Why big is bad in healthcare: Some interesting comments here on health system consolidation from Andrew Donahue, FHFMA, CPA, HFMA's director of health finance policy. Keep in in mind that this is someone who's extremely sympathetic to the hospital industry. First, he acknowledges that mergers "can lead to less competition, inferior service and higher prices" and goes on to say that the only driver of hospital mergers is private insurance companies giving better rates to bigger systems. In an accompanying interview on HFMA's "Healthcare Blame Game" podcast, Donahue goes even further: "Community healthy systems do not want to be megasystems...growth is not necessarily the strategic imperative...you lose local control." He talks about "megasystems" laying off local staff and cancelling contracts with local suppliers, both of which can be devastating to communities. "The corporate finger can slip off of the pulse of the local community when you have more bureaucratic layers, channels, and processes to navigate." This is a message that needs to be heard across the healthcare industry. Hospitals exist to serve communities, not corporate offices in distant locations. Corollary message: Private insurers, both for-profit and non-profit, have s***-ified the hospital industry with their contracting practices. #ethicalhealthcare #hippocraticcapitalism #hospitals #healthsystems #monopolies #antitrust
You make some excellent points and I appreciate the financial information. I can’t help but think about CEOs whose salaries are out of control, focus on fancy buildings and fancy food and customer service that adds costs. We should satisfy patients but with quality care, staff who aren’t exhausted, clean environments. There are ways to decrease cost that could improve care at the same time.
Assistant Professor, Yale School of Medicine and Director, Patient Quality and Safety, St. Raphael's Campus, Yale New Haven Health. Experienced Leader, Author, Speaker, Consultant.
1moThe corporate finger can slip off the pulse of the local community....this is the heart of it right here. Headquarters hundreds if not a thousand miles away has no clue.