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Executive Brief

Purchasing & contracts

Discounts do not equal value

A network discount can sound persuasive while obscuring the underlying provider price, patient access and quality of care.

By Corry Hull, REBC®, CSFS® — Vice President of Employee Benefits Consulting at BHC Insurance

A discount describes the difference from a reference price. It does not, on its own, tell an employer whether the resulting price is competitive or whether employees can access the right care.

Value requires more context: the actual price, the quality and suitability of care, the employee experience and the terms that determine how parties are paid.

When evaluation moves from discounts to total value, contract and network conversations become more grounded, comparable and actionable.

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