Phoenix | Arizona | 2022 | Market Overview Brief

The fast-growing Phoenix market is experiencing a seismic shift in healthcare delivery with value-based contracts, service expansion, consolidation, and integration as the primary trends. The creation of a mega health system, CommonSpirit Health, adds a new level of competition in a market building comprehensive value-based integrated delivery networks with large clinically integrated physician groups. Banner Health is the market leader, but smaller players like HonorHealth and Abrazo Health utilize consolidation, affiliations, and partnerships to remain competitive. UnitedHealth Group dominates enrollment and rivals integrated delivery networks with integration of its own through physician alignment. UnitedHealth Group's OptumCare of Arizona is one of the largest physician groups in the market. Many of the top insurers are leveraging value-based contracts with physicians and health systems to influence care delivery and reduce costs. Both affiliated and independent physicians are an integral part of healthcare transformation through their clinical expertise and success in payment reform. Medicaid and exchange enrollment opportunities may increase for payers and providers as the pandemic likely forces a larger percentage of the population into government-sponsored coverage and the state moves ahead with Medicaid service and access expansions despite putting its work requirement on hold.

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