SCBIZ Daily Staff

COLUMBIA -- HealthLeaders-InterStudy, a provider of managed-care market intelligence, reports that the health care market in the Columbia region is defined largely by a fragmented physician market and highly competitive health systems.

According to the new Columbia Market Overview, the physician segment is characterized by small groups with little interest in consolidation, bringing challenges to physician contract negotiations because the market is dominated by a small group of insurers.

Physicians in the Columbia market benefit, however, from the highly competitive health system segment. Lexington Medical Center, Palmetto Health and Sisters of Charity Providence Hospitals are the dominant players in the region.

As regulatory battles among these organizations continue to slow the development of new services and facilities, physician group affiliations and acquisitions will provide each health system with opportunities for growth.

“The rivalry has created an environment in Columbia, S.C., whereby expansion plans often include significant legal services activity because of staunch opposition by the area health systems,” said Dave Raiford, market analyst with HealthLeaders-InterStudy.

“A case in point is the construction of a new $99 million Palmetto (Health) hospital in Irmo that will likely be delayed as Lexington (Medical Center) and an out-of-market hospital contest Palmetto’s plans. In place of physical expansion efforts, look for these local hospitals to turn more attention to developing physician networks to sustain their revenue and referral bases.”