How does the insurance company play a role in the healthcare provider industry?

Fix it- healthcare at the tipping point (documentary) – reflection

The insurance company plays an important role in the healthcare provider industry by providing coverage to individuals and families so that they can access necessary medical services. Insurance companies typically work with providers to develop a network of care where patients are provided with cost-effective options for accessing quality care while also helping ensure that the provider is adequately compensated for their services. In addition, insurance companies also provide financial protection against potential liabilities such as malpractice lawsuits which helps reduce risk and promote stability within the industry.

In addition, most insurance policies require patients to meet certain criteria prior to receiving coverage (i.e., pre-existing conditions/waiting periods etc.) which can help protect providers from incurring costs associated with treating those who do not have adequate funds available. Finally, many insurers will often negotiate contracts on behalf of providers and establish fee schedules so that all parties involved are able to receive fair compensation for services rendered thereby allowing them to maintain mutually beneficial partnerships going forward.