When a health system acquires an independent hospital — 8 study findings

When an independent hospital is acquired by a multi-hospital health system, costs are generally reduced by cutting support staff and prices typically increase. Regardless of ownership status, hospitals tend to raise prices after acquisition, especially when joining a health system in the same market, but the effect on care quality still needs further investigation, according to a University of Pennsylvania study published Sept. 23 in the Journal of Political Economy Microeconomics.