Tuesday, July 13, 2010

Will insurers control healthcare costs better?

Growing supply-side concentration. Over the past decade, the supply side of the health care sector in many localities has become ever more concentrated, as hospitals formed systems and physicians joined together in larger groups. The current nouvelle vague – so-called Accountable Care Organizations (ACOs) – will only further encourage that concentration. I find it hard to believe that, in the face of this trend, fragmenting the buy side of health care even more would serve the goal of cost containment.

http://healthaffairs.org/blog/2010/07/09/will-more-insurers-control-health-care-costs-better/

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