A new study published in the Journal of the American College of Surgeons finds that mergers and acquisitions of U.S. hospitals and health systems rarely lead to improvements in the quality of care or reductions in healthcare costs.
American College of SurgeonsDec 30 2024 Mergers and acquisitions of U.S. hospitals and health systems rarely improve the quality of care delivered or result in lower health care costs and prices, according to a study published in the Journal of the American College of Surgeons (JACS). The study, a systematic review of hundreds of published studies, comes amid accelerating health care integration, sometimes called consolidation. Nearly 70 percent of U.S.
hospitals are now affiliated with a health system. Proponents of health care integration have claimed it controls costs and enhances care quality. But we found that evidence is lacking that integration alone is an effective strategy for improving the value of health care delivery.' Bhagwan Satiani, MD, MBA, FACS, lead study author, professor of surgery emeritus at The Ohio State University Wexner Medical Center, Columbus, Ohio The study results send a clear message to health care leaders, Dr. Satiani said. 'These findings provide an opportunity to better define value with a focus on benefiting patients while balancing the financial stability of the health care industry,' he said. 'Quality improvement in health care cannot be achieved by mergers and acquisitions alone.' Effects of health care integration The authors' systematic review included studies published from 2000-2024. Of these, 37 met inclusion criteria. Among the 26 studies that measured quality of care, nearly 77 percent (20 studies) showed reduced quality or no change due to integration, the investigators reported. Only 23 percent (six studies) showed improved quality, primarily due to better care management processes rather than outcomes. Just one study found fewer patient deaths after integration. Hospital charges increased with integration 93 percent of the time, according to 13 of 14 studies measuring price changes. Of 16 studies assessing health care spending, 81 percent (13 studies) showed higher costs or no chang
HEALTHCARE MERGERS ACQUISITIONS COSTS QUALITY
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