Hospital Acquisitions Drive Healthcare Costs Up

A recent study by the National Bureau of Economic Research reveals that hospital acquisitions of physician offices lead to reduced competition and increased healthcare costs. The analysis highlights a trend where hospitals consolidate with doctors’ practices, potentially driving up prices for patients. The American Hospital Association criticized the study, calling its findings flawed. This consolidation trend raises concerns about the financial impact on the healthcare system and patients. As hospitals expand their reach by acquiring more practices, the market sees less competition, which could lead to higher prices for services. This development calls for closer scrutiny of hospital acquisition strategies and their long-term effects on healthcare costs.