A study released yesterday found that hospital consolidation yields a variety of benefits for both patients and communities. According to the study, more integrated health systems are better equipped to control costs and improve patient care.

The study, funded by the Federation of American Hospitals and prepared by the Center for Healthcare Economics and Policy, demonstrates that hospital consolidation provides the operational efficiencies needed to adapt to the changing health care environment – one marked by “government cuts, more risk-based health insurance, and rapid adoption of electronic medical records,” as The Boston Globe notes.

Chip Kahn, president of the Federation of American Hospitals, told The Globe, “Only the larger institutions with integrated services can meet the tremendous accountability that’s required by hospitals today by Medicare, Medicaid, and private payers.”

These findings are consistent with our vision for improved health care in Massachusetts. Through our partnerships with South Shore Hospital and Hallmark Health, we can improve access to better, more coordinated care and expanded psychiatric and substance abuse services. And we can do all this while keeping care closer to patients’ homes and at lower costs.

By partnering with South Shore Hospital, we project $158.6 million in savings for commercially insured patients over eight years. On the North Shore, our expansion of primary care and community health services and information technology upgrades are expected to reduce our total medical expenses by $300 million over five years, through our partnership with Hallmark Health.

At Partners HealthCare, we’re redesigning care with the future of our patients and their families in mind. This study examines the real opportunity that exists in the health care marketplace of tomorrow, while debunking myths rooted in an old health care market that no longer exists.

Federation of American Hospitals consolidation infographicSource: Federation of American Hospitals

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