$2M+ Savings Achieved for Healthcare Payer with Air Transportation Contract

Situation

About three-quarters (77%) of air ambulance transports of commercially insured patients are out of network, compared to only about 20% of emergency department admissions that involved an out-of-network provider. The client approached AArete with no air transportation providers in-network and with reimbursement claims at alarmingly high rates.

Approach

Insurers have traditionally faced difficulties contracting with air ambulance providers, resulting in high prices from out-of-network claims, which leads to air ambulance providers being out-of-network more frequently than other types of providers.

AArete developed a thorough contract negotiation strategy and provided analysis with market intelligence to support these discussions. AArete negotiated with the air transportation provider to be in-network at market competitive rates.

Results

As a result, AArete assisted with building a strong partnership between the payer and air transportation provider. This ultimately led to $2M+ in savings for the client.