Hospitals Buying Doctors’ Offices To 'jack' up Prices

tay

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May 20, 2012
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Imagine you’re a Medicare patient, and you go to your doctor for an ultrasound of your heart one month. Medicare pays your doctor’s office $189, and you pay about 20 percent of that bill as a co-payment.


Then, the next month, your doctor’s practice has been bought by the local hospital. You go to the same building and get the same test from the same doctor, but suddenly the price has shot up to $453, as has your share of the bill.


Patients around the country are getting that unpleasant surprise, as more and more doctors’ offices are being bought by hospitals. Medicare, the government health insurance program for those 65 and over or the disabled, pays one price to independent doctors and another to doctors who work for large health systems — even if they are performing the exact same service in the exact same place.


Shifting practice ownership patterns have ripple effects for patients with private insurance, too. Like Medicare, most private insurers pay higher prices to hospitals than to independent doctors.


Private insurers tend to copy many of Medicare’s payment policies. And, in general, large hospital groups tend to have more negotiating clout with insurers, meaning they can bargain for higher prices than smaller practices.




more


http://www.nytimes.com/2015/02/07/upshot/medicare-proposal-would-even-out-doctors-pay.html