In Brief: Sacramento, San Francisco Most Expensive Cities In U.S. To Give Birth; ECG Acquires Kirk Salmon

Sacramento, San Francisco Most Expensive Cities In U.S. To Give Birth

Hospitals in Sacramento and San Francisco are the most expensive in the nation in which to give birth to a child, according to a new study by Castlight Health.

According to Castlight, Sacramento is the most expensive city in the U.S. to deliver a baby by routine vaginal delivery, with San Francisco second, at $15,420 and $15,204 respectively. That's more than a third more expensive than Minneapolis, the third most expensive city in the country in which to give birth, and 2.5 times the cost to have a similar birth in Kansas City, the least expensive city in the study.

The two Northern California cities are also the most expensive in the nation for Cesarean births, according to Castlight. Sacramento hospitals charge an average of $27,067, nearly quadruple the cost in Pittsburgh, PA, at $6,891.

“The birth of a child is such a special time. The fact that these huge price differences exists for maternity care is deplorable. The price variances seen in both routine and cesarean deliveries reflect the larger systemic problems in our nations’ healthcare system,” said Kristin Torres Mowat, senior vice president of Plan Development and Data Operations at Castlight Health. “Our...analysis sheds light on research that is vital to helping employers and their employees understand their benefits and get the highest quality care.”

Sutter Health and Dignity Health, both of which control a large number of hospitals in Northern California – the Bay Area and the state's capital specifically – may be in part to blame for the high prices, according to a recent report on the topic by Kaiser Health News.

ECG Acquires Kurt Salmon

ECG Management Consultants has acquired the healthcare division of San Diego-based consulting firm Kurt Salmon. The purchase price is $13 million. The transaction was consummated between ECG and Kurt Salmon's parent firm, London-based Management Consulting Group.

"Kurt Salmon's healthcare division is a natural fit with ECG, sharing a singular focus on healthcare. If you look at the expertise and capabilities of each firm, what we will be able to accomplish together for the benefit of our clients is really unmatched in the industry," said ECG Chief Executive Officer Gary Edmiston. "Coming together allows us to strengthen ECG's current suite of services and expand our offerings in strategic planning, facility and capital assets planning, and IT strategy in order to fully serve the healthcare organizations we work with."

As a result of the transaction, ECG will be opening up additional offices in Atlanta and Minneapolis, as well as a second office in its headquarters city of San Francisco. No immediate changes in staffing or senior personnel were announced.