Monday, May 23, 2022 | The Latest Research, Commentary, And News From Health Affairs
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Price Effects Of Consolidation
Joint contracting between physicians and hospitals has risen in prominence. This vertical integration in health care has
garnered scrutiny by antitrust authorities and state regulators.
Vilsa Curto and colleagues determine that the percentage of primary care physicians and specialists vertically integrated or joint contracting with small and medium health systems in Massachusetts rose sharply during the period 2013–17.
Vertical integration and joint contracting led to price increases for primary care physicians and specialists, with the greatest increases seen in large health systems.
“Our findings suggest that policy makers may need to consider taking steps to mitigate price effects, with a particular focus on large health systems,” the authors conclude.
The authors go on to suggest that antitrust enforcement, increased oversight or regulation of commercial insurance contracts, and laws that promote competition can mitigate price effects.
Mark Friedberg and
coauthors analyze Blue Cross Blue Shield Massachusetts’ nudge unit, which demonstrates how behavioral science can help to achieve health system goals that rely on behavior change at a low cost.
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