Ep. 343 Direct Contracting in Healthcare with Mark Cuban
55 min
“No cancer patient ever got healthier because their claim was denied and delayed. None. Not one.” Mark Cuban's verdict will ring true for any urologist who has fought a denied or delayed claim, and his alternative is a contract that starts by trusting the doctor. On this episode of BackTable Urology, Dr. Ruchika Talwar, urologic oncologist and value-based care leader, talks with Mark Cuban, entrepreneur and founder of Mark Cuban Cost Plus Drug Company, about who actually sets the price of care in the United States. They trace how a cold email about drug shortages led to Cost Plus Drugs and then Cost Plus Wellness, an open source library of direct contracts between self-insured employers and providers, and why he believes the contract, not the published price, is where the real problems hide. By his estimate, 67% of people with job-based coverage get it through a self-insured employer, which makes employers, not insurers, the real payers in American healthcare. --- Get the BackTable apphttps://www.backtable.com/app --- Timestamps00:00 - Introduction01:53 - From Drug Shortages to Cost Plus Drugs06:08 - Cost Plus Wellness and Direct Contracts11:04 - Publishing Provider Contracts16:39 - Using AI to Review Contracts and RFPs20:16 - Direct Contracting Advice for Hospitals and Physicians26:33 - Value-Based Care, Brokers, and Self-Insured Hospitals32:09 - Direct Contracting for Independent Practices34:20 - AI as a Business Adviser for Physicians38:39 - National Policy and Who Pays for Healthcare46:59 - Misaligned Incentives and Corporate Culture51:00 - Key Takeaways54:04 - Closing Remarks --- More about this episodeThe conversation then turns practical for physicians. Mark Cuban lays out how hospitals, clinics, and independent practices can find the self-insured employers among their own patients and offer direct contracts or carve-outs, why a promise to trust the doctor can earn employers a better rate, and how he runs contracts that stretch past a thousand pages thr...