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The Partners HealthCare Settlement and the Future of Health Care Organizations

Abstract A recent settlement between Massachusetts and Partners HealthCare, along with successful antitrust actions by the Federal Trade Commission, may signal the beginning of the end of two decades of consolidation of health care providers. This consolidation has been associated with higher prices resulting from market power, justifying the antitrust actions. However, the appropriate remedy for the health sector is a unique challenge. The proposed settlement appears to lock into place the legacy of the hospital-based delivery model, rather than orchestrating a pathway to a new care delivery models. Clearly, we need a regulatory framework that will introduce innovative alternatives into the market, not enshrine the current costly paradigm.