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Hospital costs make up the largest component of spend for any employer-sponsored health plan. An article by The Commonwealth Fund describes four successful collective purchaser-led efforts that significantly lowered prices. The article provides several links to charts and graphics that describe the deteriorating employer landscape.
What’s fueling premium hikes in the private health insurance market?
- Largely rising prices, not greater use of services
- Consolidation of hospitals and physician practices contributes to higher prices
- Commercial insurers have also consolidated, but they haven’t used their market power to rein in prices
It will require local executives willing to take bold action and sufficient competition to leverage in negotiations. The experiences of those who have achieved success suggest the following lessons for others.
- Transparency is paramount
- Align interests among as many stakeholders as possible
- Widespread changes may require policy reforms
You can find several useful tools in the HBCH website section Hospital Transparency. Contact info@houstonbch.org to schedule a tour of these tools.
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