The nation’s healthcare CEOs consider consolidation will merely sustain in the years ahead and many are specifically nervous about the affect of the mergers of huge insurance companies.
Modern Healthcare inquired 100 healthcare CEOs—hospital systems, insurance companies, insurers, physician practices, and trade groups—to fill out the survey with how they consider healthcare will establish. The findings: Expect more of the same.
“Big is not better. Better is better,” Joel Allison, the outgoing CEO of Baylor Scott & White Health, informed the magazine, echoing a comment to D CEO in the year 2014. “Scale does have some value, but you just have to do it for the correct reasons.”
The CEOs are eyeing whether the federal government OK’s the merger between the Anthem and Aetna a deal that would consolidate yearly revenue of the country’s 3 greatest insurers to more than $400 billion. The clear unifier of the survey is how that will impact reimbursements: “Look at any market where an insurer has 50% to 60% market share or more; you will see lower reimbursement in those markets without query,” claimed Cathy Jacobson, the CEO of Milwaukee’s Froedtert Health.
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