Tuesday, May 27, 2014

Health Sectors, Unite?

Here's an article about the continued teamwork of Health Insurers and Hospitals with health care.

http://www.nytimes.com/2014/05/26/upshot/when-hospital-systems-buy-health-insurers.html?ref=economy

What do you think about the team up of the two different sectors? Are there any obstacles that may appear in this teamwork in the long run? How beneficial is it to the people buying health insurance?

2 comments:

  1. Initially I think this could be very beneficial to people buying health insurance. However, as the article warns, they may be able to drive competitors out of the market and gain monopoly power. Therefor I think a merger such as this must be closely regulated.

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  2. Uhm, I am skeptical about the power the healthcare provider and the insurance provider will have over patients once they are combined. Yet it may be true that they can devise better incentives and save operation cost. The concern regarding healthy competition and "too big to fail," for lack of better word, is still worthy of attention.

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