Large health systems are scooping up independent hospitals, and that consolidation negatively affects employers, insurers and patients, according to a new analysis backed by Blues giant Elevance Health.
However, the American Hospital Association was quick to dispute the findings, with CEO Rick Pollack telling Fierce Healthcare that the analysis “draws absurd conclusions about the impact of healthcare systems on access to care, cost and quality.”
Researchers with the Elevance Health Public Policy Institute examined claims data in Elevance-affiliated plans in 20 states between Jan. 1, 2012, to Dec. 31, 2018. They compared independent hospitals that merged with a hospital system to independent hospitals that did not, according to the white paper.
Average inpatient prices for commercially insured patients rose 5% above the market average at independent hospitals that were bought by large hospital systems, according to the report. Prices increased even as operating expenses at these hospitals declined by 6% because of cuts to personnel in support positions such as general and administrative duties oversight, employee benefits management, maintenance departments, supplies monitoring and purchasing, pharmacies and medical records filing and storage. Read more.
