DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
Current Location:
> This Story

Log in or Register to rate this News Story
Forward Printable StoryPrint Comment



Business Affairs Homepage

Why Amazon’s winning the healthcare battle Analyzing the PillPack acquisition and other recent moves by the online retail giant

Philips to oversee strategic revamping of German-based providers Upgrading and replacing equipment in two separate partnerships

Medmo lets patients set price for radiology imaging tests A travel industry concept comes to healthcare

Bruker in deal to acquire JPK Instruments JPK makes microscopy instruments for biomolecular and cellular imaging

First radiology center opens in Zimbabwe capital to help curb shortage Currently 115 radiologists in country of 14 million people

Veritas closes $1 billion GE Healthcare software unit buy Will run newly acquired business as a stand-alone company

Onkos Surgical and Insight Medical partner to bring augmented reality to tumor surgery Could this become the new standard of care?

Praxair in deal to sell European assets to Taiyo Nippon Sanso Move is dependent on the successful closing of the Praxair-Linde merger

Precision X-Ray and Faxitron Bioptics combine business assets Forming a new global leader in biological irradiation

DaVita hit with $383.5 million jury verdict in dialysis death suit Three patients suffered cardiac arrest after getting GranuFlo therapy

The fate of health care's front lines: How U.S. mega-mergers hurt doctors and disrupt the delivery of care

By Robert E. Grant

Though there is plenty of evidence to suggest the Affordable Care Act of 2010 unleashed an epidemic of health care mega-mergers, many could successfully argue that the U.S. health care system had long been in a free fall even as far back as the 1960s. According to data from the Centers for Medicare & Medicaid Services (CMS), the implementation of Medicare and Medicaid in 1966 resulted in the rapid expansion of insurance coverage, as well as health care spending at an average annual rate of 13 percent between 1966 and 1982.

But no one can debate the fact that the U.S. health care sector has changed dramatically since then, increasing from 5 percent of the nation's gross domestic product (GDP) in 1960 to 17.4 percent in 2013. The CMS data also shows that in 2016, U.S. health care spending reached nearly $3.4 trillion, up 4.8 percent from 2015, and is projected to reach nearly $5.5 trillion by 2025, accounting for 19.9 percent of GDP. The agency attributes the increase, in large part, to America's aging population and rising prices for health care services. Moreover, the average American family of four spends $24,000 a year on health care – with little to show for it.

Story Continues Below Advertisement


Special-Pricing Available on Medical Displays, Patient Monitors, Recorders, Printers, Media, Ultrasound Machines, and Cameras.This includes Top Brands such as SONY, BARCO, NDS, NEC, LG, EDAN, EIZO, ELO, FSN, PANASONIC, MITSUBISHI, OLYMPUS, & WIDE.

Given the numbers, it is easy to understand why health systems and hospitals are falling like dominoes, merging in order to contain costs and retain market share. In 2015, as global M&As across all industries skyrocketed and set new records by exceeding $5 trillion, the health care sector emerged as the clear front-runner, leading the charge that year with a total of $723.7 billion in deals. But who benefits? While management teams cash in stock options and increased earnings per share, health care costs remain at an all-time high for patients. This cost to society is reflected in an increase of false diagnoses, an overall cheapened quality of care, longer wait times and a significantly poorer patient experience. In fact, over the last three years the average new patient doctor appointment wait time in the U.S. increased by 30 percent, according to a 2017 Merritt Hawkins survey. In large markets, the average wait time to see a doctor was 24.1 days (up 30 percent from 2014), with average wait times to see a family medicine doctor up 50 percent. As patient care is shifted from specialists to primary care practitioners, and down the line to physician assistants, then nurse practitioners and finally to places like CVS Minute Clinics, the cost curve continues to climb.

But evidence that health care M&As hurt patients, doctors, nurses and administrators alike has been mounting since the 1996 Aetna acquisition of U.S. Healthcare. In a 2004 analysis by the University of California, Berkeley, health economist, James C. Robinson, offered solid evidence that hospital and insurance mergers, in particular, almost always lead to higher costs, less efficiency and less innovation. More recent analyses, such as Hospital Consolidation and the Nurse Labor Market, written in 2015 by Emory University economist Christina DePasquale, point to large employment decreases for registered nurses and licensed nurse practitioners when two hospitals merge. In addition, her research suggests greater job loss in the years to come.
  Pages: 1 - 2 - 3 >>

Business Affairs Homepage

You Must Be Logged In To Post A Comment

Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Gold Service Dealer Program
Receive RFP/PS
Healthcare Providers
See all
HCP Tools
A Job
Parts Hunter +EasyPay
Get Parts
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to, Inc. Copyright ©2001-2018, Inc.