Cases for higher, or lower, prices
Older hospitals may buy expensive new equipment and other technology to better compete, in some cases leading to duplication of services, said Soumitra Bhuyan, executive director of health administration programs at the Bloustein School of Planning and Public Policy at Rutgers University.
Combined with NYU Langone’s investment in the new hospital, that could help push up prices for patients — although competition among hospitals also could potentially help lower prices, he said.
In addition, an academic medical center like the proposed Melville hospital generally charges more than community hospitals, he said.
Studies show that initial hospitalization costs for academic medical centers are higher, although other research indicates that, long-term, costs can be lower, possibly because of fewer complications after an initial hospital stay at an academic medical center.