Home > Uncategorized > Merging for Market Power—- in Bloomington

Merging for Market Power—- in Bloomington

January 7th, 2010 Leave a comment Go to comments

This is really pretty amazing. The admit that the reason for the merger is so they can charge higher prices to the buyers (the insurance companies):

Clarian Health — the largest health care group in Indiana — is an Indiana-based, private, nonprofit organization that owns or is affiliated with 13 hospitals and health care centers throughout Indiana. It is affiliated with the Indiana University School of Medicine and operates Methodist Hospital, Indiana University Hospital and Riley Hospital for Children, all in Indianapolis, as a single hospital under Indiana law….

He said by taking advantage of economies of scale made possible by being part of a larger organization — allowing the hospital to buy materials and supplies at lower costs and giving it more negotiating leverage with insurance companies — the hospital will be able to, in the long term, slow health care cost increases to patients.

Categories: Uncategorized Tags: