Analysis of Healthcare Price Disparities in Hospitals and Physician Groups

1. Relative Price Discussion by Elizabeth Arnold and Dorothy Zirkle

2. Distribution of Hospital Payments by Relative Price Quartile % of Total Payments (Higher Relative Price) (Lower Relative Price)

3. Distribution of Physician Group Payments by Relative Price Quartile % of Total Payments (higher relative price) (lower relative price)

4. Higher Price Hospitals High Relative Price Hospitals • These hospitals tended to be: • Affiliated with larger healthcare systems • Academic medical centers • Teaching hospitals • Specialty hospitals • Geographically isolated hospitals

5. Higher Price Physician Groups High Relative Price Physician Groups • These physician groups tended to: • Be affiliated with a larger health system • Have a high proportion of network payments

6. Lower Price Hospitals Low Relative Price Hospitals • These hospitals tended to be: • Community, disproportionate share hospitals (DSH) • Community hospitals that were not affiliated with a larger healthcare system

7. Lower Price Physician Groups Low Relative Price Physician Groups • These physician groups tended to: • Receive a smaller share of network payments among physician groups

8. Visit CHIA’s Website • Link to: Health Care Provider Price Variation in the Massachusetts Commercial Market: Results from 2011 • Link to: CHIA’s Website