- A new study by the National Bureau of Economic Research indicates that hospitals acquiring private physician practices leads to reduced competition and increased costs for patients.
- Between 2008 and 2016, hospital ownership of physician practices rose by nearly 72%, resulting in significant price increases without a corresponding improvement in the quality of care.
- Experts suggest that reduced competition due to these mergers can not only drive up prices, but also potentially diminish the standard of care.
- The study found a scarcity of federal investigations into these consolidations, despite their impact on healthcare markets.
- While hospitals are major consolidators, private equity firms are also increasingly acquiring practices, leading to similar concerns about rising costs and declining quality, though some argue hospital integration can offer benefits like improved access to resources and specialized procedures.
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