IMMEDIATE RELEASE
April 3, 2024
(HARTFORD, CT)- The Connecticut Office of Health Strategy (OHS) released a report “Impacts of Connecticut Hospital and Health Care System Consolidation (2016-2021),” that analyzes the impact of hospital and health care system consolidation in Connecticut from 2016 through 2021.
The study found that overall, hospital consolidation in Connecticut appears to have contributed to faster increases in health care prices and greater use of “high profit” health care services during the study period.
The study’s authors compared trends in economic outcomes for hospitals and regions where hospital consolidation occurred to those where there were no consolidations over the past five years. The study measured trends in health care prices, spending, service utilization, and facility operating outcomes, then examined how those trends changed for hospitals and regions that gained market power compared to the rest of the State.
This study was conducted by Altarum on behalf of OHS under the requirements outlined in CGS 19a-634 to develop a biennial healthcare facility utilization study and statewide healthcare facilities and services plan. This report constitutes the first phase of the project and includes an analysis of the impact of horizontal and vertical acquisitions in the CT market over the past five years.
A few key findings from the report include:
- Hospital consolidation led to faster price growth for inpatient and outpatient hospital care, particularly for services covered by private insurance.
- Between 2013 and 2021 hospital consolidation in Connecticut led to less competition for twelve hospitals and resulted in systems with fewer competitors and more power to set prices.
- Hospital consolidation was associated with more use of some high-profit services and less use of some low-profit services.
- Hospitals and health systems have fewer competitors and more power to affect healthcare costs and prices. Research has found that health care consolidation leads to higher prices and more spending for many health care needs. Patients who are uninsured, paying out-of-pocket, or have private insurance are often the most affected.
Per the statute, the second phase of the project will focus on an analysis of the Connecticut healthcare market to assess the current climate and make projections/plans and recommendations for needed facilities, services, regulations, staffing and gaps in the market that are not regulated but may need future regulation.
The findings and recommendations will inform OHS, legislators and other stakeholders on broad health system planning priorities and support the required analyses for the Certificate of Need program.
Contact: Tina Kumar-Hyde, Director of Communications
Connecticut Office of Health Strategy
Email: Tina.Hyde@ct.gov
Cell: (860) 969.7228