MARKET TRENDS

Health Systems Point to a New Era in Prosthetics Care

A new Hanger Premier agreement reflects growing interest in system-wide O and P contracts as providers adapt to evolving healthcare purchasing models

22 Jan 2026

Clinician adjusts a lower-limb prosthetic during a patient fitting session

Orthotics and prosthetics care has long operated on the margins of hospital contracting. That may be starting to change.

A new agreement between Hanger Clinic and Premier suggests health systems are taking a closer look at how prosthetic and orthotic services fit into broader purchasing strategies. Announced June 24, 2025, the deal gives Premier member organizations access to Hanger’s services under negotiated terms, effective May 1.

Premier is one of the nation’s largest healthcare improvement organizations and a key purchasing partner for hospitals. Its move into orthotics and prosthetics contracting does not rewrite the industry overnight. Still, it signals a growing appetite for system-wide arrangements that mirror how hospitals already buy everything from implants to imaging services.

At its core, the agreement reflects familiar pressures. Health systems want predictable pricing, standardized processes, and partners that can support patients across multiple facilities. Orthotics and prosthetics care, once handled largely through local referrals, is now being evaluated through the same operational lens.

Premier framed the partnership around continuity of care and patient access, positioning orthotic and prosthetic services as essential to recovery and long-term mobility. For Hanger, the agreement deepens its integration into hospital-driven referral pathways at a time when scale and geographic reach matter more than ever.

Industry observers say these contracts could quietly reshape competition. Large national providers may gain an advantage as hospitals standardize referral destinations after surgery, trauma, or rehabilitation. Independent clinics, even those with deep community ties, may feel pressure to formalize relationships with health systems to stay visible inside increasingly narrow networks.

Supporters argue that standardized contracts can reduce delays, streamline insurance approvals, and make care easier to navigate. Critics worry that consolidation could limit patient choice or raise the stakes for smaller providers.

Either way, the direction is becoming harder to ignore. As hospitals continue refining coordinated care strategies, agreements like the Hanger Premier deal point to a future where orthotics and prosthetics providers are judged not only on clinical skill, but on their readiness to operate at the system level.

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