Don't drink the healthcare consolidation Kool-Aid

Advocate Health Care and Aurora Health Care finalized their $11 billion deal last April to form the nation's 10th largest tax-exempt health system; Dignity Health and Catholic Health Initiatives are marching toward a $28 billion deal. When hospitals merge, price increases on the order of 20 per...

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Veröffentlicht in:Medical Economics 2018-12, Vol.95 (23), p.4-5
1. Verfasser: Carey, Marni Jameson
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description Advocate Health Care and Aurora Health Care finalized their $11 billion deal last April to form the nation's 10th largest tax-exempt health system; Dignity Health and Catholic Health Initiatives are marching toward a $28 billion deal. When hospitals merge, price increases on the order of 20 percent to 30 percent are common, and can exceed 50 percent, Carnegie Mellon University economist Martin Gaynor said in a recent report. Yet health entities continue to merge, grow, gain market share, and increase their bargaining power with payers.
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subjects Analysis
Cancer
Company acquisition/merger
Health care costs
Health care industry
Health care policy
Health economics
Hospitals
Medical care, Cost of
Medicare
Mergers, acquisitions and divestments
Nonprofit organizations
Physicians
Practice
title Don't drink the healthcare consolidation Kool-Aid
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