Are Academic Medical Centers Overpriced?

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Academic medical centers are considered hubs for healthcare research, but many health insurers and employers are starting to exclude them due to higher prices, according to a report from HealthLeaders-InterStudy.

HealthLeaders-InterStudy analysts said teaching hospitals, using the Los Angeles market as an exmaple, may have to re-evaluate their pricing strategies, especially as health insurance exchanges roll out next year with narrow health plan networks.

"We expect pressure on the high-priced, academic hospitals in the market to reconsider pricing as narrow networks continue to exclude them," said Jenny Kerr, market analyst at HealthLeaders-InterStudy, in a news release. "Employers are sending a message that they are no longer willing to pay for hospitals that charge higher rates for routine services to cover costs of their teaching and research missions."

*This story has been updated to reflect accuracy in the Los Angeles market.

More Articles on Hospital Pricing:
Case Study: Glens Falls Hospital's Pursuit of Improved Chargemaster
TIME Journalist Steven Brill to Senators: PPACA Price Transparency Won't Lower Costs
Moody's: CMS Price Transparency Report Has Long-Term Implications for Hospitals

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