San Diego: Health Care Providers Expand Capacity as Competition Increases for Well-Insured Patients

CHCF Regional Markets Issue Brief
January 2013
Ha T. Tu, Joy M. Grossman, Peter J. Cunningham

As part of the California Health Care Almanac project, the California HealthCare Foundation (CHCF) funded HSC to conduct interviews in six California communities in 2011-12 to assess how the organization, financing and delivery of health care are changing, including preparations for health reform.

San Diego’s health care delivery system continues to be defined by hospital systems that are tightly aligned with large medical groups. This report provides a snapshot of the region’s health care market.

Key findings of the San Diego report include:

• Despite the area’s relative affluence, private insurance has eroded and public coverage has risen.
• The safety-net system has expanded capacity, in anticipation of Medi-Cal expansion.
• Hospitals have been focused on cutting costs, adding additional beds through new construction, and investing in lucrative service lines.
• As Kaiser Permanente continues to offer affordable insurance options, health plans and providers are collaborating to provide limited-network insurance products that feature lower premiums, limited-provider networks, and Accountable Care Organizations (ACOs).

Click here to access the San Diego report at the CHCF Web site.