Insurers on a buying spree for hospitals, provider groups

Insurers have increasingly, albeit subtly, been buying physician groups and hospitals. In fact, four of the five largest health insurers have increased physician holdings in the past year, according to Becker’s Hospital Review. "We work with insurance companies all over the country, and every single one of them is discussing this in their board rooms. Some are very aggressive, some have decided not to do it," says Ted Schwab, partner at the Health and Life Sciences practice of Oliver Wyman, an international management consulting firm. "Insurance companies believe they can bring efficiencies to the table, and the integration of insurer and delivery system can bring a 20-30 percent reduction to the cost structure," he said. Article