Health Insurance

Los Angeles and San Diego Health Care Markets

The California Healthcare Foundation has produced two market studies of the Los Angeles and San Diego health care markets. Key findings from the Los Angeles study include:

  • The area’s dense urban environment has given rise to a large, fragmented health care market.
  • Health care reform and a drop in private insurance enrollment have led to new affiliations among providers to gain more patients.
  • The region’s safety-net system has expanded its capacity to adapt to Medi-Cal’s growing enrollment under health reform.

Key findings from the San Diego study include:

  • Despite the area’s relative affluence, private insurance has eroded and public coverage has risen.
  • The safety-net system has expanded capacity, in anticipation of Medi-Cal expansion.
  • Hospitals have been focused on cutting costs, adding additional beds through new construction, and investing in lucrative service lines.
  • As Kaiser Permanente continues to offer more affordable insurance options, health plans and providers are collaborating to provide limited-network insurance products that feature lower premiums, limited-provider networks, and Accountable Care Organizations (ACOs).


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