We are seeing the creation of super-regional and multi-state hospital systems. Hospitals are scooping up market power all in the name of “value-based care.” – Bob Herman
Leaders of Baylor Scott & White Health and Memorial Hermann Health System said Monday they are discussing a potential merger that would create a behemoth not-for-profit system across Texas with 68 hospitals and almost $15 billion in annual revenue.
Why it matters: Hospitals have been consolidating rapidly, as executives argue bigger scale will lead to better care and lower costs. But researchshows hospitals with more market power raise prices, and these deals do not guarantee better, less expensive care.
The details: Baylor Scott & White mostly operates throughout central Texas, with a heavy presence in Dallas, while Memorial Hermann is based in Houston. Both systems also own their own health insurance companies.