Becker's Healthcare September 24, 2024
When an independent hospital is acquired by a multi-hospital health system, costs are generally reduced by cutting support staff and prices typically increase. Regardless of ownership status, hospitals tend to raise prices after acquisition, especially when joining a health system in the same market, but the effect on care quality still needs further investigation, according to a University of Pennsylvania study published Sept. 23 in the Journal of Political Economy Microeconomics.
Eight things to know about the study:
1. In 2020, multihospital systems controlled 81% of U.S. hospital beds, up from 58% in 2000. This growth, driven by the acquisition of standalone hospitals, may lower costs through centralized resources and increase bargaining power with payers. However, it’s unclear if these...
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