Researchers at Stanford University Medical School found as physicians groups grow, their market share may drive up costs.
According to a release, lead author Eric Sun, MD, and colleagues found orthopedic surgeons in concentrated markets received 7 percent higher physicians' fees for knee replacement than physicians in less concentrated markets. The average cost of knee replacements fell $261 over the study period, but in concentrated markets the physicians' fees increased $168 compared with those in less concentrated markets.
Dr. Sun said that as benefits of physician groups and health systems materialize, "a potential side effect is that the large group gains stronger footing when negotiating prices."