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.

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The application period closes on September 13, 2021.
 
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