Health Affairs Study On Hospital Profitability Gives Us Some Important Factors To Watch Going Forward

http://healthaffairs.org/blog/2016/06/21/health-affairs-study-on-hospital-profitability-gives-us-some-important-factors-to-watch-going-forward/

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Bai and Anderson report two profitability-related factors that reflect the effect of hospital consolidation trends: regional power and system affiliation. Regional power refers to hospitals that face less competition in their local markets, while system affiliation indicates hospitals that are part of multi-hospital systems. Both are associated with higher profitability in their study.

More and more hospitals across the country are joining systems that operate outside their local markets. This is due, in part, to the fact that antitrust regulators have limited local market mergers but have not, in general, adapted their models of hospital market competition and antitrust to address non-local mergers. As a result, hospitals in some instances are able to join systems, gain market power, and raise their prices without necessarily improving quality or service. My own research in this area (forthcoming inINQUIRY) shows that hospitals that are part of the largest multi-hospital systems in California were able to negotiate price increases that are consistently well above all other hospitals in that state.

Democratic Senators Ask Justice Department to Block Insurance Megamergers

http://www.nytimes.com/reuters/2016/06/22/us/politics/22reuters-usa-congress-insurance.html?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=30930741&_hsenc=p2ANqtz-8v2_Vwj9YHKv6ikVvPVR3IjX0h53Ob9kFNoU_axW-6tBflSgUelzmdB9-b3Mwe8kW1RU0v85qamUHIL7MsBMqe0U_sYQ&_hsmi=30930741&_r=0

Health Insurance Mega Mergers

Seven Democratic senators urged the U.S. Justice Department on Wednesday to block two mergers of major health insurance companies, saying that the proposed deals would mean higher premiums and lower-quality healthcare for consumers.

The department is reviewing Aetna Inc’s $33 billion plan to buy Humana Inc and Anthem Inc’s $48 billion proposal to buy Cigna Corp. If approved, the deals, both of which were announced last July, would reduce the number of national health insurance carriers from five to three.

A warning on hospital mergers: After California allowed big chains to grow, prices

http://www.latimes.com/business/hiltzik/la-fi-hiltzik-california-hospitals-20160613-snap-story.html?utm_campaign=CHL%3A+Daily+Edition&utm_source=hs_email&utm_medium=email&utm_content=30727033&_hsenc=p2ANqtz-_lSFFriq5yA5SisvjbMwODLDPAQmVwWrr_t6XuMvz-oA2lMa5974U7UAJiXhUp_HB_zXoS9iYPUKey6BSklKM–HtzoA&_hsmi=30727033

Big California hospital chains not only raised prices faster than inflation, but gave competitors room to raise their own prices.

Hospital prices … increased substantially in California during a period of low overall price inflation, low economic growth, and declining demand.— Melnick and Fonkych, USC

As Hospital Chains Grow, So Do Their Prices For Care

http://www.healthleadersmedia.com/finance/hospital-chains-grow-so-do-their-prices-care?spMailingID=9073752&spUserID=MTMyMzQyMDQxMTkyS0&spJobID=941690582&spReportId=OTQxNjkwNTgyS0#

Dollars

As health care consolidation accelerates nationwide, a new study shows that hospital prices in two of California’s largest health systems were 25 percent higher than at other hospitals around the state.

Healthcare mergers and acquisitions in 2015: Running list

http://www.healthcarefinancenews.com/slideshow/healthcare-mergers-and-acquisitions-2015-running-list

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Healthcare mergers and acquisitions in 2016: Running list

http://www.healthcarefinancenews.com/slideshow/healthcare-mergers-and-acquisitions-2016-running-list

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Impact of antitrust suit against CHS could ripple nationwide

http://www.charlotteobserver.com/news/local/article83142307.html

Carolinas Medical Center is the flagship hospital of Charlotte-based Carolinas HealthCare System

A win for the U.S. Justice Department could establish an important legal precedent. Hospitals nationwide might have to remove contract provisions that limit competition. That could result in lower prices for patients.

DOJ Sues Carolinas HealthCare Over Steering Restrictions

http://www.healthleadersmedia.com/leadership/doj-sues-carolinas-healthcare-over-steering-restrictions?spMailingID=9041425&spUserID=MTMyMzQyMDQxMTkyS0&spJobID=940977537&spReportId=OTQwOTc3NTM3S0#

carolinas-medical-center-1200xx2800-1575-186-0

Federal and state officials claim that the healthcare system used its market power to leverage steering restrictions in its contracts with major insurers, resulting in higher costs for consumers.

Who Makes Sure Hospital Mergers Do No Harm? Almost Nobody.

https://www.propublica.org/article/who-makes-sure-hospital-mergers-do-no-harm-almost-nobody

Hackley Hospital in Muskegon. (Date shot- 9/7/07)

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