What Is Direct Contracting in Healthcare?

A strategic alignment of cost, quality, and access that bypasses traditional intermediaries.
Direct contracting is a model where self-funded employers and care purchasers transact directly with healthcare providers. This approach removes unnecessary intermediaries and administrative waste, creating a clear relationship based on value rather than volume.
Instead of relying on opaque fee-for-service arrangements, direct contracting allows parties to agree on:
• Transparent, pre-negotiated pricing
• Defined scopes of service
• Clear performance and quality metrics
However, direct contracting has historically been difficult to scale due to administrative complexity. HealCo operationalizes this model. We provide the digital infrastructure—including provider network management, bundled payment processing, and patient routing—that makes direct contracting feasible at scale. We handle the logistics so that employers and providers can focus on the delivery of care and the management of outcomes.
See how direct contracting works with HealCo