The Future of Health Care: The Impact of Hospital Mergers and Acquisitions on Patients and Communities

The Future of Healthcare: A Look at the Trend of Hospital Mergers and Acquisitions

In recent years, there has been a significant shift in the healthcare landscape as more and more physicians are leaving private practice to join hospital groups. According to a report in The Journal of the American Medical Association, around 14,000 physicians made this transition between July 2016 and January 2018.

This trend has only accelerated in the wake of the pandemic, with nearly 80 hospital acquisitions taking place nationwide in 2020. While this number is slightly lower than the previous year, experts predict that the trend of hospital mergers and acquisitions is here to stay.

The beginning of 2021 has already seen 13 announced acquisitions involving a total of 72 hospitals. These mega deals, such as the merger of Dignity Health and Catholic Health Initiative to form Common Spirit in 2019, are reshaping the healthcare industry.

The driving force behind these mergers is the need for hospitals to keep up with the latest technology and staff training, which can be challenging for smaller facilities. By joining larger hospital systems, smaller hospitals can benefit from the support services and resources of the larger system.

However, this trend is not without its consequences. While communities gain the security of keeping their local hospitals open, patients may find themselves being transferred to facilities further away. This can impact the revenue that small hospitals previously contributed to the local economy.

In addition to hospital mergers, health systems are also acquiring physician groups. The passage of the HITECH Act in 2009 required physician clinics and hospitals to upgrade their electronic health record systems, leading many small providers to join larger hospital systems.

While these mergers have helped to make the healthcare system more efficient and stable, there are concerns about the growing power of healthcare conglomerates. As these giants expand their influence, there is a risk that profits may dictate the quality of care patients receive.

As the healthcare industry continues to evolve, it is important for the moral community to pay attention to the implications of these mergers and acquisitions. While they may be necessary for the sustainability of local hospitals, there is a need to ensure that patient care remains a top priority in the changing landscape of healthcare.