Health Care’s Overlooked Cost Factor (LGH take note)

NEW YORK TIMES: When the Evanston Northwestern Healthcare Corporation merged its two hospitals with the neighboring Highland Park Hospital just north of Chicago 13 years ago, the deal was presented as an opportunity to increase efficiency and improve the quality of patient care.

But when the Federal Trade Commission finally decided to look at the deal, it encountered an entirely different objective: to gain market power…

It was a great deal for the hospitals. The fees they charged to insurers soared. One insurer, UniCare, said it had to accept a jump of 7 to 30 percent for its health maintenance organizations and 80 percent for its preferred provider organizations… (more)

EDITOR: Given the concerns about Evanston Northwestern Healthcare Corporation, Lancaster General Health may be subject to the same scrutiny given its extending its tentacles into virtually all areas of health care in Lancaster County and its growing monopolistic influence over the market place. When the insurance companies have to pay more, then they pass on their costs to the policy holders.

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