Intermountain Healthcare’s unusual structure, which includes both hospitals and an insurance division, has offered Utah residents a lower-priced option, which they might be able to replicate in Colorado.
Hospital mergers generally haven’t brought health care costs down, but there’s some reason to think the new owners of SCL Health’s facilities in Colorado might be able to do something different.
Normally, mergers lead to higher hospital prices as larger systems gain market share and can demand higher payments from insurers, said Nancy Dolson, special financing division director for the Colorado Department of Health Care Policy and Financing. “It’s definitely something that we will be watching,” she said. “Intermountain may not be a normal player.”
Dr. Marc Harrison, CEO of Intermountain, said SCL Health was an attractive merger partner because they’d already taken steps to control costs, offer high-quality services and had leadership that was interested in moving away from the “fee for service” model, where doctors and hospitals are reimbursed for every visit and procedure.
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