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When comparing health plan options, many employers focus on one number above all others: the PPO discount percentage. For many organizations, this metric provides a straightforward way to evaluate network value and predict costs.

High-Performance Networks (HPNs) offer a complementary approach. Rather than focusing primarily on discounts off charges, HPNs concentrate on directing employees to providers who deliver better outcomes at a lower total cost. For some organizations, this alternative strategy aligns better with their cost management and quality goals.

What Are High-Performance Networks?

High-Performance Networks are curated networks built to concentrate volume among providers who deliver better outcomes at a lower total cost. Unlike traditional PPO networks that prioritize breadth of access, HPNs are strategically designed to optimize where care happens.

Traditional PPO networks offer broad access, which many employers value for employee choice and minimal disruption. They provide breadth and established relationships with national carriers.

HPNs take a different approach, with fewer providers, tighter quality standards, and clearer member guidance toward specific care pathways. The right choice depends on your organization’s priorities around access, member choice, and cost management strategies.

The Real Benefits: A Different Approach to Cost and Quality

For organizations seeking alternatives to traditional PPO structures, HPNs offer a different approach with distinct advantages:

Lower Costs
High-quality providers consistently demonstrate lower costs and fewer add-on charges. Quality and cost efficiency work together rather than competing priorities.

Lower Total Episode Costs
HPNs reduce complications, readmissions, and repeat procedures. When you avoid these downstream costs, the savings compound significantly.

Better Member Experience
HPNs reduce billing surprises, offer faster scheduling, and eliminate much of the administrative runaround that frustrates employees. When providers are aligned with your plan’s goals, the entire experience becomes smoother.

Optimized Outcomes and Higher Quality Care
By steering members toward providers with proven track records, you’re no longer rolling the dice on high-variation providers. Quality becomes predictable rather than random.

Here’s an important consideration many employers overlook: discount percentages tell only part of the story. A 50% discount off charges may look impressive, but the complete picture includes net allowed amounts, utilization patterns, site-of-care decisions, and complication avoidance. HPNs provide a different lens for evaluating these factors, which can reveal opportunities traditional network reporting may not highlight.

Strategic Network Partnerships: EHN and Logro

At Boon-Chapman, we have long-established relationships with major carrier networks while also leveraging strategic network partnerships that give employers additional options beyond traditional PPO structures. These partnerships create pathways to steer members into providers and episodes where cost and outcomes are more controllable.

Two key examples are the Employers Health Network (EHN) and Logro Network. We look at these as examples of purpose-built network strategies that can be layered into your plan design.

Employers Health Network (EHN) is positioned around aligning employers and providers to deliver local access, navigation, and care management with an emphasis on controlling costs while improving the member experience.

Logro Network markets both a High-Performance Network (HPN) approach, steering to “most cost-efficient and high-quality providers,” and reference-based repricing (RBP) to drive transparency and predictable pricing.

These kinds of partnerships matter because they give employers more control options beyond hoping traditional PPO discounts deliver results. They’re purpose-built strategies that create measurable outcomes.

Clearing Up Common Misconceptions

Misconception #1: HPNs Are Just Narrow Networks
The biggest misconception we hear is: “HPNs are just narrow networks.” This is the most damaging misunderstanding. 

A poorly designed narrow network brings a lot of friction by becoming a member disruption machine. A well-designed HPN is a precision network built around outcomes, access planning, member incentives, and navigation. The focus centers on guiding members toward the best options rather than restricting choice arbitrarily.

Misconception #2: Discount Percentage Tells the Complete Cost Story
Discount percentage represents one factor in total cost analysis. What matters most is the actual allowed amount you’re paying. Depending on provider billing practices, a provider offering an 80% discount could still cost more than one offering a 40% discount.

Traditional carrier networks provide value through broad access and established relationships. HPNs provide value through focused steerage and episode cost management. Understanding both approaches helps employers choose the right fit.

How Brokers Should Position HPN Value

If you’re a broker working with employers who are comparing carrier network discounts to HPN options, here’s how to frame the conversation:

1. Stop Leading Solely with Discount
Discounts off meaningless billed charges carry little impact. Lead with real value: better benefits and lower costs through net allowed + predictability.

2. Tie HPNs to the Claims That Actually Drive Spend
Focus the discussion on imaging, outpatient surgery, MSK and spine care, infusions, oncology episodes, and preventable readmissions. These are where HPNs deliver the greatest value.

3. Show How Steerage Works Operationally
Explain the combination of navigation support, benefit design incentives, and member communication that makes HPNs effective. Success requires both the network and the systems that guide members to use it properly.

4. Report What Matters
Move beyond discount percentages to metrics that demonstrate real value: leakage rates, episode cost comparisons, complication rates, member satisfaction scores, and time-to-appointment.

If a carrier can’t provide these metrics, you’re essentially buying a logo and a discount story rather than a performance-based network strategy.

The Key to HPN Success: Execution Over Contracting

HPN success is less about contracting and more about execution. High-Performance Networks succeed through execution across three critical areas:

Benefit Design Must Reward the Right Behavior
This means implementing tiering structures, waiving deductibles or copays for preferred providers, offering travel support when clinically appropriate, and creating clear financial incentives for members to choose high-performance providers.

Navigation Has to Be Built In, Not Optional
HPNs don’t work if members never use them. You need proactive navigation support that helps members understand their options and guides them toward the best choices. Members must actually use the network for it to deliver results. (Learn more about how our Care Navigation program supports HPN utilization.)

You Need Leakage Management and Real Reporting
Without proper tracking, you’ll never know if your network is actually performing. You need systems to identify when members go out of network, understand why, and intervene to improve steerage over time. Track and report on leakage rates, episode costs, complication rates, member satisfaction, and time-to-appointment to measure true performance.

Making HPNs Work for Your Organization

High-Performance Networks represent a fundamental shift in how we think about provider networks. Instead of prioritizing breadth and discounts, HPNs focus on precision, quality, and total cost of care.

For employers exploring alternatives to traditional network structures, HPNs offer a proven option. For brokers looking to provide clients with a full range of network strategies, HPNs provide strategic differentiation.

The question is whether a curated network approach aligns with your organization’s goals and whether you have the support infrastructure to implement it effectively.

Ready to explore how High-Performance Networks could transform your health plan’s performance? Contact Boon-Chapman to discuss your specific needs and learn how we can build a network strategy that delivers measurable results for your organization.

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This article is part of our “Build Smarter Health Plans” series. Read about Boon Champions: Your Dedicated Member Concierge Service and Care Navigation: Advocacy That Delivers Better Outcomes to learn how we support members throughout their healthcare journey.

At Boon-Chapman, exceptional service isn’t just a tagline; it’s our foundation. With over 60 years of experience in healthcare administration, we’ve built our reputation on integrity, innovation, and putting our members’ best interests first.