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.

Related Reports

Oklahoma City | Oklahoma | 2021 | Market Overview Brief

Expansion is the prevailing theme in the Oklahoma City market, even as health systems continue to respond to the COVID-19 pandemic. In the provider sector, key capital projects include hospital...

View Details

Milwaukee | Wisconsin | 2021 | Market Overview Brief

Competition among Milwaukee’s largest health systems will define the market in coming years. Advocate Aurora Health is building a new hospital in Mount Pleasant and purchased minority stak...

View Details

Philadelphia | Pennsylvania | 2021 | Market Overview Brief

Pricing power is at the heart of Philadelphia’s healthcare battles in 2021 as providers seek to recover from massive financial losses due to the pandemic and payers move ahead with far more enviabl...

View Details

Miami | Florida | 2021 | Market Overview Brief

Miami’s healthcare market is defined by strategic partnerships, including narrow networks, integrated physician clinics, and IDN affiliations. Physician groups are committed to autonomy and i...

View Details