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In the ever-changing world of health care, at least this remains constant: Hospitals want to get bigger. The ongoing merger talks between Beth Israel Deaconess Medical Center of Boston and Lahey Health of Burlington are just the latest example of the bigger-is-better strategy health care executives are pursuing. ... The backdrop for these merger discussions is health care costs that are accelerating, according to data released by state agencies over the past week. ... These trends are contributing to the motivation to merge as federal and state laws pressure health care providers to bring costs under control, and new payment systems reward providers for sticking to budgets while improving care. These developments have only added to hospitals’ urgency to find efficiencies through mergers, analysts said. (Dayal McCluskey, 9/3)

The Detroit Three automakers are showing increased interest in the United Auto Workers union's proposal that they pool their healthcare systems, a sign that contract talks between the union and manufacturers are down to the big money issues. The UAW and bargainers for General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles face a Sept. 14 deadline to negotiate new labor agreements for 142,000 U.S. workers. Rising healthcare costs have emerged as a stumbling block in the way of raises for blue collar workers. (Woodall, 9/3)

A chain of hospices in four states has agreed to settle a whistleblower lawsuit concerning overbilling for $5.9 million. The settlement between the federal government and the St. Joseph Hospice chain, based in Baton Rouge, Louisiana, was announced Thursday in Jackson. Federal prosecutors alleged that St. Joseph was driving up Medicare payments by billing for continuous care to patients who weren't eligible under federal rules. (Amy, 9/4)

Health insurance hasn’t attracted much money from Silicon Valley investors. The industry is highly regulated and fiercely competitive, and turning a profit depends on signing up healthy customers and getting favorable prices from hospitals and doctors. Still, investors, including some Facebook backers, put hundreds of millions of dollars into health insurance startup Oscar. “Insurance is a confusing system, confusing as hell,” says Mario Schlosser, a computer scientist and former McKinsey consultant, who is Oscar’s chief executive officer. He co-founded the company two years ago with fellow business school alums Joshua Kushner of venture capital firm Thrive Capital, and Kevin Nazemi, a veteran of Microsoft’s health-care division. They hope to capitalize on the young, tech-savvy customers buying health insurance through the new markets created by the Affordable Care Act. Oscar operates in New York and New Jersey and will start selling coverage in California and Texas in November. (Racer and Satariano, 9/3)

Insurer Molina Healthcare will spend about $200 million to expand the behavioral and mental health services it provides with its coverage. The Long Beach-based insurer said Thursday it will buy two subsidiaries of the Providence Service Corp. They are Providence Human Services and Providence Community Services. Molina said the subsidiaries will complement its health plans. (9/3)

Medtronic Plc, the world's largest standalone medical device maker, reported a 70 percent rise in quarterly revenue, helped by higher sales across its business lines, in part due to the acquisition of surgical products provider Covidien Plc. Medtronic said it is well positioned to benefit from the Medicare bundle payment program, which aims to link payments for multiple services during an episode of care rather than pay providers separately for each service. (Grover, 9/3)