A Interview At Health Leaders Media Essay

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The following article was written by John Cummins, senior editor at Health Leaders Media on January 11, 2016. I will interject my comments within his article in bold print. A friend, Debbie, who recently passed away, worked for one of the largest medical insurers in the nation, Humana. From her knowledge of the inner workings of insurance companies, hospitals administrators, and doctors comes some of this analysis.
The merger proposal came about through the need of the hospitals to cut costs in any way possible. The first cost-cutting proposal placed in action was the closing of clinics in the rural areas of Southwest Virginia. The only benefit was for the bottom line of the hospitals, patients living in those areas soon found out an hour’s drive to see a doctor was in their future. The next to come would be the merger of two healthcare systems.
Wellmont, Mountain States Merger Proposal Vows Cost Containment
The proposed merger between the health systems would place limits on negotiated rates with insurers, and tie healthcare cost growth in two states to the federal Hospital Consumer Price Index and Medical Consumer Price Index. Insurance companies will always be able to dictate reimbursement rates for services provided by the hospitals, he who controls the money controls the payouts. Both consumer price indexes are controlled through the payouts by the insurance companies to the hospitals, a circle dictated by the insurance companies. (Debbie) Customer service is the…

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