Many of the complaints directed at the Patient Protection and Affordable Care Act(PPACA) have centered on the lack of providersavailable to those with PPACA plans.

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However, officials in California also appear concerned by theproviders that are participating in the marketplace. Someof them aren’t good enough to be included, they say.

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“We don’t want to throw anyone out, but we don’t want to pay forbad quality care either,” Peter Lee, executive director of CoveredCalifornia, the state-run exchange, told Kaiser Health News.

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The state is considering excluding certain hospitals from themarketplace based on cost and quality measurements. The proposalwill go before the five-member exchange board in April.

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Insurers that offer plans on the exchange will have to notifythe state of hospitals that cost significantly more than others aswell as those that are producing more negative outcomes. It is notclear what quality metrics will be used to assess hospitals.

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But insurers aren’t happy about publicizing the reimbursement rates theynegotiate with hospitals. As a result, they’re joining providers inopposing the proposal.

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Many predictably worry that excluding some hospitals from PPACAplans will only exacerbate the challenge that many face in findingin-network providers.

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Last year the American Academy of Emergency Physiciansreported that an increasing number ofinsured patients were showing up in emergency rooms withnon-emergency conditions because their plan did not include enoughnearby physicians and specialists for them to get convenienttreatment.

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And of course, doctors and hospitals are worried that thequality metrics used to evaluate treatment will be arbitrary orflawed. One study recently suggested that hospitals inpoor areas are more likely to be penalized by outcome-basedreimbursement models because their patients are less likely to haveaccess to the types of medical services that prevent people frombeing readmitted to the ER.

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