Some Hospitals and Health Systems Get Bigger in Bid to Increase Efficiency and Profit Margins
Meanwhile, financial pressures mean smaller budgets for hospital laboratories
When it comes to multi-hospital health systems, the biggest are getting bigger. But many health systems are not covering their costs. These were the findings from a recent annual survey of health systems by Modern Healthcare magazine. It confirms what pathologists and clinical laboratory directors see in many regional markets.
As we wrote in Dark Daily on June 29, three factors are driving this growth trend: federal healthcare reform, mandated spending on health information technology (HIT), and the economic contraction from 2007 to 2009 that pushed smaller hospitals to merge with larger health systems. This is the analysis reported by Modern Healthcare. (See Dark Daily, Modern Healthcare’sTop 10 Largest Health System Rankings also Reveal Nation’s Largest Hospital-Based Laboratories, June 29, 2011.)
