In a new study, researchers linked the growth of vertical integration with price increases for care in Massachusetts, reports Benefits Pro.
The study in Health Affairs noted that vertical integration—where physicians consolidate their services—has been seen as a way to integrate care and create efficiencies. In practice, though, several studies have shown that integration, especially with large health systems, is often linked with higher cost care.
The study comes after years of consolidation in the health care industry across the U.S. The report noted that the practice has led federal and state regulators to increasingly examine such mergers for antitrust issues. “An emerging literature has shown that integration between physicians and hospitals is usually associated with an increase in physician prices, as well as hospital prices,” the report said. Read more.
