HEALTHCARE COSTS
The Source Roundup: August 2023 Edition
Mary Mitchell, Student Fellow August 1, 2023
This month’s roundup of studies and reports highlights growing consolidation in health care as well as increasing costs of care. One report predicts higher medical costs in 2024—a trend that continued from the last two years. Another report highlights that policy efforts to reduce facility fees charged by hospitals are a potential avenue for controlling costs. Global capitation, in particular one value-based model utilized in Maryland, may help reduce the cost of specialty care delivery. Meanwhile, trends in the size of physician practices and recent M&A activity are indicators of …
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The Source Roundup: July 2023 Edition
Mary Mitchell, Student Fellow July 3, 2023
Summer is here, and we hope you can enjoy some vacation time. Whether you’re at work or on the beach, our July roundup brings you the highlights of recent healthcare pricing and competition studies and reports. First, we share several articles that discuss the potential for anticompetitive impacts from consolidation through collaborative agreements and cross-market mergers, two types of lesser-examined transactions that more easily escape regulatory scrutiny. Next, we share an American Hospital Association fact sheet that spotlights insurer policies and acquisitions as under recognized contributors to the changing landscape …
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Governor Newsom’s May Revision to California 2023-2024 State Budget
Mary Mitchell, Student Fellow June 14, 2023
On May 12, California Governor Gavin Newsom released the May Revision to his January proposal for California’s 2023-2024 budget. The so-called “May Revise” lays out a $306.5 billion budget for total state funds,[1] up from $296.9 billion in January’s proposal.[2] The higher budget also includes a higher deficit due to unexpectedly low tax revenues:[3] the plan now anticipates a $31.5 billion shortfall,[4] about $10 billion more than predicted in January.[5] Despite the deficit, the revised budget proposal avoids cuts for core health programs and services,[6] as the Governor continues to …
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2023 California Healthcare Bills Part 2: System Reform, Transparency, and Prescription Drug Costs
Rachel Ng, Student Fellow May 12, 2023
In the previous issue of the California Legislative Beat, we examined healthcare bills introduced in the 2023-2024 legislative term that target healthcare consolidation and competition in California (see 2023 California Healthcare Bills – Part 1). In this second part of the two-part series, we explore some newly proposed bills that seek to increase access to care, control costs, and improve transparency in data and prices. System Reform and Access California is a leader in innovative healthcare policy and initiatives, particularly to increase patients access to care while lowering overall …
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The Source Roundup: April 2023 Edition
Rachel Ng, Student Fellow April 3, 2023
With the healthcare market at the most consolidated it has ever been, both federal and state action is needed to ensure health care systems provide high-quality, affordable care that is accessible. In this month’s roundup, we begin with several publications authored by The Source team on the ramifications of consolidation and the role of federal and state antitrust enforcers. Researchers also considered whether health care providers and insurers have returned to pre-pandemic performance levels. With the rise of health care spending and health care costs, understanding these trends becomes especially …
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Revolutionizing Medi-Cal: The Potential Impact of California’s CalAIM Initiative
Rachel Ng, Student Fellow March 15, 2023
California’s Medi-Cal program is the largest Medicaid program in the country. It is tasked with providing care for approximately 15 million enrollees, or one third of California’s population. To ensure affordability while maintaining quality and improving health care outcomes, CalAIM was created as California’s newest approach to reform Medi-Cal, including changes to managed care plans and reimbursement of behavioral health plans. Although many of these objectives under CalAIM are still in the initial implementation stages, the potential ramifications of this multi-year, billion-dollar investment in changing how millions of people receive …
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The Source Roundup: March 2023 Edition
Rachel Ng, Student Fellow March 1, 2023
This month’s Roundup focuses on articles and reports examining price transparency efforts at both the state and federal levels as well as new recommendations for policymakers on effective healthcare cost containment strategies. States continue to address the lack of knowledge available to the public with all-payer claims databases. Federally, the implementation of new price transparency rules requiring reporting from health care providers and insurers have been examined for compliance and limitations. In addition to price transparency, to get to the bottom of healthcare affordability concerns, researchers and experts are suggesting …
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Governor Newsom’s Healthcare Budget Proposal for 2023-2024
Rachel Ng, Student Fellow February 15, 2023
On January 10, California Governor Gavin Newsom released his proposed budget of $296.9 billion in total state funds for the 2023-2024 fiscal year.[1] Even with the anticipated $22.5 billion shortfall in the budget and 7% decrease in last year’s implemented and revised budget, the Governor did not propose any cuts towards health care coverage for all Californians. The proposed budget sought to maintain Medi-Cal expansion, reduce prescription drug costs, and bolster mental and behavioral health services as key healthcare priorities for the state.[2] Health and Human Services expenditures were the …
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Source Executive Editor to Appear on Connecticut CTNetworkTV to Discuss Healthcare Cost Drivers and Solutions
Amy Y. Gu, Managing Editor February 2, 2023
Updated: February 6, 2023 On Friday, February 3, Source Executive Editor Katie Gudiksen will speak at the Connecticut & U.S. Healthcare Cost Drivers Informational Session II regarding rate review and global budgets. This is an all-day event jointly hosted by the Connecticut Insurance Department, Office of Health Strategy, and Office of the Healthcare Advocate (OHA). It will be broadcast live on the Connecticut CTNetworkTV @9AM – 3PM EST on https://ct-n.com/ and recorded for future viewing. Updated 2/6: Recording is now available here. Katie’s presentation “Roadmap to Constrain Commercial Health Care …
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The Source Roundup: February 2023 Edition
Rachel Ng, Student Fellow February 1, 2023
Articles and reports published in the first month of 2023 saw an increased focus on the impact of consolidation as well as private equity investment in health care. Researchers also continued to examine factors impacting health care pricing and explored potential policy options available to the states to address provider prices, including a specific call for legislative intervention in the Western Pennsylvania market. Healthcare Consolidation Recent years saw an interesting shift in healthcare consolidation: mergers and acquisitions are becoming increasingly low-volume but high-value and cross-market. In Kaufman Hall’s report …
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