From Health Affairs Today <[email protected]>
Subject Medicare: Hospitals, Consultants, And Cost Shifting
Date August 16, 2021 8:02 PM
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On the Blog: Health Care Cooperative Extensions
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The Latest Research, Commentary, And News From Health Affairs

Monday, August 16, 2021

Dear John,

Two articles in the August 2021 issue of Health Affairs focus on
Medicare. One explores hospital administrative decision making, and the
other examines the influence of market consolidation on prices.

Medicare, Consultants, And Cost Shifting

In the August issue of Health Affairs, two papers look at Medicare in
hospitals.

In the first article, Nicholas Berlin and colleagues examine the
potential role of private consulting firms in hospitals' decisions

to participate in Medicare's voluntary Bundled Payments for Care
Improvement initiative Advanced Model (BPCI Advanced).

"Nonteaching and for-profit hospitals were more likely than not to
partner with third-party conveners in BPCI Advanced, and hospitals that
partnered with conveners were more likely to select a greater total
number of clinical episodes compared to those that did not," the
authors find.

For the second article, Michael Chernew and coauthors investigated the
role of market consolidation in driving up commercial prices
,
consequently shifting costs from public to private payers.

They found that operating margins for hospitals where Medicare revenue
accounted for more than 65 percent of total revenue in 2010 were
substantially lower than for hospitals with a Medicare share below 35
percent. Hospitals with higher Medicare shares, the authors observed,
were also more likely to close or be acquired.

For more on Medicare, find related content on our website
.

Today on Health Affairs Blog, Deborah Cohen and Shannon Sweeney argue
that Health Care Cooperative Extensions

would provide timely connections among primary care, public health, and
community services.

Katie Keith discusses two recent lawsuits
,
from the US Chamber of Commerce and the Pharmaceutical Care Management
Association, that challenge the Trump administration's transparency rule
for health insurers.

Enjoying our newsletter but not yet a Health Affairs subscriber? Sign up
today .

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Your Daily Digest

Hospital Participation Decisions In Medicare Bundled Payment Program
Were Influenced By Third-Party Conveners

Nicholas L. Berlin et al.

Public Payment Rates For Hospitals And The Potential For
Consolidation-Induced Cost Shifting

Michael E. Chernew et al.

A Feasible Infrastructure To Meet The Country's Current And Future
Health Crisis

Deborah J. Cohen and Shannon Sweeney

Two New Lawsuits Challenge Insurer Transparency Rule

Katie Keith

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