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Organization and Performance of US Health Systems | Health Care Reform | JAMA | JAMA Network
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property="og:type" content="Article" /> <meta property="og:url" content="https://jamanetwork.com/journals/jama/fullarticle/2800656" /> <meta property="og:image" content="https://cdn.jamanetwork.com/ama/content_public/journal/jama/939073/jsc220008f1_1674242688.25598.png?Expires=2147483647&Signature=DT~fjXkwSC~Im~bpHRVsSLWfV0RryCpIcFXvpiqVMl6-3XweNHbQmOanoJvmVMxUVIAvs9xNo4t8w7iPkNQhqwjsVI9Ds5WgD4dhL8H6FbARHO51JFMtu6M~5vo0RQatUH3KknmSO~MUQay3gkswWc7KJrK2ZdSLp8BfYRwEh~9SuXmJfLdwnslKlxbR11DpLKN5Jahmt8JLUQq~ksK-w4nk1HCsto039PHTwpMLzaYiY8z-okBaN4yKmU2AugecbJoRgWi0fphk83aEyD~vUQ8LuEavsH1YeCCW-fUxEmpsrSevG8qFQq2MR0j2DmzrvSWGSk-MKFRAo8FW9lYWhA__&Key-Pair-Id=APKAIE5G5CRDK6RD3PGA" /> <meta property="og:image" 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content="https://cdn.jamanetwork.com/ama/content_public/journal/jama/939073/jsc220008t3_1674242688.39094.png?Expires=2147483647&Signature=aq-b3As1SMayNDnaxAWf2xymtYTajIPeI6aCAcNS~R-GrhUC2fyygjMzxqWVC6ATn~wRBo3XeMT6unoWrqbaMd1msCO1xAl2C0R68Hns74vFqViDzPUROSCKmleyGbWlXqDR~rNpBNlQfHIfparOtjG060xIgwXhFKu4D-0Z8ghmEOZd6584ECsmrImNcXL-mZ6~vFO-IjrXORFKY8AS8DratqGZIkAz6uoq9fHz505nplkAh8VWE7UStKDN8~N-0u5ymYNrDXtgMSu62PYm4WWAflaXeoCBxvJDtPgLGuR0THE5huyzka5tJsyru9oBSC8m3M~UCllyihVvQBZNCQ__&Key-Pair-Id=APKAIE5G5CRDK6RD3PGA" /> <meta property="og:description" content="This Special Communication examines health systems in the United States, assesses differences between physicians and hospitals in and outside of health systems, and compares quality and cost of care delivered by physicians and hospitals in and outside of health systems." /> <meta property="fb:pages" content="87087958340" /> <meta property="fb:pages" content="122228711814384" /> <meta property="fb:pages" content="1648414928738217" /> <meta property="fb:pages" content="117506346528" /> <meta property="fb:pages" content="97538728726" /> <meta property="fb:pages" content="114116793520" /> <meta property="fb:pages" content="100679858757" /> <meta property="fb:pages" content="759822190741773" /> <meta property="fb:pages" content="100265333750" /> <meta property="fb:pages" content="234770525256" /> <meta property="fb:pages" content="98784919862" /> <meta property="fb:pages" content="120829458202" /> <meta property="fb:pages" content="124842870398" /> <meta property="fb:pages" content="110245330325636" /> <meta name="twitter:card" content="summary_large_image" /> <meta name="twitter:site" content="@JAMA_current" /> <meta name="twitter:image" content="https://cdn.jamanetwork.com/ama/content_public/journal/jama/939073/jsc220008f1_1674242688.25598.png?Expires=2147483647&Signature=DT~fjXkwSC~Im~bpHRVsSLWfV0RryCpIcFXvpiqVMl6-3XweNHbQmOanoJvmVMxUVIAvs9xNo4t8w7iPkNQhqwjsVI9Ds5WgD4dhL8H6FbARHO51JFMtu6M~5vo0RQatUH3KknmSO~MUQay3gkswWc7KJrK2ZdSLp8BfYRwEh~9SuXmJfLdwnslKlxbR11DpLKN5Jahmt8JLUQq~ksK-w4nk1HCsto039PHTwpMLzaYiY8z-okBaN4yKmU2AugecbJoRgWi0fphk83aEyD~vUQ8LuEavsH1YeCCW-fUxEmpsrSevG8qFQq2MR0j2DmzrvSWGSk-MKFRAo8FW9lYWhA__&Key-Pair-Id=APKAIE5G5CRDK6RD3PGA" /> <meta name="citation_author" content="Nancy D. Beaulieu" /><meta name="citation_author_institution" content="Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts" /><meta name="citation_author" content="Michael E. Chernew" /><meta name="citation_author_institution" content="Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="J. Michael McWilliams" /><meta name="citation_author_institution" content="Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts" /><meta name="citation_author_institution" content="Division of General Internal Medicine, Department of Medicine, Brigham and Women’s Hospital, Boston, Massachusetts" /><meta name="citation_author" content="Mary Beth Landrum" /><meta name="citation_author_institution" content="Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts" /><meta name="citation_author" content="Maurice Dalton" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Angela Yutong Gu" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Michael Briskin" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Rachel Wu" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Zakaria El Amrani El Idrissi" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Helene Machado" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author" content="Andrew L. Hicks" /><meta name="citation_author_institution" content="Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts" /><meta name="citation_author" content="David M. Cutler" /><meta name="citation_author_institution" content="National Bureau of Economic Research, Cambridge, Massachusetts" /><meta name="citation_author_institution" content="Department of Economics, Harvard University, Cambridge, Massachusetts" /><meta name="citation_title" content="Organization and Performance of US Health Systems" /><meta name="citation_firstpage" content="325" /><meta name="citation_lastpage" content="335" /><meta name="citation_doi" content="10.1001/jama.2022.24032" /><meta name="citation_keyword" content="health care systems" /><meta name="citation_keyword" content="medicare" /><meta name="citation_abstract" content="<h3>Importance</h3><p>Health systems play a central role in the delivery of health care, but relatively little is known about these organizations and their performance.</p><h3>Objective</h3><p>To (1) identify and describe health systems in the United States; (2) assess differences between physicians and hospitals in and outside of health systems; and (3) compare quality and cost of care delivered by physicians and hospitals in and outside of health systems.</p><h3>Evidence Review</h3><p>Health systems were defined as groups of commonly owned or managed entities that included at least 1 general acute care hospital, 10 primary care physicians, and 50 total physicians located within a single hospital referral region. They were identified using Centers for Medicare &amp; Medicaid Services administrative data, Internal Revenue Service filings, Medicare and commercial claims, and other data. Health systems were categorized as academic, public, large for-profit, large nonprofit, or other private systems. Quality of preventive care, chronic disease management, patient experience, low-value care, mortality, hospital readmissions, and spending were assessed for Medicare beneficiaries attributed to system and nonsystem physicians. Prices for physician and hospital services and total spending were assessed in 2018 commercial claims data. Outcomes were adjusted for patient characteristics and geographic area.</p><h3>Findings</h3><p>A total of 580 health systems were identified and varied greatly in size. Systems accounted for 40% of physicians and 84% of general acute care hospital beds and delivered primary care to 41% of traditional Medicare beneficiaries. Academic and large nonprofit systems accounted for a majority of system physicians (80%) and system hospital beds (64%). System hospitals were larger than nonsystem hospitals (67% vs 23% with &gt;100 beds), as were system physician practices (74% vs 12% with &gt;100 physicians). Performance on measures of preventive care, clinical quality, and patient experience was modestly higher for health system physicians and hospitals than for nonsystem physicians and hospitals. Prices paid to health system physicians and hospitals were significantly higher than prices paid to nonsystem physicians and hospitals (12%-26% higher for physician services, 31% for hospital services). Adjusting for practice size attenuated health systems differences on quality measures, but price differences for small and medium practices remained large.</p><h3>Conclusions and Relevance</h3><p>In 2018, health system physicians and hospitals delivered a large portion of medical services. Performance on clinical quality and patient experience measures was marginally better in systems but spending and prices were substantially higher. This was especially true for small practices. Small quality differentials combined with large price differentials suggests that health systems have not, on average, realized their potential for better care at equal or lower cost.</p>" /><meta name="citation_journal_title" content="JAMA" /><meta name="citation_journal_abbrev" content="JAMA" /><meta name="citation_volume" content="329" /><meta name="citation_issue" content="4" /><meta name="citation_publication_date" content="2023/01/24" /><meta name="citation_issn" content="0098-7484" /><meta name="citation_publisher" content="American Medical Association" /><meta name="citation_reference" content="citation_title=Hospital-physician consolidation accelerated in the past decade in cardiology, oncology.; citation_author=Nikpay SS; citation_author=Richards MR; citation_author=Penson D; citation_journal_title=Health Aff (Millwood); citation_year=2018; citation_volume=37; citation_issue=7; citation_pages=1123-1127; " /><meta name="citation_reference" content="citation_title=Consolidation of providers into health systems increased substantially, 2016-18.; citation_author=Furukawa MF; citation_author=Kimmey L; citation_author=Jones DJ; citation_author=Machta RM; citation_author=Guo J; citation_author=Rich EC; citation_journal_title=Health Aff (Millwood); citation_year=2020; citation_volume=39; citation_issue=8; citation_pages=1321-1325; " /><meta name="citation_reference" content="citation_title=Health care market concentration trends in the United States: evidence and policy responses.; citation_author=Fulton BD; citation_journal_title=Health Aff (Millwood); citation_year=2017; citation_volume=36; citation_issue=9; citation_pages=1530-1538; " /><meta name="citation_reference" content="Gaynor M. 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data-value="Nancy%20D.%C2%A0Beaulieu%2C%C2%A0PhD,Michael%20E.%C2%A0Chernew%2C%C2%A0PhD,J.%20Michael%C2%A0McWilliams%2C%C2%A0MD%2C%20PhD,Mary%20Beth%C2%A0Landrum%2C%C2%A0PhD,Maurice%C2%A0Dalton%2C%C2%A0MA,Angela%20Yutong%C2%A0Gu%2C%C2%A0MA,Michael%C2%A0Briskin%2C%C2%A0BA,Rachel%C2%A0Wu%2C%C2%A0BA,Zakaria%C2%A0El%20Amrani%20El%20Idrissi%2C%C2%A0BA,Helene%C2%A0Machado%2C%C2%A0BS,Andrew%20L.%C2%A0Hicks%2C%C2%A0MA,David%20M.%C2%A0Cutler%2C%C2%A0PhD" data-type="array"></span> <span class="hide tagmanagervalue" data-attribute="articleDOI" data-value="10.1001/jama.2022.24032" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="articleTitle" data-value="Organization and Performance of US Health Systems" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="type" data-value="Special Communication" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="issueVolume" data-value="329" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="issueNo" data-value="4" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="publishDate" data-value="January 24, 2023" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="topics" data-value="Health Care Reform, Health Care Economics, Insurance, Payment, Health Policy, Health Care Quality" data-type="array"></span> <span class="hide tagmanagervalue" data-attribute="topicCode" data-value="5680, 42114, 44020, 42116" data-type="array"></span> <span class="hide tagmanagervalue" data-attribute="category" data-value="Review" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="journalClub" data-value="No" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="contentStatus" data-value="Locked" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="articlePubState" data-value="Final" data-type="string"></span> <span class="hide tagmanagervalue" data-attribute="contentMedium" data-value="Article" data-type="string"></span> <div class="meta-article-type-wrap"> <div class="meta-article-type thm-col">Special Communication </div> </div> <div class="meta-date"><span class="ppub"><span class="month">January </span><span class="day">24/31, </span><span class="year">2023</span></span></div> <div class="meta-article-title-wrap"> <h1 class="meta-article-title ">Organization and Performance of US Health Systems</h1> </div> <div class="meta-authors"> <span class="meta-authors--limited"><span class="wi-fullname brand-fg"><a href="/searchresults?author=Nancy+D.+Beaulieu&q=Nancy+D.+Beaulieu" rel=nofollow target="_blank">Nancy D. Beaulieu, PhD<sup>1</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Michael+E.+Chernew&q=Michael+E.+Chernew" rel=nofollow target="_blank">Michael E. Chernew, PhD<sup>1,2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=J.+Michael+McWilliams&q=J.+Michael+McWilliams" rel=nofollow target="_blank">J. Michael McWilliams, MD, PhD<sup>1,3</sup></a></span>; <a class="meta-authors--etal td-u stats-meta-authors--etal">et al</a></span> <span class="meta-authors--remaining"><span class="wi-fullname brand-fg"><a href="/searchresults?author=Mary+Beth+Landrum&q=Mary+Beth+Landrum" rel=nofollow target="_blank">Mary Beth Landrum, PhD<sup>1</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Maurice+Dalton&q=Maurice+Dalton" rel=nofollow target="_blank">Maurice Dalton, MA<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Angela+Yutong+Gu&q=Angela+Yutong+Gu" rel=nofollow target="_blank">Angela Yutong Gu, MA<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Michael+Briskin&q=Michael+Briskin" rel=nofollow target="_blank">Michael Briskin, BA<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Rachel+Wu&q=Rachel+Wu" rel=nofollow target="_blank">Rachel Wu, BA<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Zakaria+El+Amrani+El+Idrissi&q=Zakaria+El+Amrani+El+Idrissi" rel=nofollow target="_blank">Zakaria El Amrani El Idrissi, BA<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Helene+Machado&q=Helene+Machado" rel=nofollow target="_blank">Helene Machado, BS<sup>2</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=Andrew+L.+Hicks&q=Andrew+L.+Hicks" rel=nofollow target="_blank">Andrew L. Hicks, MA<sup>1</sup></a></span><span class='al-author-delim'>; </span><span class="wi-fullname brand-fg"><a href="/searchresults?author=David+M.+Cutler&q=David+M.+Cutler" rel=nofollow target="_blank">David M. Cutler, PhD<sup>2,4</sup></a></span></span> </div> <div class="meta-author"> <a class="meta-author-title is-b stats-meta-author-toggle" data-tog-target=".meta-author-content">Author Affiliations</a> <a class="meta-articleinfo-jumplink section-jump-link scroll-to stats-scroll-to-articleinfo" data-tab-toggle=".tab-nav-full-text" href="#248807445">Article Information</a> <div class="meta-author-content"> <ul class="meta-author-affiliations"> <li class="meta-author-affiliation"> <div class="meta-author-name"><sup>1</sup>Department of Health Care Policy, Harvard Medical School, Boston, Massachusetts</div> </li> <li class="meta-author-affiliation"> <div class="meta-author-name"><sup>2</sup>National Bureau of Economic Research, Cambridge, Massachusetts</div> </li> <li class="meta-author-affiliation"> <div class="meta-author-name"><sup>3</sup>Division of General Internal Medicine, Department of Medicine, Brigham and Women’s Hospital, Boston, Massachusetts</div> </li> <li class="meta-author-affiliation"> <div class="meta-author-name"><sup>4</sup>Department of Economics, Harvard University, Cambridge, Massachusetts</div> </li> </ul> </div> </div> <div class="meta-citation-wrap"> <span class="meta-citation-journal-name">JAMA. </span><span class="meta-citation"> 2023;329(4):325-335. doi:10.1001/jama.2022.24032</span> </div> </div> <div class="widget-EditorsChoice widget-instance-AMA_EditorsChoice_Links"> </div> <div class="widget-LinkedContentToolbar widget-instance-AMA_LinkedContentToolbar"> <div class="linked-content-toolbar"> <div class="hidden js-search-open-multimedia-by-default" showContentByDefault="False"></div> <div class="linked-content-controls"> <a class="linked-content-trigger td-n stats-graphical-abstract" href="#graphical-abstract-tab"> <i class="icon-visual-abstract"><span class="sr-t">visual abstract icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Visual <div>Abstract</div></div> </a> <a class="linked-content-trigger td-n stats-editorial-comment" href="#editorial-comment-tab"> <i class="icon-document"><span class="sr-t">editorial comment icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Editorial <div>Comment</div></div> </a> <a class="linked-content-trigger td-n stats-related-articles" href="#related-articles-tab"> <i class="icon-related"><span class="sr-t">related articles icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Related <div>Articles</div></div> </a> <a class="linked-content-trigger td-n stats-author-interviews" href="#author-interviews-tab"> <i class="icon-author_interview"><span class="sr-t">author interview icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Interviews</div> </a> <a class="linked-content-trigger td-n stats-more-multimedia" href="#more-multimedia-tab"> <i class="icon-multimedia"><span class="sr-t">multimedia icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Multimedia</div> </a> <a class="linked-content-trigger td-n stats-listen-to-this-article" href="#listen-to-this-article-tab"> <i class="icon-audio"><span class="sr-t">audio icon</span></i> <div class="trigger-text d-ib va-m ta-l fw-5">Listen to <div>this article</div></div> </a> </div> <div class="linked-content-tabs"> <div id="graphical-abstract-tab" class="linked-content-tab graphical-abstract-tab"> <div class="widget-SectionDisplay widget-instance-AMA_GraphicalAbstract_Tab"> </div> </div> <div id="editorial-comment-tab" class="linked-content-tab editorial-comment-tab"> <div class="widget-ArticleLinks widget-instance-AMA_LinkedContentToolbar_EditorialComments"> <ul class="article-abstract-links related-abstract-content"> <li class="article-link related-abstract-article"> <a class="related-article-title" href="https://jamanetwork.com/journals/jama/fullarticle/2800683"> <div class="related-article-type">Editorial</div> <div class="related-article-title sb-tc">Health Systems—The Present and the Future</div> </a> <div class="related-article-authors">Lawrence P. 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Cutler, PhD; Fiona Scott Morton, PhD</div> <div class="related-article-journal-name">JAMA</div> </li> <li class="article-link related-abstract-article"> <a class="related-article-title" href="https://jamanetwork.com/journals/jama/fullarticle/2785480"> <div class="related-article-type">Viewpoint</div> <div class="related-article-title sb-tc">Administrative Simplification and the Potential for Saving a Quarter-Trillion Dollars in Health Care</div> </a> <div class="related-article-authors">Nikhil R. Sahni, BA, BAS, BSe, MBA, MPA/ID; Brandon Carrus, BS, MSc; David M. Cutler, AB, PhD</div> <div class="related-article-journal-name">JAMA</div> </li> <li class="article-link related-abstract-article"> <a class="related-article-title" href="https://jamanetwork.com/journals/jama/fullarticle/2800652"> <div class="related-article-type">Viewpoint</div> <div class="related-article-title sb-tc">Disentangling the Role of Health Care Systems in Producing High-Quality Care</div> </a> <div class="related-article-authors">Valerie A. Lewis, PhD; Genevra F. Murray, PhD; Darren A. DeWalt, MD, MPH</div> <div class="related-article-journal-name">JAMA</div> </li> <li class="article-link related-abstract-article"> <a class="related-article-title" href="https://jamanetwork.com/journals/jama-health-forum/fullarticle/2776022"> <div class="related-article-type">JAMA Forum</div> <div class="related-article-title sb-tc">Building Health Care Better Means Reining in Costs</div> </a> <div class="related-article-authors">David Cutler, PhD</div> <div class="related-article-journal-name">JAMA Health Forum</div> </li> </ul> </div> <div class="widget-ArticleLinks widget-instance-AMA_LinkedContentToolbar_RelatedEditorsChoices"> </div> </div> <div id="author-interviews-tab" class="linked-content-tab linked-author-interviews-tab"> <div class="widget-AudioPlayer widget-instance-AMA_LinkedContentToolbar_PlatformAudioPlayer_AuthorInterviews"> </div> </div> <div id="listen-to-this-article-tab" class="linked-content-tab linked-listen-to-this-article-tab"> <div class="widget-AudioPlayer widget-instance-AMA_LinkedContentToolbar_PlatformAudioPlayer_ListenToThisArticle"> </div> </div> <div id="more-multimedia-tab" class="linked-content-tab more-multimedia-tab"> </div> </div> </div> </div> <a class="full-text-link is-b" data-url="" data-article-id="2800656"> <div class="full-text-link--text"><span class="full-text-link--text-top">Full </span>Text</div> </a> <div class="abstract-content"> <div class="widget-ArticleFulltext widget-instance-AMA_Article_Abstract_Widget"> <div class="article-full-text" data-userHasAccess="False"> <a class="article-section-id-anchor" id="248807365"></a> <div class="h3 cb section-type-abstract decorated-hed "> <div class="heading-text thm-col sb-sc"> Abstract </div> </div> <p><strong>Importance</strong> <span>Health systems play a central role in the delivery of health care, but relatively little is known about these organizations and their performance.</span></p><p><strong>Objective</strong> <span>To (1) identify and describe health systems in the United States; (2) assess differences between physicians and hospitals in and outside of health systems; and (3) compare quality and cost of care delivered by physicians and hospitals in and outside of health systems.</span></p><p><strong>Evidence Review</strong> <span>Health systems were defined as groups of commonly owned or managed entities that included at least 1 general acute care hospital, 10 primary care physicians, and 50 total physicians located within a single hospital referral region. They were identified using Centers for Medicare & Medicaid Services administrative data, Internal Revenue Service filings, Medicare and commercial claims, and other data. Health systems were categorized as academic, public, large for-profit, large nonprofit, or other private systems. Quality of preventive care, chronic disease management, patient experience, low-value care, mortality, hospital readmissions, and spending were assessed for Medicare beneficiaries attributed to system and nonsystem physicians. Prices for physician and hospital services and total spending were assessed in 2018 commercial claims data. Outcomes were adjusted for patient characteristics and geographic area.</span></p><p><strong>Findings</strong> <span>A total of 580 health systems were identified and varied greatly in size. Systems accounted for 40% of physicians and 84% of general acute care hospital beds and delivered primary care to 41% of traditional Medicare beneficiaries. Academic and large nonprofit systems accounted for a majority of system physicians (80%) and system hospital beds (64%). System hospitals were larger than nonsystem hospitals (67% vs 23% with >100 beds), as were system physician practices (74% vs 12% with >100 physicians). Performance on measures of preventive care, clinical quality, and patient experience was modestly higher for health system physicians and hospitals than for nonsystem physicians and hospitals. Prices paid to health system physicians and hospitals were significantly higher than prices paid to nonsystem physicians and hospitals (12%-26% higher for physician services, 31% for hospital services). Adjusting for practice size attenuated health systems differences on quality measures, but price differences for small and medium practices remained large.</span></p><p><strong>Conclusions and Relevance</strong> <span>In 2018, health system physicians and hospitals delivered a large portion of medical services. Performance on clinical quality and patient experience measures was marginally better in systems but spending and prices were substantially higher. This was especially true for small practices. 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