American Hospital Association September 4, 2019
Hospital mergers enhance quality for patients and reduce costs, according to a Charles River Associates study released today.
The analysis, which was an update to a 2017 report, found that mergers can lead to enhanced quality through the standardization of clinical best practices, as evidenced by significant declines in the rates of readmission and mortality rates following mergers. In addition, it found mergers decrease costs and are associated with a statistically significant 2.3% reduction in annual operating expenses, and revenues per admission at acquired hospitals declined by a statistically significant 3.5% relative to non-merging hospitals, suggesting that “savings that accrue to merging hospitals are passed on to patients and their health plans.”
“Mergers have become one important means by which...