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AHA House Statement on "ERISA’s 50th Anniversary: The Path to Higher Quality, Lower Cost Health Care"
AHA comments in response to the House Committee on Education and the Workforce efforts to build upon and strengthen the Employee Retirement Income Security Act (ERISA).
Key Messages on Consolidation
The financial health of the hospital field has been shaken during the pandemic. Health systems have demonstrated benefits. Mergers expand the capacity of smaller and rural hospitals. A focus on hospital consolidation ignores larger market trends. The cost of providing care continues to increase. Critics of mergers too often rely on incomplete evidence. Commercial insurers do not always pass on savings from lower hospital prices.
Market Insights: Evolving Physician-Practice Ownership Models
Physician-practice acquisitions and/or equity investment by such nontraditional players as health plans, private-equity investors, venture capitalists and large employers is an increasing trend. These new entrants give physicians new options for where and how to work. In the shift to value-based care, private-equity firms and new investors can provide physician practices with capital for investments, streamline administrative tasks, use economies of scale for purchasing, improve billing practices, bring in common-practice support tools and analytics, and expand services through digital technology and telehealth. What they promise to deliver is similar to what hospitals and health systems are trying to achieve in the transition to value-based care.