In an op-ed piece responding to a USA Today editorial critical of hospital mergers, AHA President and CEO Rick Pollack explains how rapid changes in the larger health care field are leading hospitals and health systems to explore new ways to meet patients’ needs. “The decision by CVS to acquire health insurer Aetna is based on the idea of building a care system closer to consumers that is more responsive to their needs,” he writes. “Those same goals are driving some hospitals and health systems to join together. According to a recent economic study from Charles River Associates, hospital mergers can lead to substantial savings and provide needed funds to finance innovations that will enhance quality and convenience. Benefits apply whether the hospitals involved are nearby, across the state or even across the country. A larger system allows hospitals to share infrastructure costs for expensive IT and reduce overlapping overhead costs. It also expands the types of services available to patients and communities, and providers a stable foundation on which to deliver more comprehensive, coordinated and convenient care.”
Hospital mergers result in even greater efficiencies and savings when the acquired hospitals are in close proximity.
AHA Senior Vice President Melinda Reid Hatton examines why a recent study on hospital consolidation from the Center for American Progress misses the mark.
“When Hospitals Merge, Patients Often Pay More” doesn’t paint a full picture of the root cause of higher health care costs to consumers.
The House last night voted 230 to 185 to approve the Standard Merger and Acquisition Reviews Through Equal Rules Act (H.R. 5645), AHA-supported legislation…
The same cohort of authors responsible for the Health Care Pricing Project’s flawed 2015 paper recently released an updated version.