Hospital M&A Lowering Prices, But Not For All

Value-Based Care, Price Transparency Drive Hospital Mergers

(from RevCycle Inteligence)

 

A HFMA report stated that value-based care and price transparency will add value to hospital mergers, including lower prices for consumers.

Healthcare system and hospital mergers will likely increase as new value-based care models emerge, according to a recent Healthcare Financial Management Association (HFMA) report. But the rise in value-based reimbursement and price transparency will improve value of the mergers to consumers.

Some healthcare system and hospital mergers have increased prices for consumers because the merged organizations have greater market share. However, the HFMA report indicated that risk-based reimbursement contracts and healthcare consumerism will incentivize merged entities to lower prices.