Remember when you were told how great it was going to be when hospital systems merged? Remember they were going to negotiate with insurers and other third parties to bring prices down? Ummmm……not.
But an analysis conducted for The New York Times shows the opposite to be true in many cases. The mergers have essentially banished competition and raised prices for hospital admissions in most cases, according to an examination of 25 metropolitan areas with the highest rate of consolidation from 2010 through 2013, a peak period for mergers.
Now, where do you think all that “saved” money went?
But not only have big consolidations continued, the behemoths have further cemented their reach in some regions of the country by gobbling up major doctors’ and surgeons’ practices.
I am sure that gobbling had nothing to do with the “facility fees” they were able to charge.
Listen, monopolies are bad and the worst part of the free market and capitalism. But is it really the free market or capitalism? I don’t know the answer to that. I do know that these mega-mergers causing mega-monsters are a problem. Who has an answer how to stop it?