In Peru, Letting Insurers Buy Hospitals Pays Off in Higher Quality

When the two dominant insurance companies in Peru started snatching up hospitals, medical centers and laboratories about six years ago, they were met with suspicion. Consumer watchdogs, healthcare advocates and the country’s leading association of private hospitals issued warnings of the grave dangers that vertical integration of the healthcare industry — that is, combining healthcare insurance and healthcare delivery — posed for Peru. These groups predicted that while the move might be a financial windfall for insurers, it was bound to be a bust for patients, for whom the quality of...

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