Northwell and NYC Union Make Deal to Save on Health-Care Costs

Northwell Health Inc., one of New York state’s largest hospital systems, has signed a deal with a major labor union intended to lower costs and expand access to thousands of doctors for its members in the New York area.

The pact with 32BJ Health Fund aims to reduce the role of traditional health insurance companies, officials from the fund and Northwell said. Instead, the health fund will contract directly with Northwell, a move both sides said will cut out layers of bureaucracy. They called it the largest deal of its kind in the US.

“Our members are the folks ...