By Briana Vannozzi
Correspondent
Health care is entering a new era — one of mega mergers.
The newly minted, RWJBarnabas will reach nearly 5 million — more than half of New Jersey’s population — and employ roughly 30,000. The system includes 11 acute care hospitals and dozens of other facilities from Hudson and Essex down to Mercer and Ocean counties.
“As far as what’s driving it, a lot of this is happening because of both the Affordable Care Act and so much uncertainty in the market,” said Linda Schwimmer.
That’s because the law — informally known as Obamacare — put financial pressure on hospitals to provide better care at lower costs. Most analysts will agree the best way to accomplish that is often through larger systems. That’s what Barnabas Health and NJTV trustee CEO Barry Ostrowsky told NJTV News recently.
“It should enhance patient care and it should do so in a number of ways. Number one the economies of scale of a bigger organization should be able to be reinvested in extending clinical programs making them more affordable and accessible,” he said.
The potential is there, according to Renee Steinhagen with New Jersey Appleseed Public Interest Law Center. She says the trend isn’t just happening because of federal health care changes. There’s an overall push for less in-patient days going on in hospitals everywhere.
“So what you’re seeing is hospitals are going to start increasing outpatient clinics, decentralizing services and having less actual beds for acute care facilities. And that’s part of what’s going on in these mergers” Steinhagen said.
What does this mean for the consumer in terms of cost?
“Well the jury is still out on what it’s going to mean for consumers with cost and quality and accountability so there’s more questions than answers right now and the questions are will it really contain costs and will access be preserved,” said New Jersey Citizen Action Health Care Program Director Maura Collinsgru.
Executives from both health systems say the merger won’t lead to layoffs. They expect the different geographic reach will increase patients and in turn, revenue. Health care unions are cautiously optimistic though, as many mergers cut duplicate jobs and services to save money.
“And that’s why it’s important for the Department of Health to monitor this and make sure there is a system in place after these mergers do take place so that there is a check-in,” said Health Professionals and Allied Employees Public Policy Director Bridget Devane.
As one expert put it, it’s not the largeness we should be worried about, but how we hold these entities accountable to ensure the best quality and cost.