Florida Hospital says it plans to hop into the health insurance market through a partnership with Health First Health Plans, Daytona Beach News-Journal reports.
The impetus? The state's largest hospital system estimates it will see a major reduction in government revenue because of the Patient Protection and Affordable Care Act.
Florida Hospital isn't the first. As Modern Healthcare reported last week, hospital systems around the country are expanding their reach both down and up, buying physician groups and adding insurance arms. This deep and broad reach will help control costs as the pay-for-performance movement gathers steam -- at least that's the theory.
Some medical groups that added health plans in the late 1980s and early 1990s ran into trouble, but consultants say the stars are aligned better now.