The Coming Demise of PPO Networks


Former Managed Care Intermediary

Legitimate prices mean networks would be obsolete………….

“The Medicare Advisory Commission noted that hospitals “have excess inpatient capacity in most markets.” Hospital occupancy rates average approximately 60%. Technological advances have dramatically shortened inpatient stays. If legitimate pricing existed excess capacity would produce plunging prices – like it does in every free market. Efficient hospitals would thrive and inefficient hospitals would close their doors or be acquired by lower cost operators”.

“Legitimate prices mean networks would be obsolete, along with the administrative burdens, tremendous costs, and limitations on patient choice they impose”.

STEVEN I. WEISSMAN, A Former Hospital President
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