Monday, October 4, 2010

ACOs May Cause Healthcare Cost Inflation Rather than Savings

Rather than save money, some experts argue accountable care organizations will further inflate prices, as hospitals unite with physicians and other providers against private insurers, according to a report by the Washington Post.

In an article on the effect of hospital mergers on healthcare inflation, the Post referred to a study in the February issue of Health Affairs examining an alliance in California similar to an ACO. The study concluded that if ACOs are able to exert more market power in negotiations, "private insurers could wind up paying more, even if care is delivered more efficiently."

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