Prices rise after health care providers consolidate

07/26/2013 | CNBC

Health care prices are climbing as hospitals and health systems buy up provider practices and drugmakers raise prices on specialty drugs. A recent PricewaterhouseCoopers Health Research Institute study found that provider consolidation pushes prices up to 20% higher, though hospital leaders argue consolidation may create efficiencies that eventually drive prices down. One key factor is that Medicare reimburses certain procedures at a higher rate for the same services when they are performed in a hospital setting rather than a clinical setting.

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