Vertical integration of affordable care organizations (ACOs)

The consolidation of hospitals owning private physician practices is not showing a reduction in the price and actually increased costs for the privately insured according to researchers at Stanford University(2001-2007). There is a fear that increased bargaining power from these new collectives will swing the pendulum of power too far in the direction of hospitals and ACOs. The question still to be answered is if the ultimate benefit of higher quality of care results in better outcomes and therefore longer-term savings.