Magnifying Glass
Back to Archives

More Hospital Consolidation = Higher Prices

29 Oct, 2020 WorkersCompensation.com

                               

The only demonstrable impact of facility consolidation is higher prices.

There’s also solid evidence that more concentrated health care markets are associated with lower health care quality.

While the number of deals dropped by about 21% in the first half of this year as everyone’s attention focused on COVID and the impact thereof, a number of transactions still took place.  Conversely, several deals in process totaling around $23 billion were abandoned, victims of a variety of challenges.

Consolidation may actually accelerate as facilities hammered by the financial impact of COVID19 seek safe harbors.

The latest consolidation is in the north-central part of the nation, with 2 not for profit systems working on an a deal driven in large part of a desire to help the systems expand their footprint.

I’d expect more, although the increasing number of facility closures may well put a damper on deals as some run out of time.

This is particularly damaging in rural areas, where over a hundred hospitals have shut their doors over the last decade.

From Bob Shepard, UAB

What does this mean for you?

There will be fewer hospitals tomorrow than today, which likely means higher prices.

By Joe Paduda

Courtesy of Managed Care Matters

    • Read Also

    Spencer Webinar Series: Serving the Injured Worker as a Team

    Spencer Webinar | Serving the Injured Worker as a Team (youtube.com)
    Autonomous Vehicles When? Thoughts and Commentary

    One of the biggest challenges that our society will experience in the next generation will be to transition from human driven cars to autonomous vehicles (AV). One only has to listen to the Beach Boys […]
    Employees Killed in Work Accidents Across Multiple States 

    Montgomery, MN (WorkersCompensation.com) – A food worker died in a warehouse accident last week, one of several industrial accident that took the lives of workers over the past few weeks.   The worker, an employee at […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]

    Read More

    Spencer Webinar Series: Serving the Injured Worker as a Team

    Spencer Webinar | Serving the Injured Worker as a Team (youtube.com)
    Autonomous Vehicles When? Thoughts and Commentary

    One of the biggest challenges that our society will experience in the next generation will be to transition from human driven cars to autonomous vehicles (AV). One only has to listen to the Beach Boys […]
    Employees Killed in Work Accidents Across Multiple States 

    Montgomery, MN (WorkersCompensation.com) – A food worker died in a warehouse accident last week, one of several industrial accident that took the lives of workers over the past few weeks.   The worker, an employee at […]
    Study Suggests Digital Tools Improve Pain Related Disability In Total Knee Replacement Patients

    Sarasota, FL (WorkersCompensation.com) – With an increase in life expectancy, as well a surge in the age of workers over the age of 65, the numbers of patients with Osteoarthritis (OA) is rising as well.  […]
    How Wearable Tech and Virtual Care are Transforming Claims, from Engagement to Outcomes 

    Sarasota, FL (WorkersCompensation.com) — Last week’s National Workers’ Compensation and Disability Conference in Las Vegas set the stage for an impactful dialogue about the transformational potential of wearable technology and virtual care in the workers’ […]
    What Do You Think: Was Firing Nurse who Lost Fight with Door WC Retaliation? 

    Belleville, NJ (Workerscompensation.com). An employer’s action during the period after which an employee reports an injury and the date she is fired can go a long way to either showing retaliation or negating it.   A […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.