“The point is not to say that consolidation is a bad thing,” lead author Eric Sun, MD, said in a statement. “But as we think about encouraging these kinds of mergers, we really want to weigh the costs against the benefits.”
Researchers from the Stanford (Calif.) University School of Medicine found orthopedic surgeons in concentrated markets charged 7 percent more for knee replacements than surgeons in less concentrated markets between 2001 and 2010, even as the average cost of knee replacements nationwide dropped $261. In the most concentrated markets, fees for knee replacements increased $168 on average compared to the least concentrated physician markets.
The study compares knee replacement fees from orthopedic surgeons between 2001 and 2010 with the concentration of physician groups using the Herfindahl-Hirschman Index. The authors plan to examine next how the concentration of physician groups affects patient outcomes.
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