A new slate of construction projects in Austin, including three new hospitals that opened in the last year alone, will help providers care for the growing number of newcomers and residents aging into Medicare. Competition among Austin’s payers will intensify and investment in innovative models like bundled payments and payer-owned walk-in clinics will increase as payers navigate the growing clout of the highly consolidated integrated delivery network sector. These IDNs align physicians on measures of cost and quality via clinically integrated networks and large, multispecialty practices, both of which are expected to grow as COVID-19 pushes smaller practices toward the clinical and financial strengths of larger groups. Pharma will benefit from increased prescriber access via new facilities and relaxed telemedicine laws from COVID-19, but an overall provider shortage, escalating uninsured rate, centralized IDN control, and a large number of ACOs that emphasize generic utilization serve as barriers to access for branded drugs.


Related Reports

Birmingham | Alabama | 2020 | Market Overview Brief

Birmingham, a statewide hub for specialty care, has historically been a slow-moving market from the perspective of value-based contracting. BCBS of Alabama is the power player and key driver of...

View Details

Portland | Maine | 2020 | Market Overview Brief

Consolidation is on the rise in Portland’s provider sector with a merger between MaineHealth and Mid Coast – Parkview Health, which has centralized decision-making about medical care an...

View Details

Kansas City | Missouri | 2020 | Market Overview Brief

Kansas City has traditional tendencies in healthcare delivery, with pockets of innovation in the payer space. HCA Midwest Health leads the health system sector, and the IDN has a fee-for-service ap...

View Details

Grand Rapids | Michigan | 2020 | Market Overview Brief

Healthcare in Grand Rapids is consolidating around Spectrum Health, Mercy Health, and Metro Health. Dominant insurer Blue Cross Blue Shield of Michigan continues to drive payment reform. The carrie...

View Details