@TopherSpiro This is great but what do you do with the vast majority of hospitals that don't exist as part of a service area monopoly. Large majority of hospitals operate with negative operating margins how do you reconcile large market dominant players with the vast majority of hospitals
@LorenAdler It also ignores urban and suburban hospitals many of which are also in financial duress and could be pushed over the edge by payer mix shifts and cuts in reimbursement.
@CharlesTXPolicy I think the only miss here is that it seems you're implying that only private equity is doing this, this happens across the "non-profit" providers as well. This is a healthcare issue more than a private equity one.
@MattAFiedler Right but under a global budget model, assuming a shared savings system, providers are incentivized to reduce total cost of care/spend. While the captitated budget might be set at a high rate the actual spend per service gets driven down by the incentive to perform below budget
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@JeromeAdamsMD@cjaysmoma This is wildly irresponsible and something you should know. Undoubtedly medical debt and lack of adequate coverage is a big deal but to take hospital charges and say that's what would be billed to a self pay patient is insane and disrespectful to hospitals across the country.
@onceuponA Hospital financing, I understood what mechanisms were responsible for paying providers had no clue how it fit together and how the market impacts how hospitals are paid.
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@deborahrk@larry_levitt The Medicare ACOs aren't plans, they are provider systems that take on financial risk to care for the patients, it's essentially managed care but provider lead rather than payer lead
@larry_levitt Not to mention that ACOs capture only a fraction of the total medicare budget/lives. Comparing savings to total spend isn't a great metric
@larry_levitt Worth noting the quality programs that go along with the ACO program, it's cost savings with quality improvement incentives. We're getting better care for cheaper. Shows it's worth scaling to all payer types.