Myths about Hospital Mergers

 Friday, February 7, 2020

A new paper by the American Hospital Association (AHA) is designed to debunk some of the myths surrounding hospital mergers and acquisitions. It notes that as hospitals and health systems are transforming themselves to respond to new demands for care and new constraints, there have been some misconceptions about consolidation… something that can often prove necessary to meet the new challenges and opportunities. For example, the first myth is that consolidation leads to higher costs for patients. A recent analysis showed that due to increased scale, acquisitions decrease costs with an average 2.3 percent reduction in operating expenses.

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