Task Force Analyzes IHC's Dominance
Posted on: Friday, 8 July 2005, 18:00 CDT
Jul. 8--Lawmakers must examine health-care providers' market share, community by community, to determine how Intermountain Health Care's dominance affects consumers and other companies, IHC competitors told a legislative task force Thursday.
Representatives from a half dozen health care providers testified Thursday before the legislative "Privately Owned Health Care Organization Task Force," which is in the beginning stages of a two-year study of several health-care issues.
A key topic is whether to tax Intermountain Heath Care (IHC) or force it to unload its insurance business. During this year's legislative session, lawmakers blasted IHC for aggressive collection tactics and punitive insurance policies.
Some legislators insisted that if IHC operates like a for-profit company, it should be taxed like one.
Several competitors said it is especially important for lawmakers to gauge whether IHC's size stifles competition in rural communities. But getting specifics on market share and how fairly IHC contracts with other insurance carriers and health care providers -- another concern among panelists -- likely will require outside experts' analysis, said Dee Brewer of Altius Health Plans, an insurance company.
"You need objective analysis of this market, and you can't get that from IHC, and you can't get it from IHC's competitors," he said.
A panelist representing MountainStar Healthcare Network complained that IHC has an advantage in being able to use its insurance branch to feed its health care provider branch.
"Often, IHC will work to protect their hospitals," said Jack Towsley of MountainStar Healthcare Network. "They will work in terms of pricing and positioning their health plans to make sure they have the patient flow to their hospitals," Towsley said.
Greg Poulson, an IHC vice president, argued that it is not unusual for a provider to create incentives for customers to use its services.
"The university does the same thing. IASIS [Health Care] does the same thing. Virtually every hospital in the country does the same thing," he said.
Also testifying were representatives from Regence Blue Cross Blue Shield of Utah, University Health Care and Central Utah Clinic.
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Source: The Salt Lake Tribune
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