Strategies to become a preferred provider

A center of excellence (COE) strategy can help hospitals and health systems differentiate themselves and compete for high-complexity services. The terminology has long been used for informal marketing purposes and formal accreditation programs but is gaining popularity as a result of a stream of prominent employers that have turned to COE networks for their employees’ high-cost conditions and procedures.

More employers are adopting these hyper-narrow, specialized networks to reduce their health care costs and improve quality. But because of the investment tradeoffs to earn an employer’s COE designation and their subsequent employee volumes, this strategy is not ideal for all provider organizations. Health care leaders must understand the potential risks and rewards, assess their organization’s readiness, and identify opportunities for improvement to earn inclusion in employer centers of excellence networks.