What They’re Watching: Kevin Denmark

Kevin Denmark is the Vice President of Client Partnerships at Beacon Health Options. He joins us in this edition of “What They’re Watching” to talk about disruption in the next five years in health care.

I generally am looking five years out, six years out and I don’t think anything has really changed in the terms of the path of health care in the United States. You see a lot of distraction from various areas, federal government, state government, these are all distractions. I think ultimately payors are going to look more like providers and providers are going to look more payors. That’s been happening for a while. How we get there is going to be disruptive. And that’s what you’re going to see is continued disruption I think in 2018.

Particularly here in the state of Texas you’ve got payor models changing, you’ve got our 1115 Medicaid Waiver in 2021 that’s going to change or go away unless we learn to change it. We’ve got re-procurement of managed care organization contracts for Medicaid. Right there, you’re talking about $16 billion in the health care industry with those two changes on 2021. We’ve all heard about the announcement of JP Morgan, Amazon and Berkshire Hathaway coming together to try to disrupt the employee market. And then finally here in Texas we’ve have for 2021 a majority-minority population for the first time, so our population’s going to change.

So if you take a look at that and you say hey 2021 we’re going to have possibly a new administration, possibly not, but there’s going to be a lot of conversations at the White House and who is going to be sitting there. Plus the 87th Texas Legislative session is going to be starting. I think you can really only look four to five years out at the point and realize that there’s just going to be disruption next year, the year after, the year after until we get a clearer picture.