For years, consolidation in health care has been on the rise. Industry leaders say this leads to higher quality of care and lower costs.
But there isn’t evidence that consolidation improves care or makes it more affordable, according to an analysis from KFF, a health policy research nonprofit. A big reason is more consolidation among hospitals means less competition in the market.
“With limited competition, hospitals can sometimes charge higher prices than they otherwise would,” said Jamie Godwin, a senior analyst at KFF and co-author of the report. “And when that happens, that drives up costs for the people that ultimately pay for care – so, patients, employers, and insurers.”
Godwin said hospital consolidation is widely pronounced across the Mountain West, where many metro areas have just one or two health systems offering care. That’s the case in Carson City, Nev.; Saint George, Utah; Twin Falls and Pocatello, Idaho; Casper and Cheyenne, Wyo.; Farmington and Sante Fe, N.M.; and Greeley, Pueblo and Colorado Springs, Colo.
In 2022, national health spending totaled $4.5 trillion and is projected to keep rising. That’s hurting many families financially – 4 in 10 adults have medical debt, according to KFF.
Godwin said that’s a reason for policymakers to focus on making care more affordable, and to assess the impacts of consolidation on health care consumers.
This story was produced by the Mountain West News Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Colorado and KANW in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West News Bureau is provided in part by the Corporation for Public Broadcasting.
