Healthcare costs in the United States remain unsustainably high, driven primarily by opaque pricing structures that reward hospitals, insurers and intermediaries at the expense of employers and patients.
The current system leaves employers with little leverage to negotiate prices, while complexity and conflicts of interest limit transparency and accountability.
Kada Health offers a new model for self-funded employers.
Reset market dynamics in a metropolitan region
By forming an employer-led, non-profit entity, participating organizations gain the scale to negotiate directly with health systems and third-party administrators (TPAs). Kada Health manages this process, leveraging its executive, clinical and financial expertise.
Rethink the approach and incentives of provider networks
Through competitive RFPs tied to a transparent benchmark (% of Medicare), the model establishes Tier One provider networks based on both cost and quality. Employers adopt benefit designs that incentivize —but do not mandate—employee use of Tier One providers. This approach lowers prices, simplifies benefit design and creates continuous improvement incentives for hospitals and health systems.