Advisory Board June 27, 2024
According to a new study from the National Bureau of Economic Research, hospital mergers have led to higher prices for patients, increased unemployment, and reduced tax revenue. Advisory Board’s Vidal Seegobin analyzes the impact of rising healthcare prices and the potentially hidden trade-offs for both organizations and employees.
How consolidation and corporate ownership are reshaping healthcare
Do hospital mergers lead to higher prices?
For the study, researchers analyzed data from the Health Care Cost Institute, the Labor Department, and the Internal Revenue Service. Data from three of the country’s larger health insurers was also used to track price changes after each of the 304 hospital mergers that occurred between 2010 and 2015.
Overall, researchers found that hospital mergers led...