In New Jersey, Independent Hospitals Becoming Increasingly Rare
President of Holy Name in Teaneck — one of 11 independent institutions — says pressure to increase bargaining power, cut costs is driving the trend
Only 11 independent hospitals remain in New Jersey out of a total of about 75 institutions in the state. Michael Maron, president and CEO of Holy Name Hospital in Teaneck, said pressure to increase negotiating power with insurance companies and to cut costs through economies of scale have driven the wave of consolidation in the past decade.
Holy Name is one of the holdouts, and Maron hopes it can remain independent. He said the day could come when New Jersey could have only two or three chains providing hospital care in the state.
A spokesman for Trinitas Regional Medical Center in Elizabeth said that hospital has remained independent partly by partnering with larger institutions nearby on specialized care.
A recent report by the New Jersey-based Robert Wood Johnson Foundation suggested that hospital consolidation is not necessarily good for patients and insurers. The study found that consolidation has driven charges up by as much as 20 percent in some markets.
on NJTV Online, a content partner of NJ Spotlight.