Modern technology and ability to travel is reducing the need for an abundance of hospitals. Closing and consolidating low volume hospitals may lead to improved care quality while also lowering costs, according to an article by Robert Pearl, MD, CEO of Permanente Medical Group and a healthcare business contributor for the Wall Street Journal.
In the early 1900s, community hospitals were built to accommodate the difficulty and high expense of travel, according to the article. Later, the increase in Medicare and Medicaid patients led to higher demands of patient services.
Now that travel is less of an issue, patients can afford to visit hospitals that may be a bit further away, Dr. Pearl argued. He added that consolidating hospitals can reduce administrative costs while increasing volume and experience, thereby improving the quality of care and keeping healthcare costs low. Additionally, higher transparency, reference pricing and centers of excellence programs can help stymie fears of an increase in market power from the consolidated hospitals, said Dr. Pearl.
More Articles on Quality:
Study: Clinician-Staff Dynamics Affect Patient Satisfaction
Patient-Driven Care Beats Patient-Centered Care: Here's Why
Baylor, Sutter Hospitals Receive 2013 Baldrige Quality Award