In: Operations Management
Text: Health Economics: Theory, Insights, and Industry Studies (6th Edition) ( chapter 13)
Current activity in the hospital industry shows that hospitals are consolidating to form multihospital systems. Based on your reading in the text, what do empirical studies indicate concerning cost savings of multihospital systems over single hospital systems?
Why are multihospital systems expected to be cost saving?
Why would we continue to see multihospital systems forming even if cost savings are not as evident as expected?