Are Academic Medical Centers Overpriced?

Academic medical centers are considered hubs for healthcare research, but many health insurers and employers are starting to exclude them due to higher prices, according to a report from HealthLeaders-InterStudy.

HealthLeaders-InterStudy analysts said teaching hospitals, using the Los Angeles market as an exmaple, may have to re-evaluate their pricing strategies, especially as health insurance exchanges roll out next year with narrow health plan networks.

"We expect pressure on the high-priced, academic hospitals in the market to reconsider pricing as narrow networks continue to exclude them," said Jenny Kerr, market analyst at HealthLeaders-InterStudy, in a news release. "Employers are sending a message that they are no longer willing to pay for hospitals that charge higher rates for routine services to cover costs of their teaching and research missions."

*This story has been updated to reflect accuracy in the Los Angeles market.

More Articles on Hospital Pricing:
Case Study: Glens Falls Hospital's Pursuit of Improved Chargemaster
TIME Journalist Steven Brill to Senators: PPACA Price Transparency Won't Lower Costs
Moody's: CMS Price Transparency Report Has Long-Term Implications for Hospitals

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