- Pasha Healthcare
- Posts
- 🏥 Who's Really Driving Up Your Hospital Bill? Inside the Price Hikes, Policy Fights and CMS Shakeups
🏥 Who's Really Driving Up Your Hospital Bill? Inside the Price Hikes, Policy Fights and CMS Shakeups
From rising delivery costs to Congress putting value-based care at risk, plus CMS targeting hidden hospital fees, this week's healthcare updates are packed with drama and dollars.
📈 When Hospitals Hire Doctors, Prices Go Up
A new study links hospital acquisitions of physician practices to higher prices for labor and delivery services due to reduced competition.
Key Points
Hospital ownership of physician practices rose 71.5% between 2008 and 2016.
Physician integration with hospitals led to 3.3% higher hospital prices and 15.1% higher physician prices for labor and delivery.
Nearly all deals studied were below antitrust review thresholds, limiting regulatory intervention.
As of 2024, private practice participation dropped to 42.2%, while corporate ownership surpassed hospital ownership of medical groups.
Why It Matters
The growing consolidation of physician employment under hospitals and, increasingly, corporate groups raises red flags for payor negotiations, antitrust scrutiny, and downstream price inflation, even when deals are too small for formal FTC review. The competitive erosion may already be quietly shifting market leverage in favor of provider systems without triggering any regulatory alarms.
Takeaway
Healthcare leaders evaluating alignment strategies or M&A activity should consider how even sub-threshold deals can cumulatively raise rates, influence network design, and draw policy attention.