tag:blogger.com,1999:blog-32053362.post2906747738971758184..comments2024-03-26T00:25:34.026-04:00Comments on Not Running a Hospital: Leading? Hardly.Paul Levyhttp://www.blogger.com/profile/17065446378970179507noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-32053362.post-57603261966333298802014-07-12T13:02:57.754-04:002014-07-12T13:02:57.754-04:00I wonder what percentage of PHS’ inpatient and out...I wonder what percentage of PHS’ inpatient and outpatient caseload is being referred to their system by doctors not employed by or affiliated with PHS. If these doctors presumably know that PHS’ contract prices are significantly higher than competitors, then why are they referring patients there, especially for routine care that can be done perfectly well just about anywhere? Do patients prefer to go to PHS hospitals because the amenities are better and they’re insulated from the incremental cost? If so, a strong case can be made for insurers to make sure that patients share incremental cost through network tiering.<br /><br />I also wonder about overall hospital capacity and occupancy rates in the Boston market. If some of the Steward hospitals start to close in the next 12-24 months, can those patients easily be absorbed by the remaining hospitals? In theory, it’s possible that there will be fewer inpatient bed days systemwide and fewer outpatient procedures performed so even if the majority of that business moves to PHS, total medical costs in the Boston region could still fall. <br /><br />I don’t fully understand why employers and unions are so accepting of PHS’ market dominance. The only thing I can think of us that they only have so much political capital and can only fight so many battles at once and this battle doesn’t make the cut, at least for now.<br /><br />Barry Carolnoreply@blogger.com