Massachusetts Aims to Reduce Healthcare Costs By Slowing Hospital Expansion Projects

Officials from Massachusetts Gov. Deval Patrick’s administration say they want to cut healthcare costs by scrutinizing hospital expansion applications more carefully, according to a report in the Boston Globe.

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The administration’s move is an attempt to slow the escalating competition among Boston’s teaching and suburban hospitals to establish outpatient care centers and purchase expensive imaging and testing equipment, according to the report.

Insurers favor the state’s heightened oversight, which will likely lead to more rigorous reviews of determination-of-need applications for expansions, new construction, mergers and major medical equipment purchases, according to the report.

Read the Boston Globe story on Massachusetts’ plan to rein in healthcare costs.

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