As PCPs Integrate with Health Systems, Steering Increases Costs

Does vertical integration in healthcare have effects on quality of care provided? This article by RevCycleIntelligence analyzes a Harvard University report which studied the rising trend of PCPs joining hospital systems and its impacts.

• The observation of 4 million commercially insured patients in MA treated by physicians who had recently aligned with a health system revealed a link between vertical relationships between PCPs and health systems and a 22.64% increase in specialist visits per patient-year, termed as "steering."

• There was no difference in readmission outcomes between newly integrated PCPs and other physicians studied.

• Researchers wondered if these findings were indicative of better care coordination or increased costs and limited benefits, especially since readmission rates were similar.

The article concluded that "vertical integration may come with some benefits depending on the relationship between physicians and health systems and financial incentives. However, the impact this type of consolidation has on quality of care and costs remains to be conclusive."