Nearly one in three of Massachusetts' 70 hospitals have participated in a transaction or partnership since 2007 when the state's healthcare reform legislation took effect, with another 20 percent currently engaged in such discussions, leaving just 9 percent of hospitals independent, according to a report by PwC's Health Research Institute.
The report, the second installment in PwC's "The Massachusetts Experience" series analyzing insurance expansion efforts in the state, claims its findings raise "doubts about the long-term viability of standalone community hospitals in the U.S."
New enrollment boosted the largest health plans' revenues when Massachusetts' law was enacted seven years ago, but profits were in flux between carriers in following years, according to the report.
Meanwhile, provider profits remained stable, growing a modest 1.4 percent for academic medical centers and slightly less than 1 percent for other hospitals between 2005 and 2010. Emergency department volumes declined in favor of greater outpatient usage, and patient health and engagement is improving. State costs, however, remain high, and have prompted further regulatory action.
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The report, the second installment in PwC's "The Massachusetts Experience" series analyzing insurance expansion efforts in the state, claims its findings raise "doubts about the long-term viability of standalone community hospitals in the U.S."
New enrollment boosted the largest health plans' revenues when Massachusetts' law was enacted seven years ago, but profits were in flux between carriers in following years, according to the report.
Meanwhile, provider profits remained stable, growing a modest 1.4 percent for academic medical centers and slightly less than 1 percent for other hospitals between 2005 and 2010. Emergency department volumes declined in favor of greater outpatient usage, and patient health and engagement is improving. State costs, however, remain high, and have prompted further regulatory action.
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