Opinion: Consolidation is hurting hospitals’ supply costs, not helping them
Some people who look at hospitals' supply chain costs see an inevitable, sustained rise. Others who know how and where to look see opportunities for savings.
When health systems merge, one of the goals is to gain economies of scale, lowering costs through the bargaining power that comes from being a bigger player. Yet despite a consolidation wave in hospitals, it appears that they are paying more for supplies than they did a year ago.
In the past three years, two-thirds of the country’s leading hospital systems saw , resulting in nearly $7 billion in lost earnings. It’s.
