M & A in Health care not always a good thing

[Chartreuse Wombat]

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https://www.nejm.org/doi/full/10.1056/NEJMsa1901383?query=TOC

 

[deleted941485]

https://www.nejm.org/doi/full/10.1056/NEJMsa1901383?query=TOC

Can always count on nejm to be at the bleeding edge of new developments in US health care.

 

[seper]

Nice work. Expected results.

 

[Chartreuse Wombat]

Can always count on nejm to be at the bleeding edge of new developments in US health care.

Interesting take on the NEJM

Amazon product ASIN 1641770465

 

[RickyScott]

The purpose of M and A in healthcare is to achieve monopolistic pricing power. Charge whatever you like when you are the only game in that part of town. And for now, heathcare is not regulated like power or water. In fact, even the prices/rates charged to insurances (who are just middlemen) are hidden. Monopolistic- like pricing can also be achieved by an MSKCC/MDACC or academic center with their "name". Cant wait to see the Sh-- on some of the twitter allstar faces if price transparency comes into effect next year. Anecdotally, they can be 3-5x price of a community freestanding center. This is why it makes sense for some of these centers to have protons (at least single gantry), as they can be profitable with the non-straight medicare IMRT pricing. (heard this over and over again from several academic departments). BTW, if 8 gy x 1 cost more than 300 x10, who is choosing wisely?


One of best examples posted on this board last year.

California hospital giant Sutter Health faces heavy backlash on prices

Cooking dinner one night in March, Mark Frizzell sliced his pinkie finger while peeling a butternut squash and couldn’t stop the bleeding.

www.latimes.com

"In his 49-page complaint, Becerra cited a recent study finding that, on average, an inpatient procedure in Northern California costs 70% more than one in Southern California. He said there was no justification for that difference and stopped just short of dropping an expletive to make his point."

Hospital giant Sutter Health faces legal reckoning over medical pricing

A class-action lawsuit against Sutter is set to open this month in San Francisco Superior Court. The hospital giant stands accused of violating California’s antitrust laws by leveraging its market power to drive out competition and overcharge patients.

www.latimes.com

Sutter Health to Pay $575 Million to Settle Antitrust Lawsuit (Published 2019)

The deal resolves allegations of anti-competitive behavior by the large hospital system in Northern California.

www.nytimes.com

 

[DoctwoB]

Already settled. Unclear what this will do for prices moving forward. Sutter Health to Pay $575 Million to Settle Antitrust Lawsuit

 

[OTN]

MDACC is 5x more expensive than we are, with equivalent outcomes, per large payers with whom we contract. I've been trying to get the data to write a study, but it's proprietary, unfortunately.

 

[deleted941485]

MDACC is 5x more expensive than we are, with equivalent outcomes, per large payers with whom we contract. I've been trying to get the data to write a study, but it's proprietary, unfortunately.

Probably why the large academic centers were kinda of meh when it came to hypofrac.

 

[RickyScott]

Probably why the large academic centers were kinda of meh when it came to hypofrac.

in some cases hypofractionation is more profitable. Lets say you are a large center in Manhattan already at capacity. 600 am - 10 pm. You can increase throughput with hypofract.

 

[deleted941485]

in some cases hypofractionation is more profitable. Lets say you are a large center in Manhattan already at capacity. 600 am - 10 pm. You can increase throughput with hypofract.

Exactly and if you have some clout it should be easier to work something out with the payers. It’s those freestanding 10-20 on tx places that will ultimately suffer