Think market consolidation is a problem in #healthcare? You’re right, but let’s start with the insurers (payers). A new data snapshot from the AAMC Research and Action Institute demonstrates the relative market concentration among health care providers and insurers. Across all U.S. states, the largest health systems (by total inpatient hospital discharges) account for about 20% of the state market on average; the largest health insurers account for 50% of the large-group state insurance market. In any given state, the three or four largest health systems combined have an average of 43.1% of the market share, while the top three large-group insurers hold an average of 82.2% of the market share. Check out Alabama on our interactive...can you imagine being a physician practice or community hospital trying to negotiate rates with a payer controlling over 95% of the private market? Insurer consolidation can lead to higher (not necessarily lower) premiums for patients –and lower rates paid to providers, which can result in detrimental effects for patients including discontinued specialized services, hospital closures, and other cuts. Regulators and courts concerned about consolidation must consider all sides of the market for health care goods and services, including the impact of both insurer and provider consolidation on payment rates, patient access, out-of-pocket costs, and quality of care. Read the full snapshot: https://ow.ly/fWG250RtFX4
Along these lines, we at Platform Government Strategies put out this analysis today examining a paper out with policy ideas to reel in consolidation. https://www.linkedin.com/pulse/scrutiny-external-regulatory-pressure-medicare-advantage-schwab-fqiyc?utm_source=share&utm_medium=member_ios&utm_campaign=share_via
Market power clearly hurts those small and medium size, especially in the RBRVS abused basic health access specialties, especially in the 2621 counties with worst quality public and private plans due to concentrations of the elderly, poor, disabled, and worst employers.
Consider CMS with 1.4 trillion in market power a year and failing miserably for decades with half enough of each basic health access specialty for 40% of the population. Who holds them accountable
Brian J. Miller, MD, MBA, MPH, practicing hospitalist; Nonresident Fellow at the American Enterprise Institute
2moI'm confused and am worried that this figure is very misleading. Payers frequently cover a state while hospitals - per widely accepted economic and Federal Trade Commission analysis methodology - focus on a specific geographic service area that is frequently fall smaller than entire state. So the right hospital market share metric is far more local for most facilities. Perhaps some of my current and former Federal Trade Commission colleagues can add comments: Mark Seidman Alexis Gilman Kevin Hahm Charles Dickinson Dan Gilman Tara Isa Koslov Christopher Garmon Alan Devlin #CompetitionCounts #HealthPolicy #hospitals #consolidation