Hospital mergers boost prices: NMa
Thursday 31 December 2009
Hospital mergers lead to higher prices because patients are unwilling to travel longer distances to a cheaper hospital, according to an unpublished report by the Dutch competition authority NMa quoted in Thursday's Volkskrant.
The NMa bases its conclusions on two hospital group mergers; one in Rotterdam and one in the Gooi region north of Hilversum.
The organisation looked at the price of hip operations carried out by the two hospital groups. Hip operations are one of the few hospital procedures for which hospitals can set their own fees. This means insurance companies can negotiate on price.
In the Gooi region, hip operations were cheaper than the national average but after the merger rose by up to 10% for some insurance companies. In Rotterdam, prices also rose after the merger, but less than in the Gooi.
This research shows that because people are unwilling to travel, hospital groups can take advantage of their regional monopolies and put up prices, the report said.
The government is keen to introduce more competition in the healthcare sector, saying it will increase patient choice and drive down costs.
© DutchNews.nl
Readers' comments
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Blame it on the patient? If a patient is to travel further for a treatment, it would drive up the cost for the patient!And, those who might to want to visit him or her at the hospital ... When you are ill, don't you want to be close to home???
By Q | December 31, 2009 10:35 AM