Healthcare DIVE June 26, 2024
A National Bureau of Economic Research report found layoffs followed hospital mergers, as employers struggled to absorb the costs of rising healthcare premiums.
Dive Brief:
- Rising healthcare prices due to hospital mergers are associated with layoffs in non-healthcare fields, finds a new study from the National Bureau of Economic Research.
- A 1% increase in healthcare prices following a merger was associated with local employers’ headcount shrinking by about 0.4% due to higher premiums, the study found.
- Employees in the lower and middle class who earn between $20,000 to $100,000 a year were most likely to be impacted by the cuts.
Dive Insight:
Between 2002 and 2020, there were over 1,000 mergers of U.S. hospitals, prompting researchers to...
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