Dive Brief:
- A recent study of 500 mergers between 2000 and 2012 found in-state hospitals mergers that operate in different markets, or "cross-market mergers," increase costs 6% to 10% for various inpatient procedures.
- These types of mergers are not examined on the state or federal level. However, the study provides new information that may turn officials around to start challenging these mergers.
- Some economists, like Greg Vistnes with Charles River Associates, raised concerns that regulators may start to challenge all mergers. "These cross-market mergers I can tell you in general why they may be bad," he told Marketplace. "But I don't think we can say which one is good and which one is bad."
Dive Insight:
Lead study author Leemore Dafny, said she hoped the study results would be shared with hospital executives who may not be fully aware of a merger's effects. "If you are doing it because you think in the long run it will serve your community well, you should think twice," Dafny said. However, the American Hospital Association said in a statement that mergers provide access to care and are not predictors of price changes.
Large, academic medical centers are crowding out smaller, community hospitals in Boston, according to a new state report. Since the smaller hospitals care for more residents on government insurance plans, they have less money to keep technology upgraded to keep pace with new care methods.
The report found care is less expensive at regional hospitals - discharge at a Boston commercial hospital was between almost $1,000 and $5,000 higher. Occupancy rates for psychiatric beds in community hospitals are almost 100%. Almost 75% of primary care visits in 2014 were with a physician affiliated with one of the state's eight largest health care systems, up from 62% in 2008. Regional hospitals are experiencing lower utilization rates compared to larger urban hospitals. Community hospitals had 64% occupancy in 2013 compared to 84% occupancy at large academic medical centers, reported the Boston Business Journal.