When the giant Partners Healthcare consortium in the Boston area kicked out 300 physicians, it could have been bad for the physicians. According to an article on Boston.com, the Northeast Health System successfully negotiated contracts with Massacusett’s largest insurers that will pay fees comparable to those negotiated by Partners. Northeast Health System owns the physicians group, Beverly Hospital, Addison Gilbert Hospital in Gloucester and mental health, substance abuse and senior citizens care facilities. Partners Healthcare includes Brigham and Women’s Hospital, Mass General, and so on. The offense? It seems that Northeast and their physicians had referral arrangements for cardiology and oncology that were outside of the Partners system. Partners is now spending $100 million on an outpatient facilty that will compete directly with a Northeast facilty.
That’s right – spend money on bricks and mortar. Value, folks – it’s about value.
Sigh. Market forces are not always a good thing.