Consolidation continues to drive the Providence market, accelerated by the COVID-10 pandemic, which is challenging health systems and physician groups financially. Market leader Lifespan and in-state rival Care New England have signed a letter of intent to merge through a deal that would establish a single, nonprofit academic medical center with Brown University, significantly altering the state’s healthcare landscape. As health systems and physician groups pursue strategies to mitigate the financial impact of the pandemic, payers are realizing staggering profits because sharp declines in expensive, elective procedures have reduced healthcare expenditures. In turn, payers are providing premium credits and waiving cost-sharing for COVID-19 related testing and treatment. When the market begins to recover, expect health systems, physician groups, and insurers to use their experience to develop new delivery systems through telemedicine, innovation, and payment reform.


Related Reports

Omaha | Nebraska | 2020 | Market Overview Brief

The COVID-19 pandemic continues to disrupt all healthcare sectors in Omaha. Patient volume has plummeted as health systems and physician groups postpone revenue-generating elective and nonurgent...

View Details

Phoenix | Arizona | 2020 | Market Overview Brief

The fast-growing Phoenix market is experiencing a seismic shift in healthcare delivery with value-based contracts, service expansion, consolidation, and integration as the primary trends. The creat...

View Details

Wilmington | Delaware | 2020 | Market Overview Brief

Wedged between other large markets, Wilmington is both heavy consolidated but also relatively advanced compared to many markets of similar size. The market is beginning to make strides on value-bas...

View Details

Knoxville | Tennessee | 2020 | Market Overview Brief

The loss of Physicians Regional Medical Center in 2018 prompted Knoxville’s highly consolidated integrated delivery network sector to invest in multiyear renovation and expansion plans to help redu...

View Details