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Monthly Archives: October 2013

There are several sides of any story regarding hospital mergers and cost increases

Posted on October 31, 2013

Editor’s Note:  See  a CRE report which gives the other side of this story.

 

Hospital mergers may drive up costs

 By Robert Weisman , THE BOSTON GLOBE

The merger wave sweeping up Massachusetts hospitals and doctors threatens to increase health care prices and widen the payment gap between providers, according to warnings from industry leaders, health insurers, and regulators at a hearing Wednesday.

Talk of consolidation dominated the second of two days of hearings convened by the state Health Policy Commission, which monitors cost trends and seeks to rein in the medical spending that has become a drag on businesses, families, and governments.

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Reform Update: ACA will accelerate hospital mergers, Moody’s says

Posted on October 30, 2013

Modern Healthcare

By Melanie Evans
The pace of healthcare mergers and acquisitions will pick up as the healthcare reform law gives for-profit hospitals and health systems greater incentive to grow and diversify, analysts at Moody’s Investors Service said this week.

“As hospital operators prepare for the implementation of the broader reaching aspects of healthcare reform, acquisition activity is likely to continue, in some cases driving up leverage and requiring considerable integration efforts,” said Moody’s analysts who follow the nation’s for-profit hospital operators in a report released this week.

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“The obvious driver is the Affordable Care Act “

Posted on October 29, 2013

M&As to Continue with Smaller Deals

Rene Letourneau, for HealthLeaders Media

Don’t look for a slowdown in healthcare mergers and acquisitions anytime soon. While the era of mega mergers has peaked, one observer says to watch for robust consolidation activity among small health systems and stand-alone hospitals.

How are hospitals and health systems preparing for the financial effects of health insurance exchanges and other key pieces of health reform legislation? One popular strategy that is unlikely to abate any time soon is to consolidate with other providers.

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The FTC Paradigm Shift In Hospital Mergers

Posted on October 28, 2013

 Editor’s Note:  CRE has stated in a number of posts on this Interactive Public Docket that the  FTC move from concentrating on market share  to the bargaining leverage of  hospitals/physicians is a major shift in the historical paradigm used to evaluate hospital mergers.

Consequently CRE will be forwarding to the FTC and DOJ its views for addressing this paradigm shift. Readers having relevant information should send it to :  Jim  Tozzi      tozzi@thecre.com 

Google Tozzi OIRA

 

St. Luke’s trial could affect the future of hospital-doctor buyouts

Idaho Statesman

By AUDREY DUTTON — adutton@idahostatesman.com

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Supplemental Longitudinal Analysis of Berenson 2012

Posted on October 25, 2013

CRE’s analysis of the Berenson 2012 study on hospital clout analyzed the research against federal data quality standards and found numerous shortcomings, one of which relates to Berenson’s inappropriate use longitudinal data.  Section IV of the CRE analysis, “Statistically Sound Longitudinal Surveys are Not the Basis of Berenson 2012” has now been supplemented with a detailed analysis of Berenson’s critical shortcomings in using longitudinal data as a basis for conclusions regarding hospital clout.

CRE’s supplemental analysis, Longitudinal Survey is not Relevant Basis for Berenson Study is attached here.

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This Time the EU Has It Correct: Clear Guidance Is Needed on the Analysis of Hospital Mergers

Posted on October 25, 2013

Editor’s Note:  Shortly  CRE will be communicating its views on this matter to the Department of Justice and the FTC.  See this post  for one example of  the need for such an action. Those of you that have relevant data should submit it to CRE.

 Expert welcomes “clearer guidance” on hospital mergers from Competition Commission and Monitor

Out-law.com

A competition law expert has welcomed “clearer guidance” from regulators on what healthcare providers need to do in order to achieve a successful merger.24 Oct 20.

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What Constitutes a Hospital Merger?

Posted on October 24, 2013

Editor’s Note: In evaluating the impact of hospital mergers, the FTC would have to specify a definition of what what the term means so as to cover situations such as the following alliance between the Cleveland Clinic and MedStar.

From: Washington Business Journal

MedStar wins special status with Cleveland Clinic

Ben Fischer

The Cleveland Clinic already has 14 heart-care “affiliate” hospitals throughout the country, members of a program that sends the clinic’s expert doctors to smaller hospitals to manage their cardiology programs for a fee.

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The Supreme Court Decision Which Reinforced the FTC’s Antitrust Manadate

Posted on October 24, 2013

Editor’s Note:  A number of our readers  are not familiar with the  reach of the recent Supreme Court decision regarding the FTC.  Accordingly we are reproducing this excellent coverage compiled by the WSJ in February of this year.

 

FTC Gets More Muscle in Policing Hospital Mergers

 Brent Kendall

WASHINGTON—The Supreme Court on Tuesday gave more muscle to federal antitrust enforcers’ ability to police hospital mergers, the latest win for the government in its campaign to monitor the fast-consolidating industry.

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The Forceful Hand of the FTC at Work

Posted on October 23, 2013

Editor’s Note :There may be disagreements over the relative clout of insurance companies and hospitals but there can be little disagreement over the clout of the FTC.

The following set of articles is drawn from a series of stories written by the Idaho Statesman; The articles are very informative in that they describe in non-technical terms the issues associated with mergers.

 The FTC goes head-to-head with a long time associate of the Editor when both worked in the Pentagon during the Johnson Administration; an individual who is nationally recognized as an expert in healthcare.

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Consolidation of Big Hospital Systems May Drive Healthcare Costs Even Higher, Say Some Experts

Posted on October 22, 2013

Editor’s Note:  See this CRE study which debunks a number of the claims made in the following article.
 

DarkDaily.com

Recent hospital mergers are creating super-sized health systems that immediately gain leverage over insurers when negotiating managed care contracts

Experts say the nation is experiencing its biggest surge in hospital mergers in more than a decade. Moreover, this latest wave of deals is creating supersized hospital systems that are expected to dominate healthcare and possibly lead to higher healthcare costs.

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