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Fact Sheet: Hospital Mergers and Acquisitions Can Expand and Preserve Access to Care
The Issue
One of the most important tools that hospitals can use to increase access an
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.
Fact Sheet: Reference-based Pricing
Some employers are moving away from offering traditional coverage with a provider network and instead are using reference-based pricing for some or all of services they cover. Under reference-based pricing, the employer (supported by a third party administrator [TPA] or other vendor) pays a set a price for each health care service instead of negotiating prices with providers.