What happens when your hospital is also your insurance company? We’re starting to see the effects

Hospitals are tasked with making patients better, but when the hospital that provides care also owns the insurance company that pays for that care, the incentives get more complicated.

By: Geronimo Bejarano Cardenas, Brown University and Grace Mackleby, University of Southern California, The Conversation

Outlets: The Conversation

Published: August 18, 2026

Words: 1,466

Last Updated: 5 hours, 21 minutes ago

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By Geronimo Bejarano Cardenas, Brown University and Grace Mackleby, University of Southern California

Historically, hospitals have provided care for people, while separate insurers have paid for that care.

During the past two decades, however, this arrangement has changed. Today, nearly 1 in 3 hospitals also own insurance plans – putting them on both sides of the transaction.

Sometimes referred to as “payviders,” these hospitals decide when and how to provide treatment, but they …

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