Commercial and cash prices for common services in physician-owned hospitals are about one-third lower than non-physician-owned hospitals, according to a study published June 23 in JAMA Network Open.
The researchers from Baltimore-based Johns Hopkins University, Fort Worth-based Texas Christian University and the University of Texas Medical Branch in Galveston used hospital price transparency data to analyze negotiated commercial and cash prices for eight common services: spinal injection, physical therapy-therapeutic exercise, magnetic resonance imaging scan of lower spinal canal, computed tomography scan of abdomen and pelvis, comprehensive metabolic panel, blood test-clotting time, and emergency department visit levels 3 and 4.
The analysis was limited to physician-owned hospitals in hospital referral regions that have at least one non-POH general acute-care hospital. The final sample included 156 physician-owned hospitals and 1,116 non-POHs located in 78 hospital referral regions.
"Our study suggests that these hospitals actually deliver care at lower prices, instill competition to the hospital market, and expand patient access to hospital care," Ge Bai, PhD, professor of accounting and health policy at Johns Hopkins, told Becker's. "Policymakers should consider promoting hospital market competition by lifting the restrictions of physician-owned hospitals."
Eight key takeaways:
1. Spinal injection median commercial and cash prices were 25 percent and 5 percent lower at physician-owned hospitals compared to non-POHs, respectively.
2. Physical therapy/therapeutic exercise median commercial and cash prices were 30 percent and 11 percent lower at physician-owned hospitals compared to non-POHs, respectively.
3. MRI of lower spinal canal median commercial and cash prices were 33 percent and 35 percent lower at physician-owned hospitals compared to non-POHs, respectively.
4. CT of abdomen and pelvis median commercial and cash prices were 20 percent and 36 percent lower at physician-owned hospitals compared to non-POHs, respectively.
5. Comprehensive metabolic panel median commercial and cash prices were 11 percent higher and 31 percent lower at physician-owned hospitals compared to non-POHs, respectively.
6. Blood test, clotting time median commercial and cash prices were 4 percent and 8 percent lower at physician-owned hospitals compared to non-POHs, respectively.
7. ED visit level 3 median commercial and cash prices were 18 percent and 9 percent lower at physician-owned hospitals compared to non-POHs, respectively.
8. ED visit level 4 median commercial and cash prices were 21 percent lower and 1 percent higher at physician-owned hospitals compared to non-POHs, respectively.