More Hospitals Merging with For-profit Companies

Inauguração do Hospital Regional de São José dos Campos” by Governo do Estado de São Paulo licensed under CC BY 2.0

Source: NPR

Between 2013 and 2017, the number of nonprofit hospitals that have merged with for-profit hospitals or have been purchased by for-profit companies is at least one in every five of the 5,500 hospitals across the U.S., according to an analysis by Irving Levin Associates.

This points to the rapidly decreasing number of non-profit hospitals available to Americans across the country and an increase in the number of hospitals that will be motivated by profits above all else.

For-profit hospitals are not driven by the well-being of their communities, say health experts, but instead driven by numbers, by profit.

Out of the 4,840 general hospitals in the U.S., less than 3,000 are nonprofits and the rest of for-profit or owned by the state.

A report from Moody’s Investors Service noted that for-profit hospitals are bound to absorb more nonprofits and are “well positioned to demand higher rates from insurers” ultimately costing Americans hundreds and thousands of dollars for hospital visits.

While merging hospitals could help keep some hospitals alive by offering financial stability, health experts say that privatizing hospitals could drive up costs for patients.

Read Full Story: NPR

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