Fierce Healthcare June 25, 2018
Vertical mergers could be the basis for healthcare’s new architecture, one antitrust expert said.
SAN DIEGO—Following several decades in which hospital megamergers went largely unchallenged by regulators, healthcare could be on the brink of a new architecture driven by vertical mergers from CVS-Aetna and Cigna-Express Scripts.
That’s according to Barak Richman, a professor of law and business administration at Duke University, who said health systems have failed to deliver on their promise to reduce costs through large mergers and by scooping up physician practices.
“Almost universally, there have been found to be price increases after hospital mergers and in some cases, quite significant price increases,” Richman said during a presentation here at the AHIP Institute & Expo.
Those mergers, which...