Nonprofit hospitals spend billions on consultants with no clear effect
a day ago
- #Healthcare Management
- #Consulting Impact
- #Hospital Finance
- Over 20% of nonprofit hospitals hired management consultants between 2010-2022, spending at least $7.8 billion on services.
- A study in JAMA found no significant improvements in finances, staffing, operations, or patient outcomes after hiring consultants.
- The only notable effect was a slight increase in stroke readmissions, a minor negative impact.
- When including other consultants (HR, IT), nonprofit hospital spending exceeded $25 billion during the study period.
- Researchers urge greater transparency and caution in hospital spending on consultants, highlighting the need for more evidence.
- The study aims to inform hospital leaders, policymakers, and students considering careers in healthcare consulting.