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Unintended Consequences Thursday, July 07, 2011 The point, whether it is being made by the policy types or the market, is that we need to lower the cost of healthcare. The point is driving a flurry of activity in every market, including the acquisition of physician practices by the hospital. So tell me how this works? Hospital X acquires Practice Y. Now the diagnostic procedures done in the office of Practice Y are covered under the hospital's contract, which is invariably higher than the contracted rate that was being paid directly to Practice Y. Same procedure being done by the same physician using the same equipment. But the price went up 25%. No wonder the hospital can employ the docs, freeze them at current income levels though reimbursement for their specialty is getting hammered, and still make money off the deal. Exactly how was this considered in the scoring developed by the CBO? |
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