Over the previous 30 years, hospitals and doctor practices have been merging at an accelerated tempo, and in consequence, they’ve been capable of command larger costs for his or her companies. The highest ten largest well being techniques within the nation management virtually a quarter of the nationwide hospital market, and over 70 p.c of hospital markets across the nation have been categorized as “extremely concentrated.” Hospitals have additionally been steadily buying doctor practices. As of 2018, hospitals owned virtually half the doctor practices, and as of 2020, hospitals employed greater than half the physicians within the nation.
Supplier consolidation can have a major damaging influence on sufferers. Proof reveals that consolidation raises well being care costs, and can even worsen well being care outcomes, high quality of care, and entry to companies. Federal and state regulators can play a job in pushing again towards supplier consolidation.
To discover the effectiveness of federal and state instruments that promote market competitors and mitigate supplier consolidation, CHIR consultants interviewed federal- and state-level coverage consultants, with a specific give attention to three states with native markets which have skilled a few of the largest will increase in hospital consolidation between 2017 and 2021: Indiana (Evansville); New Hampshire (Manchester); and West Virginia (Huntington).
Drawing from background analysis and findings from these interviews, the report discusses the strengths and weaknesses of the instruments at present accessible to federal and state policymakers to deal with supplier consolidation, and supplies suggestions for a way they’ll strengthen their oversight of well being care markets.
Learn the complete problem temporary right here.
Funding for the writing and analysis of this report was offered by The Leukemia & Lymphoma Society, and LLS obtained partial help for this report from Arnold Ventures. Further publications by CHIR researchers may be discovered right here. CHIR consists of a workforce of nationally acknowledged consultants on well being reform. For extra on our work, please see our web site, weblog, and observe @GtownCHIR on X (previously Twitter.)