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GAO-12-291R 1 (2012-03-16)

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         Accountabiliy - Integrity - Reliability
United States Government Accountability Office
Washington, DC 20548


           March 16, 2012

           Congressional Requesters

           Subject: Federal Antitrust Policy: Stakeholders' Perspectives Differed on the
                   Adequacy of Guidance for Collaboration among Health Care Providers

           Health care delivery in the United States generally is fragmented, with care delivered
           by multiple providers and in multiple care settings, often without systematic
           coordination across providers and settings.1 This can lead to inefficient care delivery,
           poor quality of care, and patient dissatisfaction. There is a growing consensus
           among providers, researchers, and policymakers that collaboration among health
           care providers is essential to addressing these problems. Collaborative
           arrangements can take a variety of forms, including collaborations among
           independent physician groups-called physician arrangements-or among multiple
           types of independent providers-called multiprovider arrangements. For example, a
           physician arrangement could involve a network of primary care physicians and
           specialists, such as cardiologists and radiologists, who contract collectively with
           health plans. Similarly, a multiprovider arrangement could involve a hospital
           collaborating with groups of physicians to contract collectively with health plans.
           Collaborative arrangements may be able to address problems associated with
           fragmented care delivery because providers generally have greater resources and
           ability to coordinate care when collaborating with each other than when acting
           separately. For example, providers within a collaborative arrangement could pool
           resources to use electronic health records (EHR) to obtain timely and relevant
           clinical information and enable them to coordinate patient care across various care
           settings, potentially improving efficiency and quality of care. Or providers
           collaborating with each other could negotiate capitated rates with health plans to
           give these providers a financial incentive to furnish care efficiently.2

           While collaborative arrangements can have potential benefits, such arrangements
           may lead to higher prices. In a competitive health care market, consumers are able
           to choose from a wide variety of competing providers that have an incentive to

           1Some patients, particularly those with multiple conditions, may receive care from multiple primary
           and specialty providers across different settings, including physician offices and hospitals.
           2A capitated rate is a fixed amount that health plans pay per patient that covers a specific bundle of
           services for a period of time, such as 1 month, regardless of the amount of these services a patient
           uses. Providers in collaborative arrangements that are paid at a capitated rate have a financial
           incentive to provide care efficiently because they keep the difference if a patient's actual cost of
           services is less than the capitated amount and lose money if the actual cost of care exceeds the
           capitated amount.


GAO-1 2-291 R Provider Collaboration and Antitrust Policy

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