In reaction to health reform efforts, U.S. hospitals have accelerated the trend toward acquisition of physician practices. It's estimated that more than half of physician practices are now owned by hospitals or integrated delivery systems (IDSs).
When a clinic system is acquired by an IDS, the ownership change includes both vertical integration with the hospital(s) and horizontal integration with the IDS's previously owned "legacy" clinics, causing increased market concentration in physician services. While there have been previous studies on the impact of hospital market concentration, there have been sparse scientific findings on physician market concentration. The research team analyzed the impact on physician prices when two IDSs acquired three multispecialty clinic systems in the Minneapolis-St Paul market in 2007. To track prices, the team used commercial claims data from Medica health plans from 2006 to 2011.
Theory - IDS - Hospital - Services
"In theory, an IDS providing both hospital and physician services should be able to accept...
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