New research from the Leonard Davis Institute sheds light on the expensive implications of corporate systems acquiring independent hospitals. While these acquisitions are often touted as beneficial, the reality reveals significant price hikes that cannot be overlooked.

Hospitals are merging en masse. “As of 2020, multihospital systems control 81% of U.S. hospital bed capacity, up from 58% in 2000,” the report says. As independent hospitals are absorbed, more specialized care is often disregarded, leading to a significant reduction in access to critical services. This cookie-cutter approach fails to address the specific healthcare challenges faced by diverse populations, ultimately harming those who rely on personalized care.

“We find that corporatization leads to an increase of prices per hospital stay of about 5%.” – Atul Gupta, PhD

The above graph shows how acquisition leads to higher prices – an average of $856 per hospital stay – as time goes on. As the healthcare landscape continues to evolve, it is essential to prioritize patient care and community health over corporate interests. Better Solutions is committed to holding hospitals accountable for their rapid consolidation efforts. Urgent reform is needed to ensure that high-quality healthcare remains affordable and available for all.