The Role of Competition

Title	Date
Private Health Plans Pay Hospitals Much Higher Prices in Indiana than in Michigan: Explanations and Implications Premiums for employer-sponsored health insurance have been growing at a rate well above growth in wages or overall inflation. Excess premium growth, in turn, suppresses wage growth and creates financial hardship for the middle class while, at the same time, reducing government tax revenues and employment. Spending on hospital care…	May 12, 2020
Assessing Responses to Increased Provider Consolidation in Six Markets: Final Report Few communities in the United States have been exempt from the recent wave of consolidation among health care providers, whether it is hospital-to-hospital mergers and acquisitions (horizontal consolidation) or hospital acquisitions of physician groups and other ambulatory service providers (vertical consolidation). Increased provider concentration has been demonstrated to lead to…	October 28, 2019
Assessing Responses to Increased Provider Consolidation in Three Markets: Detroit, Syracuse and Northern Virginia Rising health care prices have increased concerns about hospital and health system consolidation among policymakers, regulators, employers, and other purchasers of health coverage. Although merging hospitals and health systems claim they can achieve greater efficiencies through their consolidation, the economic literature almost universally finds that hospitals that merge have prices…	November 29, 2018
Case Study Analysis: The Detroit Health Care Market Rising health care prices have increased concerns about hospital and health system consolidation among policymakers, regulators, employers, and other purchasers of health coverage. Although merging hospitals and health systems claim they can achieve greater efficiencies through their consolidation, the economic literature almost universally finds that hospitals that merge have prices…	November 15, 2018
Case Study Analysis: The Syracuse Health Care Market Rising health care prices have increased concerns about hospital and health system consolidation among policymakers, regulators, employers, and other purchasers of health coverage. Although merging hospitals and health systems claim they can achieve greater efficiencies through their consolidation, the economic literature almost universally finds that hospitals that merge have prices…	November 14, 2018
Case Study Analysis: The Northern Virginia Health Care Market Rising health care prices have increased concerns about hospital and health system consolidation among policymakers, regulators, employers, and other purchasers of health coverage. Although merging hospitals and health systems claim they can achieve greater efficiencies through their consolidation, the economic literature almost universally finds that hospitals that merge have prices…	October 15, 2018
Location, Location, Location: Hospital Outpatient Prices Much Higher than Community Settings for Identical Services NIHCR Research Brief No. 16 Average hospital outpatient department prices for common imaging, colonoscopy and laboratory services can be double the price for identical services provided in a physician’s office or other community-based setting, according to a study by researchers at the former Center for Studying Health System Change (HSC). Using private insurance claims data…	June 26, 2014
High and Varying Prices for Privately Insured Patients Underscore Hospital Market Power HSC Research Brief No. 27 Across 13 selected U.S. metropolitan areas, hospital prices for privately insured patients are much higher than Medicare payment rates and vary widely across and within markets, according to a study by the Center for Studying Health System Change (HSC) based on claims data for about 590,000 active and retired nonelderly…	September 4, 2013
Contrary to Cost-Shifting Theory, Lower Medicare Hospital Payment Rates for Inpatient Care Lead to Lower Private Payment Rates Health Affairs, Vol. 32, No. 5 Many policy makers believe that when Medicare constrains its payment rates for hospital inpatient care, private insurers end up paying higher rates as a result. I tested this “cost-shifting” theory using a unique new data set that combines MarketScan private claims data with Medicare hospital cost reports. Contrary to the…	May 6, 2013
Addressing Hospital Pricing Leverage through Regulation: State Rate Setting NIHCR Policy Analysis No. 9 Although U.S. health care spending growth has slowed in recent years, health spending continues to outpace growth of the overall economy and workers’ wages. There are clear signs that rising prices paid to medical providers—especially for hospital care—play a significant role in rising premiums for privately insured people. Over the…	May 8, 2012
Limited Options to Manage Specialty Drug Spending HSC Research Brief No. 22 Spending on specialty drugs typically high-cost biologic medications to treat complex medical conditions is growing at a high rate and represents an increasing share of U.S. pharmaceutical spending and overall health spending. Absence of generic substitutes, or even brand-name therapeutic equivalents in many cases, gives drug manufacturers near-monopoly pricing power…	April 16, 2012
Hospital Geographic Expansion: The New Medical Arms Race? Health Affairs, Vol. 31, No. 4 The emphasis that hospitals place on cutting-edge technology and niche specialty services to attract physicians and patients has set the stage for health care’s most recent competitive trend: an increased level of targeted, geographic service expansion to “capture” well-insured patients. Researchers conducted interviews in twelve U.S. communities in 2010 and…	April 9, 2012
State Benefit Mandates and National Health Reform NIHCR Policy Analysis No. 8 From requirements that insurers cover prescription drugs to services of chiropractors, state health benefit mandates have a long and controversial history. Critics contend mandates drive up health insurance costs, while advocates assert they ensure access to important care. The 2010 national health reform law requires states to pay for mandated…	February 29, 2012
Health Status and Hospital Prices Key to Regional Variation in Private Health Care Spending NIHCR Research Brief No. 7 Differences in health status explain much of the regional variation in spending for privately insured people, but differences in provider prices—especially for hospital care—also play a key role, according to a study by the Center for Studying Health System Change (HSC) based on claims data for active and retired nonelderly…	February 15, 2012
Indianapolis Hospital Systems Compete for Well-Insured, Suburban Patients Community Report No. 12 Indianapolis’ major hospital systems continue to encroach on each other’s traditional territories, engaging in a battle of bricks and mortar in suburban areas to compete for well-insured patients, according to a new Community Report released today by the Center for Studying Health System Change (HSC). The study was funded jointly…	December 30, 2011
Promoting Healthy Competition in Health Insurance Exchanges: Options and Trade-offs NIHCR Policy Analysis No. 6 Under national health reform, new federal rules will govern the nongroup and small-group health insurance markets, including a requirement for state-based health insurance exchanges, or marketplaces, to be operational by Jan. 1, 2014. Between now and then, both the federal government and states must make key decisions about the design…	November 9, 2011
Reforming Provider Payment—The Price Side of the Equation New England Journal of Medicine, Vol. 365, No. 14 It's pretty basic economics: spending equals price times quantity. For some time, public health care payers, such as Medicare and Medicaid, have focused much of their cost-containment effort on constraining the prices they pay for health care services, which they set administratively. The Affordable Care Act includes additional constraints on…	October 6, 2011
Economic Downturn Strains Miami Health Care System Community Report No. 11 In September 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited Miami to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 45 health care leaders, including representatives of…	September 29, 2011
Health Care Provider Market Power Congressional Testimony Statement of Paul B. Ginsburg, Ph.D. President,Center for Studying Health System Change Research Director, National Institute for Health Care Reform (NIHCR) Before the U.S. House of Representatives Ways and Means Committee, Subcommittee on Health Hearing on "Health Care Industry Consolidation" Chairman Herger, Congressman Stark and members of the Subcommittee, thank…	September 9, 2011
Rising Hospital Employment of Physicians: Better Quality, Higher Costs? HSC Issue Brief No. 136 In a quest to gain market share, hospital employment of physicians has accelerated in recent years to shore up referral bases and capture admissions, according to the Center for Studying Health System Change’s (HSC) 2010 site visits to 12 nationally representative metropolitan communities. Stagnant reimbursement rates, coupled with the rising…	August 18, 2011
Physicians Key to Health Maintenance Organization Popularity in Orange County Community Report No. 10 In June 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited Orange County, Calif., to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 45 health care leaders, including…	August 11, 2011
Syracuse Health Care Market Works to Right-Size Hospital Capacity Community Report No. 9 In October 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Syracuse metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 40 health care leaders,…	August 4, 2011
Economic Downturn Slows Phoenix’s Once-Booming Health Care Market Community Report No. 8 In July 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Phoenix metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 45 health care leaders,…	July 21, 2011
Key Findings from HSC’s 2010 Site Visits: Health Care Markets Weather Economic Downturn, Brace for Health Reform HSC Issue Brief No. 135 Lingering fallout—loss of jobs and employer coverage—from the great recession slowed demand for health care services but did little to slow aggressive competition by dominant hospital systems for well-insured patients, according to key findings from the Center for Studying Health System Change’s (HSC) 2010 site visits to 12 nationally representative…	May 26, 2011
Health Care Certificate-of-Need (CON) Laws: Policy or Politics? NIHCR Research Brief No. 4 Originally intended to ensure access to care, maintain or improve quality, and control capital expenditures on health care services and facilities, the certificate-of-need (CON) process has evolved into an arena where providers often battle for service-line dominance and market share, according to a new qualitative research study from the Center…	May 19, 2011
Lansing’s Dominant Hospital, Health Plan Strengthen Market Positions Community Report No. 7 In August 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Lansing metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 40 health care leaders,…	March 22, 2011
Greenville & Spartanburg: Surging Hospital Employment of Physicians Poses Opportunities and Challenges Community Report No. 6 In July 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Greenville-Spartanburg metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 45 health care leaders,…	February 24, 2011
Little Rock Health Care Safety Net Stretched by Economic Downturn Community Report No. 5 In May 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Little Rock metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 40 health care…	January 24, 2011
Northern New Jersey Health Care Market Reflects Urban-Suburban Contrasts Community Report No. 4 In May 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the northern New Jersey metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 40 health…	December 24, 2010
Seattle Hospital Competition Heats Up, Raising Cost Concerns Community Report No. 3 In April 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study (CTS), visited the Seattle metropolitan area to study how health care is organized, financed, and delivered in that community. Researchers interviewed more than 50 health care leaders,…	December 10, 2010
Cleveland Hospital Systems Expand Despite Weak Economy Community Report No. 2 In March 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study, visited the Cleveland metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 45 health care leaders, including…	September 29, 2010
State Reform Dominates Boston Health Care Market Dynamics Community Report No. 1 In March 2010, a team of researchers from the Center for Studying Health System Change (HSC), as part of the Community Tracking Study, visited the Boston metropolitan area to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 50 health care leaders, including…	September 1, 2010
Detroit: Motor City to Medical Mecca? Detroit Community Report In February 2010, a team of researchers from the Center for Studying Health System Change (HSC) visited the Detroit metropolitan area on behalf of the National Institute for Health Care Reform to study how health care is organized, financed and delivered in that community. Researchers interviewed more than 55 health…	August 26, 2010

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The Role of Competition