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:8/19/2017)... San Diego, CA (PRWEB) , ... August 19, 2017 , ... ... Neo-Nazis, and the KKK by saying there are two sides. There are not two ... merely a way to rationalize violence and prejudice, and the NPEIV stands against all ...
(Date:8/18/2017)... ... , ... More than 20,000 pairs of shoes made their way across the ... venture that conjoined the passions of an NBA star, a Liberty University student, and ... shoes will save lives from the rampant infections transmitted through the soil. , AMERICAN ...
(Date:8/18/2017)... ... August 18, 2017 , ... Mediaplanet today announces the launch ... lifestyles and highlighting the importance of proactive eye and ear health. The campaign ... latest innovations in hearing aid technology. , In this issue, the American ...
(Date:8/18/2017)... (PRWEB) , ... August 18, 2017 , ... ... and financial planning services to communities in east Texas, is launching a regional ... Tumor Foundation. , Founded in 1991, the Pediatric Brain Tumor Foundation (PBTF) has ...
(Date:8/18/2017)... , ... August 18, 2017 , ... “Emotions are sacred, ... Founder of St. Louis-based positive education company Generation Mindful. To help change the mindset ... learn social and emotional skills, she created the Time-In Toolkit, which launched on Kickstarter ...
Breaking Medicine News(10 mins):
(Date:8/15/2017)... , Aug. 15, 2017  AOTI Inc. announced today that ... Therapy Inc., has recently opened a New York City Office in ... usage of its unique Topical Wound Oxygen (TWO 2 ) homecare ... the Accreditation Commission for Health Care (ACHC) under the company,s DMEPOS ... ...
(Date:8/8/2017)...   Second-quarter 2017 revenues of ... share from continuing operations ... to $110 million Second-quarter ... million Second-quarter 2017 adjusted ... 8 percent to $0.93 ...
(Date:8/7/2017)... , Aug. 7, 2017  Endo International plc (NASDAQ: ... agreements to resolve virtually all known U.S. mesh product ... to resolve the known remaining U.S. claims at reasonable ... beginning in the fourth quarter of 2017 and continuing ... its second quarter 2017 results, the Company intends to ...
Breaking Medicine Technology: