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Politics : Politics for Pros- moderated
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To: John Carragher who wrote (543663)10/18/2013 2:55:00 PM
From: skinowski1 Recommendation

Recommended By
Ben Smith

   of 793639
 
Why do big hospitals buy up smaller ones, as well as outpatient practices and clinics?

They corner the market. They own the supply sources. They don't have to compete for referrals from their "feeders" - they own them. When they become big enough, they can pressure insurers to pay them the top dollar - that is, if those insurers want to continue doing business in that region. Of course, the insurers will have to collect more from their customers. Also, when they become big enough, they "tend" to have more political "support". That too helps to survive and prosper. I believe this phenomenon is also known as Corporatism.
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