New Georgetown CHIR Report on the Federal and State Instruments for Responding to Supplier Consolidation and Suggestions for Strengthening Them 

Over the previous 30 years, hospitals and doctor practices have been merging at an accelerated tempo, and because of this, they’ve been in a position to command increased costs for his or her providers. The highest ten largest well being methods within the nation management nearly 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 nearly half the doctor practices, and as of 2020, hospitals employed greater than half the physicians within the nation.

Supplier consolidation can have a big detrimental affect on sufferers. Proof exhibits that consolidation raises well being care costs, and may also worsen well being care outcomes, high quality of care, and entry to providers. Federal and state regulators can play a job in pushing again in opposition to supplier consolidation. 

To discover the effectiveness of federal and state instruments that promote market competitors and mitigate supplier consolidation, CHIR specialists interviewed federal- and state-level coverage specialists, with a selected concentrate on three states with native markets which have skilled a number 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 the moment accessible to federal and state policymakers to handle supplier consolidation, and supplies suggestions for a way they will strengthen their oversight of well being care markets.

Learn the complete subject transient right here.

Funding for the writing and analysis of this report was offered by The Leukemia & Lymphoma Society, and LLS acquired partial assist for this report from Arnold Ventures. Further publications by CHIR researchers may be discovered right here. CHIR consists of a crew of nationally acknowledged specialists on well being reform. For extra on our work, please see our web site, weblog, and comply with @GtownCHIR on X (previously Twitter.)

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