Hospital Mergers Save Money?
Remember when you were told how great it was going to be when hospital systems merged? Remember they were going to negotiate with insurers and other third parties to bring prices down? Ummmm……not.
But an analysis conducted for The New York Times shows the opposite to be true in many cases. The mergers have essentially banished competition and raised prices for hospital admissions in most cases, according to an examination of 25 metropolitan areas with the highest rate of consolidation from 2010 through 2013, a peak period for mergers.
Now, where do you think all that “saved” money went?
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But not only have big consolidations continued, the behemoths have further cemented their reach in some regions of the country by gobbling up major doctors’ and surgeons’ practices.
I am sure that gobbling had nothing to do with the “facility fees” they were able to charge.
Listen, monopolies are bad and the worst part of the free market and capitalism. But is it really the free market or capitalism? I don’t know the answer to that. I do know that these mega-mergers causing mega-monsters are a problem. Who has an answer how to stop it?
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Need some training atleast in residency about opening own practice, manage business and marketing. Think MDs are smart but we are much dumber when it comes to above, let’s say compared to dentists. Most residents have no clue how to navigate the business side. They are kinda brainwashed to look for a ‘job’ and the hungry behemoths are ready to hire them. Root cause could be a lack of entrepreneurial spirit strong enough to create pockets of competition and innovation. Should start in Med school and residency. If not, Dr.Farrago, let’s design a course for them to encourage it!
Everything old is new again.
Eau contraire. It has everything to do with “facility fees.” When those go away, hopefully soon, then there will be more doctors looking to establish direct pay practices.
Fortunately, CMS is heading that direction by implementing site neutral payments for E&M codes starting January 1.
Next step, facility fees!
I don’t know that it can be defined as capitalism or a free market when the government has actively taken steps that put small private practices at a disadvantage to huge corporations.
Agree. Unfortunately (depending on one’s political ideology) it is also only the government that is empowered to fix it. Consumer friendly measures such as getting rid of facility fees, monopoly busting, putting price limits on patent protected medications, etc, all requires the government to act against the interests of big business. It’s not likely to happen.
The government has “taken steps that put small private practices at a disadvantage” because they were told to do so by the huge corporations – the best regulatory and legislative systems money can buy.