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Harsher new world for academic medical centers

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Modern Healthcare sees the merger of the University of Arizona Health Network and Banner Health as an example of responding to the tough new challenges facing academic medical centers.

”Academic centers, with their research and education missions, long have been high-cost institutions, but have been able to cover their added operating expenses through higher payment rates. Under public and private reform initiatives, where the goal is to reduce costs, these sprawling downtown hospitals are fast becoming bloated relics of another era.”Another example of the consolidate or die situation is that Emory University is talking with WellStar Health System about combining their systems  in metropolitan Atlanta.


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