Concentration in the U.S. health care sector has been on the rise over the past two decades. Starting with horizontal consolidation, it has spread to vertical mergers and acquisitions and megamergers of national players at multiple levels of the supply chain. Given the financial difficulty that many providers have suffered during the pandemic, this trend is likely to continue, reducing competition and increasing prices. In light of this danger, Congress and regulators should take steps now to more fully assess the impact and curb those combinations that adversely impact payers and patients.
The Pandemic Will Fuel Consolidation in U.S. Health Care
Congress and regulators must curb combinations that adversely affect the cost and quality of care.
March 09, 2021
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Summary.
Waves of mergers and acquisitions among the players in U.S. health care have already led to higher prices, and there is little evidence that they have resulted in efficiencies, reduce costs, and better care coordination. The financial impact of the pandemic has weakened some providers, which will undoubtedly fuel another M&A wave when the pandemic subsides. Therefore, it is crucial for Congress and regulators to take steps to understand the impact of the consolidation and take actions that prevent combinations that will adversely affect the cost and quality of care.