News Headlines Article

Physician practice acquisitions can drive up costs without price increases
Modern Healthcare

New economic research and a recent antitrust case in Idaho suggest that deals among hospitals and physician practices have the potential to increase total healthcare costs, even if newly merged hospitals and doctors don’t raise prices.

That’s because deals may drive higher use of medical services or drive use of more costly services, such as those that are billed as hospital services rather than ambulatory, after a health system acquires a medical practice. That added use increases the total cost of care, potentially raising premiums.