Navigation Links
Fragmented Los Angeles Hospital Market Provides Health Systems with Little Leverage to Negotiate Higher Reimbursement
Date:7/14/2008

Large Number of Hospitals Operating in the Red Compounds Financial

Problems, According to New Report from HealthLeaders-InterStudy

NASHVILLE, Tenn., July 14 /PRNewswire/ -- HealthLeaders-InterStudy, a leading provider of healthcare market intelligence, reports that more than 40 percent of the hospitals in the Los Angeles market are losing money and there's a widening gulf between systems doing relatively well financially and those that are barely staying afloat. According to the newly released Los Angeles Market Overview report, these financial problems are compounded because the hospital market is highly fragmented, meaning systems have little leverage with health plans to negotiate higher reimbursement rates.

"There's an unhealthy imbalance of power between hospitals and health plans in the region," said Dave Raiford, HealthLeaders-InterStudy market analyst and author of the report. "As operating costs continue to climb, margins will narrow and the answer won't be found in higher reimbursements from insurers."

Excluding Kaiser Permanente's hospitals (individual hospital financials are unavailable), 44 percent of the 91 hospitals reporting individual facility financials were operating in the red. The market comprises a host of stand-alone hospitals (57 of the hospitals in the market) and a handful of health systems. The sum of that equation is a fragmented hospital market, which lies at the root of the problems the sprawling Los Angeles market faces in terms of failing hospitals and declining access to care.

With no health system covering more than 10 percent of the market in terms of acute-care beds, providers are at a distinct disadvantage when it comes to negotiating more favorable reimbursement rates from insurers. Excluding Kaiser hospitals and health plan, there are few health systems with any real leverage contending with Anthem Blue Cross of California (owned by WellPoint Inc.), UnitedHealth Group and Health Net. Hospitals may be forced to move toward integrated health systems by expanding their outpatient surgery capacity, medical office space and increase efforts to partner with physician groups.

About Market Overviews

Market Overviews provide a detailed analysis of local healthcare markets, allowing healthcare businesses to plan their local strategies. In addition to the 75 metropolitan statistical areas covered in our individual market reports, HealthLeaders-InterStudy will be producing the following NEW Market Overview reports in 2008:

Wilmington, Del. Columbia, S.C.

Spokane, Wash. Springfield, Mass.

Colorado Springs, Colo. Southern New Jersey

Cape Coral/Fort Myers, Fla. Charleston, S.C.

Madison, Wis. Lexington, Ky.

Portland, Maine Baton Rouge, La.

About HealthLeaders-InterStudy

HealthLeaders-InterStudy is the authoritative source for managed care data, analysis, and news. For more information, please visit http://www.HealthLeaders-InterStudy.com.

All company, brand, or product names contained in this document may be trademarks or registered trademarks of their respective holders.

For more information, contact:

Elizabeth Marshall

Decision Resources

781-296-2563

emarshall@dresources.com


'/>"/>
SOURCE HealthLeaders-InterStudy
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Children with Down Syndrome sleep poorly and have more fragmented sleep
2. Medical Director for Renowned Los Angeles Jewish Home Offers Top Tips to Elderly in Coping With Searing Temperatures Across U.S.
3. Sport Chalet Opens Store in West Los Angeles
4. Los Angeles Jewish Home Institutes New Fall Prevention Program With Jewish Community Foundation Grant
5. Rotary Brings the World to Los Angeles
6. Los Angeles Jewish Home Increases Resident Capacity and Adds New Programs to Address Community Needs
7. Record-Breaking AIDS/LifeCycle Pedals into Los Angeles, Raising AIDS Awareness, $11.6 Million for HIV/AIDS Services
8. SAMHSA Honors The Sopranos, Monk, Dirt at Star-Studded Voice Awards in Los Angeles
9. Photos: Los Angeles Non Profit Teams With US Troops Stationed in Baghdad and Buaytha in Bringing a 5-Year-Old Blind Iraqi Girl, Whose Father Stands Beside US Combat Team Against Al Qaeda, to the US for a Groundbreaking Artificial Corneal Transplant Surger
10. 2,500 Riders in AIDS/LifeCycle Set to Leave San Francisco June 1, Bound for Los Angeles, Raising a Record $11+ Million for HIV/AIDS Services
11. Los Angeles Based Operation USA Appeals for Funds to Aid in Myanmar (Burmese) Cyclone Disaster (Updated)
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:6/24/2016)... ... June 24, 2016 , ... A recent article published June ... with. The article goes on to state that individuals are now more comfortable seeking ... common operations such as calf and cheek reduction. The Los Angeles area medical group, ...
(Date:6/24/2016)... ... 2016 , ... June 19, 2016 is World Sickle Cell Observance Day. In ... benefits of holistic treatments, Serenity Recovery Center of Marne, Michigan, has issued ... Sickle Cell Disease (SCD) is a disorder of the red blood cells, which can ...
(Date:6/24/2016)... ... 2016 , ... The Pulmonary Hypertension Association (PHA) learned during ... two significant new grants to support its work to advance research and patient ... recognizing patients, medical professionals and scientists for their work in fighting pulmonary hypertension ...
(Date:6/24/2016)... ... June 24, 2016 , ... ... for accelerated orthodontic treatment. Dr. Cheng has extensive experience with all areas of ... AcceleDent, and accelerated osteogenic orthodontics. , Micro-osteoperforation is a revolutionary adjunct to ...
(Date:6/24/2016)... ... ... BioMedics, Inc, makers of Topricin and MyPainAway Pain Relief Products, join The ‘Business for a ... an hour by 2020 and then adjusting it yearly to increase at the same rate ... assure the wage floor does not erode again, and make future increases more predictable. , ...
Breaking Medicine News(10 mins):
(Date:6/24/2016)... BEIJING , June 24, 2016 Dehaier ... or the "Company"), which develops, markets and sells medical ... China , signed a strategic cooperation agreement with ... as "Hongyuan Supply Chain") on June 20, 2016, to ... Under the strategic cooperation agreement, Dehaier will leverage Hongyuan ...
(Date:6/24/2016)... 24, 2016 Research and Markets has ... Companion Diagnostic Tests" report to their offering. ... Diagnostics The World Market for Companion Diagnostics ... diagnostics. Market analysis in the report includes the following: ... Vitro Diagnostic Kits) by Region (N. America, EU, ROW), 2015-2020 ...
(Date:6/24/2016)... LEXINGTON, Mass. , June 24, 2016   ... specialty pharmaceutical company developing innovative inhaled drugs, announced today ... when Russell Investments reconstituted its comprehensive set ... 2016. "This is an important milestone for ... "It will increase shareholder awareness of our progress in ...
Breaking Medicine Technology: