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Purchasers view specialty hospitals as spurring medical arms race

Published in Hospital Law Weekly, February 16th, 2006

Purchasers in three communities with significant specialty hospital development - Indianapolis, Little Rock, and Phoenix - generally believe specialty hospitals are contributing to a medical arms race that is driving up costs without demonstrating clear quality advantages, according to a study released January 25, 2006, by the Center for Studying Health System Change (HSC).

While specialty hospitals have received significant scrutiny in relation to Medicare payment policies, the new HSC study focuses on the impact of specialty hospitals on employer-sponsored health coverage and local healthcare market dynamics. Health plans and employers in the three communities have...

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Source: Hospital Law Weekly (2006-02-16)

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