Good article and worth reading from Paul Levy, CEO of Beth Israel Medical Center in Boston.  We have similar issues in California as well, and once again not to dispute or takes sides, but you can’t help but notice when “big” new buildings begin to appear that are offering healthcare.   

Tenet subsidiary announces closing of Irvine Regional Hospital – Orange County, CA

Tenet and Kaiser are 2 very different organizations though, one being for profit and the other not for profit.  BD 

I write this post with a bit of temerity that it will prompt all kinds of defensive reactions, but I am not doing it to criticize the protagonists -- rather to give an example of the kinds of market forces at work here in eastern Massachusetts. I am actually not sure as to whether the moral of the story is "That's life. Get used to it" or "This is an unsustainable situation." I let you be the judge and offer comments.

The Boston Globe recently reported about similar expansions by PHS to the west and north of Boston. As I have said before, I offer no criticism about the business accomplishments of any hospital system. But when a differential in reimbursement rates that has no basis in quality or outcomes creates a market opportunity for one system vis-a-vis all the others, the effect is simply to raise overall costs to society.

Running a hospital: Feeling small

Related Reading:

Hospital Branding – Is the Most Expensive Always the Best?

How Hospitals Go To War – Tenet and HCA – It’s a Hedge War with Insurers

Tenet subsidiary announces closing of Irvine Regional Hospital – Orange County, CA

Tenet not renewing lease for Community Hospital – Los Gatos
Providence Health to buy Tarzana Regional Medical Center from Tenet – Prime Healthcare buys the Encino branch
Hospitals Put Patients' Debt Up for Auction
Tenet Sells North Ridge Medical Center for $20M - Florida
Prime Healthcare to acquire three hospitals from Tenet Healthcare - California
Nurses attempt to unionize at Tenet hospital in California
Tenet Healthcare reports $31M loss
Kaiser Permanente members targeted in hospital billing dispute
Tenet Healthcare to sell USC University Hospital
Eight Southern California hospitals sue Kaiser


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