Consolidation Of Hospitals, Doctors’ Practices In California Linked To Higher Premiums And Cost Of Care
California was once known for a competitive health care landscape that produced fair prices, but consolidation is one of the factors that eroded that dynamic, a related study finds.
San Francisco Chronicle:
Hospital Consolidation In California Linked To Higher Health Prices
Growing consolidation among hospitals and doctors’ practices in California is linked to higher health insurance premiums and higher prices for specialty and primary care, according to a study by UC Berkeley researchers published Tuesday. In California, between 2010 and 2016, the percentage of doctors in medical practices owned by hospitals grew from 25 to 40 percent. (Ho, 9/4)
Modern Healthcare:
Health Systems Driving Prices Higher With Physician Group Purchases
Insurance premiums and outpatient prices spiked as California health systems have snatched up physician groups, new research shows. In 41 highly concentrated California counties, the percentage of hospital-employed physicians increased from about 25% in 2010 to more than 40% in 2016, according to a new Health Affairs study. (Kacik, 9/4)
California Healthline:
As California Hospitals Sweep Up Physician Practices, Patients See Higher Bills
In areas with both high levels of consolidation among hospitals and between hospitals and physicians, researchers estimated there was a 12 percent increase in premiums on California’s health insurance exchange from fall 2013 through 2016, beyond the general rise in medical costs. Acquisitions of physician practices by hospitals tend to be small and typically fly under the radar, said Richard Scheffler, the study’s lead author and professor of health economics and public policy at the University of California-Berkeley. (Terhune, 9/4)