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Monday April 21st 2014

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ACA Pressures Could Be Causing CA Hospital Mergers/Sales

DoctorPiggyBankThe new federal health care law is giving millions of uninsured Americans health coverage – and many of them are expected to get long-delayed surgeries and seek other crucial medical care. So why are some hospitals up for sale or desperately seeking to align with others? One reason is that the health law pressures hospitals to reduce costs and offer better value through new rules that reward them more for the quality of care they deliver than for the number of patients they treat. “If hospitals cannot adapt and play under the new rules,” said Maribeth Shannon, a director at the California HealthCare Foundation, “it will be a challenge for them to survive, ” according to a recent report in the San Jose Mercury News.