Category: Notable Policy Updates

Speaking at the American Hospital Association Annual Meeting, HHS Secretary Azar stated that HHS is “mindful” of how government regulations are driving consolidation in the marketplace. He noted that HHS wants to move to a system where regulations and payment structures are agnostic about ownership structure, pointing out that economics should be driving the market …

Continue reading “HHS Secretary Azar Wants Economics Rather than Regulation to Drive Provider Market”

Congresswoman Diane Black (R-TN) asks expert witnesses what can be done to ensure that independent practices and physician-led groups are well-posited to lead the transition to value-base care and succeed in new payment models.

Expert witnesses provide testimony on healthcare consolidation trends, the reasons behind those trends, and the effect on cost and quality.

HHS requests stakeholder input on state and federal action that can be taken to spur greater competition, noting that “[i]t is reasonable to assume that enhanced competition in both provider and insurance markets could improve…spending trends and the value of health care received.”

The President directed the Administration to ensure that government rules and guidelines meet several policy goals, including re-injecting competition into healthcare markets by lowering barriers to entry, limiting excessive consolidation, and preventing abuses of market power.

In its report, MedPAC discusses the implications for the Medicare program of consolidation in the health care industry, finding evidence that consolidation among and between hospitals and physicians has increased prices without increasing quality.