CRE: Robert Wood Johnson Foundation: Position 1--Against Hospital Mergers; Position 2--For Hospital Mergers

WASHINGTON, Oct. 9, 2013 /PRNewswire-USNewswire/ -- Robert Wood Johnson Foundation has been a leading financial supporter of studies which conclude that hospital mergers lead to unjustifiable price increases. (Position 1).

One of its signature studies has been reviewed in detail by the Washington, DC regulatory watchdog the Center for Regulatory Effectiveness (CRE).  CRE has concluded that the study violates the Data Quality Act and therefore can not be used by any federal agency as a basis of making policy or issuing regulations.

On the other hand the other hand the Foundation's flagship hospital, the Robert Wood Johnson University Hospital, whose former board member is now the Chairman of the Board of Trustees of the Foundation, has now merged with another hospital. (Position 2).

CRE has sent its study to both the Department of Justice and the FTC for comment. CRE awaits a response from both agencies.

CRE also welcomes the comments of the Robert Woods Johnson Foundation, the many consultants and economists who it has funded to study hospital mergers as well as the numerous organizations it has established as operating arms of the foundation to study hospital mergers.

SOURCE Center for Regulatory Effectiveness