07 Sep Healthcare Industry Consolidation is Driving Prices Higher
We came across a great article in Modern Healthcare this week that carries an ominous message. This hit home for us, because our business was built on the foundation of supporting independent practices, and providing a solution to maximize financial performance while allowing the practice to maintain or gain efficiencies, enabling those practices to remain independent.
According to researchers, the increase in health system purchase of physician practices has led to an increase in Affordable Care Act premiums, an increase in specialist physician prices, and an increase in primary care physician prices. They examined the period from 2013 through 2016 to reach their conclusions. Proponents of this consolidation believe that it will result in better coordination of care, which should lead to price decreases. Opponents looking at the data believe that this increased market share provides greater negotiating leverage and an increase in pricing.
You can read the full article HERE.