Acquisitions of previously independent hospitals by health systems are both raising prices and reducing the quality of care, according to a report from the Elevance Health Public Policy Institute.
While operating expenses generally decrease in an acquired hospital and costs remain consistent after such a purchase, prices increase on average about 5 percent for commercially insured patients, according to the report.
Healthcare quality, meanwhile, decreases as measured by higher readmission rates, which are also linked to decreases in personnel numbers post-acquisition.
"This study provides credible evidence to suggest that proposed mergers would raise prices for consumers and employers without increasing quality of care," the report says.
State regulators could consider requiring mandated quality standards during a preapproval process of any hospital acquisition, the authors suggested.
"This brief highlights that independent hospital mergers have negative consequences for insurers, employers, and consumers," the report concluded. "As hospital mergers continue to occur at a high rate, it is important that stakeholders understand their implications."
Further details on the data used in this report can be found here.