And large systems have more access to the money needed for seismic retrofitting required by the state. However, bigger isn't automatically better. It's too early to predict what long-term effect consolidations will have on the stability of the industry, the quality of patient care, and employee satisfaction, experts warn. For example, a hospital system that expands haphazardly without integrating management and information systems is no better off than a hospital operating alone. It's certainly a trend.
Health care is a trend-laden industry, and there is a very strong instinct to jump on the bandwagon.
Among nonprofit organizations, there isn't evidence so far that consolidations harm communities, she said. A common fear is that consolidations result in staff reductions, Miller said. In fact, cost-cutting across the entire hospital industry is what's forcing staff reductions, even at locally controlled hospitals, Miller said. Kaiser Permanente, a major player in California and other states, is a nonprofit HMO and hospital system that has long operated its own huge network of facilities in the state. Since its formation in 1995, Santa Barbara-based Tenet has grown from around 50 hospitals to 130.