When independent hospitals are acquired by multi-hospital health systems, they experience boosts to profitability and efficiency, according to a new study published in the Journal of Political Economy Microeconomics this week. Acquired hospitals saw profitability increase by about $14 million per year, on increased consumer prices and cuts to nonclinical staff. However, when corporate-owned hospitals are acquired by other health systems, they do not experience similar efficiency gains, the study found, suggesting there is likely a limit to how much consolidation can benefit hospital performance.
Read the full article: Acquisitions Work as a One-Time Efficiency Boost for Hospital Margins: Study //
Source: https://www.healthcaredive.com/news/efficiency-gains-from-hospital-acquisitions-study/728156/