the development of our Preferred Provider Program, we’ve heard from providers across North Carolina about the consequences of consolidation and the loss of independent practices in many communities,” Thomas Friedman, executive administrator of the North Carolina state health plan, told the publication. “Beginning in the summer we are going to dig deeply into our data and directly target the cost, both financial and health status, of consolidation in North Carolina as it relates to the State Health Plan.”
The program is expected to roll out in summer 2026.
