Hospital ownership of physician practices appears to lead to statistically and economically significant increases in hospital prices and spending, according to a study published earlier this year in Health Affairs.
Hospitals are one of the most expensive commercial structures to build or renovate. Before green lighting a project, hospital executives must confirm that new construction will address existing pressures, as well as attract and serve patients for decades to come.
Over the last decade, Metro Health -- an integrated health system based in and around Grand Rapids, Mich. -- has been able to set itself apart from other community hospital systems in part by its ability to access and leverage capital.
Hospital ownership of physician practices appears to lead to statistically and economically significant increases in hospital prices and spending, according to a recent study published in Health Affairs. But that doesn't mean providers should retreat from integration and tighter alignment.
Michigan-based Metro Health has been able to set itself apart from other community hospital systems in part by its ability to access and leverage capital. Metro's success offers a template for best practices in capital acquisition through strategies such as public issuance of debts and securities.