Steinhafels builds private network using direct contracting benefits model

While Quad/Graphics Inc. is pulling the plug on its direct health care contracting efforts, family-owned furniture and mattress retailer Steinhafels Inc. is building its private medical network.

Through a partnership with Quad, the Waukesha, Wisconsin-based retailer's 450 health plan participants have used Quad's network of primary care clinics and specialists for the past 12 years.

Lynda Malmberg, Steinhafels' senior human resource manager, is convinced that direct contracting is the way to go for the company, citing average annual health care spending of $5,000 to $5,500 per employee.

That compares with a Milwaukee area average of $10,987 per employee and statewide average of $11,754, according to a 2013 Mercer L.L.C. survey.

Steinhafels has a direct contract with Wheaton Franciscan Healthcare in Glendale, Wisconsin, for hospital care, and retains access to Quad's QuadMed clinics.

In the meantime, Ms. Malmberg is reaching out to specialists with direct contracting offers.

“I don't know how many will accept and how many will say no, but we're going to move forward,” she said.