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Hospitals seen wielding more clout than health plans
Modern Healthcare

Hospitals hold more market clout than health plans in the majority of U.S. metropolitan areas, results of a newly published study suggest. The findings, published by the health policy journal Health Affairs, also show that hospital prices are higher in markets where hospitals face little competition. Researchers measured market concentration using a 10,000-point scale and found prices sensitive to hospital market clout and health plan market clout. The study did not directly measure prices. Instead, researchers calculated prices using net hospital revenue, total adjusted patient days and a measure of patients’ illness called the case-mix index.

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