Patients ‘steered’ toward health systems, more costly treatment after vertical consolidation, study finds

Healthcare DIVE September 5, 2023
Susanna Vogel

Consolidation between primary care physicians and large health systems led to increased costs per patient, according to a new study published in JAMA Health Forum.

Dive Brief:

• Patients were “steered” toward more costly care services in health systems, including increased specialist visits, emergency department visits and hospitalizations, after large health systems took over ownership of primary care practices, according to a study published in JAMA Health Forum last week.
• Vertical consolidation, or when physicians and health systems join through ownership or affiliations, was associated with increased medical spend, but not with decreased readmission rates.
• Policymakers and regulators may need to consider adopting “a portfolio of countermeasures” to limit the impact of rising care costs as vertical healthcare consolidation becomes...

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