HOUSTON COUNTY, Ga. — Houston Healthcare’s recent partnership with Emory Healthcare has sparked both anticipation and concern in Central Georgia.
While the merger promises to improve access to specialized care and enhance services, research suggests that the partnership may come with higher costs for patients.
According to a joint news release from Emory and Houston Healthcare, the merger is intended to expand services and improve efficiency. However, studies show that hospital consolidations often lead to increased prices.
A 2018 study from the National Bureau of Economic Research found that between 1996 and 2012, hospital consolidation raised prices by up to 9%, with little improvement in the quality of care.
The New England Journal of Medicine published similar findings in 2020, indicating that hospital mergers often reduce competition, allowing healthcare systems to charge more for services.
The study reviewed data from over 200 acquired hospitals and nearly 2,000 control hospitals, concluding that mergers were associated with modestly worse patient experiences.
Additionally, in 2018, Martin Gaynor, a professor of economics at Carnegie Mellon University, testified before Congress about the negative effects of healthcare consolidation.
He said mergers between close competitors typically resulted in significant price increases for hospitals and insurance providers without corresponding gains in efficiency or quality.
While Houston Healthcare and Emory Healthcare have not disclosed specific details about how the partnership will affect local patients, these studies suggest that Central Georgians may see changes in both care and costs as the merger progresses.
Houston Healthcare says the merger is still in its early stages, with more updates expected in the coming months.
13WMAZ News reached out to both Emory and Houston Healthcare for comment, and both declined to comment on the partnership.