Benefits of consolidating hospitals who is paula deanda dating in 2016

Posted by / 10-Nov-2019 20:40

Benefits of consolidating hospitals

They recommend that in order to reduce costs by as much as 30 percent, these hospitals have to standardize administrative and clinical procedures, a hard task, rather than each member facility acting autonomously.Higher profits have resulted from greater regional market power.Earlier reports suggested that cost and price growth were somewhat lower for merging hospitals compared to non-merging hospitals when followed longitudinally [9].Antwi and colleague suggested that although rates of price growth are higher in monopolistic markets, there is no correlation between a change in hospital concentration and price growth [10].

Authors are requested to submit articles directly to Online Manuscript Submission System of respective journal. The purported goals include efficiency, better access, improved quality and lower cost leading to enhanced profitability [1].

Prices increased almost 20% in concentrated markets.

The effect of consolidation on quality was mixed whereas there was no evidence of cost reduction or clinical gains from physician- hospital consolidation.

The FTC has recently challenged monopolistic behavior of the healthcare industry by questioning not only horizontal or vertical hospital mergers but physician employment where Metropolitan Statistical Areas are already ‘highly concentrated.’ Market concentration is measured by the Herfindahl–Hirschman Index (HHI), which is calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers [8].

Insurers have also pushed back against potential market price increases that occur after mergers.

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The risks involved in pursuing M&A are not trivial.