Consolidation in healthcare pushes up charges without improving quality of care, according to a new study published in the Journal of the American College of Surgeons.
Study authors reviewed 37 studies published over the last 14 years for charge and quality data. Almost 77% of the 26 studies measuring quality showed no change or lower quality after the merger, and 93% of the 14 studies examining charges revealed increased charges after integration.
"Proponents of healthcare integration have claimed it controls costs and enhances care quality," said Bhagwan Satiani, MD, lead study author and professor of surgery emeritus at The Ohio State University Wexner Medical Center in Columbus. "But we found that evidence is lacking that integration alone is an effective strategy for improving the value of healthcare delivery."
Nearly 70% of hospitals are now affiliated with systems, according to the report, and transactions could become more common during President-elect Donald Trump's second term. Hospitals and systems will need to search for increased value in consolidation.
The report also found in 54% of the studies, consolidation had a negative net impact on hospitals and 81% of the studies on healthcare spending showed no change or higher costs post-transaction.