Fierce Health Payers May 7, 2021
Medicare spending on imaging and lab services increased by $73 million after a hospital or health system acquired a physician practice, according to a new study that raises questions about the benefits of vertical healthcare integration.
The study, released Wednesday in the journal Health Affairs, is the latest to explore how the trend of hospitals buying up practices is affecting healthcare prices and spending. A major reason for the increase in spending is physician offices moving more services to the hospital, which charge Medicare more than nonhospital providers.
The study looked at Medicare fee-for-service claims data from 2013 to 2016. It examined if hospital or health system ownership of physician practices were “associated with changes in the site of care...