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According to new research, hospital mergers, especially cross-market mergers, have led to significant price increases for patients — findings that could impact regulatory scrutiny of future healthcare transactions.
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How mergers have impacted healthcare costs
In a new study published in American Economic Review: Insights, researchers analyzed 1,164 mergers that took place between 2000 and 2020 among the country’s 5,000 acute-care hospitals.
Overall, the researchers found that mergers increased prices by an average of 1.6% over two years. In deals that provided hospitals with significant market power under federal guidelines, prices increased by an average of 5.2%. These price increases also increased national health spending by $204 million on average in...
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