‘Payviders,’ burnout and COVID-19 are among the threats to a better year for hospitals in 2021
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Among the many looming threats hospitals will face in 2021 is the rise of so-called payviders insurers that have bought or partnered with medical groups and other providers.
“The line between providers and payers is getting blurrier and blurrier over the course of time with major payers taking significant positions in the provider space,” said David Morlock, a managing director in Cain Brothers’ Health Systems M&A group.
Such deals exploded in 2020, a trend that will likely continue this year. That doesn’t bode well for hospitals, as these deals usually entail managing patients’ cost using global budgets. That means keeping them out of the most expensive settings namely, anything involving a hospital.