Board of Governors in Healthcare Management (ACHE) Practice Exam

Small and mid-sized employers often join buyer cooperatives primarily to obtain lower premiums similar to those that larger employers can negotiate due to their significant purchasing power. By pooling their resources, these smaller companies can leverage collective bargaining to secure better rates and coverage options from insurance providers. This arrangement minimizes the disparity in bargaining power between small businesses and larger corporations, allowing them to offer competitive health benefits to their employees without bearing the financial burden alone. This collaboration among employers enhances their capability to negotiate terms that would otherwise be out of reach, making healthcare more accessible and affordable for their workforce.

The other options, while they may contain elements relevant to healthcare purchasing strategies, do not correctly capture the principal motivation behind the formation of buyer cooperatives. For instance, reducing insurance coverage is typically not a goal, nor are exclusive hospital contracts a primary focus for most cooperatives; rather, the emphasis is on improving cost competitiveness. Influencing government policies, while important for the broader healthcare landscape, is generally a secondary concern compared to the immediate benefit of reducing health insurance costs through cooperative purchasing.