Hospital Collaboration and Healthcare Costs
Apparently, U.S.A is one of the countries with the highest level of health care expenditure constituting over $ 8000 of the country’s annual per capita income. This health care cost is on the rise and have to be addressed from a distinct health perspective. Hospital merging refers to acquiring of one hospital by another and undertaking its activities either fully or in part to minimize costs and other operation limitations that they face in the American health sector (Ho 2007). Thus, many hospitals merge to boost their market share, acquire more patients with a view of expanding their operations and achieving greater profit margins than those firms that are run separately.
Effects of hospital mergers on healthcare costs A number of researches have been conducted on the American health expenditure using a sample of American hospitals from hospitals association in the country. In comparison, independent hospitals were useful as a control sample. These two groups of hospitals gave divergent information that was weighed against national hospital expenditure records. Findings of such studies reveal that merging of hospitals have the potential to cut down on costs of operation in similar to hospitals that operate in isolation but manage their costs effectively (Kaiser Family Foundation 2004). Additionally, very little proceeds accrue from merging of hospitals let alone not increasing influx of patients in merged hospitals.
Moreover, hospitals operating independently often register remarkably increase in the number of patients relative to merged hospitals. Most scholars have eluded that consolidating healthcare services would enhance coordination of operations and improve efficiency in service delivery (Ho 2007). Thus, patients would be served faster and discharged at minimal costs possible. Besides, through regional