• Baker Institute: Vertical agreements aren’t always anti-competitive

    In association with the Baker Institute’s Oct 25th conference on health care reform, I have a post up that explains how some kinds of vertical integration can be pro-competitive. Go read it.

    Also, videos of the proceedings of the conference are online here.

    @afrakt

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    • Frakt’s paper with Pizer and Feldman concludes that vertical integration in the context of Medicare Advantage actually increased costs (while improving quality). I’m surprised. My experience is that clinically integrated providers are paid less, so my expectation is lower overall costs. Do I pay for access to the full article or wait for Frakt to share his observations regarding the article’s findings?

      • I’ve blogged on the paper. Did you search yet?

        • The link to the article at Wiley has the paywall. Anyway, I should mention that what hospitals pay physicians is different from (less than) what hospitals obtain for reimbursement for the physicians’
          services. Indeed, my experience is that many hospitals can obtain higher reimbursement rates (non-Medicare) for physicians’ services (as compared to the rates obtainable by the physicians) due, at least in part, to greater market power.