Partners HealthCare defends costs to state regulators

But how do they justify that their prices (and costs) are substantially greater than several other major research and teaching organizations in Boston whose quality ratings are comparable or better? And recall that Partners has a greater % of private payers than their competitors, so that is not the answer. If Partners isn't being overpaid, then there's a whole bunch of hospitals in MA that are very severely underpaid.

This is a terrible article. Five minutes of research by Ms. Zieger would have yielded the following statistics:

1) Massachusetts has the HIGHEST health insurance premiums in the country.

http://www.boston.com/news/health/articles/2009/08/22/bay_state_health_insurance_premiums_highest_in_country/

2) In 2000 there was a back-door deal between Partners and Blue Cross Blue Shield that boosted the rate BCBS paid for medical care by Partners doctors and hospitals by 75 percent, dramatically more than the increases given to most other Massachusetts hospitals. This price fixing resulted in other payers raising rates too.

http://www.boston.com/news/local/massachusetts/articles/2009/01/23/partners_insurer_under_scrutiny/?rss_id=Boston+Globe+--+Front+Page

3) Since the price fixing in 2000, the rise of Massachusetts health insurance premiums and per capita spending has outstripped the national rise in premiums and spending.

www.mass.gov/Ihqcc/docs/meetings/08feb06_presentation_iselin.ppt

Partners may have higher operating costs due to special services (as well as bureaucracy and waste) but they cannot deny a direct contribution to the rise of health insurance premiums.