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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal align=center style='text-align:center'><span style='font-size:9.5pt'><img width=540 height=163 style='width:5.625in;height:1.6979in' id="m_-7835614069456891615gmail-m_-8812551497387718317gmail-m_-680625089083050367m_-4761171347054414624m_3707413379897925782Picture_x0020_1" src="cid:image001.jpg@01D55BF2.6E1BB320"></span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.0pt;font-family:"Arial",sans-serif'> </span><span style='font-size:9.5pt'><o:p></o:p></span></p><div style='margin-left:15.0pt;margin-top:7.5pt;margin-right:15.0pt;margin-bottom:7.5pt' id="m_-7835614069456891615gmail-m_-8812551497387718317gmail-m_-680625089083050367m_-4761171347054414624m_3707413379897925782content"><div style='border-top:solid #7F7F7F 1.0pt;border-left:none;border-bottom:solid #7F7F7F 1.0pt;border-right:none;padding:4.0pt 0in 4.0pt 0in'><p class=MsoNormal><b><span style='font-size:9.5pt;font-family:"Arial",sans-serif;color:#7F7F7F'>August 26, 2019</span></b><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div style='margin-top:11.25pt;margin-bottom:11.25pt'><p class=MsoNormal><b><span style='font-size:12.5pt;font-family:"Arial",sans-serif;color:#DF0009'> </span></b><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><b><span style='font-size:12.5pt;font-family:"Arial",sans-serif;color:red'>How California's surprise billing policy led to healthcare consolidation</span></b><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.5pt;font-family:"Arial",sans-serif;color:#0070C0'> </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><a href="https://www.beckershospitalreview.com/finance/how-california-s-surprise-billing-policy-led-to-healthcare-consolidation.html"><span style='font-size:9.5pt;font-family:"Arial",sans-serif;color:#1155CC'>Beckers Hospital Review</span></a><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal style='margin-right:15.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'> </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>Morgan Haefner<o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>August 14th, 2019<o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>    <o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>A California law aimed at addressing surprise medical bills influenced bargaining leverage between payers and providers, and led to greater consolidation, according to a study published in The American Journal of Managed Care.<o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>For the study, Erin Duffy, PhD, a researcher with the RAND Corp., examined the early effects of a California policy implemented in 2017. The policy addressed surprise medical bills for out-of-network nonemergency physician services at in-network hospitals. Dr. Duffy completed a case study of how the policy affected stakeholders within the first six to 12 months after the policy implementation. Twenty-eight policy experts, advocates and executives of physician groups, hospitals and health plans participated in interviews for the study. <o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>The stakeholders reported the out-of-network payment standard "set at payer-specific local average commercial negotiated rates has changed the negotiation dynamics between hospital-based physicians and payers," according to the study. "Interviewees report that leverage has shifted in favor of payers, and payers have an incentive to lower or cancel contracts with rates higher than their average as a means of suppressing OON prices. Physicians reported that this experience of decreased leverage is exacerbating provider consolidation."<o:p></o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-right:30.7pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>The author concluded that California's policy shows how out-of-network payment standards may change the bargaining landscape between payers and providers, as well as affect the breadth of networks and negotiated rates. Dr. Duffy noted the "findings may not be directly generalizable to states with markedly different regulatory and market contexts."<o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:0in;margin-right:30.7pt;margin-bottom:0in;margin-left:15.0pt;margin-bottom:.0001pt'><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p></div><p class=MsoNormal><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:9.5pt;font-family:"Arial",sans-serif'> </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><strong><span style='font-size:9.5pt;font-family:"Arial",sans-serif'>Brian Potts</span></strong><b><span style='font-size:9.5pt;font-family:"Arial",sans-serif'> MD, MBA</span></b><span style='font-size:9.5pt;font-family:"Arial",sans-serif'><br>Managing Editor, CAL/AAEM News Service</span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:9.5pt'> <o:p></o:p></span></p></div><p class=MsoNormal style='background:#D9D9D9'><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'>Contact us at: </span><span style='color:black'><a href="mailto:calaaem.news.service1@gmail.com" target="_blank"><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#1155CC'>calaaem.news.service1@gmail.com</span></a></span><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'><br><br>For more articles, visit our </span><span style='color:black'><a href="https://www.aaem.org/get-involved/chapter-divisions/calaaem/news-service" target="_blank"><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#1155CC'>archives</span></a></span><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'>. <br><br></span><span style='color:black'><a href="mailto:somcaaem@uci.edu" target="_blank"><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black;text-decoration:none'>To</span></a><a href="https://maillists.uci.edu/mailman/listinfo/calaaem" target="_blank"><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#0070C0;text-decoration:none'> </span><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#1155CC'>unsubscribe</span></a></span><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'> from this list, visit our mail server.<br><br>Copyright (C) 2018. The California Chapter of the American Academy of Emergency Medicine (CAL/AAEM).</span><span style='font-size:9.0pt;color:black'> </span><span style='color:black'><a href="http://www.calaaem.org/" target="_blank"><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#1155CC'>http://www.calaaem.org</span></a></span><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'>. All rights reserved.<br><br>CAL/AAEM, a nonprofit professional organization for emergency physicians, operates the CAL/AAEM News Service solely as an educational resource for physicians. Dissemination of an article by CAL/AAEM News Service does not imply endorsement, agreement, or recommendation by CAL/AAEM News Service, CAL/AAEM, or AAEM.</span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal style='background:#D9D9D9'><span style='font-size:9.5pt'><o:p> </o:p></span></p><p class=MsoNormal style='background:#D9D9D9'><b><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:black'>Follow CAL/AAEM on Facebook and Twitter and check out WestJEM:</span></b><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal style='background:#D9D9D9'><span style='font-size:7.5pt;font-family:"Verdana",sans-serif;color:black'> </span><span style='font-size:9.5pt'><o:p></o:p></span></p><p class=MsoNormal style='background:#D9D9D9'><span style='color:black'><a href="http://www.facebook.com/CALAAEM" target="_blank"><span style='font-size:9.5pt;color:black;text-decoration:none'><img border=0 width=40 height=40 style='width:.4166in;height:.4166in' id="m_-7835614069456891615gmail-m_-8812551497387718317gmail-m_-680625089083050367m_-4761171347054414624m_3707413379897925782Picture_x0020_2" src="cid:image002.jpg@01D55BF2.6E1BB320"></span></a></span><span style='font-size:9.5pt;color:black'>     </span><span style='color:black'><a href="https://twitter.com/CALAAEM" target="_blank"><span style='font-size:9.5pt;color:black;text-decoration:none'><img border=0 width=43 height=43 style='width:.4479in;height:.4479in' id="m_-7835614069456891615gmail-m_-8812551497387718317gmail-m_-680625089083050367m_-4761171347054414624m_3707413379897925782Picture_x0020_3" src="cid:image003.jpg@01D55BF2.6E1BB320"></span></a></span><span style='font-size:9.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