Tensions are heating up for Memphis' largest integrated delivery networks as the market's payer sector picks teammates for narrow networks and value-based contracts. Baptist Memorial Health Care is the preferential partner and is further gaining clout through a new hospital, while largest player Methodist Le Bonheur is using high-acuity service line expansion and value-based contracts with its clinically integrated network to assert influence. Consolidation between physician groups and gravitation toward these IDN-driven CINs will help independent providers secure value-based reimbursements in a market burdened by high uninsured rates and chronic diseases. Efforts to drive quality via ACOs, meanwhile, should help increase drug utilization and adherence, but state-level actions to invoke stringent Medicaid eligibility rules could dampen branded drug sales and increase uncompensated care rates.

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