Day: March 10, 2010

A. Insurance Companies

B. Sick People

C. Hospitals and Doctors

According to a recent article in the March 1, 2010 Business Insuance, “Clout of Health Care Providers Drives Costs”, the answer is “C”.

“The report, to be published in the April edition of policy and research journal Health Affairs, traces how consolidation of hospital’s and formation of independent physician practice associations in California during the past decade have strenghtened provider’s bargaining power with health plans, leading to higher premiums in that state.”

Molly Mulebriar, our in-house investigative reporterette, received a telephone call yesterday from one of her trusted sources who informs that a national hospital chain, upon learning that a large private employer in South Texas was transitioning their traditional group medical employee welfare program from a PPO plan to a cost-plus hospital reimbursment plan, threatened to shut the door on employees seeking future medical treatment at their facilities. The caller (from the hospital’s corporate headquarters) told the employer that the call was simply a “courtesy call” to let the employer know in advance.

If  true, the public should be outraged.

Molly Mulebriar has attempted to contact the local chapter of the Mafia to confirm this story. Bruno, the receptionist who took her call, promised to get back to her expeditiously.

Editor’s Note: Hospitals, PPO’s and certain insurance companies are worried about the growth of cost-plus hospital reimbursement plans in Texas. The concept is catching on fast amongst cash strapped employers.