The healthcare market has been consolidating quickly over the last several years, with hospital mergers taking the cake for creating larger providers.
On the surface, mergers may seem like an opportunity to create benefits for consumers, including more resources for top-notch care and lower costs. However, cheaper prices aren’t a likely outcome, according to an analysis by The New York Times.
In fact, mergers eliminated competition and actually increased prices, according to the analysis which looked at 25 metropolitan areas with the highest rates of consolidation from 2010 through 2013. The average price of a hospital admission jumped between 11 percent and 54 percent in the years following mergers.
“The new research confirms growing skepticism among consumer health groups and lawmakers about the enormous clout of the hospital groups,” the report reads.
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