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Kapp weighs in on hospital deregulation

March 9, 2017

Comments from Marshall Kapp, director of FSU’s Center for Innovative Collaboration in Medicine and Law, were included in a February news story headlined “Florida nonprofit hospitals brace for legislative battle.” The lead paragraph of the story, published in the Naples News, referred to the governor’s proposal to deregulate the health care industry and stated that nonprofit hospitals worried about its impact on their ability to care for the poor. Kapp had testified before a Florida House subcommittee on the limited research done nationally on the possible effects of deregulation.

“We’ve seen a number of hospitals go out of business for various reasons. And the advent of new hospitals coming in and competing with existing hospitals for better-insured patients may be one factor for these hospitals going out of business or being forced to merge with others,” Kapp told the News.

The story continued: “Kapp said that in states such as California and Texas, where they have gotten rid of regulation, there is some evidence of a surge in for-profit hospitals, hospices and nursing homes in years immediately after the repeal was passed. In addition, Kapp said that as the industry develops to care for as many patients as possible outside of hospitals, more competition will further squeeze nonprofits. ‘It certainly does present competition for a shrinking market,’ Kapp said.”