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Friday, May 25, 2012

Study: Hospitals Use Sophisticated Strategies To Increase Ability To Demand High Prices.

The National Journal Share to FacebookShare to Twitter (5/8, Sanger-Katz, Subscription Publication) reports, "Hospitals are using sophisticated strategies to increase their ability to demand high prices from insurers, a new study in Health Affairs suggests." The report indicates that "hospitals are now focusing on purchasing hospitals and services considered "must have" or buying hospitals spread throughout a state or region to improve their negotiating clout." Additionally, "according to the study's authors, hospital executives saw the employment of doctors as a further strategy to lock in favorable contract terms."
        According to Politico Share to FacebookShare to Twitter (5/8, Dobias), "the article doesn't attempt to resolve the dispute in health policy circles over whether new models in the health law, like accountable care organizations, will pave the way for high quality and efficiency or lead to new hospital-dominated monopolies as the leading hospitals absorb physician practices and smaller health centers and increase their clout."

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