tiprankstipranks
Advertisement
Advertisement

Rising Employer RFP Activity Highlights Growing Interest in Centers of Excellence

Rising Employer RFP Activity Highlights Growing Interest in Centers of Excellence

According to a recent LinkedIn post from World Class Health, survey data from the Purchaser Business Group on Health (PBGH) suggest a sharp rise in employers running medical requests for proposals (RFPs) for 2026. The post notes that 37% of PBGH members are running a medical RFP this year versus 12% in 2024, indicating a tripling of shopping activity for health plan alternatives.

Claim 55% Off TipRanks

The company’s LinkedIn post interprets this trend as a sign of growing employer dissatisfaction with traditional health plans and a shift toward alternative benefit models. It highlights Centers of Excellence (COEs) as a key focus area, citing Business Group on Health data that 84% of employers plan to implement some form of COE in 2026.

According to the post, employer interest in COEs appears driven not only by cost considerations but by a desire for greater predictability in medical spending. As an example, it points to negotiated commercial rates for coronary artery bypass graft procedures in the New York metro area, which reportedly range from $63,344 to $604,630 across major payers, illustrating substantial price dispersion.

The LinkedIn commentary argues that a COE contracted at a fixed rate, such as $150,000 for the same surgery, could give employers more certainty around costs versus relying on traditional carrier networks with wide pricing variance. For investors, this reading suggests growing market opportunity for platforms, providers, or intermediaries that can offer bundled, predictable pricing models and COE solutions.

If this demand shift continues, companies positioned around COEs and value-based contracting could see increased employer interest and potential revenue growth. The post also implies competitive pressure on incumbent carriers and traditional network-based plans, which may need to respond with greater price transparency and more predictable cost structures to retain large employer clients.

Disclaimer & DisclosureReport an Issue

1