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Case Study: Hospital Avoidation

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Dominick
I agree, multihospital systems hospital consolidation has had an impact on the hospital networks of health plans. When hospitals merge into regional MSHs, the competition is eliminated then they have greater power to negotiate an increase in their rates. In addition, large MSHs require that all hospitals in their system be included in a payer and seller condition contract with the hospital. They also buy practices and hire community physicians who are looking for opportunities. The addition within the MSH has provided negotiation power for increases in physician fees.

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